TOKYO, April 26, 2002--Mitsubishi Electric today announced its financial results for the fiscal year ended March 31, 2002 as follows:

Consolidated:
Net sales	3.6489 trillion yen (12% decrease from last year)
Operating income	- 68.0 billion yen
Income before income taxes	- 155.1 billion yen
Net income	- 77.9 billion yen
Non-consolidated:
Net sales	2.4093 trillion yen (18% decrease from last year)
Operating income	- 62.5 billion yen
Ordinary profit	- 109.5 billion yen
Net income	- 143.6 billion yen

During the period under review, Mitsubishi Electric faced an extremely difficult business environment. In the context of the simultaneous global economic slowdown, Japan saw significant declines in corporate manufacturing and capital investment while consumer spending was weak. In addition, the sharp and significant drop in IT-related demand led to an increase in inventories which was accompanied by major production adjustments, causing prices to fall sharply.

Under these circumstances, Mitsubishi Electric implemented management improvement activities such as "EA21," a plan to efficiently utilize assets and minimize fixed costs, the "Sigma 21 Project," a plan to promote a dramatic reduction in procurement costs, a mid-term plan to strengthen productivity by revising information systems, and "Diamond Quality 2000," a plan that focuses on improving product quality. Via these and other activities, the Company made efforts to improve business results by reducing capital expenditures, implementing emergency expense reductions, efficiently utilizing assets, minimizing fixed costs, enhancing product quality and increasing productivity.

In particular, with its semiconductor business, Mitsubishi Electric suspended and integrated production lines, made significant personnel cuts and reduced capital investment. With its mobile phone business, the Company stepped up procurement cost reductions and other expense reduction measures while restructuring its production scheme.

Meanwhile, in the year under review, Mitsubishi Electric strengthened the profitability of its core business areas: energy and electric systems, industrial automation systems and home appliances.

Cash Flow
In the period under review, cash flow (income) resulting from operating activities amounted to 113.4 billion yen (a 282.5 billion yen decrease compared to the same period last fiscal year) due to a decline in revenues.

As a result free cash flow in the period under review was negative at 70.7 billion yen after deducting cash flow (spending) in investment activities of 184.1 billion yen.

Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to the same period in the previous year, sales increased by 1% to 920.6 billion yen and operating income increased 17% to 46.5 billion yen.
Due to a decrease in capital expenditures of power companies in Japan, orders for power equipment were lower than the previous year but thanks to growth in international businesses sales increased. Reflecting the severe demand environment, sales and orders for industrial machinery were lower than the previous year. With transportation equipment, orders were lower year-on-year but owing to business growth outside Japan, sales were higher compared to the same period last year. Orders and sales in the public works sector were higher than last year due to expansion in government-related information communications systems.
In building systems there was a decrease in orders and sales year-on-year, attributable to slackening demand and price deterioration in the Japanese market, reduced demand in the Middle East (one of the main international markets) and a delayed market recovery in the ASEAN region.
As a result, sales revenue in the business segment increased 1% compared to the same period last year.
Even with price deterioration, operating income for the segment increased thanks to improvements in cost cutting measures.

The Industrial Automation Systems segment experienced a 9% decrease in sales to 600.5 billion yen and operating income fell by 39% to 33.1 billion yen compared to the same period last year.
Compared to the previous fiscal year, both orders and sales declined for industrial equipment products as factory automation related products (such as programmable controllers and servo motors) experienced slackening demand in Japan owing to a sharp drop in capital investment for IT-related equipment and reduced demand in international markets (mainly the US and Asia). Furthermore, due to lower Japanese demand for production facility, building and construction related projects, orders and sales for both electric motors and power supply controllers were lower compared to the same period last fiscal year. In industrial mechatronics products, orders and sales were lower than the previous period as demand for machine tools (mainly IT-related) decreased both in Japan and abroad.
Orders and sales for automotive equipment were lower than last year due to decreased production among major automobile production customers and lower prices.
As a result, sales revenues decreased by a total of 9% in the segment compared to the same period last year.
Operating income for the segment decreased year-on-year owing to lower sales, price deterioration and other factors.

In the Information and Communication Systems segment, sales fell 18% to 762.5 billion yen compared to the same period last year and an operating loss of 90.2 billion yen was recorded.
Both orders and sales for the communications business decreased year-on-year amidst the worldwide decline in demand for mobile handsets and communication companies' restricted investment in infrastructure.
For the information and systems and services business, network services (mainly Internet-related) expanded but systems sales geared to small and middle-sized businesses decreased, bringing sales levels lower compared to the same period last year.
Due to an absence of concentrated large-scale projects compared to the same period last year, both orders and sales decreased for the space business. For defense-related equipment, sales remained at the same level as last year but orders were lower owing to a lull between large-scale projects.
As a result, sales revenues decreased by 18% in the segment compared to the same period last year.
Operating income went into the red for the segment mainly due to worsening profitability conditions in the overseas mobile handset business.

The Electronic Devices segment recorded sales of 470.2 billion yen in the period under review, a 34% decrease year-on-year and there was an operating loss of 80.5 billion yen.
For semiconductor operations, both sales and orders were lower than the previous year. This is attributable to reduced demand for major products such as SRAM and flash memory packages for the Japanese mobile handset market, fiber optic network devices geared mainly to the North American market, advanced system LSIs for servers, and optoelectronics.
In the liquid crystal display business, orders and sales fell compared to the previous fiscal year due to the increased production of Taiwanese and Korean makers, which caused excessive supply and market price deterioration.
As a result, compared to the previous period last fiscal year, sales revenues fell by 34% for the business segment.
The segment fell into the red due to the greatly reduced profitability of semiconductor operations.

In the Home Appliances segment, compared to the same period last year, sales decreased by 1% to 726.1 billion yen and operating income was 37.1 billion yen, a 30% increase.
Thanks to growth in television sales and home air conditioners (due to hot weather in Japan), home appliances and audio-visual sales were higher than in the same period last year. Residential equipment sales decreased compared to the previous fiscal year mainly because of sluggish demand in Japan for facility-related equipment (mostly ventilation fans). The cooling and heating equipment business met lower sales than last year due to inactive Japanese market demand and sluggish sales for cooling and heating equipment. The visual information business met lower sales compared to the same period last fiscal year due to a lack of growth in projectors and other visual-related products. Outside Japan, sales were higher year-on-year as air conditioning systems (mainly in Southeast Asia) and large projection TVs in the US enjoyed growth.
As a result, sales revenues for the business segment decreased by 1%.
Owing to strong sales overseas and other factors, operating income for the segment increased compared to the previous fiscal year.

In the Others segment, compared to the same period last year, sales decreased 5% to 569.7 billion yen and operating income decreased 10% to 8.5 billion yen.
Sales for real estate and system maintenance related businesses of affiliates increased year-on-year but subsidiaries involved in distribution, material procurement, information communication services and advertising met a decrease in revenues.
As a result, sales decreased 5% for the segment as a whole.
Operating income fell for the business segment owing mainly to reduced revenue at affiliates.

Dividend Policy
In view of the current loss recorded as shown and the resulting decline in internal reserves, regrettably, Mitsubishi Electric will not pay an annual dividend. Instead, the Company believes that working to preserve the company's soundness and making the utmost efforts to strengthen the financial structure and improve earnings capacity will meet the expectations of shareholders in the long term.

The Mitsubishi Electric Group is united to counter the current bleak economic environment and move toward an early recovery in business results.

Forecast for Next Fiscal Year
In terms of the future business environment, anticipation of an early recovery in the economy has been building with a recovery in exports and the end of inventory adjustments in Japan amidst the appearance of signs that the US economy has bottomed out. However, in the immediate future, factors such as declining capital investment and the deterioration of the employment environment will become more advanced. This means that uncertainty about a recovery in final demand will persist, and the bleak business environment is estimated to continue for the time being.

In these circumstances, the Mitsubishi Electric Group will work towards an early recovery in business results and improvement of its financial structure by carrying out structural reforms, including those for its semiconductor and mobile phone businesses, and further promote business improvement strategies.

Forecast results for the fiscal year ended March 31st 2003, are as follows.

Consolidated:
Net sales	3.7000 trillion yen (1% increase year-on-year)
Operating income	65.0 billion yen
Income before income taxes	45.0 billion yen
Net income	25.0 billion yen
Non-consolidated:
Net sales	2.4500 trillion yen (2% increase year-on-year)
Operating income	50.0 billion yen
Ordinary profit	40.0 billion yen
Net income	20.0 billion yen

Note: The forecast of results above is based on assumptions deemed reasonable by the Company at the present time, and actual results may differ significantly from forecasts

MANAGEMENT POLICY

Management Policy
Last year, Mitsubishi Electric Corporation and its subsidiaries adopted a new corporate statement: "Changes for the Better." It signifies the Company's commitment to creating a "better tomorrow" by enhancing the quality of life in all areas.

With this corporate stance, Mitsubishi Electric will respond to the rapidly changing business environment and develop a range of business improvement strategies based on the three perspectives of "Growth," "Profitability & Efficiency" and "Soundness" in order to quickly establish a firm business foundation.

Based on this strategy, Mitsubishi Electric will further improve its corporate value to satisfy the expectations of all stakeholders, including customers and shareholders.

Policy for Profit Sharing
With the ultimate objective of increasing corporate value, Mitsubishi Electric's basic strategy seeks to comprehensively improve shareholders' profits, both in terms of a distribution of profits in accordance with earnings in the relevant fiscal year, and by strengthening the financial structure through increasing internal reserves.

Policy on Reducing Minimum Stock Purchase Requirement
While Mitsubishi Electric recognizes that securing more long-term and stable investors is an important managerial issue to enhance corporate value, the option of reducing the minimum stock purchase requirement will be carefully considered in line with overall judgement based on analysis of effects and expenses.

Structural Reform for Short-term Improvement in Business Results, Promotion of Business Improvement Strategies
The Mitsubishi Electric Group will strengthen its businesses by building on structural reforms made last year, including ones for the semiconductor and mobile phone businesses, and promote business improvement strategies. The goal is a short-term improvement in business results and financial structure and to establish a firm business foundation.

Specifically, in addition to improving businesses by having them go through the "selection and concentration" process and making decisive structural reforms in the Company's semiconductor and the mobile phone businesses, Mitsubishi Electric will further promote active consideration of strategic alliances with other companies.

Mitsubishi Electric will strive to further improve profitability and competitiveness by creating optimum business models and accelerate the global development of business in energy and electric systems, industrial automation systems and home appliances.

Moreover, the Company's goal is to establish a business structure that can withstand the rapidly changing business environment by improving managerial activities. This includes efficiently utilizing assets, minimizing fixed costs and reducing procurement expenses in order to support strategies for improving earnings in all businesses.

Structural Reform of Management Organization
The company set up the Corporate Strategy & Management Office on April 1, 2002 to strengthen the Mitsubishi Electric Group's consolidated business structure and promote overall business structural reform. Another goal is to increase dissemination of Company information to better serve the needs of stakeholders.

CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS

1. CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

	Fiscal 2002	Fiscal 2001	'02/'01 (%)
Net sales	3,648.9	4,129.4	88
Income before income taxes (loss)	(155.1)	210.4	-
Net income (loss)	(77.9)	124.7	-
Net income (loss) per share (in yen)	(36.31)	56.55	-

Fiscal 2002: April 1, 2001 - March 31, 2002

Note:

1) Consolidated financial charts made according to U.S. GAAP. 2) Company has 144 consolidated subsidiaries.

2. NON-CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

		Fiscal 2002	Fiscal 2001	'02/'01 (%)
Net sales		2,409.3	2,932.6	82
Ordinary profit (loss)		(109.5)	137.1	-
Net income (loss)		(143.6)	32.4	-
Dividend per share
Annual dividend		-	10	-
	Interim dividend	-	4
	Term-end Biannual dividend	-	6
Net income (loss) per share (in yen)		(66.92)	15.13	-

Fiscal 2002: April 1, 2001 - March 31, 2002

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	Fiscal 2002 (A)	% of total	Fiscal 2001 (B)	% of total	(A) - (B)	(A)/(B) (%)
Net sales	3,648,986	100.0	4,129,493	100.0	(480,507)	88
Cost of sales	2,842,658	77.9	3,062,392	74.2	(219,734)	93
Selling, general and Administrative expenses	874,355	24.0	871,711	21.1	2,644	100
Operating income (loss)	(68,027)	(1.9)	195,390	4.7	(263,417)	--
Non-operating income	48,645	1.3	121,981	3.0	(73,336)	40
Interest and Dividends	14,246	0.4	19,404	0.5	(5,158)	73
Gains on securities contributions to employee retirement benefit trust	--	--	66,914	1.6	(66,914)	--
Other income	34,399	0.9	35,663	0.9	(1,264)	96
Non-operating expenses	135,760	3.7	106,929	2.6	28,831	127
Interest	28,799	0.8	29,858	0.7	(1,059)	96
Other	106,961	2.9	77,071	1.9	29,890	139
Income (loss) before income taxes	(155,142)	(4.3)	210,442	5.1	(365,584)	--
Income tax	(74,244)	(2.1)	91,990	2.2	(166,234)	--
Equity in earnings of affiliated companies	2,928	0.1	6,334	0.1	(3,406)	46
Net income (loss)	(77,970)	(2.1)	124,786	3.0	(202,756)	--

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	Fiscal 2002 (A)	Fiscal 2001 (B)	(A) - (B)
(Assets) Current assets	2,157,889	2,353,374	(195,485)
Cash and cash equivalents	454,890	394,375	60,515
Short-term investments	13,793	18,047	(4,254)
Trade receivables	818,817	976,379	(157,562)
Inventories	643,642	714,529	(70,887)
Prepaid expenses and other current assets	226,747	250,044	(23,297)
Long-term receivables	40,150	43,154	(3,004)
Investments	447,283	502,996	(55,713)
Net property, plant and equipment	893,965	934,759	(40,794)
Other assets	518,117	347,346	170,771
Total assets	4,057,404	4,181,629	(124,225)
(Liabilities and shareholders' equity) Current liabilities	1,960,863	2,179,466	(218,603)
Current portion of short-term debt Trade payables Other current liabilities	813,865 667,078 479,920	773,080 894,792 511,594	40,785 (227,714) (31,674)
Long-term debt	740,180	630,544	109,636
Employee retirement and severance benefits	748,779	633,514	115,265
Other fixed liabilities	10,639	10,706	(67)
Minority interests	55,233	49,226	6,007
Shareholders' equity	541,710	678,173	(136,463)
Capital	175,820	175,820	--
Capital surplus	210,644	210,644	--
Retained earnings	362,676	453,529	(90,853)
Accumulated other comprehensive income (loss)	(207,420)	(161,820)	(45,600)
Treasury stock at cost	(10)	--	(10)
Total liabilities and stockholders' equity	4,057,404	4,181,629	(124,225)

Balance of debt		1,554,045	1,403,624	150,421
Other comprehensive income (loss)
Foreign currency translation adjustments		3,073	(13,338)	16,411
Minimum pension liability adjustments		(221,543)	(175,662)	(45,881)
Net unrealized gains on securities		11,050	27,180	(16,130)
Fiscal 2002: April 1, 2001 - March 31, 2002

CONSOLIDATED CASH FLOW

(in millions of yen)

	Fiscal 2002 (A)	Fiscal 2001 (B)	(A) - (B)
I. Cash flows from operating activities
1 Net income (loss)	(77,970)	124,786	(202,756)
2 Adjustments to reconcile net income (loss) to net cash provided by operating activities
(1) Depreciation	230,518	235,031	(4,513)
(2) Deferred income taxes	(115,715)	39,226	(154,941)
(3) Decrease (increase) in trade receivables	170,543	(40,106)	210,649
(4) Decrease (increase) in inventories	83,135	(110,456)	193,591
(5) Decrease in prepaid expenses and other assets	18,434	2,400	16,034
(6) Increase (decrease) in trade payables	(226,930)	109,756	(336,686)
(7) Increase (decrease) in other liabilities	(3,214)	71,826	(75,040)
(8) Other, net	34,628	(36,465)	71,093
Net cash provided by operating activities	113,429	395,998	(282,569)
II. Cash flows from investing activities
1 Capital expenditure	(221,092)	(296,996)	75,904
2 Proceeds from sale of property, plant and equipment	16,344	16,237	107
3 Purchase of short-term investments and investment securities	(54,998)	(61,372)	6,374
4 Proceeds from sale of short-term investments and investment securities	75,760	76,993	(1,233)
5 Other, net	(169)	5,019	(5,188)
Net cash used in investing activities	(184,155)	(260,119)	75,964
III. Cash flows from financing activities
1 Proceeds from long-term debt	439,388	152,939	286,449
2 Repayment of long-term debt	(320,417)	(247,938)	(72,479)
3 Increase in bank loans, net	16,955	31,874	(14,919)
4 Dividends paid	(12,883)	(13,956)	1,073
Net cash provided by (used in) financing activities	123,043	(77,081)	200,124
IV. Effect of exchange rate changes on cash and cash equivalents	8,198	9,248	(1,050)
V. Net increase in cash and cash equivalents	60,515	68,046	(7,531)
VI. Cash and cash equivalents at beginning of year	394,375	326,329	68,046
VII. Cash and cash equivalents at the end of year	454,890	394,375	60,515

Free cash flow

(70,726)

135,879

(206,605)

Fiscal 2002: April 1, 2001 - March 31, 2002

CONSOLIDATED SEGMENT INFORMATION - 1

1. Sales by Product Segment

(in millions of yen)

	Fiscal 2002			Fiscal 2001			(A)/(B) (%)
Product Segment	Sales (A)	% of total	Opera- ting profit (loss)	Sales (B)	% of total	Opera- ting profit (loss)
Energy and Electric Systems	920,667	22.8	46,580	910,520	20.0	39,903	101
Industrial Automation Systems	600,589	14.8	33,165	662,963	14.6	54,615	91
Information and Communication Systems	762,586	18.8	(90,246)	934,900	20.5	(13,040)	82
Electronic Devices	470,225	11.6	(80,560)	714,391	15.7	95,166	66
Home Appliances	726,151	17.9	37,170	733,039	16.1	28,518	99
Others	569,799	14.1	8,563	599,760	13.1	9,469	95
Sub Total	4,050,017	100.0	(45,328)	4,555,573	100.0	214,631	89
Eliminations and other	(401,031)	--	(22,699)	(426,080)	--	(19,241)	--
Total	3,648,986	--	(68,027)	4,129,493	--	195,390	88

Fiscal 2002: April 1, 2001 - March 31, 2002

*Note: Intersegment sales are included in the above chart.

2. Sales by location segment

(in millions of yen)

	Fiscal 2002		Fiscal 2001		(A)/(B) (%)
	Sales (A)	Operating profit (loss)	Sales (B)	Operating profit (loss)
Japan	3,232,688	(36,980)	3,750,545	212,465	86
North America	327,648	(18,086)	397,151	(3,310)	82
Asia (except Japan)	305,957	17,544	345,352	17,262	89
Europe	232,260	(46,852)	284,783	(20,507)	82
Others	13,625	364	13,415	44	102
Total	4,112,178	(84,010)	4,791,246	205,954	86
Eliminations	(463,192)	15,983	(661,753)	(10,564)	--
Total	3,648,986	(68,027)	4,129,493	195,390	88

Fiscal 2002: April 1, 2001 - March 31, 2002

*Note: Intersegment sales are included in the above chart.

CONSOLIDATED SEGMENT INFORMATION - 2

3. Overseas Sales

(in millions of yen)

	Fiscal 2002		Fiscal 2001		A/B (%)
	Sales (A)	% of total net sales	Sales (B)	% of total net sales
North America	324,259	8.9	397,525	9.6	82
Asia (except Japan)	342,313	9.4	353,052	8.6	97
Europe	218,996	6.0	268,634	6.5	82
Others	73,063	2.0	71,682	1.7	102
Total overseas sales	958,631	26.3	1,090,893	26.4	88

Fiscal 2002: April 1, 2001 - March 31, 2002

About Mitsubishi Electric Corporation
With over 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 building equipment. With operations in 35 countries, Mitsubishi Electric Corporation recorded consolidated group sales of 3,649 billion yen (US$27 billion*) in the year ended March 31, 2002. Additional information on Mitsubishi Electric Corporation is available at global.mitsubishielectric.com.
*At an exchange rate of 133 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 29, 2002.

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.

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