The awards are presented to the best innovations of 2007 designed to help produces farm more efficiently and profitably.

FinOvation awards go to the most innovative products published in the Farm Industry News magazine or Web site in the past year based on reader responses and voting by a group of Team FIN farmers. The winners are recognized at the award ceremony of the National Farm Machinery Show in Louisville, Kentucky, U.S.A.

CNH is one of the largest manufacturers of agricultural and construction machinery in the world, and CNH utilizes SHIBAURA made tractors and components to complete Boomer compact series.

T2410/T2420 tractors are the biggest Boomer New Holland has ever offered. 55 and 60 horsepower, 4-cyl, 2.2 litter displacement, and turbocharged engines help them handle chores around the farm. The tractors feature EHSS, electro-hydraulic synchro or shuttle shift transmission, or standard 12_12 SSS, synchro shuttle shift transmission to work effectively through tough jobs.

Shibaura engineered Hustler brand Turf Equipment made its first successful public appearance in the U.S. market.

IHI Shibaura and Excel Industries have presented its new product line-up at 2008 Golf Industry Show, the world's largest golf course industry show held at the Orange County Convention Center in Orlando, Florida from Jan 31st - Feb 2nd.

The presentation includes a Out-Front Rotary Mower, 5 Reel Fairway Mower, and Walk-Behind Greens Mower featuring compact Shibaura engine technology, and has gathered attention from industry professionals on the quality and efficiency of the new products.

Shibaura and Excel have started to offer new technologies to the U.S. golf industry, and will introduce another line of several new products to the U.S. and global markets in the future.

IHI Shibaura Machinery Corporation(ISM) and Excel Industries, Inc.(Excel), manufacturer of Hustler Turf Equipment, are pleased to announce the establishment of a long-term strategic partnership. ISM and Excel concluded agreement on September 5th,2007. The new partnership will enable ISM and Excel to collaborate on marketing and development of multiple products, including current ISM products, and technologies to be marketed in turf and golf course industries.

Innovation and manufacturing excellence are shared attributes of ISM and Excel, and both companies will benefit by combining complementary strengths, resources, and technical expertise.

"We are excited to partner with a great company like Shibaura, as this will allow us to bring valuable new products to our customers" said Paul Mullet, chief executive officer, Excel Industries, Inc. "Shibaura has a tremendous knowledge base in diesel engines, four wheel drive systems, and reel mowers, while our strengths are in zero-turn rotary mowers and hydraulic drive systems. Without question, the collective strengths of Shibaura and Hustler Turf Equipment make us a powerful team, and we are moving forward together."

"We are very pleased to partner with Excel Industries, as they are one of the leading manufacturers of zero-turn mowing equipment, and they have a great presence in the turf care machinery industry," said Takashi Nishimura, president and chief executive officer, IHI Shibaura Machinery Corporation. "We believe that our strategy has tremendous potential, and we anticipate robust business development as we demonstrate our competitive edge now and in the future."

ISM and Excel have started implementation of a marketing and development strategy, and will introduce several new products in the US and global markets in the coming months. The strategy also includes joint development of future products across a wide range of markets and product categories.

About Excel Industries, Inc.

Zero-turn mower

Founded in 1960 and based in Hesston, Kansas, Excel Industries is a leading manufacturer of premium commercial and residential lawn care equipment, marketed under the Hustler Turf Equipment brand. Excel introduced the world's first zero-turn mower in 1964, and today has a global distribution network of over 1,000 US dealers and 20 international distributors. Additional information about Excel Industries is available at www.hustlerturf.com.

ISM started the supply of Perkins branded engines used for construction, agriculture, turf and generator sets from 1985. ISM established a joint venture company with Perkins to produce and sell the small diesel engines under ISM's engineering licence in the UK in 1995 and in the US in 2004.

With demand for emission regulation complied small diesel engines in China, ISM decided to build the third engine facility in Wuxi with Perkins under ISM's engineering licence to provide better support to local customers and more readily engine supply.

This new plant will allow us to grow our small engine business and ISM plan to supply main engine components from Japan initially.

1. Location : Wuxi National High-Tech Industrial Development Zone, Jiangsu province, China
2. Production Start : Autumn 2008 (planned)
3. Component Supply : Main components initially supplied from Japan and Europe

The above company name change follows the policy of our parent company, Ishikawajima Harima Heavy Industries Co., Ltd., which its company name change to 'IHI Corporation', effective from July 1st, 2007. The brand name of 'IHI' is already well accepted in the industry as abbreviation of 'Ishikawajima Harima Heavy Industries', and the purpose of the change is set to reinforce and integrate identity and branding of group of companies.

This company abbreviated and known as ISM was established in 1950 separated from Ishikawajima Shibaura Turbine Co., Ltd. which has been established as joint venture company invested by Ishikawajima Shipyard (current IHI) and Shibaura Engineering Works Co., Ltd.

ISM has ever delivered wide range of products with its innovative technology such as Air-cooled 4 cycle Kerosene Engines which had received honorable award given by the MITI, the first Japanese made riding tractors, and continued its effort to supply the best-in-class products such as series of compact tractors, 4&2 cycle gasoline engines, compact diesel engines, and other unique products such as fire fighting pumps, various turf care machines as well as environmental products using Ozone Gas technology.

Hereafter, with the new company name as above, and as IHI Group member, we, ISM, will take its best effort to enhance IHI brand and continue to execute the global base business plan with its innovative technology.

• About new CEO
  Name: Takashi Nishimura (Mr.)
  
  Career Summary of New CEO:
  · Born in May, 1953
  · Join IHI Shibaura in April, 1977
  · Appointed as Director and General Manager of Corporate Office in June, 2003
  · Appointed as Managing Director and General Manager of Corporate Office in June, 2004
  · Appointed as Director and Chief Operating Officer (COO) in April, 2007
• Retirement:
  As a result of appointment of new CEO, it was announced at the board meeting Mr. Katsuhiko Sasai, the former CEO, retired.

At the board meeting and the auditor's meeting held right after the General Shareholder meeting, following new administration was established and determined their new assignment to manage the next 75th business period.

<New Administration for 75th business period>
President - Takashi Nishimura
Chief Executive Officer

Director - Kei Sozuka
General Manager International Operations, Managing Executive Officer

Director - Kanji Hirabayashi
Cost & Profit Control Office, Managing Executive Officer

Director - Kunio Kobayashi
Purchasing Division, Executive Officer

Director - Kenzo Miyawaki
General Manager Turf Care Equipment Division, Executive Officer

Executive Officer - Akihiko Kitabayashi
General Manager Tractor Division

Executive Officer - Kenichi Kobayashi
General Manager Engine Division

Executive Officer - Kenichi Otsuki
General Manager Corporate Office

Executive Officer - Yuji Kamijo
General Manager Workshop Center

Executive Officer - Syuichi Kawate
General Manager Environmental & Fire Fighting Equipment Division

Executive Officer - Ryouji Takakura
General Manager, Servicing Parts Division

Executive Officer - Chiaki Kawamura
Deputy General Manager, Workshop Center

Auditor - Takashi Maya

Auditor - Ichiro Terai (IHI)

Auditor - Osamu Abe (IHI)

<Business Data for fiscal year 2006>
Net Sales ¥41,419 million (Fiscal Year ended March 31, 2007)
Profit ¥906 million (Fiscal Year ended March 31, 2007)