Tokyo, February 3, 1998 -- Mitsubishi Electric Corporation has announced revised projections for its overall business performance for fiscal 1998 (April 1, 1997-March 31, 1998).

Based on a preliminary analysis of the results of overall operations, the company has judged that it will be unable to meet its projections announced in November and now predicts to register an increased net loss for the fiscal year. Key factors leading to this judgment included the general slowdown of the Japanese economy, which has had a negative effect on the sales and orders of virtually all of the company's operations; further price deterioration in global markets for DRAM semiconductors, audio-visual products, and air conditioners; and costs associated with the implementation of restructuring measures in the company's semiconductor and audio-visual equipment operations.

Mitsubishi Electric is presently continuing to move forward with structural reforms designed to improve business performance and strengthen the company's financial position.

Revised non-consolidated and consolidated financial projections for Fiscal 1998 are as follows:

1. Fiscal 1998 Projections (April 1, 1997 - March 31, 1998)

(unit: 100 million yen)

	Net Sales	Ordinary Profit	Net Income
Non-consolidated	28,500	50	330
Consolidated	38,000	400	700

(Please note that in the column for Consolidated Ordinary Profit, the figure rendered is actually "Income Before Income Taxes")

2. Previous Projections for Fiscal 1998 (announced in November, 1997)

(unit: 100 million yen)

	Net Sales	Ordinary Profit	Net Income
Non-consolidated	30,000	450	100
Consolidated	40,000	350	100

(Please note that in the column for Consolidated Ordinary Profit, the figure rendered is actually "Income Before Income Taxes")

For reference: Fiscal 1997 Financial Results

(unit: 100 million yen)

	Net Sales	Ordinary Profit	Net Income
Non-consolidated	28,450	611	258
Consolidated	37,251	679	85

(Please note that in the column for Consolidated Ordinary Profit, the figure rendered is actually "Income Before Income Taxes")