1.HZ series ozone sterilizer marketed for research facilities
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| IHI and Ishikawajima Shibaura Machinery Co. (ISM) jointly developed an
enhanced-type ozone sterilizer, the HZ series consisting of five types,
suitable for use at pharmaceutical companies, public research institutes,
and laboratories of universities. The HZ-801W, a large capacity sterilizer
of the series, was delivered to the research laboratory of Nippon Shiyaku
Co., Ltd. in February 2004. This is the first installation of a large capacity
sterilizer employed by such a laboratory in Japan. The sterilizers of the
series use ozone gas. Therefore, no residue of gas is generated, thus making
unnecessary the measurement of the concentration in the working environment.
This model can also replace ethylene oxide-gas sterilizers. IHI and ISM
will target the annual sales of 50 units of the series and the sales including
those of other related equipment. Both companies will increase the total
sales of such equipment to 2.7 billion yen from 1.3 billion yen in 2003. |

HZ-801W, a large capacity sterilizer,
delivered to Nippon Shiyaku Co. |
| 2.First swash plate bank completed for MLIT |
| IHI delivered a shore-isolation bank with piers (swash plate bank) to the
Chubu Regional Development Bureau of the Ministry of Land, Infrastructure
and Transport (MLIT) in May 2003, ordered by the bureau in January 2001.
The swash plate bank had been designed to suppress erosion of the Suruga
shore. It was completed 150m off Fujimori Chisaki in Oigawa Machi, Shizuoka
Prefecture. The bank measures approximately 150m (consisting of nine swash
plate jackets made of steel) and weighs 900 tons. IHI fabricated the swash
plate units at the Aichi Works and undertook the site assembly and erection.
In recent years, demand for swash-plate banks that allow safe and efficient
use of shores has increased according to active development in water fronts.
IHI will continue active sales of the swash plate bank based on the completion
of the first swash plate bank. |
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| 3.CALKINES Bridge completed in California, US Large suspension bridge construction
after 40 year lapse |
| A large suspension bridge, the CALKINES Bridge, was completed over San
Francisco Bay in California, US, in November 2003. The bridge is formally
called the Alfred Zampa Commemorative Bridge measuring 1,515m in total
span with the main span of 728m. This is the first bridge after a 40-year
lapse since the last construction of a large suspension bridge. IHI received
an order for fabrication of the main steel girder of approximately 10,000
tons from the US joint venture formed by two companies in March 2000. The
main girder blocks were fabricated at IHI Aichi Works and were shipped
to the construction site in March 2003. IHI had previously received orders
for over 20 bridges. IHI is now marketing large projects in the US through
the business activities of IHI California Inc. |

At left in the photo is CALKINES Bridge |
| 4.First IHI DOT shield machine overseas -- Excavation of Shanghai subway
tunnel No. 1 section completed |
| A Double O Tube type (DOT) shield tunneling machine, built by Ishikawajima-Harima
Heavy Industries Co., Ltd. (IHI), successfully completed the excavation
of No. 1 construction section of one km length, a subway tunnel (Line M
8) in Shanghai, China, in January 2004. IHI received the order for the
shield machine in May 2002, and excavation began in August 2003. The DOT
tunneling method can make tunneling work more economical and efficient.
Compared with a single tube-tunneling machine, the DOT method can reduce
the aerial ratio of the cross section and the construction period. 18 DOT
machines have been constructed in Japan, and IHI has built 12 of these
18 units. IHI will continue to market the shield tunneling machines in
China, where city traffic networks including subway construction will be
rapidly improved for the development provoked by the Beijing Olympic Games
in 2008 and the Shanghai World Exposition in 2010. |

First IHI DOT shield machine for overseas construction |
| 5.Curved moving walkway using rubber belt completed in Japan |
| IHI completed the world's first curved moving walkway made of rubber belt
in the building of the Matsumoto People's Art Gallery in Matsuomoto City,
Nagano Pref. The order for the moving walkway was placed by a joint venture
established by Takenaka, Toda, and Matsumoto civil construction companies
February 2001. The moving walkway measures 45m in length and __m in width,
and the radius and inclination are 83m and 9.6 degrees, respectively. Moving
speed is approximately 30m per minute. The moving walkway connects the
entrance hall on the first floor and the third floor. This employs a special
construction allowing the curved transfer, and stepless getting-on and
-off the moving walkway is possible as a barrier-free system. |

World's first curved moving walkway made of rubber belt |
| 6.1st order received from CSC for sizing press for hot rolling mill |
| IHI received an order for building a sizing press used in the No. 1 hot
rolling mill line from China Steel Corporation (CSC) of the Republic of
China in September 2003. This is the first order for a IHI sizing press
to be installed in the ROC. The sizing press will begin running January
2005. The sizing press will be arranged between a heating furnace and a
roughing mill. A slab from the heating furnace is sized at both sides before
reduction by the rougher. The maximum sizing width is 350mm. In March 2002,
IHI received an order of revamping and modernization of the CSC's existing
hot plate rolling mill. The total of orders for the sizing mill has now
reached 13 units: six for domestic users and seven for overseas users. |
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| Sizing press delivered to a steel producer in Japan |
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| 7.IHI and Chinese First Car Group establish turbocharger joint venture |
| Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI) and FUOU CAR REIBUKEN
CO., LTD. (FUOU) established CHOSHUN FUOU ISHIKAWAJIMA TURBOCHARGER CO.,
LTD., a joint venture to manufacture turbochargers for vehicles, in Jilin,
China, in January 2004. The new company also handles sales and after-delivery
services. The new company will start operation in the autumn of 2004. The
products will be mounted on every type of vehicle ranging from small passenger
cars to large trucks produced by First Car Group. The turbochargers will
also be marked for vehicles built by other Chinese companies. Production
of the Chinese automobile industry shows steady growth annually, which
is supported by both domestic and foreign automobile manufacturers, and
the latter intend to secure production bases in the country to market automobiles
worldwide. IHI will make efforts to increase its market share of turbochargers
in China with the strong partnership and support of First Car Group. The
new company will target sales of about 20,000 units for the first year
(2004 to 2005). This will increase to about 300,000 units in 2006 and 600,000
units in 2008. |

Signing ceremony for establishment of the joint venture
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| 8.Golden Hadron Award 2003 goes to CERN's cryogenic helium cooling unit |
The cryogenic helium cooling unit of the Conseil Europeenne pour la Recherche Nucleaire (CERN) was awarded the Golden Hadron Award 2003 in May 2003. The helium cooling unit was built by IHI for CERN in June 2002. CERN gives the award to the three most outstanding contributors to the LHC (Large Hadron Colliders) project. The award that IHI received shows that its low-temperature exhaust gas turbo-compressor was highly evaluated by CERN. The compressor is the outcome of IHI's most advanced cryogenic turbo-machinery technology boosted by R&D for many years.
* LHC projects: A plan to study elementary particles at high level is now proceeding. The study will use a tunnel of the existing LEP (Large Electron Positron Collider). Protons and protons are accelerated to collide in the accelerator. Acceleration of the protons up to 7TeV is achieved in a high magnetic field generated by the superconductive magnets. The protons can collide with a high energy of 14TeV. The phenomena which happens at this time are observed to study the fundamental particles of matter. (The start of the plan is scheduled for 2005) |

Compressor for cryogenic helium gas |
| 9.Verification tests begin on world's first kerosene-type polymer electrolyte
fuel cell system at Idemitsu |
| IHI and Idemitsu Kosan Co., Ltd. had jointly developed the kerosene-type
polymer electrolyte fuel cell (PEFC) system, and Idemitsu has started the
world's first verification tests on the kerosene-type PEFC system of 5kW
class at a commercial facility since July 2003. Commercial performance
under various conditions is now being tested, and additional improvements
will be done. The PEFC system uses kerosene as a fuel. Therefore, the system
is expected to be used at homes and in industries. IHI has delivered kerosene
type and city-gas type PEFCs for verification tests that are now being
conducted by New Energy Foundation (NEF). IHI has also developed a naphtha
reformed PEFC, and will continue to develop low-cost and high-efficiency
PEFCs for various fuels. |

Artist's view of the desalination/power plants |
| 10.Order for large cement plant received from Saudi Arabia |
| IHI and Marubeni Corp. jointly received an order for a large cement plant
from Qassim Cement Co. (QCC) of Saudi Arabia for construction of a cement
plant with a production capacity of 4,500t/d (1.35 mil. tons a year) in
September 2003. The contract is valued at about 30 billion yen. Demand
for cement is now sharply increasing in Saudi Arabia. QCC has thus launched
the project to increase production capacity by adding to existing facilities
- one 2,750t/d plant and two 2,200t/d plants. The plant will be completed
in April 2006. IHI previously completed one of the two 2,200t/d plants
with the NFS (new suspension flush furnace) system in 1987 for QCC, and
remodeled the other 2,200t/d plant (constructed by another contractor)
into the IHI NSF system in 1997. The customer has highly evaluated the
IHI NSF calcining method that increases the product quality with lower
fuel consumption. The IHI NSF system has been adopted for 112 cement plants
worldwide, gaining a high reputation among users. |

Modernization of AL AIN cement plant in UAE |
| 11.Order from Mexico for First LNG Terminal |
| A consortium formed by Ishikawajima-Harima Heavy Industries Co., Ltd. (IHI)
and ICA Fluor Corp., a leading Mexican engineering firm, has received an
order from Terminal de LNG de Altamila (TLA) for construction of a LNG
receiving terminal with a LNG storage capacity of 300,000kl (two 150,000kl
LNG storage tanks) on the EPC contract basis. This is the second order
from the overseas customer following to such terminal built for India.
IHI represents the consortium and will act as the technical leader. The
contract price is about 30 billion yen. The LNG terminal will be constructed
at Altamila Port, Tamaulipas, Mexico. Commercial operation will begin in
September 2006. This project is the first attempt for Mexico which has
similar plans to successively construct LNG terminals. Therefore, IHI will
make efforts to successfully complete construction of the terminal as planned,
targeting to receive further orders for overseas projects. |

LNG terminal built for Petronet LNG Ltd. of India |
| 12.Large wind turbine generators completed in Kyushu and Tokyo |
| IHI completed ten 1,300kW wind turbine generators (total output 13,000kW)
for the Minami Oosumi Wind Farm of Minami Kyushu Wind Power Co., Ltd. located
in Sata Town, Kimotsuki, Kagoshima, in March 2004. The wind farm at Sata
Town was completed after the first stage wind farm at Nejime Town. The
power company finally increased the power generation capacity up to 26,000kW.
On the other hand, a 1,950kW wind turbine generator for Koto Ward Office
was completed together with a study facility for the environment in March
2004. This was installed at a versatile open space within the Koto Ward
Wakasu Kaihin Park. The new installation consists of the wind turbine generator,
the study facility for the environment, and an exhibition replica placed
at the 2nd floor of the Koto Ward Office. The tower of the wind turbine
generator is 60m tall and wind blade radius is 80m. Height at the peak
point of the blade from the ground level is 100m. The size is ranked among
largest class in Japan. Everyone who visits the park can study natural
energy at the environment study facility, and see the large wind turbine
generator. This is the first time that a 2,000kW class wind turbine generator
has been installed on Tokyo Bay. |

1,950kW wind turbine generator completed
for Koto Ward Office, Tokyo |
| 13.Niigata Transsys Co. receives orders for Yurikamome vehicles and rail road
construction Total 60 Yurikamome vehicles ordered |
| Niigata Transys Co. (NTS), a subsidiary company of IHI, received orders
for 12 Yurikamome vehicles and guide rails construction from Yurikamome
Co., Ltd. (operated by the third sector of the Tokyo Metropolitan Government)
in December 2003. Yurikamome Co. will extend the Tokyo seaside new traffic
system line "Yurikamome" to Toyosu area, Koto Ward. The new order
is necessary for this project. The vehicles will be delivered at the end
of June 2005 and completion of guide rail construction is scheduled for
the end of March 2006. NTS has a large market share of vehicles used for
the new transport systems in Japan, and will supply Yurikamome Co. with
60th vehicle. |

7200 series Yurikamome vehicles |
| 14.NPS completes 5,000kW commercial gas engine |
| Niigata Power System Co., Ltd. (NPS), an IHI subsidiary company, built
a high-efficiency large gas engine rated at 5,000kW class and started performance
tests in January 2004. The gas engine is the largest class of the Advanced
Gas-engine (AG) series of the micro pilot ignition type. The AG series
uses the micro pilot ignition method based on the NPS technology. Compared
with other spark plug ignition types, the micro pilot ignition has high
ignition power, 5,000 times larger than the spark plug type. Due to this,
the gas-engine can increase power generation by 10%. R&D on the gas
engine has been carried out with full support from IHI. NPS intends to
market the 5,000kW class after sufficient verification tests to further
increase efficiency. 10 units are expected to be sold in the first year. |
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