TOKYO, April 1, 2003 -- Mitsubishi Electric Corporation today revised its original fiscal year 2003 (April 1, 2002 - March 31, 2003) business performance forecast. The revised forecasts are as follows:

Revised Consolidated Results Forecast
For Fiscal Year 2003 (April, 2002 - March, 2003)

Reasons for Revised Forecast
This year, Mitsubishi Electric has been trying to implement various administrative and management improvements to strengthen the bottom line by way of increased profitability, structural business reform, and reduction of fixed costs and assets. These were intended to achieve the business results as planned and to improve the financial standing in a relatively short period. As a result, the net sales & operating income are expected to remain at previous forecasted levels. However, the pre-tax income is expected to be revised to one billion Yen, which represents a deterioration of 44 billion Yen from the previous forecast, due to a collapse in stock valuation of 50 billion Yen, caused mainly by financial holdings.

The net income forecast is expected to be revised as a net loss of 14 billion Yen, which represents a deterioration of 39 billion Yen from the previous forecast because an additional 13 billion Yen was incurred due to the deferred tax assets reassessment required as a result of the introduction of a new taxation relying on a proforma tax basis.

Revised Non-consolidated Results Forecast
For Fiscal Year 2003 (April, 2002 - March, 2003)

Reasons for Revised Forecast
The previous ordinary profit and net income forecasts are revised this time to reflect an increased loss of 5 billion Yen incurred due to the deferred tax assets reassessment required as a result of the introduction of a new taxation relying on a proforma tax basis, a stock valuation loss of approximately 35 billion Yen, as well as the ongoing sales slump from sluggish capital expenditures in the private sector and consumer spending.


Dividend
Mitsubishi Electric plans to declare a year-end dividend payment amount of 3 Yen as previously announced.

About Mitsubishi Electric
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 (TSE: 6503) 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. The company has operations in 35 countries and recorded consolidated group sales of 3,649 billion yen (US$27.4 billion) in the year ended March 31, 2002.
For more information about Mitsubishi Electric, visit http://global.mitsubishielectric.com.


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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