Chiyoda Announces Financial Results for the Fiscal Year Ended March 31, 2008

YOKOHAMA, Japan--(Business Wire)--
Chiyoda Corporation (TOKYO:6366)(ISIN:JP3528600004), Japan's
leading engineering and construction firm, today reported its
consolidated financial results for the fiscal year ended March 31,
2008.

New contracts for the fiscal year were 258,754 million yen on a
consolidated basis, a 53.6% decrease compared with the previous fiscal
year. New contracts decreased 75.0% to 100,567 million yen overseas,
and increased 1.9% to 158,187 million yen in Japan. The backlog of
contracts as of March 31, 2008 was 670,050 million yen. Consolidated
revenues increased 24.5% to 603,559 million yen. Operating income
decreased 69.2% to 8,839 million yen, recurring profit decreased 48.0%
to 19,121 million yen and net income decreased 59.0% to 9,640 million
yen. Net income per share was 50.15 yen. Chiyoda plans to pay a
year-end dividend of 10 yen per share.

During the fiscal year ended March 31, 2008, the demand for plants
was very strong. Overseas, many new projects are being planned in
various locations as a result of growth of global-scale energy demand.
Investment in domestic refineries and petrochemical plants is becoming
active as well. Project execution, however, remains challenging,
particularly in Qatar, where plant construction is booming and the
supply of skilled construction workers remains tight.

In this severe environment, Chiyoda has exerted its best efforts
to manage increased construction costs and associated risks, with the
aim of executing the world's largest LNG plants in Qatar as originally
planned. Increased labor costs and lower productivity due to the
shortage of construction workers, much more severe than initial
predictions, have resulted in a decline in earnings. The environment
in Qatar, including tight labor supply and material cost increases, is
extraordinary and far beyond international contractors' professional
control capabilities. Other overseas and domestic projects are
generally proceeding smoothly. Construction of Train 1 of the Sakhalin
II project, the first LNG plant in Russia, was completed. In the
domestic market, Chiyoda successfully acquired many new contracts and
steadily executed ongoing projects primarily in the fields of
petroleum and petrochemicals, yielding a high level of revenues.

Regarding the fiscal year ending March 31, 2009, Chiyoda will work
to acquire new contracts, focusing on projects where the Company's
technological advantages are highly recognized while maintaining an
optimum balance with ongoing project execution. Chiyoda will also
manage the high cost of materials and the tight supply of labor in
order to execute as scheduled the three large-scale LNG projects in
Qatar (six LNG trains with an annual capacity of 7.8 million tons
each), as well as other ongoing projects in Japan and overseas.

For the fiscal year ending March 31, 2009, Chiyoda forecasts
consolidated new contracts of 450,000 million yen, revenues of 460,000
million yen, operating income of 12,500 million yen, recurring profit
of 16,000 million yen and net income of 9,500 million yen. Chiyoda
plans to pay a year-end dividend of 11 yen per share. The assumed
exchange rate is 100 yen to the U.S. dollar.

Chiyoda Corporation, headquartered in Yokohama, Japan, provides
services in the field of engineering, procurement and construction
(EPC) for gas processing, oil refineries and other hydrocarbon
processing and industrial plant projects, particularly in Gas Value
Chain areas, on a global basis including the Middle East, Russia,
South East Asian, Africa and Oceania regions. For 60 years, Chiyoda
has constantly leveraged its extensive experience and a far-reaching
global network to give it an unrivaled advantage.

Chiyoda Corporation
Ken Ito/Kenichi Aoki, +81-45-506-7538
Investors Relations and Corporate Relations Office
Fax: +81-45-506-7085
kenaoki@ykh.chiyoda.co.jp
URL: www.chiyoda-corp.com

Copyright Business Wire 2008