TOKYO--July 5, 2000--Mitsubishi Electric Corporation (Mitsubishi) announced today that it will increase capital expenditure by an additional 50 billion yen in order to increase the scale of its semiconductors mainly in the system LSI area and upgrade the facilities of its factory in Saijo (Ehime prefecture). With this announcement, out of a total 240 billion yen for the Company on a consolidated basis, capital expenditure for semiconductors amounts to 150 billion yen, the highest number ever for Mitsubishi.

1. Capital Expenditure Amount

2. Breakdown of Semiconductor Capital Expenditure Plan

3. Outline of Saijo Factory Line New Facilities

Type:	0.18µm 8-inch line facilities
Production Capabilities:	From 2001, aim to process 8-inch wafers at a rate of 15,000 per month
Manufactured Items:	-Advanced system LSIs: Advanced system LSIs for digital information appliances to respond to increased demand -MCP* (Multi Chip Package): To respond to the explosive demand for MCPs used in mobile phones, the Saijo factory's SRAM capabilites will be increased and concentrated. With this, the Kumamoto factory will specialize and increase its flash memory output.

^*A combined package of flash memory and SRAM

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.