Mitsubishi Electric Announces Revised Sales and Earnings Forecasts for Fiscal 2002

Business Wire, Feb 28, 2002

Business Editors

TOKYO--(BUSINESS WIRE)--February 28, 2002

Mitsubishi Electric Corporation today revised its original fiscal 2002 (April 1, 2001 - March 31, 2002) business performance forecasts made on Oct. 2001 and plans to make no dividend payment for the second half period. The revised forecasts are as follows:

Revised Forecasts for Fiscal 2002 Consolidated Results
 (Unit: 100 million yen)
----------------------------------------------------------------------
                                                  Income
                                                  (Loss)
                                    Operating     Before     Net
                          Net       Income        Income     Income
                          Sales     (Loss)        Taxes      (Loss)
----------------------------------------------------------------------
Revised Forecast (A)      35,700     (700)       (1,450)     (700)
----------------------------------------------------------------------
Original Forecast (B)     39,000      300          (200)       20
----------------------------------------------------------------------
Change (A-B)             - 3,300  - 1,000       - 1,250     - 720
----------------------------------------------------------------------
Fiscal 2001               41,294    1,953         2,104     1,247
----------------------------------------------------------------------


Revised Forecasts for Fiscal 2002 Non-consolidated Results
 (Unit: 100 million yen)
----------------------------------------------------------------------
                                    Operating    Ordinary   Net
                          Net       Income       Profit     Income
                          Sales     (Loss)       (Loss)     (Loss)
----------------------------------------------------------------------
Revised Forecast (A)      24,000     (600)       (1,050)   (1,300)
----------------------------------------------------------------------
Original Forecast (B)     27,000      100          (200)     (600)
----------------------------------------------------------------------
Change (A-B)             - 3,000    - 700         - 850     - 700
----------------------------------------------------------------------
Fiscal 2001               29,326    1,881         1,371       324
----------------------------------------------------------------------

Reasons for Forecast Revisions

Due to worsening profit recovery prospects, Mitsubishi Electric revised its full-year consolidated and non-consolidated sales and profit estimates at this time. The revisions are attributable to the serious and protracted worldwide economic downturn triggered by the sudden drop-off in demand for IT-related products, of which electronics devices (mainly semiconductors) and information and communication products (mainly mobile phones) were particularly impacted.

On a non-consolidated basis in the first half, Mitsubishi Electric recorded an extraordinary loss of 72.1 billion yen owing to restructuring costs for its North American and European mobile communications businesses. For the full-year period, Mitsubishi Electric plans to bear additional expenses to record a total of 140.0 billion yen in extraordinary losses, which is attributable to the company's specific new plan to overhaul its European and local mobile communications structures.

Dividend

Mitsubishi Electric Corporation plans to make no dividend payment for fiscal 2002. In fiscal 2001, the company issued a dividend of 4 yen in the first half and 6 yen in the second half (for a total annual dividend of 10 yen).

About Mitsubishi Electric Corporation

With over 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.

Cautionary Statement

The expectation of operating results herein and any associated statement to be made with respect to Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises that trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement.