TOKYO, November 14, 2000--Mitsubishi Electric Corporation today announced its consolidated and non-consolidated financial results for the half-year ended September 30, 2000 as follows:

 

Consolidated:
Net sales	1.9006 trillion yen	(13% increase from last year)
Operating income	95.1 billion yen	(337% increase from last year)
Income before income taxes	125.0 billion yen	(225 times greater than last year)
Net income	75.7 billion yen

 

Non-consolidated
Net sales	1.3255 trillion yen	(12% increase from last year)
Operating income	89.0 billion yen	(338% increase from last year)
Ordinary profit	63.1 billion yen	(12 times greater than last year)
Net income	7.2 billion yen	(49% increase from last year)

The Japanese economy continued its gradual recovery during the first half of the year. In industry, growth in capital investment improved driven by increased production activity, especially in IT-related sectors. Personal consumption, however, remained low due to continued consumer unease about future employment and income prospects. Overseas, the picture was one of growth despite concerns in several countries about instability on the stock markets and soaring oil prices.

While demand was buoyant in IT-related markets and there was strong growth in demand for semiconductors and mobile phones, the Mitsubishi Electric Group took steps to strengthen its business competitiveness and improve its structure to achieve its medium-term strategy by fiscal 2002 (the year ended March 31^st, 2002) as targeted.

Cash Flow
Cash flow (income) obtained through sales activities amounted to 240.3 billion yen (an income decrease of 22.9 billion yen compared to the same period last year). Cash flow (spending) in investment activities came to 95.9 billion yen (a spending increase of 14.2 billion compared to the same period last year) due to increased capital expenditure and other factors. Free cash flow amounted to an income of 144.3 billion yen.

As a result, the balance of debt was reduced by 34.5 billion yen from the end of the previous fiscal year and the balance of cash and cash equivalents increased to 105.4 billion yen.

Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to the same period in the previous year, sales decreased by 1% to 346.9 billion yen and operating income declined 48% to 2.7 billion yen. Sales of power equipment, industrial machinery and transportation products were down from a year earlier because of weak investment in the domestic market, whereas orders for power equipment and industrial machinery increased owing mainly to overseas expansion. In the public works sectors, there was an increase in sales of electric systems for large-scale disaster prevention projects. Shipments of building systems increased for use mainly in the residential housing sector. However, sales and orders for both domestic and overseas markets were lower than the same period last year due to generally lower prices and decreased demand in China and the Middle East. As a result, total sales in the heavy machinery segment declined, and the decline in scale of business led to decreased operating income.

The Industrial Automation Systems segment experienced an increase in sales of 9% to 320.1 billion yen and operating income grew 27% to 25.5 billion yen compared to the same period last year. The industrial products business enjoyed expanded sales and orders of factory automation equipment, including programmable controllers and servo motors. An expanded domestic market triggered by higher investment in IT-related production, and broader demand in Asia contributed to growth. Sales and orders of power supply controllers also increased, benefiting from a recovery in domestic demand for buildings and increased demand for energy saving devices. Greater demand for machine tools for IT-related use in particular led to increased sales and orders of industrial mechatronics equipment. Automotive electronics saw increased sales owing to healthy exports to the North American and Asian market, and to expanded production of automobiles (especially completed cars for export). Demand for new products, such as electric power steering and control units for high-intensity discharge (HID) lamps also contributed to improved sales, causing overall sales in this segment to increase by 9% compared to the previous fiscal year. Increased revenues from industrial equipment led to increased operating income in the segment.

The Information and Communication Systems segment recorded sales of 433.1 billion yen, a 24% increase compared to the same period last year, and operating income of 8.6 billion yen was attained, a 409% increase. Telecommunications experienced sharp growth both in sales and orders received, with the increasingly rapid spread of the Internet and steady growth of the mobile phone market generating a surge in demand for optical submarine cable systems and cellular phones. On the other hand, sales and orders for information systems and services declined in spite of growth in Internet-related services. This is attributable mainly to the shutting down of the floppy disk drive business and the PC hardware business in Europe last year along with decreased sales in the information systems business. In the space business, there were large-scale orders for the MTSAT-2 (Multi-functional Transport Satellite-2), the first success by a Japanese manufacturer in an international tender for a commercial satellite for domestic use. This, together with sales for the Superbird satellite, led to increased sales and orders. Defense orders remained at last year's level, while sales decreased because of a lull in spending on large-scale projects. Overall sales in this segment were higher than the previous year by 24%, and operating income grew significantly owing to expanded revenues in the communications business and improved margins on information systems.

The Electronic Devices segment saw sales of 348.4 billion yen, a 12% increase compared to the same period last year and went into profitability with operating income at 48.5 billion yen. Both sales and orders of semiconductors rose thanks to rapid growth in the market for telecommunications systems and networks, cellular phones, and digital information devices. Devices for these markets include packaged devices incorporating SRAM/flash memory, flash memory-embedded microcontrollers, advanced system LSI, and optical devices, which are a forte of the Mitsubishi Electric Group. Liquid crystal devices experienced steady growth in demand for use in notebook PCs and monitors. While the figures for 12.1-inch monitors for notebook PCs deteriorated as a result of increased production by Korean and Taiwanese manufacturers, demand for 15.0-inch products for liquid crystal monitors increased, causing sales to remain at the previous year's level. Overall sales in this business segment showed an increase of 12% over last year. Overall operating income went into the black thanks to huge profits in the semiconductor business.

In the Home Appliances segment, compared to the same period last year, sales increased 13% to 359.7 billion yen and operating income was at 13.6 billion yen, a 79% increase. Air-conditioner sales grew, due in the main to the effects of the hot summer. Sales of consumer products were as a result higher than last year. Sales of household equipment registered an increase owing to strong growth in ventilators and new areas of business such as solar power systems. In the image data business, expanded demand for liquid crystal projectors and video copy processors led to an increase in sales. Overseas, expansion in the air-conditioning business, mainly in Europe, resulted in growth in sales over the previous year. Overall sales in this segment were up on the previous year by 13%, and operating income also registered an increase owing to a sharp improvement in profits in the air conditioner business both domestically and abroad and also in the overseas audio-visual business.

The Others segment, compared to the same period last year, experienced 2% growth in sales at 293.5 billion yen and operating income was the same at 4.2 billion yen. Sales of affiliated companies in distribution and material procurement increased over the previous year. Affiliated companies in advertising, software engineering, and maintenance also recorded sales increases. Although these affiliates benefited from increased sales and slashed expenditures, the segment as a whole had operating income similar to last year.

Dividend Policy
The mid-term dividend for the half year is 4.0 yen. (In the previous year, the mid-term dividend was 2.5 yen and the year-end dividend was 2.5 yen, yielding a total 5 yen per share dividend).

Annual Consolidated Forecast for Fiscal 2001 (The year ended Mar. 31^st, 2001)

Although IT-related demand is increasing worldwide and the US continues to enjoy strong growth, market competition has become more intensive and prices have decreased as the supply situation has eased. Given these conditions, the company intends to aggressively expand its telecommunication and Internet-related operations, such as its mobile phone and semiconductor (e.g. system LSI and flash memory) businesses, as well as to strengthen its competitiveness in core businesses, such as energy and electric systems, industrial automation systems and consumer products, by using IT.

The company's forecasts for the year ending March 31, 2001 are as follows:

* Net sales and operating income by business segment (in billions of yen)

	Forecasts for fiscal 2001		Results of fiscal 2000
	Net sales	Operating income	Net sales	Operating income
Energy and Electric Systems	890.0	39.0	882.3	39.1
Industrial Automation Systems	630.0	42.0	596.2	29.5
Information and Communication Systems	1,100.0	37.0	851.1	18.9
Electronic devices	740.0	71.0	626.7	(7.0)
Home Appliances	710.0	21.0	644.3	5.8
Others	580.0	10.0	581.0	7.1
Subtotal	4,650.0	220.0	4,182.0	93.5
Intersegment sales	(450.0)	(20.0)	(407.7)	(14.2)
Total	4,200.0	200.0	3,774.2	79.2

Non-consolidated Forecast for Fiscal 2001 (April 1, 2000 - March 31, 2001):

Additional Data: Mid-term Corporate Strategy for Fiscal 2002 (The year ended Mar. 31^st, 2002) (Consolidated)

Cautionary Statement

The expectation of operating results herein and any associated statement to be made with respect to Company's current plans, estimates, strategies and beliefs and any other statements that are not historical facts are forward-looking statements. Words such as "expects", "anticipates", "plans", "believes", "scheduled", "estimated", "targeted" along with any variations of these words and similar expressions are intended to identify forward-looking statements which include but are not limited to projections of revenues, earnings, performance and production. While the statements herein are based on certain assumptions and premises that trusts and considers to be reasonable under the circumstances to the date of announcement, you are requested to kindly take note that actual operating results are subject to change due to any of the factors as contemplated hereunder and/or any additional factor unforeseeable as of the date of this announcement.

Such factors materially affecting the expectations expressed herein shall include but are not limited to the following: (1) Any change in operating circumstances in any of the markets, in which the Company conducts its business operation inter alia Japan, the USA and Europe: such change shall include but not limited to changes in economic situation, political regime, legal system and legislation, relevant laws and regulations, administrative policies and practices by any competent authorities, taxation in any of such markets. (2) Foreign exchange fluctuations, in particular, the rate of Japanese yen against US Dollar. (3) Relative disproportion between demand and supply of any products that may affect price and volume, which could be highly intrusive in such fields like information, telecommunication, electronic devices and home appliances, without limitation thereto. (4) Shortage of any devices, components and/or parts necessary for manufacturing operation and difficulties in material procurement arising out of such shortage, which could even lead to substantial disconformity with the operating results as expected herein. Also this factor could be highly intrusive in such fields as information, telecommunication, electronic devices and home appliances, without limitation thereto. (5) Any change in technical and technological trends that may be relevant to businesses of the Company, including but not limited to IT-based or IT-related fields. (6) Any patent and its licensing that may be granted from time to time and may affect businesses of the Company. (7) Any development of products incorporating new technological innovation and the time of their introduction in the marketplace. (8) Any business alliances of any nature whatsoever, including but not limited to joint ventures, business transfers, mergers, acquisitions, capital contributions, technical licensing or co-development. (9) Any change in fund raising or procurement, inter alia in the Japanese financial market. (10) Any fluctuation in stock quotations at any relevant markets including securities exchanges and over-the counter stock markets, inter alia in Japan.

CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
April - September, 2000

(in billions of yen)

	(A) Apr. - Sept.2000	(B) Apr. - Sept.1999	(A)/(B)(%)	Fiscal 2000 (Apr. 1999 - Mar. 2000)
Net Sales	1,900.6	1,678.7	113	3,774.2
Income before Income Taxes	125.0	0.5	225 times	40.2
Net Income	75.7	(3.3)	N/a	24.8
Net Income per Share	34.30 yen	(1.54 yen)	n/a	11.57 yen

Note:
1) Consolidated financial charts made according to U.S. GAAP.
2) Company has 141 consolidated subsidiaries.
3) From the first half of this fiscal year, SFAS No. 115 has been applied.

CONSOLIDATED HALF-YEAR SALES BY PRODUCT SEGMENT
April - September, 2000

(in billions of yen)

Product Segment	(A) Apr. - Sept.2000	% of total	(B) Apr. - Sept.1999	% of total	(A)/(B) (%)	Fiscal 2000 (Apr. 1999 - Mar. 2000)	% of total
Energy and Electric Systems	346.9	16.5	348.9	18.3	99	882.3	21.1
Industrial Automation Systems	320.1	15.2	294.3	15.4	109	596.2	14.3
Information andCommunication Systems	433.1	20.6	349.2	18.3	124	851.1	20.3
Electronic Devices	348.4	16.6	311.7	16.3	112	626.7	15.0
Home Appliances	359.7	17.1	318.0	16.7	113	644.3	15.4
Others	293.5	14.0	287.5	15.0	102	581.0	13.9
Subtotal	2,101.9	100.0	1,909.6	100.0	110	4,182.0	100.0
Intersegment Sales	(201.2)	N/A	(230.9)	N/A	N/A	(407.7)	N/A
Consolidated Total Net Sales	1,900.6	N/A	1,678.7	N/A	113	3,774.2	N/A

Note:
1) In the first half of this fiscal year, business segments have been recategorized. Accordingly, segment data from previous fiscal years is redisplayed to fit the new format.
2) Intersegment sales are included in the above chart.

NON-CONSOLIDATED HALF-YEAR RESULTS OF MITSUBISHI ELECTRIC
April 1- September 30, 2000

(in billions of yen except where noted)

	(A) Apr. - Sept.2000	(B) Apr. - Sept.1999	(A)/(B)(%)	Fiscal 2000 (Apr. 1999 - Mar. 2000)
Net Sales	1,325.5	1,187.2	112	2705.0
Ordinary Profit	63.1	5.1	12 times	32.1
Net Income	7.2	4.8	149	12.2
Dividend per Share	4 yen	2.5 yen	160	5 yen
Net Income per Share	3.36 yen	2.25 yen	149	5.70 yen

MANAGEMENT POLICY

Basic Business Strategy
The global revolution in information technology (IT) is transforming society as we enter the 21^st century. Mitsubishi Electric intends to expand its IT-related operations to take full advantage of the opportunities offered by this new era and the new business environment, as well as to strengthen its business fundamentals by optimizing the distribution of management resources within the Mitsubishi Electric Group.
This policy will enable the company to further increase corporate value in order to meet the expectations of stakeholders such as shareholders and customers.

Basic Policy on Profit Sharing
Mitsubishi Electric's basic policy on profit sharing is to maintain stable dividends over the long term. Now and in the future, dividends will be decided after taking all factors into consideration, including capital investment required for business expansion, allocation and securing of in-house capital for R&D and other projects, and business performance.

IT-Based Business Strategy Leveraging Strengths of Group Companies
Mitsubishi Electric expects to achieve the targets set forth in its medium-term corporate strategy, announced in October 1999, one year ahead of the scheduled target of fiscal 2002 (the year ended Mar. 31^st, 2002). This is a result of the various management efforts of the entire Mitsubishi Electric Group despite increasingly severe market competition.

The company will focus company resources on growth areas such as IT-related businesses, and to continue to expand and increase profitability by enhancing the company's global competitiveness in core businesses.

Specifically, the company will pursue strategic business growth by focusing management resources on telecommunication systems such as next generation mobile phones (where Mitsubishi Electric group companies can leverage their lead in terms of technology and business know-how), the satellite business, system LSI, high-frequency optical devices vital to IT systems worldwide, and the semiconductor business such as flash memory for mobile appliances.

With regard to the Internet, the company will strengthen its infrastructure and other related services to swiftly put the Internet at the core of its IT strategy.

In its core businesses-electrical machinery systems, industrial products and automation equipment-the company aims to accelerate global business growth (in some cases through business tie-ups) while also maintaining stable profitability and securing cash flow by actively applying IT.

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 (FTSE: 6503q.l) 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 36 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.