TOKYO--May 25, 2000--Mitsubishi Electric Corporation (President and CEO: Ichiro Taniguchi) (Mitsubishi) today announced the establishment of a subsidiary company in the Czech Republic in May 2000, as a European base for the manufacture of electrical equipment for automobiles (alternators and starters). With this new subsidiary, Mitsubishi aims to further develop its global automotive electrical equipment business. The sales target for the new company in fiscal 2003 has been set at 3.4 billion Japanese yen.

Future Developments
For the time being, the new company will supply alternators and starters to European automobile makers and plans to expand its production base in the future. Looking ahead, Mitsubishi will also consider producing car electronics.

Furthermore, in this environment of active restructuring among major automobile makers, to establish its presence as a global supplier, Mitsubishi will aggressively promote the development of automobile parts modules and the next generation of electronic automobile equipment, while remaining open to cooperation with other companies.

Outline of New Company

	(1)	Company name:	(Tentative) Melco Automotive S.R.O. (MEAC)
	(2)	Location:	Slany, Czech Republic (30 km northwest of Prague)
	(3)	Date of establishment:	May 2000, operations planned to start Feb. 2001
	(4)	Purpose of operation:	Production and sale of electrical equipment for automobiles (alternators and starters)
	(5)	Capital:	350 million Czech korunas (approx. 1.05 billion Japanese yen) (completely financed by Mitsubishi Electric Corporation)
	(6)	Directors:	2 directors to be sent from Japan
	(7)	No. of employees:	20 (end of 2000) After commencement of mass production: approx. 280
	(8)	Sales target:	3.4 billion Japanese yen in fiscal 2003

Background
The automobile industry has seen rapid globalization in recent times and there is a growing trend toward mergers and cooperation among automobile manufacturers. In view of this, it has become necessary for manufacturers of car parts to also locate their supply bases in the three key areas of Japan, the USA and Europe, and establish a quick delivery system.

Mitsubishi Electric Corporation supplies a wide variety of products to auto makers, from electronic products for automobiles and EMS (Engine Management Systems) to car audio and car navigation systems, and, recently, ITS-related (Intelligent Transportation System) products. At this time, Mitsubishi found it necessary to establish a quick electrical equipment supply framework for auto makers and thus decided to establish a supply and manufacturing plant in the Czech Republic.

The main reasons for choosing the Czech Republic are due to its position midway between western and eastern Europe, its favorable location as a distribution base, its good prospects for future growth in the East European market, and the availability of high quality manpower and aid.

With the establishment of this new company, there are now three bases for the manufacture of electrical equipment for automobiles in Japan (Himeji Works, Sanda Works and Fukuyama Works) and ten in other Asian countries, the US, and Europe (ten countries in total). This enables Mitsubishi to have a construct a fast supply framework.

*Comment: Some news reports mistakenly stated that 500,000 starters and alternators would be provided to two French automakers. The 500,000 figure is the new plant's total production capacity and is not limited to two companies.

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$35 billion in the year ended March 31, 2000. Additional information on Mitsubishi Electric Corporation is available at global.mitsubishielectric.com.