TOKYO, July 30, 2002--Mitsubishi Electric Corporation today announced its financial results for the first fiscal quarter ending June 30, 2002 as follows:

Consolidated:
Net sales	726.8 billion yen (15% decrease from same quarter last year)
Operating income	7.7 billion yen (67% increase from same quarter last year)
Income before income taxes	0.9 billion yen
Net income	0.8 billion yen

In the first quarter of fiscal 2003 (April 1, 2002 - March 31, 2003) the moderate recovery in overseas economies continued, including the United States, and a recovery in exports led the Japanese economy. However, the business environment remained bleak with the continued downturn in capital expenditure and consumer spending and no full-scale recovery in domestic demand.

Under these conditions, Mitsubishi Electric is promoting a range of cross-company management improvements, including cuts in asset and fixed costs and drastic reductions in material costs, in addition to business structure improvement strategies in the semiconductor and mobile handset businesses. The company is working for an early improvement in business results.

As a result, Mitsubishi Electric group results for the first quarter of fiscal 2003 are as follows:

Consolidated Results by Business Segment

In the Energy and Electric Systems segment, compared to the same quarter last year, sales decreased by 11% to 133.7 billion yen with negative operating income of 0.5 billion yen which worsened by 6.2 billion yen compared to the same quarter last year.
Against the background of the slump in domestic demand due to cuts in private capital expenditure by power companies and manufacturing industries and the slump in public investment, orders in the social infrastructure business were lower than in the same period last year. Sales were down compared to the same period last year as a result of the decline in power and public works-related equipment.
In building systems, orders were at the same level as last year both in Japan and overseas, but sales fell due to the decrease in domestic demand for elevators/escalators that resulted in a decline in new installation sales.
As a result, overall sales in this segment were down 11% compared to same quarter last year.
Operating income for the segment overall was in the red due to the decline in sales.

The Industrial Automation Systems segment experienced a 4% decrease in sales to 144.2 billion yen while operating income increased by 8.3 billion yen to 13.4 billion yen compared to the same quarter last year.
In the industrial products business, servo motors related to semiconductor and liquid crystal customers increased thus maintaining the same level as the same quarter last year. However, orders and sales for programmable controllers and other factory automation equipment were down compared to the same period last year due to stagnant growth caused by a slump in demand from domestic manufacturing facilities. The electric motor and distribution transformer business recorded lower orders and sales than for the same period last year due to the decline in the domestic demand for production facilities and buildings. In the industrial mechatronics business, both orders and sales of numerical controller (NC) were the same as the comparable period last year due to recovery in machine tool demand in markets such as Taiwan and Korea. However, for other processing machinery, etc. the orders and sales were lower as a result of a slowdown in domestic demand. Orders and sales in the automotive equipment business both exceeded the same period last year due to healthy exports to automotive manufacturers.
As a result, overall sales in the segment were down 4% compared to same period last year.
Operating income for this segment overall increased as a result of cost improvements and other measures.

In the Information and Communication Systems segment, sales dropped by 30% to 120 billion yen compared to the same quarter last year with an operating loss of 5.1 billion yen, which is an improvement over the same quarter last year by 7.3 billion yen.
Orders and sales in the telecommunications business were lower than the same period last year due to the global stagnation in demand for mobile handsets and the sustained reduction in capital expenditure on telecommunications infrastructure by telecommunications carriers.
In the information systems and services business, there was an increase in system construction and information system outsourcing, but demand for replacement of hardware fell, and sales were lower than the same period last year.
Both orders and sales in the space business exceeded the same period last year due to large domestic government projects and growth in the overseas components business.
As a result, overall sales in the segment were down 30% compared to same quarter last year.
The operating loss for this segment was smaller compared to the same quarter last year due to new active restructuring measures in the mobile handset business.

The Electronic Devices segment recorded sales of 108 billion yen, representing a decrease of 27% and a negative operating income of 8.9 billion yen, which is 6.8 billion yen more than the same quarter last year.
Orders in the semiconductor business exceeded the same period last year as a result of a growth in microcomputers for domestic equipment, power devices, and packaged devices incorporating SRAM/flash memory for mobile handsets. However, sales were down compared to the same period last year due to a decline in advanced system LSI products for optical communications network servers, primarily in North America, and optical devices. Both orders and sales in the liquid crystal business were up compared to the same period last year due to the growth in TFT for large liquid crystal monitors.
As a result, overall sales in the segment were down 27% compared to same quarter last year.
Operating income for the segment overall was in the red, due mainly to the sales decline in the semiconductor business.

In the Home Appliances segment, sales decreased by 13% to 174.4 billion yen and operating income increased by 2 billion yen to 13 billion yen compared to the same quarter last year.
In the home appliance and audio-visual products business, air conditioner sales fell due mainly to the late rainy season, and overall sales were lower than the same period last year. Sales in the household equipment business were at the same level as last year although there was a decline in ventilator sales due to the growth of photovoltaic power generating systems and induction heating cooking ranges. In the air conditioning business, there was a decline in air conditioning equipment that was mainly due to sluggish starts in domestic non-residential buildings, and sales were lower than in the same period last year. In the audio visual and information business, sales in liquid crystal projectors and other products were down compared to same quarter last year.
As a result, overall sales in the segment were down 13% compared to same quarter last year.
While there was a considerable decrease in sales, operating income increased for the segment overall due to cost improvement efforts.

In the Others segment, sales decreased by 4% to 127.1 billion yen compared to the same quarter last year. Operating income was 3.4 billion yen, which is 1.6 billion more than the same quarter last year.
In this segment sales were down compared to the same period last year, primarily in the material procurement, real estate and financial affiliated companies.
As a result, overall sales in the segment were down 4% compared to same quarter last year.
Operating income for this segment overall increased due to cost improvement efforts.

Forecast for 1st half period (April 1, 2002 to September 30, 2002)
The continuous harsh business environment is forecasted to continue, but the Company is taking resolute action to reform its business structures in the semiconductor and cellular phone business and to promote strategic management reform even more. The Company will continue to work hard to secure better business results and improve the financial structure.

Current interim forecasts for FY2003 (April 1, 2002 - September 30, 2002) are same as its original forecast, which was announced on April 26, 2002 as shown below:

Consolidated:
Net sales	1.6500 trillion yen (7% decrease from same half last year)
Operating income	20 billion yen (101% increase over same half last year)
Income before income taxes	10 billion yen
Net income	6 billion yen (263% increase over same half last year)

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.

CONSOLIDATED FINANCIAL RESULTS

1. CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

	FY '03 1st quarter (A) (April 1-June 30, 2002)	FY '02 1st quarter (B) (April 1-June 30, 2001)	(A)/(B) (%)
Net sales	726.8	857.2	85
Operating profit	7.7	4.6	167
Income before income taxes (loss)	0.9	(8.3)	-
Net income (loss)	0.8	(11.1)	-
Net income (loss) per share (in yen)	0.40	(5.17)	-

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	FY '03 1st quarter (A) (April 1-June 30, 2002)	% of total	FY '02 1st quarter (B) (April 1-June 30, 2001)	% of total	(A) - (B)	(A)/(B) (%)
Net sales	726,876	100.0	857,267	100.0	(130,391)	85
Cost of sales	535,801	73.7	645,174	75.3	(109,373)	83
Selling, general and Administrative expenses	183,350	25.2	207,476	24.2	(24,126)	88
Operating income (loss)	7,725	1.1	4,617	0.5	3,108	167
Non-operating income	8,280	1.1	5,685	0.7	2,595	146
Interest and Dividends	3,797	0.5	4,105	0.5	(308)	92
Other income	4,483	0.6	1,580	0.2	2,903	284
Non-operating expenses	15,064	2.1	18,636	2.2	(3,572)	81
Interest	5,543	0.8	7,872	0.9	(2,329)	70
Other	9,521	1.3	10,764	1.3	(1,243)	88
Income (loss) before income taxes	941	0.1	(8,334)	(1.0)	9,275	--
Income tax	339	0.0	2,788	0.3	(2,449)	12
Equity in earnings of affiliated companies	255	0.0	20	0.0	235	1275
Net income (loss)	857	0.1	(11,102)	(1.3)	11,959	--

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	FY '03 (A) ending June 30th, 2002	FY '02 (B) ending March 31st, 2002	(A) - (B)
(Assets) Current assets	1,983,902	2,157,889	(173,987)
Cash and cash equivalents	358,814	454,890	(96,076)
Short-term investments	11,554	13,793	(2,239)
Trade receivables	662,092	818,817	(156,725)
Inventories	703,120	643,642	59,478
Prepaid expenses and other current assets	248,322	226,747	21,575
Long-term receivables	41,759	40,150	1,609
Investments	435,283	447,283	(12,000)
Net property, plant and equipment	872,261	893,965	(21,704)
Other assets	516,000	518,117	(2,117)
Total assets	3,849,205	4,057,404	(208,199)
(Liabilities and shareholders' equity) Current liabilities	1,759,332	1,960,863	(201,531)
Bank loans and current portion of long-term debt Trade payables Other current liabilities	722,317 575,528 461,487	813,865 667,078 479,920	(91,548) (91,550) (18,433)
Long-term debt	733,267	740,180	(6,913)
Employee retirement and severance benefits	754,190	748,779	5,411
Other fixed liabilities	9,585	10,639	(1,054)
Minority interests	57,707	55,233	2,474
Shareholders' equity	535,124	541,710	(6,586)
Capital	175,820	175,820	--
Capital surplus	210,644	210,644	--
Retained earnings	363,533	362,676	857
Accumulated other comprehensive income (loss)	(214,854)	(207,420)	(7,434)
Treasury stock at cost	(19)	(10)	(9)
Total liabilities and stockholders' equity	3,849,205	4,057,404	(208,199)

Balance of debt		1,455,584	1,554,045	(98,461)
Other comprehensive income (loss)
Foreign currency translation adjustments		(5,962)	3,073	(9,035)
Minimum pension liability adjustments		(217,108)	(221,543)	4,435
Net unrealized gains on securities		8,216	11,050	(2,834)

CONSOLIDATED CASH FLOW

(in millions of yen)

	FY '03 1st quarter (A) April 1-June 30, 2002	FY '02 1st quarter (B) April 1-June 30, 2001	(A) - (B)
I. Cash flows from operating activities
1 Net income (loss)	857	(11,102)	11,959
2 Adjustments to reconcile net income (loss) to net cash provided by operating activities
(1) Depreciation	49,764	56,091	(6,327)
(2) Decrease (increase) in trade receivables	149,379	220,368	(70,989)
(3) Decrease (increase) in inventories	(65,394)	(131,857)	66,463
(4) Increase (decrease) in trade payables	(91,393)	(128,696)	37,303
(5) Other, net	(27,523)	17,331	(44,854)
Net cash provided by operating activities	15,690	22,135	(6,445)
II. Cash flows from investing activities
1 Capital expenditure	(27,608)	(50,156)	22,548
2 Proceeds from sale of property, plant and equipment	1,527	2,811	(1,284)
3 Purchase of short-term investments and investment securities	(3,985)	(34,704)	30,719
4 Proceeds from sale of short-term investments and investment securities	9,694	10,923	(1,229)
5 Other, net	1,794	(1,385)	3,179
Net cash used in investing activities	(18,578)	(72,511)	53,933
I + II Free cash flow	(2,888)	(50,376)	47,488
III. Cash flows from financing activities
1 Proceeds from long-term debt	68,681	52,360	16,321
2 Repayment of long-term debt	(60,344)	(31,643)	(28,701)
3 Increase (decrease) in bank loans, net	(101,461)	14,391	(115,852)
4 Dividends paid	--	(12,883)	12,883
Net cash provided by (used in) financing activities	(93,124)	22,225	(115,349)
IV. Effect of exchange rate changes on cash and cash equivalents	(64)	2,409	(2,473)
V. Net increase in cash and cash equivalents	(96,076)	(25,742)	(70,334)
VI. Cash and cash equivalents at beginning of period	454,890	394,375	60,515
VII. Cash and cash equivalents at the end of period	358,814	368,633	(9,819)

Fiscal 2003, 1st quarter: April 1, 2002 - June 30, 2002

CONSOLIDATED SEGMENT INFORMATION

1. Sales by Product Segment

(in millions of yen)

	FY '03 1st quarter (A) April 1-June 30, 2002			FY '02 1st quarter (B) April 1-June 30, 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	133,780	16.6	(555)	149,503	15.7	5,740	89
Industrial Automation Systems	144,238	17.8	13,416	149,829	15.8	5,105	96
Information and Communication Systems	120,087	14.9	(5,170)	170,836	18.0	(12,519)	70
Electronic Devices	108,029	13.4	(8,986)	148,097	15.6	(2,131)	73
Home Appliances	174,408	21.6	13,012	199,505	21.0	10,967	87
Others	127,151	15.7	3,460	132,728	13.9	1,779	96
Sub Total	807,693	100.0	15,177	950,498	100.0	8,941	85
Eliminations and other	(80,817)	--	(7,452)	(93,231)	--	(4,324)	--
Total	726,876	--	7,725	857,267	--	4,617	85

Fiscal 2003, 1st quarter: April 1, 2002 - June 30, 2002

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

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.

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 www.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.

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