Mitsubishi Electric Announces Dividend Policy and Revised Sales and Earnings Forecast for Fiscal 2007

Business Wire, Sept 19, 2006

TOKYO -- Mitsubishi Electric Corporation (President and CEO: Setsuhiro Shimomura) announced today its dividend policy and revised its business performance forecast for fiscal 2007.

1) Consolidated Results:
Interim Period (April 2006-September 2006)
                                         (billions of yen, percentage)
----------------------------------------------------------------------
                              Net   Operating  Income before    Net
                             Sales    Income    income taxes   Income
----------------------------------------------------------------------
Revised Forecast (A)        1,770.0      87.0          80.0      55.0
----------------------------------------------------------------------
Previous Forecast (B)       1,750.0      60.0          55.0      35.0
----------------------------------------------------------------------
Change (A-B)                   20.0      27.0          25.0      20.0
----------------------------------------------------------------------
Percentage of Change            1.1%     45.0%         45.5%     57.1%
----------------------------------------------------------------------
Fiscal 2006 Interim Actual
 Results                    1,647.8      46.0          50.7      29.1
----------------------------------------------------------------------


Fiscal Year (April 2006- March 2007)     (billions of yen, percentage)
----------------------------------------------------------------------
                              Net   Operating  Income before    Net
                             Sales    Income    income taxes   Income
----------------------------------------------------------------------
Revised Forecast (A)        3,700.0     180.0         165.0     120.0
----------------------------------------------------------------------
Previous Forecast (B)       3,700.0     175.0         160.0     105.0
----------------------------------------------------------------------
Change (A-B)                      0       5.0           5.0      15.0
----------------------------------------------------------------------
Percentage of Change            0.0%      2.9%          3.1%     14.3%
----------------------------------------------------------------------
Fiscal 2006 Actual Results  3,604.1     157.7         152.3      95.6
----------------------------------------------------------------------


2) Non-consolidated Results:
Interim Period (April 2006-September 2006)
                                         (billions of yen, percentage)
----------------------------------------------------------------------
                              Net Sales   Ordinary Profit   Net Income
----------------------------------------------------------------------
Revised Forecast (A)             1,080.0            60.0         30.0
----------------------------------------------------------------------
Previous Forecast (B)            1,050.0            30.0         20.0
----------------------------------------------------------------------
Change (A-B)                        30.0            30.0         10.0
----------------------------------------------------------------------
Percentage of Change                 2.9%          100.0%        50.0%
----------------------------------------------------------------------
Fiscal 2006 Interim Actual
 Results                           979.1            18.2         12.4
----------------------------------------------------------------------


Fiscal Year (April 2006- March 2007)     (billions of yen, percentage)
----------------------------------------------------------------------
                              Net Sales   Ordinary Profit   Net Income
----------------------------------------------------------------------
Revised Forecast (A)             2,320.0           100.0         65.0
----------------------------------------------------------------------
Previous Forecast (B)            2,270.0            75.0         50.0
----------------------------------------------------------------------
Change (A-B)                        50.0            25.0         15.0
----------------------------------------------------------------------
Percentage of Change                 2.2%           33.3%        30.0%
----------------------------------------------------------------------
Fiscal 2006 Actual Results       2,217.0            75.1         48.5
----------------------------------------------------------------------

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

Mitsubishi Electric has revised the earnings forecast for both consolidated and non-consolidated earnings for the first half and entirety of fiscal 2007. Despite effects from continuing high material prices, we expect earnings to exceed our initial forecast due to strong performances in the Energy and Electric Systems segment and the Industrial Automation Systems segment, which is facing steady demand in capital expenditures.

4) Dividend policy for fiscal 2007