TOKYO -- October 18, 2002-- Mitsubishi Electric Corporation (President and CEO: Tamotsu Nomakuchi) and Mitsubishi Corporation (President and CEO: Mikio Sasaki) together with Mitsubishi Electric Building Techno-Service CO., LTD., and Mitsubishi Chile LTDA have reached an agreement with HEAVENWARD ASCENSORES S.A. (HWA) - an elevator sales, installation and maintenance company in Chile - to invest in them.

Mitsubishi Electric has been doing business in the Chilean market ever since concluding The Distributor Agreement with HWA in Oct. 2000. The figures for newly installed units by HWA rose sharply and attained 13% market share in the year 2001. At the same time, the "number of units under maintenance" which is the cornerstone of the business, has been on the increase as well. In Chile, where high grade luxury elevator demand is expected to increase, Mitsubishi Electric is planning to expand its sales with machine room less elevators as its main force.

The major elevator and escalator companies have already been working on the restructuring of elevator and escalator businesses worldwide. MERCOSUR countries including Chile, Argentina and Brazil will not be the exception of this worldwide trend. These areas will also be their target. Competition among the elevator and escalator companies for survival is expected to increase in the near future.

Mitsubishi Electric decided to invest in HWA, which had been recognized for holding the top share in Chilean market, to strengthen the elevator and escalator business in South America, where a considerable and stable amount of demand is expected and to set up a bridgehead for the whole MERCOSUR.

HWA Business Plan Outline
HWA is capitalized at 1,644 million Chilean pesos with an investment ratio after involvement, of 50% by the four Mitsubishi companies as mentioned above to the local partner's 50%. It imports products made by Mitsubishi Electric's Inazawa factory, Mitsubishi Elevator Asia Co. Ltd. (subsidiary) in Thailand, Melco de Mexico, S.A. de C.V. (subsidiary) and Melco de Colombia Ltda. (subsidiary), and will carry out sales, installation and maintenance in Chile.

By 2006, Mitsubishi Electric anticipates orders for 300 elevators worth approximately Ç2 billion in sales.

Company name:	HEAVENWARD ASCENSORES S.A.
President:	Mr. Carlos Lagos
Established:	May 1993
Capital:	1,644 million Chilean pesos (approximately ¥330 million)
Investment ratio:	Mitsubishi Electric Corp.: 25% / Mitsubishi Corp.: 15% / Mitsubishi Electric Building Techno-Service CO., LTD: 5%, / Mitsubishi Chile LTDA.: 5% / local partner: 50%
Place:	Santiago (Republic of Chile)
No. of employees:	112
Business details:	Sales, installation and maintenance of elevators
Turnover:	Approximately ¥2 billion (Fiscal 2006 forecast)

Media Contacts: Mitsubishi Electric Corporation (Tokyo) Kanji Azuma Tel: +81-3-3218-2346 E-mail: Kanji Azuma@hq.melco.co.jp