TOKYO, November 26, 1998 -- Mitsubishi Electric Corporation today announced its consolidated financial results for the half-year ended September 30, 1998.

During the six month period (April 1 - September 30, 1998), net sales amounted to 1.79 trillion yen, a 2% decrease from the same period last year. Continued competitive price pressures and costs associated with restructuring efforts weighed heavily on profits performance. Income before income taxes came to a loss of 28.4 billion yen, and a total net loss of 31.7 billion yen was recorded for the period. Following a loss before taxes of 13.7 billion yen and a total net loss of 26.1 billion yen for the first half of the previous fiscal year, these results represent the second consecutive loss for the first half period.

During the period under review, the recession gripping the Japanese economy worsened as, in addition to prolonged instability in the financial sector, personal consumption, particularly for durable goods, remained depressed while housing and capital investment also should further declines. In world markets, conditions started to take on the alarming aspect of a global recession as Russia and Asia remained mired in economic crisis and the United States' economy, an engine of expansion in recent years, began to show signs of slowing.

In the face of the above economic conditions, although Mitsubishi Electric concentrated its efforts on improving profitability, economic conditions in the company's key markets were such that a decreases in both sales and profits were unavoidable. Moving forward, the company will continue to dedicate its resources to improving long-term business performance.

Heavy Machinery saw sales decrease by 1% to 384.2 billion yen. Although exports of transformer equipment and sales of electrical equipment to manufacturers and foundries rose for the period, falling demand for elevators and escalators both overseas and at home led to an overall decline in sales for this segment.

Industrial Products and Automation Equipment experienced a decrease in sales of 6% to 309.3 billion yen. Although automotive electronics sales maintained last year's levels, sales of factory automation equipment such as programmable controllers and inverters declined due to falling demand from the semiconductor and automobile industries, which reduced capital investment during the period. In addition, there was a decline in demand for industrial products such as robots and laser processing machines. In total, this product segment saw sales figures fall below those recorded for the same period last year.

Information, Telecommunications and Electronic Systems and Devices recorded a decline in sales of 2% to 693.5 billion yen. The fulfillment of several large orders in the company's defense and space technology operations increased sales in these product categories. Sales of cellular phones and telecommunications equipment also expanded, and network services in particular posted healthy sales increases. However, the semiconductor group continued to face severe market conditions, while weak demand for plant control computer equipment brought on by capital investment cuts and falling prices in electronic device categories such as display monitors led to a fall in sales for the computer group. The entire segment recorded a slight decline for the period.

Consumer Products saw sales declined by 1% to 519.2 billion yen. Although falling prices and a reduction of overseas operations decreased revenues for audio visual products, home appliances such as refrigerators recorded solid sales and the segment as a whole experienced only a slight decline for the period.

Annual Consolidated Forecast for Fiscal 1999 (April 1, 1998 - March 31, 1999)

The company forecasts that economic conditions in the second half of the fiscal year will continue to be severe, with little improvement in personal consumption or capital investment. This view is based on several factors, including the nascent state of Japanese financial sector reform efforts and the fact that economic stimulus and relief packages proposed by the Japanese government will take time to have an effect on the economy. In addition, instability in currency and stock markets will also likely continue for the time being. Mitsubishi Electric therefore expects to continue to operate under difficult market conditions.

In the second half year period, Mitsubishi Electric will continue to proceed with measures to increase operational efficiency, expand sales and orders and improve cost competitiveness. The company is confident that these efforts will result in improved performance for the full year period.

The company forecasts the following business results for its consolidated operations in the fiscal year ending March 31, 1999:

Net sales: 3.8 trillion yen
Income before income taxes: 30 billion yen
Net income: 20 billion yen

(in billions of yen)

	(A) Apr. - Sept. 1998	(B) Apr. - Sept. 1997	(A)/(B) (%)	Fiscal 1998 (Apr. 1997 - Mar. 1998)
Net Sales	1,793.7	1,829.3	98	3,801.3
Income before Income Taxes	- 28.4	-13.7	n/a	- 52.5
Net Income	- 31.7	-26.1	n/a	- 105.9
Net Income per Share	- 14.81 yen	-12.19 yen	n/a	- 49.33 yen

(in billions of yen)

Product Segment	(A) Apr. - Sept. 1998	% of total	(B) Apr. - Sept. 1997	% of total	(A)/(B) (%)	Fiscal 1998 (Apr. 1997 - Mar. 1998)	% of total
Heavy Machinery	384.2	20	389.5	20	99	871.2	22
Industrial Products and Automation Equipment	309.3	16	327.9	17	94	647.2	16
Information, Telecommunication and Electronic Systems and Devices	693.5	37	704.9	36	98	1,473.4	36
Consumer and Other Products	519.2	27	526.5	27	99	1,046.2	26
Subtotal	1,906.3	100	1,949.0	100	98	4,038.1	100
Intersegment Sales	(112.6)	n/a	(119.6)	n/a	n/a	(236.8)	n/a
Total Net Sales	1,793.7	n/a	1,829.3	n/a	98	3,801.3	n/a
of which Overseas Sales	538.5	30	502.4	27	107	1,035.3	27