Kubota Corporation (Head Office: Naniwa-ku, Osaka; President & CEO: Yasuo Masumoto; hereinafter referred to as "the Company") announces as follows that the Company has received a turnkey order for effluent treatment and biogas recovery system for the treatment of the effluent generated in the palm oil producing process in Sarawak, Malaysia.

1. Overview of order

Contract date	October 18, 2012
Contract partner	BBC Biogas Sdn.Bhd This new plant will be carried out at a subsidiary of BBC Holdings (Sarawak) Sdn.Bhd.
System	Biogas recovery plant (Anearobic MBR*) and effluent treatment plant (MBR)
Place of installation	Nearby new Palm Oil Mill in Bintulu , Sarawak, Malaysia
Plant capacity	Maximum 936 tons per day
Date of operational start of Plant	Summer 2013 (planned)

• MBR: Membrane Bio Reactor, a wastewater treatment method that combines a membrane and biotreatment

2. Background

• Generally, the palm oil mill treats the effluent discharged from plants manufacturing palm oil, an important export of Malaysia and Indonesia, often do so in reservoirs (open lagoons). The diffusion into the atmosphere of global warming gas (methane gas) and water quality pollution have become significant problems.
• In recent years, consumers (purchasers) of palm oil have also demanded environmental conservation strongly and the Malaysian government has strengthened its water quality regulations for palm oil effluent so the palm oil mills are required to take prompt measures.
• The Company combined its Anaerobic MBR technology and MBR technology in order to solve these issues, has been confirming performance based on the site pilot tests for the last 2 years, and has carried out proposal activities for the introduction of system at palm oil manufacturing companies.
• The Company will take this order as an opportunity to work positively on biogas processing business in the palm oil manufacturing industry in Southeast Asia to contribute to environmental improvements and the promotion of use of renewable energy.

3. Features of Kubota system

• These are facilities that use Kubota-made membranes and enable stable treatment even under strict effluent standards. The Kubota system can stably clear a BOD figure of 20 ppm or less.
• They can also be used not only for effluent treatment, but also for renewable energy by recovering biogas.
• Kubota can supply effluent treatment system matched to customer needs due to knowledge based on the results of shochu effluent treatment in Japan and proving tests carried out locally in Malaysia for 2 years or more.

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