May 27, 1999

FOR IMMEDIATE RELEASE
Media Contacts:
Matthew Nicholson PR Dept.
Mitsubishi Electric Corporation
Tel: 03-3218-2346
e-mail: Matthew.Nicholson@hq.melco.co.jp

MITSUBISHI ELECTRIC REPORTS 1999 FINANCIAL RESULTS

(April 1, 1998 - March 31, 1999)

TOKYO, May 27, 1999-- Mitsubishi Electric Corporation today announced its financial results for the fiscal year ended March 31, 1999.

On a consolidated basis, the company posted net sales of 3.79 trillion yen, on par with the previous year's results. However, due to such factors as extraordinary charges associated with the restructuring of overseas subsidiaries in the semiconductor, audio-visual products and personal computer fields and a company contribution to the employee pension fund for the accelerated amortization of prior service costs, income before income taxes came to a loss of 113.7 billion yen, while net income amounted to a loss of 44.5 billion yen.

On a non-consolidated basis, the parent company saw both orders and net sales fall for the period. Net sales amounted to 2.77 trillion yen, a 1% decrease from the previous year, while orders came to 2.68 trillion yen, a year-on-year decrease of 4%. Although ordinary profit was 5 billion yen, up 19% from the previous year, the extraordinary losses mentioned above brought net income to a loss of 92.5 billion yen.

In fiscal 1999, Japan's economy continued in a severe state due to factors including a drop in personal consumption and home investment caused by uneasiness about future employment and income prospects, lengthening instability in the financial sector and declines in capital investment. Internationally, as stagnation in Asian markets remained unchanged, the U.S. economy continued its expansionary tone, while in Europe, although conditions differed by country, the overall regional economy continued to grow. Yet, with the ever increasing integration of the world economy and the accompanying extreme competition and falling prices, business conditions have become increasingly severe.

With a short-term recovery topping the agenda, the Mitsubishi Electric group has striven to improve management efficiency and strengthen competitiveness while working to develop new products and increase orders. During the period, the company initiated a plan to reform its management, operational structure and corporate practices over the short term and implemented measures to strengthen the independence of its divisions and affiliated companies, to restructure its semiconductor, audio-visual and information technology operations, and to increase the corporate group's ability to respond quickly to changes in world markets. This reform effort is on-going and will be continued in the current fiscal year.

Consolidated Sales Results by Business Segment

In the Heavy Machinery group, sales increased 5% over the previous year to 912.7 billion yen. Adversely affected by falling demand in the domestic and international markets for elevators and escalators, building equipment sales declined; however, sales of power equipment such as transformers to overseas markets, combined with increased business from public projects resulting from the Japanese government's economic stimulus measures, enabled the heavy machinery group to increase sales for the period.

In the Industrial Products and Automation Equipment group, sales declined on a year-on-year basis by 6% to 608.8 billion yen. Although sales of automobile-related equipment to domestic manufacturers continued to be severely depressed as domestic auto production fell, overall auto parts sales increased slightly due to healthy growth in exports, particularly of car audio equipment, to US manufacturers. However, sales of factory automation equipment, such as programmable controllers, inverters, and servos, as well as electronic discharge machines and laser processing machines, decreased. As industrial products and mechatronics groups also experienced declines in sales volumes, sales for the entire sector fell below those recorded for the previous fiscal year.

In the Information, Telecommunications and Electronic Systems & Devices group, sales increased 1% over the previous year to 1.48 trillion yen. Although falling prices in memory chips and display monitors reduced sales of the company's semiconductor and monitor operations and declining corporate investment in information technology adversely affected the sales of the company's computer operations, communications operations saw increases fueled by expanding demand for mobile telephones and undersea fiber optic cable-related equipment. Sales in the company's space operations increased with the sales of an earth observation satellite (ADEOS-II) and a data relay satellite (DRTS-W), helping the sector to improve on its performance of the previous period.

In the Consumer and Other Products group, sales declined by 3% from a year earlier to 1.02 trillion yen. In Japan, a new refrigerator series achieved hit status, while increased concern over health issues helped the sales of indoor environment and comfort-related equipment such as the company's line of dehumidifiers. In addition, sales of air conditioning equipment in Europe continued to post strong results. However, with the poor performance of Japanese housing and non-residential starts for the period, domestic sales of ventilation and building air conditioning equipment declined. In consumer electronics operations, although the introduction of new TV and VCR products increased sales by unit volume and helped increase market share in Japan, falling prices and reductions in overseas operations contributed to the overall sales decline in this sector.

Dividend Policy

Continuing to emphasize the importance of maintaining a stable dividend, Mitsubishi Electric has determined its dividend policy for the current fiscal year after considering in total a variety of factors including the company's financial situation, business results, and management environment.

In the period under review, Mitsubishi Electric was forced to register a loss due to factors such as declines in capital investment in the factory automation and elevator/escalator markets, falling prices in the semiconductor and audio-visual products markets, and restructuring costs for both domestic and international operations. As a consequence of this severe environment, no midterm dividend payment was issued; however, with a view to maintain stable dividend payments over the long term, the company has set its year-end dividend at 3 yen per share.

Mitsubishi Electric will continue to speed along reforms of its business groups and improvements in its business results and financial situation. The company will make every effort possible to meet the expectations of its shareholders and respectfully requests their further understanding and support.

Forecasts for Next Fiscal Year

The business environment facing the company over the next fiscal year is expected to remain severe. Key factors that support this outlook include the lack of a strong surge in capital investment by the manufacturing sector, the continued stagnation in markets for semiconductor products such as DRAM (dynamic random access memory), and increased competitiveness in world markets.

In accordance with the company's midterm corporate strategy targeting the fiscal year ending in March 2002, Mitsubishi Electric, in addition to speeding up its cost structure reforms, will clearly differentiate operations to be expanded from those to be reduced and will complete the implementation of measures to address loss-making operations by the fiscal year ending in March 2001. Through these reforms, Mitsubishi Electric will do its utmost to establish an operational foundation that will enable the firm to survive and to thrive through the coming century.

Forecasted consolidated and non-consolidated results for fiscal 2000 (April 1, 1999 - March 31, 2000) are as follows:

Consolidated

Net sales	3.80 trillion yen
Operating profit	40 billion yen
Income before income taxes	20 billion yen
Net income	5 billion yen

Non-consolidated

Net sales	2.70 trillion yen
Operating profit	45 billion yen
Ordinary profit	20 billion yen
Net income	12 billion yen

1. CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

	Fiscal 1999	Fiscal 1998	'99/'98 (%)
Net sales	3,794.0	3,801.3	100
Income (loss) before income taxes	(113.7)	(52.5)	--
Net income (loss)	(44.5)	(105.9)	--
Net income (loss) per share ( in yen)	(20.75 yen)	(49.33 yen)

Fiscal 1999: April 1, 1998 - March 31, 1999

1. NON-CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

		Fiscal 1999	Fiscal 1998	'99/'98 (%)
Net sales		2,770.7	2,811.5	99
Ordinary profit		5.0	4.2	119
Net income (loss)		(92.5)	(33.8)	--
Dividend per share
	Annual dividend	3 yen	4 yen
	Interim dividend	--	4 yen
	Term-end biannual dividend	3 yen	--
Net income (loss) per share (in yen)		(43.10 yen)	(15.77 yen)

Fiscal 1999: April 1, 1998 - March 31, 1999

(in millions of yen)

	Fiscal 1999 (A)	% of total	Fiscal 1998 (B)	% of total	(A) - (B)	(A)/(B) (%)
Net sales	3,794,063	100.0	3,801,344	100.0	(7,281)	100
Cost of sales	2,914,938	76.8	2,894,947	76.2	19,991	101
Selling, general, administrative and other expenses	891,561	23.5	905,302	23.8	(13,741)	98
Operating income	(12,436)	--	1,095	0.0	(13,531)	--
Non-operating income	112,454	2.9	54,150	1.4	58,304	208
Interest and dividends	24,346	0.6	26,593	0.7	(2,247)	92
Other income	88,108	2.3	27,557	0.7	60,551	320
Non-operating expenses	213,794	5.6	107,759	2.8	106,035	198
Interest and discount paid	49,861	1.3	42,869	1.1	6,992	116
Miscellaneous losses	163,933	4.3	64,890	1.7	99,043	253
Income (loss) before income taxes	(113,776)	--	(52,514)	--	(61,262)	--
Income tax	(58,089)	--	34,104	0.9	(92,193)	--
Profit (loss) on equity method	11,139	0.3	(19,302)	--	30,441	--
Net income (loss)	(44,548)	--	(105,920)	--	61,372	--

Fiscal 1999: April 1, 1998 - March 31, 1999

(in millions of yen)

	Fiscal 1999 (A)	Fiscal 1998 (B)	(A) - (B)
(Assets) Current assets	2,306,436	2,594,200	(287,764)
Cash and cash equivalents	367,983	421,574	(53,591)
Short-term investments	103,120	220,778	(117,658)
Trade receivables	990,067	970,153	19,914
Inventories	609,459	724,958	(115,499)
Prepaid expenses and other current assets	235,807	256,737	(20,930)
Long-term receivables	34,834	16,870	17,964
Investments	459,048	380,681	78,367
Net property, plant and equipment	907,389	939,211	(31,822)
Other assets	481,020	307,037	173,983
Total assets	4,188,727	4,237,999	(49,272)
(Liabilities and shareholders' equity) Current liabilities	1,925,833	2,234,842	(309,009)
Current portion of long-term debt	751,245	993,841	(242,596)
Trade payables	734,234	791,020	(56,786)
Employee and other deposits	440,354	449,981	(9,627)
Fixed liabilities	1,688,163	1,344,424	343,739
Minority interests	34,119	33,868	251
Shareholders' equity	540,612	624,865	(84,253)
Capital	175,813	175,813	--
Capital surplus	210,637	210,637	--
Retained earnings	319,082	363,630	(44,548)
Accumulated other comprehensive income (loss)	(164,920)	(125,215)	(39,705)
Total liabilities and stockholders' equity	4,188,727	4,237,999	(49,272)

Fiscal 1999: April 1, 1998 - March 31, 1999

1. Sales by Product Segment

(in billions of yen)

	Fiscal 1999			Fiscal 1998			(A)/(B) (%)
Product Segment	Sales (A)	% of total	Operating profit (loss)	Sales (B)	% of total	Operating profit (loss)
Heavy Machinery	912.7	23	50.1	871.2	22	53.1	105
Industrial Products and Automation Equipment	608.8	15	39.9	647.2	16	50.3	94
Information, Telecommunication and Electronic Systems and Devices	1,482.3	37	(98.1)	1,473.4	36	(80.5)	101
Consumer and Other Products	1,019.1	25	(4.4)	1,046.2	26	(21.9)	97
Sub Total	4,023.1	100	(12.4)	4,038.1	100	1.0	100
Intersegment Sales	(229.1 )	--	--	(236.8)	--	--	--
Total Net Sales	3,794.0	--	(12.4)	3,801.3	--	1.0	100

Fiscal 1999: April 1, 1998 - March 31, 1999

1. Sales by location segment

( in billions of yen)

	Fiscal 1999		Fiscal 1998		A/B (%)
	Sales (A)	Operating profit (loss)	Sales (B)	Operating profit (loss)
Domestic	3,429.7	18.0	3,440.3	34.0	100
Overseas	955.0	(31.5)	982.6	(33.2)	97
Total	4,384.7	(13.5)	4,422.9	0.8	99
Intersegment Sales	(590.7)	1.1	(621.6)	0.2	--
Total Net Sales	3,794.0	(12.4)	3,801.3	1.0	100

Fiscal 1999: April 1, 1998 - March 31, 1999

1. Overseas Sales

(in billions of yen)

	Fiscal 1999		Fiscal 1998		A/B (%)
	Sales (A)	% of total net sales	Sales (B)	% of total net sales
North America	359.4	9	347.1	9	104
Asia (except Japan)	368.9	10	425.4	11	87
Europe	240.5	6	199.2	5	121
Others	75.8	2	63.5	2	119
Total overseas sales	1,044.7	28	1,035.3	27	101

Fiscal 1999: April 1, 1998 - March 31, 1999

1. Non-Consolidated Financial Results

(in billions of yen)

		Fiscal 1999	Fiscal 1998	'99/'98 (%)
Net sales		2,770.7	2,811.5	99
Ordinary profit		5.0	4.2	119
Net income (loss)		(92.5)	(33.8)	--
Dividend per share
	Annual dividend	3 yen	4 yen
	Interim dividend	--	4 yen
	Term-end biannual dividend	3 yen	--
Net income (loss) per share (in yen)		(43.10 yen)	(15.77 yen)
Orders received		2,683.1	2,790.6	96

Fiscal 1999: April 1, 1998 - March 31, 1999

2. Orders Received by Product Segment

(in billions of yen)

	Fiscal 1999		Fiscal 1998		(A)/(B) (%)	Orders Remaining at Term End
Product Segment	Sales (A)	% of total	Sales (B)	% of total
Heavy Machinery	612.2	23	658.3	23	93	493.4
Industrial Products and Automation Equipment	513.0	19	553.1	20	93	8.6
Information, Telecommunication and Electronic Systems and Devices	1,228.0	46	1,223.6	44	100	512.0
Consumer Products	329.8	12	355.6	13	93	25.1
Total Net Sales	2,683.1	100	2,790.6	100	96	1,039.3
Of Which Exports	625.9	23	597.4	21	105	--

Fiscal 1999: April 1, 1998 - March 31, 1999

3. Sales by Product Segment

(in billions of yen)

	Fiscal 1999		Fiscal 1998		(A)/(B) (%)
Product Segment	Sales (A)	% of total	Sales (B)	% of total
Heavy Machinery	689.2	25	636.8	23	108
Industrial Products and Automation Equipment	526.1	19	557.5	20	94
Information, Telecommunication and Electronic Systems and Devices	1,229.8	44	1,266.2	45	97
Consumer Products	325.4	12	350.7	12	93
Total Net Sales	2,770.7	100	2,811.5	100	99
Of Which Exports	662.5	24	656.9	23	101

Fiscal 1999: April 1, 1998 - March 31, 1999

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About Mitsubishi Electric Corporation

With more than 75 years of experience in providing reliable, high- quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. With operations in 34 countries, Mitsubishi Electric Corporation recorded consolidated group sales of over US$28 billion in 1998. Additional information on Mitsubishi Electric Corporation is available at global.mitsubishielectric.com.