Mitsubishi Electric Announces Revised Sales and Earnings Forecasts — April 1, 2001 - March 31, 2002

Business Wire, Sept 14, 2001

Business Editors/High-Tech Writers

TOKYO--(BUSINESS WIRE)--Sept. 14, 2001

Mitsubishi Electric Corporation today announced revised forecasts, consolidated and non-consolidated, for its overall business performance in fiscal 2002 (April 1, 2001 - March 31, 2002). An interim dividend payment will not be made for the first half period.

1. Forecasts for the consolidated fiscal year 2002 results have

been revised from estimated forecasts in the Financial Results

announcement made on April 2001 as per below:

(1) First Half (April 2001 - September 2001)   (Unit: 100 million yen)

                          Net sales    Income before      Net income
                                          income
                                        taxes (loss)

Revised forecast (A)         18,000          (200)                20
Original forecast (B)        19,200            200               150
Change (A-B)                 -1,200           -400              -130
Previous (2001)fiscal
 (first half) year results   19,006          1,250               757


(2) Annual (April 2001 - March 2002) (Unit: 100 million yen)

                          Net sales     Income before      Net income
                                            income
                                         taxes (loss)

Revised forecast (A)         39,000          (200)                20
Original forecast (B)        43,000          1,200               750
Change (A-B)                 -4,000         -1,400              -730
Previous (2001) fiscal
  (annual) year results      41,294          2,104             1,247

2. Forecasts for non-consolidated fiscal year 2002 results have

been revised from estimated forecasts in the Financial Results

announcement made on April 2001 as per below:

(1) First Half (April 2001 - September 2001)   (Unit: 100 million yen)

                          Net sales      Ordinary profit    Net income
                                             (loss)           (loss)

Revised forecast (A)         12,000            (70)             (420)
Original forecast (B)        13,000            200               120
Change (A-B)                 -1,000            270              -540
Previous (2001) fiscal
 year (first half) results   13,255            631                72


(2) Annual (April 2001 - March 2002)    (Unit: 100 million yen)

                             Net sales     Ordinary profit  Net income
                                              (loss)          (loss)

Revised forecast (A)         27,000            (200)           (600)
Original forecast (B)        30,000             800             400
Change (A-B)                 -3,000          -1,000          -1,000
Previous (2001) fiscal
 year (annual) results       29,326           1,371             324

Reasons for Revised Forecast Results

In economic markets both inside and outside Japan, demand for IT-related products has been stalled and continued stagnation presently shows no sign of recovery in sight. Although the Energy and Electric Systems and Home Appliances business segments have stood firm, the outlook for profitability at other business segments has worsened, mainly in the Electronic Devices (semiconductors and others) and Information and Communications Systems (mobile phones and others) business segments. For these reasons, Mitsubishi Electric has revised its forecasts, consolidated and non-consolidated, for sales and profits in the first half and annual periods.

Furthermore, 20 billion yen for costs associated with the restructuring of the Company's North American mobile handset business and 50 billion for the streamlining of its European mobile phone business will be appropriated for an extraordinary loss in the first half period on a non-consolidated basis.

Dividend

An interim dividend payment will not be made for the first half. Dividend payment for the second half is yet to be decided.

Reference: For the previous fiscal year (2001) the dividend

payment was 4 yen for the first half and 6 yen for the second

half (for a total annual dividend of 10 yen per share).

About Mitsubishi Electric Corporation

With 80 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. The company has operations in 34 countries and recorded consolidated group sales of over US$33BN in the year ended March 31, 2001. Additional information on Mitsubishi Electric is available at www.mitsubishielectric.com.