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

Business Wire, March 20, 2006

TOKYO -- Mitsubishi Electric Corporation (TOKYO:6503)(President and CEO: Tamotsu Nomakuchi) announced today its dividend policy and revised its business performance forecast for fiscal 2006.

1) Forecast for Consolidated Results:
Fiscal Year (April 2005-March 2006)
Figures in the chart below represent revisions from the 3rd quarter
earnings release in February 2006.
                                                  (in billions of yen)

                       Net sales  Operating   Income before Net income
                                    income     income taxes
---------------------- --------- ------------ ------------- ----------
Revised Forecast (A)    3,560.0        157.0         152.0       95.0
---------------------- --------- ------------ ------------- ----------
Previous Forecast (B)   3,460.0        145.0         140.0       83.0
---------------------- --------- ------------ ------------- ----------
Change(A-B)               100.0         12.0          12.0       12.0
---------------------- --------- ------------ ------------- ----------
Percentage of change        2.9%         8.3%          8.6%      14.5%
---------------------- --------- ------------ ------------- ----------
Fiscal 2005 Actual
 Results                3,410.6        120.6         102.3       71.1
---------------------- --------- ------------ ------------- ----------


2) Forecast for Non-consolidated Results:
Fiscal Year (April 2005- March 2006)
Figures in the chart below represent revisions from the interim
earnings release in October 2005.
                                                  (in billions of yen)



                       Net sales  Ordinary      Net income
                                    profit
---------------------- --------- ------------ --------------
Revised Forecast (A)    2,200.0         75.0           48.0
---------------------- --------- ------------ --------------
Previous Forecast (B)   2,130.0         55.0           34.0
---------------------- --------- ------------ --------------
Change(A-B)                70.0         20.0           14.0
---------------------- --------- ------------ --------------
Percentage of Change        3.3%        36.4%          41.2%
---------------------- --------- ------------ --------------
Fiscal 2005 Actual
 Results                2,022.0         59.4           26.2
---------------------- --------- ------------ --------------

3) Reason for the earnings forecast revision

Expected expansions through solid capital investment in Industrial Automation Systems both domestic and overseas in addition to improvements in mobile handsets etc. in the domestic market have improved forecast for both consolidated and non-consolidated earnings for fiscal 2006.

4) Dividend Policy for fiscal 2006

The company plans to pay a year-end dividend of 5 yen per share, with annual dividend 8 yen.

Interim    Year end dividend    Annual
                                                             dividend
-------------------------- ------------ ------------------ -----------
Fiscal 2006                   3 yen           5 yen           8 yen
-------------------------- ------------ ------------------ -----------
Fiscal 2005 (actual)          2 yen           4 yen           6 yen
-------------------------- ------------ ------------------ -----------

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:

(1) Any change in worldwide economic and social conditions as well as laws, regulations, taxation and other legislation

(2) Changes in foreign currency exchange rates, especially yen/dollar rates

(3) Changes in stock markets, especially in Japan

(4) Changes in balance of demand and supply of products that may affect prices and volume, as well as material procurement conditions

(5) Changes in the ability to acquire financing, especially in Japan

(6) Changes in any patent and its licensing, including any dispute involving patent infringement, that may affect operations

(7) Technological change, the development of products using new technology, manufacturing and time-to-market