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

Business Wire, March 26, 2007

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

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Previously forecasted sales increased by 120 billion yen due to continued strength in demand for capital investment in Industrial Automation Systems as well as growth in Home Appliances, Energy and Electric Systems, etc., with operating income expected to increase by 50 billion yen. As for Other expenses, we expect to report approximately 42 billion in yen in expenses relating to various competition law matters involving DRAM in the United States and gas insulated switchgears in Europe. Although no determination has been rendered in any of these matters, the Company has decided to set reserves for any contingent liabilities.

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Net profit for this fiscal year is expected to fall by 25 billion yen from the previous forecast. Although ordinary profit increased by 30 billion yen over the previous forecast, we expect to report an extraordinary loss from expenses related to competition laws, etc. (same value as consolidated expenses).

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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:

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About Mitsubishi Electric

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 (TOKYO:6503) 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 building equipment. The company recorded consolidated group sales of 3,604 billion yen (US$ 30.8 billion(a)) in the fiscal year ended March 31, 2006.

For more information visit http://global.mitsubishielectric.com

(a) At an exchange rate of 117 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2006.

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