Mitsubishi Electric Announces Revised Sales and Earnings Forecasts: April 1, 2000-March 31 2001

Business Wire, Sept 25, 2000

Business Editors

TOKYO--(BUSINESS WIRE)--Sept. 25, 2000

Mitsubishi Electric Corporation (President and CEO: Ichiro Taniguchi) today announced revised forecasts, consolidated and non-consolidated, for its overall business performance in fiscal 2001 (April 1, 2000--March 31, 2001) for the first half and annual period along with its interim dividend forecast.

1. Forecasts for consolidated fiscal year 2001 results have been revised from estimated forecasts in the Financial Results announcement of May 2000.

(1) First Half (April 2000-September 2000)    (Unit: 100 million yen)
                             Net Sales   Income Before   Net Income
                                         Income Taxes      (Loss)
Revised Forecast (A)          18,800        1,250           750
Original Forecast (B)         17,500          600           400
Change (A-B)                   1,300          650           350
Previous (2000) Fiscal
 Year (First Half) Results    16,787            5           (33)

(2) Annual (April 2000-March 2001)            (Unit: 100 million yen)
                             Net Sales   Income Before   Net Income
                                         Income Taxes
Revised Forecast (A)          42,000        2,000         1,200
Original Forecast(B)          39,000        1,150           750
Change (A-B)                   3,000          850           450
Previous (2000) Fiscal
 Year (Annual) Result         37,742          402           248

      2. Forecasts for non-consolidated fiscal year 2001 results have
been revised from estimated forecasts in the Financial Results
announcement of May 2000.

(1) First Half (April 2000-September 2000)    (Unit: 100 million yen)
                             Net Sales  Ordinary Profit  Net Income
                                                           (Loss)
Revised Forecast (A)          13,000          600            70
Original Forecast (B)         12,000          100         (250)
Change (A-B)                   1,000          500           320
Previous (2000) Fiscal
 Year (First Half) Results    11,872           51            48

(2) Annual (April 2000-March 2001)            (Unit: 100 million yen)
                             Net Sales  Ordinary Profit  Net Income
Revised Forecast (A)          29,500        1,150           320
Original Forecast(B)          28,000          600            50
Change (A-B)                   1,500          550           270
Previous (2000) Fiscal
 Year (Annual) Results        27,050          321           122

Reasons for Revised Forecast Results

Due to the continued good performance of mobile phones carried over from the previous year and greater demand for semiconductors, which includes increased demand for PC-related products and the tight supply-demand situation for mobile phone memory and optical devices, sales figures are shifting to be greater than initially forecast. Furthermore, supported by increased demand for IT-related capital expenditures, sales of factory automation products increased and due to hot weather, air conditioners also met increased sales. As a result, almost all business segments are expected to have greater net sales than initially forecast.

Profitability is expected to be greater than initially forecast due to increased operating profits stemming from increased net sales.

In the first half of this fiscal year, the company contributed certain marketable equity securities as an employee retirement benefit trust. As a result, in annual profit figures, 66.9 billion yen was contributed to consolidated income before income taxes and 38.8 yen was contributed to consolidated net income.

Dividend

Mitsubishi Electric plans to make a dividend payment of 4 yen per share for the first installment of its biannual dividend payment. Dividend payment for the second half of the current fiscal year is yet to be decided.

(Reference) For the previous fiscal year (2000), the dividend payment was 2.5 yen for the first half and 2.5 yen for the second half (for a total annual dividend of 5 yen per share).

About Mitsubishi Electric Corporation

With more than 75 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (FTSE: 6503q.l) is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. With operations in 36 countries, Mitsubishi Electric Corporation recorded consolidated group sales of over US$35 billion in the year ended March 31, 2000. Additional information on Mitsubishi Electric Corporation is available at www.mitsubishielectric.com.