Issue of Equity

RNS Number:9166Q
Kajima Corporation
15 October 2003


                                 (Translation)


                                                                October 15, 2003


To whom it may concern:


KAJIMA CORPORATION

Sadao Umeda, President and Representative Director
(Code Number 1812, First Sections of Tokyo Stock
Exchange, Osaka Stock Exchange and Nagoya Stock
Exchange)
Attn.: Yoshiyuki Uno, General Manager,
Finance Department, Treasury Division
(Tel.: [phone])





           ANNOUNCEMENT OF ISSUANCE OF NEW SHARES BY PUBLIC OFFERING



       The Board of Directors of Kajima Corporation (the 'Company'), at its
meeting held on October 15, 2003, resolved that the Company issue new shares by
public offering pursuant to the following terms.


Issuance of new shares by public offering


1.Number of shares to be issued


      96,000,000 shares of common stock


2.Issue price


      To be determined on the price fixing date (any day between October 22,
2003 (Wednesday) and October 24, 2003 (Friday)), in accordance with the method
as set forth in Article 7-2 of the Fair Business Practice Regulations No. 14 of
the Japan Securities Dealers Association.


3.Amount of issue price not to be capitalized


      Amount to be obtained by deducting the amount to be capitalized from the
issue price determined pursuant to 2. above; the amount to be capitalized means
one half of the issue price rounded upward to the nearest Yen.


4.Method of offering


      Public offering. Daiwa Securities SMBC Co. Ltd., Nomura Securities Co.,
Ltd., Mizuho Securities Co., Ltd., Mitsubishi Securities Co., Ltd. and Nikko
Citigroup Limited will subscribe for and purchase all new shares to be issued.

      Offer price for the public offering shall be determined taking into
account the demand for new shares. The price indicated for the purpose of
investigating the demands is an amount equal to the amount which is between 90%
and 100% (rounded downward to the nearest Yen) of the last reported sales price
of the Company's shares on the Tokyo Stock Exchange, Inc. on the price fixing
date (if there is no last reported sales price on such date, the last reported
sales price on the day immediately preceding such date shall be used).


5.Fees to be paid to underwriters


      No underwriting commission will be paid to the underwriters. Disparity
between the aggregate of offer price for the public offering and the aggregate
of the issue price paid by the underwriters to the Company shall be for the
account of the underwriters.


6.Subscription period


      From October 27, 2003 (Monday) to October 29, 2003 (Wednesday). However,
the period may be moved forward taking into account the demand for new shares.
The earliest subscription period will be from October 23, 2003 (Thursday) to
October 27, 2003 (Monday).


7.Payment date


      Any day between October 31, 2003 (Friday) and November 5, 2003
(Wednesday). As described in 6. above, the subscription period may be moved
forward taking into account the demand for new shares, and the earliest payment
date will be October 31, 2003(Friday).


8.Dividend accruing date


      Dividend with respect to the new shares shall start to accrue on October
1, 2003 (Wednesday).


9.Unit of shares for subscription


       1,000 shares.


10.   The Company authorizes the President and Representative Director to
determine the issue price, the amount of issue price not to be capitalized and
other items necessary for issuance of new shares.


11.   Each of the above items shall be subject to the condition that the
registration under the Securities and Exchange Law becomes effective.





1. Changes in the number of issued and outstanding shares upon the scheduled
capital increase by public offering


Current number of issued and outstanding shares: 961,312,022 shares

(as of October 15, 2003)

Number of additional shares to be issued upon public offering: 96,000,000 shares

Number of issued and outstanding shares after public offering: 1,057,312,022
shares


2.Use of funds


  (1)Use of proceeds from the share offering


The entire amount of the estimated net proceeds from the capital increase,
39,604 million yen, will be used for investment in stand-alone projects
including development projects and PFI projects.


   (2)Changes in use of funds previously procured


Not applicable.


   (3)Prospects for the effect on business performance


The Company expects that it will help improve its future business performance
through accelerated business expansions into strategic areas.


3.Distribution of profits to shareholders


   (1)Basic policy on distribution of profits


The Company's basic policy on distribution of profits is to pay stable
dividends to the shareholders and distribute profits according to the business
results, while ensuring retained earnings to maintain sound business
infrastructure.


   (2)Determination of dividends


Pursuant to the policy described in (1) above, the amount of dividends will be
determined in view of the Company's business results and future business
environment, etc.


   (3)Use of retained earnings


The Company intends to apply the retained earnings to business investments and
loans, etc. and utilize them for improvement of the Company's profitability and
diversitification of its profit-making sources.            


   (4)Dividends for the preceding three fiscal years

                   Fiscal year ended    Fiscal year ended    Fiscal year ended
                      March 31, 2001       March 31, 2002       March 31, 2003
Net income or               7.41 yen          (49.72) yen             8.86 yen
loss per share
Dividend per                   7 yen                7 yen                5 yen
share
Dividend payout                 94.4%                  -%                 56.4%
ratio
Return on                        2.9%                  -%                  4.4%
equity
Dividend yield                   2.5%                 3.3%                 2.6%

  Notes:

1. Net income or loss per share are the net income or loss for the fiscal year
divided by the average number of shares during the fiscal year.

2. Return on equity is the net income for the fiscal year divided by shareholder's
equity (the average of the total shareholder's equity at the beginning of
the fiscal year and the total shareholders' equity at the end of the fiscal
year).

3. Dividend yield is the aggregate of annual dividends for the fiscal year
divided by shareholder's equity (total shareholder's equity at the end of the
fiscal year).

4. For the fiscal year ended March 31, 2002, the dividend payout ratio and
return on equity are not provided because of net loss for the period.

5. From the fiscal year ended March 31, 2002, the amount of the treasury stock
is deducted from the shareholders' equity, and the net income or loss per share
is calculated after deducting the number of the treasury shares from the number
of issued shares.

6. From the fiscal year ended March 31, 2003, the Company applies the Accounting
Standards for Net Income Per Share (Accounting Standard No. 2) and the
Guidelines for Application of Accounting Standards for Net Income Per Share
(Guidelines for Application of Accounting Standard No. 4) in calculating the net
income per share.


  (5)Compliance with the rules concerning distribution of profits


Not applicable.


4.Others


  (1)Designation of allottees


Not applicable.


   (2)Dilution due to latent shares


Not applicable.


   (3)Equity finance during the preceding three years


     (i)Implementation of equity finance

Not applicable.


     (ii)Share prices during the preceding three fiscal years and the current
fiscal year.
            Fiscal Year      Fiscal Year      Fiscal Year      Fiscal Year
            ended March 31,  ended March 31,  ended March 31,  ending March 31,
            2001             2002             2003             2004
Opening            285 yen          337 yen          323 yen           220 yen
price
High               365 yen          469 yen          390 yen           438 yen
price
Low price          238 yen          295 yen          216 yen           218 yen
Closing            341 yen          318 yen          219 yen           425 yen
price
Price/          46.0 times                -       24.7 times                 -
earnings
ratio

              Notes:

1. For the share prices of fiscal year ending March 31, 2004, the prices up to
October 14, 2003 are provided.

2. Price/earnings ratio is the closing share price at the end of the fiscal year
divided by the net income per share for such fiscal year.

3. For the fiscal year ended March 31, 2002, the price/earnings ratio is not
provided because of net loss for the period.


   (4)Others


              Not applicable.



Note: This document is a press release for public announcement of the Company's
issuance of new shares, and not intended to serve as a solicitation for
investment. Investors considering investment in the Company's shares are
requested to read the Registration Prospectus for Share Offering (including
amendments thereto) prepared by the Company before making their investment
decisions.






                      This information is provided by RNS
            The company news service from the London Stock Exchange

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