To the Board of Directors and Stockholders of
Kobe Steel, Ltd.

We have examined the accompanying consolidated balance sheets of Kobe Steel, Ltd.  and its 
consolidated subsidiaries at March 31, 1996 and 1995 and the related consolidated statements of 
operations, stockholders' equity and cash flows for the years then ended, all expressed in 
Japanese yen.  Our examinations were made in accordance with generally accepted auditing 
standards in Japan and, accordingly, included such tests of the accounting records and such 
other auditing procedures as we considered necessary in デュエルビッツ vipircumstances.

  In our opinion, デュエルビッツ viponsolidated financial statements mentioned above, expressed in Japanese 
yen, present fairly デュエルビッツ viponsolidated financial position of Kobe Steel, Ltd.  and its consolidated 
subsidiaries at March 31, 1996 and 1995 and デュエルビッツ viponsolidated results of their operations and 
cash flows for the years then ended, in conformity with generally accepted accounting principles 
in Japan which, except for デュエルビッツ viphange, with which we concur, in a consolidated subsidiary's 
method of accounting for deferred factory start up costs as explained in Note 3, applied on a  
consistent basis during the period.

  We have provided advice and counsel to Kobe Steel, Ltd.  as to principles of accounting 
under International Accounting Standards promulgated by the International Accounting 
Standards Committee.  In our opinion, the accounting policies set out in Note 2 of the Notes to 
Consolidated Financial Statements are in accordance with International Accounting Standards in 
all material respects, except as described in Note 4 of the Notes to Consolidated Financial 
Statements.

  We have also reviewed the translation of the statements mentioned above into U.S.  dollars 
on the basis described in Note 1.  In our opinion, such statements have been properly translated 
on such basis.

Osaka, Japan                                           
June 27, 1996                                                Member Firm of Andersen Worldwide