Tokyo, March 30th, 1998 -- Mitsubishi Electric Corporation announces its plan to reform the existing Information & Communication Systems Group from April 1st in order to increase its agility for the fast changing Information & Communication marketplace.

1. Objective & Outline of the Reform

The business of Information Systems & Communication Systems are both expected to grow rapidly, and making them one of the core businesses of Mitsubishi Electric by its development and reinforcement is considered vital. The existing Information & Communication Systems Group was established in 1987, and since, the company has forwarded the Group's reinforcement by facilitating the necessary technologies and business bases for both Information & Communication Systems together. However, in order to further expand both businesses, Mitsubishi Electric has decided to divide the group into two separate groups of Information Systems, and Communication Systems. This will create two highly aware and developed business groups with the ability to promptly respond to the market's needs. For the customers who require systems with Information/Communication or Broadcast/Communication integrated, Mitsubishi Electric assures to continue providing such one-dimensional solutions.

1. Reinforcement of the Communication Systems Business The Communications Systems market is facing rapid expansion of network system, reorganization of communication carriers, and deregulation. Mitsubishi Electric intends to take this as an opportunity to expand its communication unit as one of the company's core businesses, and its measures will be as follows:-
1. Increase the market share in wire communication by reinforcing its ATM and optical technologies, where demand increase is expected due to the growth in multimedia and international communication networks.
2. Reinforce agility in the global market for the mobile telephone terminal, including base stations which reinforces its systems business.
2. Reinforcement of the Information Systems Business The Information Systems market is expected to its high growth, and the following measures will be taken to increase the business' profitability
1. Reinforce and expand the platform business, centering on thin/light mobile computers and high-efficiency/high-reliability servers.
2. Promote Internet/Intranet business for integration with Computer Communication Audio-Visual (CCV), and reinforce the multimedia business.

3. Date of Effect

Exhibit