Mitsubishi Electric Announces Dividend Policy and Revised Sales and Earnings Forecast for Fiscal 2006

Business Wire, Sept 20, 2005

TOKYO -- Mitsubishi Electric Corporation (President and CEO: Tamotsu Nomakuchi) announced today its dividend policy and revised its business performance forecast for fiscal 2006.

1)  Consolidated Results:

Interim Period (April 2005-September 2005)        (In billions of yen)

                            Net Sales    Income before   Net Income
                                          income taxes
--------------------------- ------------ --------------- -------------
Revised Forecast (A)            1,610.0            50.0          28.0
--------------------------- ------------ --------------- -------------
Previous Forecast (B)           1,600.0            30.0          20.0
--------------------------- ------------ --------------- -------------
Change (A-B)                       10.0            20.0           8.0
--------------------------- ------------ --------------- -------------
Fiscal 2005 Interim Actual
 Results                        1,607.9            32.0          19.0
--------------------------- ------------ --------------- -------------


Fiscal Year (April 2005-March 2006)               (In billions of yen)

                            Net Sales    Income before   Net Income
                                          income taxes
--------------------------- ------------ --------------- -------------
Revised Forecast (A)            3,460.0           140.0          83.0
--------------------------- ------------ --------------- -------------
Previous Forecast (B)           3,450.0           120.0          75.0
--------------------------- ------------ --------------- -------------
Change (A-B)                       10.0            20.0           8.0
--------------------------- ------------ --------------- -------------
Fiscal 2005 Actual Results      3,410.6           102.3          71.1
--------------------------- ------------ --------------- -------------


2)  Non-consolidated Results:

Interim Period (April 2005-September 2005)        (In billions of yen)

                            Net Sales    Ordinary Profit Net Income
--------------------------- ------------ --------------- -------------
Revised Forecast (A)              970.0            18.0          12.0
--------------------------- ------------ --------------- -------------
Previous Forecast (B)             900.0             5.0           5.0
--------------------------- ------------ --------------- -------------
Change (A-B)                       70.0            13.0           7.0
--------------------------- ------------ --------------- -------------
Fiscal 2005 Interim Actual
 Results                          928.2            22.2           7.0
--------------------------- ------------ --------------- -------------


Fiscal Year (April 2005-March 2006)               (In billions of yen)

                            Net Sales    Ordinary Profit Net Income
--------------------------- ------------ --------------- -------------
Revised Forecast (A)            2,130.0            55.0          34.0
--------------------------- ------------ --------------- -------------
Previous Forecast (B)           2,100.0            55.0          28.0
--------------------------- ------------ --------------- -------------
Change (A-B)                       30.0             0.0           6.0
--------------------------- ------------ --------------- -------------
Fiscal 2005 Actual Results      2,022.0            59.4          26.2
--------------------------- ------------ --------------- -------------

3) Consolidated and non-consolidated results: explanation for the forecast revision

We have revised the earnings forecast for both consolidated and non-consolidated earnings for the first half and entirety of fiscal 2006, because we expect earnings to exceed our initial forecast due to increased sales in the Industrial Automation Systems segment, which is experiencing growth from large capital expenditures both domestically and overseas, in addition to efforts to improve productivity and continued cost reductions, etc.

4) Dividend Policy for fiscal 2006

The company plans to pay an interim dividend of 3 yen per share, with the year-end dividend undecided (Fiscal 2005 interim and year-end dividends were 2 and 4 yen respectively).

Cautionary Statement

The expectation of operating results herein and any associated statement to be made orally with respect to the 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 the Company 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. Such factors materially affecting the expectations expressed herein shall include but are not limited to the following: