AREVA and MHI Enlarge Their Cooperation to Nuclear Fuel Business

JCN Newswires, April 11, 2008

Tokyo, Japan, Apr 11, 2008 - (JCN Newswire) - AREVA, the world leading group in the nuclear energy field, and Mitsubishi Heavy Industries, Ltd. (MHI), a major player in global nuclear industry, have decided to enlarge their cooperation to the new area of fuel business.

Anne Lauvergeon, CEO of AREVA, met today with Kazuo Tsukuda and Hideaki Omiya, respectively Chairman and President of MHI, in Tokyo. Anne Lauvergeon and Kazuo Tsukuda signed a Memorandum Of Understanding to contemplate the establishment of a joint business organization for supply of PWR, BWR, MOX and Gas Reactor fuels. The implementation of this formation is expected by the end of this year.

The scope of this cooperation agreement will focus on the Japanese market. According to the MOU, both parties will discuss MHI's potential investment in AREVA's US nuclear fuel fabrication facility.

They noted also that joint development work of their new reactor, ATMEA 1, has made good progress targeting the completion of its basic design by the end of 2009, that design review by third parties is planned and that customer visits have already been started by ATMEA.

AREVA and MHI have also decided to work jointly on the South African tender for which AREVA proposed two EPRs, extending the manufacturing cooperation initiated for the Finnish Olkiluoto 3 EPR.

AREVA CEO Anne Lauvergeon noted, "Thanks to the good and efficient relationship developed between two companies for many years, and strengthened in working together to design ATMEA 1, cooperation in the fuel business is a natural next step to develop our relationship. I have high expectations on the results that can be achieved by combining the skills and know-how of MHI and AREVA professionals".

MHI President Hideaki Omiya stated, "MHI supplies nuclear fuel for 23 PWR nuclear power plants constructed by the company. Introducing AREVA's BWR nuclear fuel technology, the joint business formation will be supplying fuels for both domestic BWR nuclear power plants and the PWR plants. By putting together our forces, MHI and AREVA are expecting to deliver high quality fuel to their customers, and to contribute to make the nuclear renaissance sustainable."

About Mitsubishi Heavy Industries

Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 3,068 billion yen in fiscal 2006 (year ended March 31, 2007). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at http://www.mhi.co.jp

Source: Mitsubishi Heavy Industries

Contact:

Mitsubishi Heavy Industries
Hideo Ikuno
Daiya PR (for MHI)
h.ikuno@daiya-pr.co.jp
 81-3-6716-5277

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