TOKYO, December 12, 2001--Mitsubishi Electric Corporation announced today it will establish a new company, Shanghai Mitsubishi Elevator Engineering & Technology Co., Ltd. (tentative name), in February 2002 together with Mitsubishi Electric Building Techno-Service Co., Ltd. and the Shanghai Electric (Group) Company. The new company will act as a research and development center for elevators, a manufacturing facility for leading-edge components, and conduct engineering activities.

	A.	Mitsubishi Electric will promote its new company in China as a research and development center to develop products that comply with overseas specifications and regulations. Inazawa Works (located in Inazawa City, Aichi Prefecture, Japan) will then concentrate on the development and planning of new products and leading-edge technologies.
	B.	Based on this new development organization, Inazawa Works personnel will be able to further shift their technical development capabilities toward leading-edge technologies and new products. This will enable Mitsubishi Electric to introduce state-of-the-art products into the market ahead its of competitors.

A.

Mitsubishi Electric's new company in Shanghai will manufacture leading-edge components for shipment to Chinese and overseas markets. By strengthening its worldwide elevator organization, the company's goal is to be a strong No. 1 in China and among the top elevator producers worldwide.

Business Activities
1. Research and development
The new company will begin by concentrating on application development to improve the speed and expand the capacity of current models and develop new models that comply with local requirements. With the cooperation of local universities, the new company will develop fundamental engineering skills (including software development) over time.
2. Manufacture of leading-edge components
Initially the new company will concentrate on the production of flat traction machines for shipment to Chinese and overseas markets.
3. Engineering
The new company will receive elevator/escalator orders from local customers in China (including those for export) and design accordingly for local requirements.

Background
Even in the midst of depressed demand and lower prices worldwide, the elevator industry has undergone a remarkable technology revolution in the last few years. In the current market environment, it has become necessary to invest a large amount of managerial resources into all areas ranging from development to manufacturing. To develop leading-edge technologies and new application products, highly skilled human resources and efficient development systems are urgently required and it is imperative to reinforce the cost competitiveness of basic components that use the latest technologies.
Although an increase in worldwide demand for elevators is not forecast, Mitsubishi Electric estimates the China market will see the greatest future growth. Current demand is at approximately 30,000 installations and expected to increase to 50,000 by 2006 owing to strong demand for public infrastructure and housing projects as well as special demand stemming from the Beijing Olympics.

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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