FIVE-YEAR SUMMARY

Mitsubishi Electric Corporation and Subsidiaries

1. In order to be consistent with financial reporting practices generally accepted in Japan, operating income is presented as net sales less cost of sales and selling, general, administrative and other expenses. Under accounting principles generally accepted in the United States of America, restructuring costs are included as part of operating income.
2. R&D expenditure includes elements spent on quality improvements, which constitute manufacturing costs.
3. U.S. dollar amounts are translated from yen at the rate of ¥118=U.S.$1, the approximate rate on the Tokyo Foreign Exchange Market on March 31, 2007.
4. The Company has 148 consolidated subsidiaries and 43 equity-method companies as of March 31, 2007.

The business environment in the fiscal year ended March 31, 2007 saw a general underlying strength in the global economy, supported by a continued recovery in Europe, despite the fact that there were worries about stagnation in the latter half of the fiscal year. The Japanese economy remained steady, with a recovery in the corporate sector marked by strong capital expenditure and overseas demand offsetting lackluster consumer spending.

Under these conditions, the Mitsubishi Electric Group has engaged in structural reforms that respond to changing operating circumstances in order to increase and strengthen profitability in each business segment under its "make strong businesses stronger" strategy. The Group has also continued to strengthen production and sales systems both in domestic and overseas markets by establishing and reinforcing operating bases, as well as by strengthening its competitive edge through business alliances and other initiatives.

In addition, we have been carrying out extensive companywide improvement activities such as reducing inventory and increasing productivity through our "Just In Time" activities, as well as continuing the cost-reducing A-Sigma 21 Program. We are also strengthening our competitive edge through the appropriate allocation of human resources (HR) and by optimizing our HR structure.

As a result, in the fiscal year ended March 31, 2007, the Mitsubishi Electric Group recorded consolidated net sales of ¥3,855.7 billion, operating income of ¥233.0 billion, income before income taxes of ¥184.8 billion and net income of ¥123.1 billion.