TOKYO, November 21, 2001--Mitsubishi Electric Corporation announced today it will establish Mitsubishi Elevator Korea Co., Ltd. with Mitsubishi Electric Building Techno-Service Co., Ltd. and Mitsubishi Corporation. The new company is scheduled to begin operations Dec. 1, 2001 and will carry out sales, installation, and maintenance of Mitsubishi Electric's elevators and escalators in the Korean market.

Re-entry into the Korean Market
Mitsubishi Electric will target the Korean market mainly with its high-quality and high-speed model elevators, a strength of the company. By fortifying the reputation of its products and presence in the Korean market, Mitsubishi Electric expects to expand its scale of orders.
   Furthermore, through the introduction of remote monitoring systems that provide quick service, Mitsubishi Electric will gain greater customer satisfaction in the maintenance field, which will lead to an expansion in service contracts.

Background
1. In 1978, Mitsubishi Electric entered the Korean domestic elevator and escalator market by conducting sales activities through Shinkwang Electric Corporation (now LG Industrial Systems Co., Ltd.). However, due to Otis Elevator Corporation's acquisition of LG Industrial Systems, Mitsubishi Electric withdrew from the Korean market.

2. Although market demand for elevators and escalators fell by 10,000 installations in one year as a result of the Asian currency crisis in 1997, the Korean economy and demand for elevators and escalators has recovered steadily since. According to Mitsubishi Electric estimates, demand for installations will be steady at 15,000 per year in the near future, which will make Korea the No. 3 market in Asia after China and Japan, and No. 7 worldwide.

3. As re-entering the huge Korean market is an essential part of Mitsubishi Electric¡s global elevator and escalator strategy, the company resumed sales activities via its Korea branch office in October 2000. During this period, Mitsubishi Electric received many prominent orders such as the "Samsung T3 Project" which includes building the highest building in Korea, and the "Su-Won Station Project" in Su-Won city, a site of the 2002 FIFA World Cup.

4. Based on orders from these projects, Mitsubishi Electric ascertained that clients in Korea still think highly of the company¡s product quality and continue to have a trust-based relationship fostered by past sales activities. Accordingly, Mitsubishi Electric has decided to establish a new company in Korea to begin more localized business activities.

Profile of Mitsubishi Elevator Korea Co., Ltd.
The new company will import finished production goods from Mitsubishi Electric's Inazawa Works in Japan and Mitsubishi Elevator Asia Co., Ltd. in Thailand. Sales, installation, and maintenance activities will be conducted in Korea.

About Mitsubishi Electric Corporation
With 80 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. The company has operations in 34 countries and recorded consolidated group sales of over US$33BN in the year ended March 31, 2001. Additional information on Mitsubishi Electric is available at global.mitsubishielectric.com.

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