TOKYO, April 28, 2003 --Mitsubishi Electric today announced its financial results for the fiscal year ended March 31, 2003 as follows:

Consolidated:
Net sales	3.6390	trillion yen (100% compared to last year)
Operating income	63.1	billion yen
Income before income taxes	2.4	billion yen
Net income	- 11.8	billion yen
Non-consolidated:
Net sales	2.3192	trillion yen (4% decrease from last year)
Operating income	0.6	billion yen
Ordinary profit	26.4	billion yen
Net income	- 12.1	billion yen

In the 2002 business environment, although a generally modest recovery proceeded in the global economy, increased uncertainty over future prospects corresponding to the Iraq issue and other such factors as employment instability clearly slowed the speed of economic recovery. As for the Japanese economy, production activities began to pick up with a recovery in exports and progress in inventory adjustment. In addition to the continued stagnant capital investment of the private sector caused by uncertainty over future prospects, bad employment and income situations prevented consumer spending from achieving a full recovery, and has caused the severe business environment to continue.

Under these circumstances, Mitsubishi Electric has promoted a reform of its business structure through total adherence to the "Focus and Concentration" policy, including a new joint venture set up with Toshiba Corporation in the field of industrial electric and automation system businesses and another new joint venture set up with Hitachi Ltd. on April 1, 2003 in the semiconductor business concerning mainly system LSI. These measures are being taken to improve and strengthen profitability in each business segment. Moreover, Mitsubishi Electric has proactively promoted company wide business improvement measures and striven to quickly improve performance and their financial standing through various measures, including "EA 21 Activities" which aim to reduce assets and fixed costs, and the "Sigma 21 Project Activities" which aim for drastic cost reductions.

However, Mitsubishi Electric's performance in fiscal 2003 resulted as per above due to the valuation losses in financial shares, which were caused by equity market downturn and the deferred tax assets reassessment, which is required under the newly implemented taxation relying on a pro forma tax basis.

Financial Position (Consolidated)

Assets, liabilities, and capital
At the end of the current year, total assets were down 383.7 billion yen to 3,673.6 billion yen compared to end of last fiscal year due mainly to the success of our continuing efforts to trim assets and to our restructure and realignment program implementations of affiliated company operations. One major factor in achieving this was the reduction of inventories by 132.8 billion yen primarily through an improved efficiency and the spinning off of the electrical power system and transformer business. Other major factors include the reduction of tangible fixed assets by 166.1 billion yen through a reduction of capital expenditure in areas such as information and communications systems, and electronic devices, to accommodate the decline in IT-related demand, the elimination of our domestic financial subsidiary from our consolidated subsidiaries by the partial sale of our shares, and the spin-off of our electric power systems and transformer business. Investment securities were also reduced by 87.3 billion yen as a result of such factors as the decline in their market value.

The outstanding balance of debts and bonds was reduced by 369.8 billion yen to 1,184.2 billion yen compared to end of last fiscal year, thereby also reducing the group's debt ratio to 32.2% (down 6.1 points year-on-year). Also, another factor is the reduction in advance which helped reduce our other short-term liabilities by 97.1 billion yen. On the other hand, our retirement and severance benefits increased by 246.9 billion yen, due primarily to the need to post adjustments to recognized minimum pension liability as the result of an increase in our projected benefit obligation due to the use of a lower discount rate and due to a decline in the value of our pension assets due mainly to the collapse in share prices.

Capital declined by 147.1 billion yen to 394.5 billion yen compared to end of last fiscal year due principally to the posting of a net loss of 11.8 billion yen this fiscal year and an increased deduction for adjustments of the minimum pension liability. The group's shareholders equity ratio fell to 10.7% (down 2.7 points year-on-year).

We expect our total assets and debts to be further reduced at the end of FY 2004 following events such as our system LSI and related semiconductor business spin-off, which took place on April 1, 2003.

Cash Flow
Free cash flow in the current fiscal year was 144.7 billion yen thanks primarily to an increase in cash flow from operating activities of 125.0 billion yen to 238.4 billion yen (revenue) year-on-year, and also a reduction of 90.4 billion yen to 93.6 billion yen (expenditure) year-on-year in our investment cash flow helped by selective capital investment. Our cash flow from financing activities amounted to 229.9 billion yen following the repayment of debts and redemption of bonds to improve our financial position.

Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to last fiscal year, sales decreased by 6% to 861.1 billion yen and operating income increased by 12.8 billion yen to 59.4 billion yen.

In this segment, the social infrastructure business posted a year-on-year decrease in both sales and orders received due to sluggish capital investment by domestic power companies, manufacturing sectors and other companies, as well as in public sectors, decreases in large overseas projects and spin-offs of electric and transformer equipment business. In the Building Systems, domestic demand was stagnant but orders received were equivalent to the previous fiscal year thanks to increases in contracts from the Chinese, South Korean and Middle Eastern markets. In addition, with the completion of many large projects in the Tokyo metropolitan area and increased demand in the Chinese market, resulted in higher year-on-year sales.
As a result, total sales for this segment decreased by 6% year-on-year.
Operating income increased by 12.8 billion yen due to segment wide cost cutting efforts.

The Industrial Automation Systems segment experienced a 6% increase in sales to 639.4 billion yen and operating income increased by 24.8 billion yen to 57.9 billion yen compared to last fiscal year.

Industrial equipment business posted year-on-year improvements in orders for, and sales of, FA equipment, helped by increased demand particularly for semiconductor and liquid crystal manufacturing equipment both from domestic market sources and from overseas markets, notably Taiwan, South Korea, and China. Reduced demand for domestic production facilities and building and construction projects led to a year-on-year fall in orders and sales of electric motors and power distribution products. Despite weak domestic demand, orders and sales of industrial mechatronics equipment grew year-on-year as the result of growing demand in overseas markets. Sales for the automotive equipment business in this segment were higher than last fiscal year due to the support of strong exports to the United States and Europe by domestic automobile manufacturers.
As a result, total sales for this segment increased by 6% year-on-year.
Operating income increased by 24.8 billion yen due to business scale expansion and cost improvements.

In the Information and Communication Systems segment, sales fell 10% to 686.4 billion yen compared to last fiscal year and thus resulted in an operating loss of 27.2 billion yen, which is an improvement of 62.9 billion yen.

In this segment, both orders and sales for the communications business decreased year-on-year due to reorganization of the European mobile handset business and sluggish capital investment in the telecom infrastructure by the operators. In the information systems and services business, the system integration business expanded thanks to big projects for large systems, but sales were lower, year-on-year, due to decreased hardware sales. In the space business, both orders and sales decreased year-on-year due to the between season of large projects for the public sector. For the defense equipment business, orders received decreased year-on-year due to between seasons for big projects, but sales maintained the same levels as last fiscal year.
As a result, total sales for this segment decreased 10% year-on-year.
Operating income improved by 62.9 billion yen due to promotion of structural reforms in the mobile handset business.

The Electronic Devices segment recorded sales of 460.4 billion yen in the period under review, a 2% decrease year-on-year and recorded an operating loss of 53.0 billion yen, which is an improvement of 27.4 billion yen against last fiscal year.

Semiconductor business posted an improvement in orders and sales thanks to growing demand for multiple memory packages, system LSIs, artificial retina LSIs, optical devices and the like for the mobile handsets with digital camera market and the recordable DVDs. However, the liquid crystal business posted a year-on-year decline in orders and sales due to price drops resulting from over-production by Taiwanese and South Korean manufacturers.
As a result, total sales for this segment decreased 2% year-on-year.
Operating income improved by 27.4 billion yen due to cost reductions.

In the Home Appliances segment, sales increased by 9% to 789.1 billion yen compared to last fiscal year and operating income was 36.1 billion yen, which is a decrease of 0.9 billion yen.

In this segment, overall sales were higher than the previous fiscal year. In summary, sales of "all electronic products" in Japan such as hot water supply systems and solar power generation systems, DVD-related equipments, packaged air conditioners and home air conditioners for the European market and projection TVs for the US market did well. On the other hand, sales of home air conditioners and refrigerators in Japan decreased due to sluggish consumption. In addition, packaged air conditioners and lighting equipment suffered a decrease in sales due to the slowdown in non-residential building construction starts and sluggish corporate capital investment.
Consequently, sales in this segment increased 9% year-on-year.
Operating income decreased by 0.9 billion yen due to a fall in prices.

In the Others segment, sales decreased 1% to 566.1 billion yen compared to last fiscal year, and operating income increased by 2.5 billion yen to 11.0 billion yen.

Sales of the group's affiliates related to logistic business increased year-on-year but sales of the group's affiliates related to our engineering and real estate business declined.
As a result, total sales for this segment decreased 1% year-on-year.
Operating income improved by 2.5 billion yen due to substantial cost reductions.

Dividend Policy
Due primarily to the valuation loss of shares and the reassessment of our deferred tax asset following the introduction of newly implemented taxation relying on a proforma tax basis, we have been obliged to post a net loss for FY 2003. However, following implementation of a raft of measures to improve the group's operational management, our financial position is improving and profitability recovering. As a result, we will be resuming dividend payment with a year-end dividend of 3 yen per share. We will also be looking to meet shareholder expectations by continuing to strengthen our financial standing and boost profitability. (Note: No dividend was paid last year.)

Forecast results for fiscal year 2004 ending March 31, 2004
In terms of the future business environment, future prospects remain extremely uncertain due to more marked slowdown in the global economic recovery and the continuing international political and economic instability. Under these circumstances, Mitsubishi Electric will further strive to improve and enhance profitability in each business segment, and also further improve performance and our financial standing while reinforcing our business and management foundation through the steady implementation of further growth strategies for expanding added value. Our present performance forecast for fiscal 2004 is as follows:

Consolidated:
Net sales	3.2500 trillion yen (11% decrease year-on-year)
Operating income	75.0 billion yen (19% increase year-on-year)
Income before income taxes	__Nil
Net income	5.0 billion yen
Non-consolidated:
Net sales	2.0000 trillion yen (14% decrease year-on-year)
Operating income	30.0 billion yen (increase by 49 times, year-on-year)
Ordinary profit	25.0 billion yen (6% decrease year-on-year)
Net income	20.0 billion yen

The above consolidated business projections include a loss of approximately 50.0 billion yen (approximately 30.0 billion yen after tax effect) in anticipation of the impact of repayment of the subrogated portion of our employee pension fund to the government. This will also result in the elimination of a portion of the minimum pension liability adjustments on our consolidated balance sheet and an accompanying increase in shareholders' equity of approximately 100 billion yen.

MANAGEMENT POLICY

Management Policy
The Mitsubishi Electric Group will contribute to a new society, industry and life that leads to a "better tomorrow" based on the spirit of the corporate statement "Changes for the Better." With this corporate stance, Mitsubishi Electric will implement management improvement measures from the three perspectives of "Growth," "Profitability & Efficiency" and "Soundness," aiming to quickly establish a solid business foundation. Based on this strategy, Mitsubishi Electric will strive to further enhance corporate value to satisfy all the expectations of our customers, shareholders and other stakeholders.

Policy for Profit Distribution
With the ultimate target of enhancing corporate value, Mitsubishi Electric's basic policy is to comprehensively improve shareholder profitability both in terms of profit distribution in line with the earnings for the relevant fiscal year, and reinforcement of our financial standing by increasing internal reserves.

Policy on Reducing Minimum Stock Purchase Requirement
Mitsubishi Electric recognizes that increasing corporate value and acquisition of long-term and stable investors are important managerial issues. Mitsubishi Electric has been considering the effects and expenses related to reducing the minimum stock purchase requirement and will continue to carefully study this issue.

Corporate Agenda
In the extremely uncertain business environment, Mitsubishi Electric will devote itself further to improving and enhancing profitability in its business segments. Mitsubishi Electric will also strive for further improvement in performance and financial standing while seeking to reinforce its business foundation by implementing steady growth strategies to achieve greater added value.

Specifically, Mitsubishi Electric will strive to further enhance profitability by reforming its business structure through total implementation of its "Focus and Concentration" policy and accelerate global business development. Mitsubishi Electric will continue to proactively promote business improvement measures across the company, including reducing assets and fixed costs, reforming the procurement structure and implementing activities to improve the financial standing. Moreover, Mitsubishi Electric will strive to expand added value by implementing growth strategies that utilize its collective strength, focusing on products with competitive advantages in the market to quickly achieve a solid business standing and sustainable development.

Basic Policy for Corporate Governance and the Current Status
Mitsubishi Electric studied our response to the Commercial Code amendment enacted in 2002 and decided to transform itself into the "Company with Committee System" by referring to the general stockholders' meeting to be held in June 2003. Through this governance structure reform Mitsubishi Electric will strive to achieve "sustainable growth" as well as to enable more flexible operations, to further enhance management transparency and to reinforce the supervisory functions of management.

Mitsubishi Electric decided to appoint five outside directors and establish three committees: Auditing, Nomination and Compensation. Each of the three committees will have five directors, three of which are outside directors. Furthermore Mitsubishi Electric is considering assigning full-time staff to the Auditing Committee.

Each executive officer will execute operations and internal control for his or her responsible area. The Auditing Committee will strengthen information sharing with internal and external audit organizations (certified public accountants) and work to organically link and heighten the efficiency of management audit functions. No conflicts of interest exist between the outside directors and Mitsubishi Electric.

Other Important Management Issues
Mitsubishi Electric and Hitachi Ltd. integrated their semiconductor businesses and set up a joint venture concerning mainly system LSI by establishing Renesas Technology Corporation on April 1, 2003.

CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS

1. CONSOLIDATED FINANCIAL RESULTS

(In billions of yen)

	FY '03 (A) (April 1, 2002 - March 31, 2003)	FY '02 (B) (April 1, 2001 - March 31, 2002)	(A) / (B)(%)
Net sales	3,639.0	3,648.9	100
Operating profit (loss)	63.1	(68.0)	-
Income (loss) before income taxes	2.4	(155.1)	-
Net income (loss)	(11.8)	(77.9)	-
Net income (loss) per share (in yen)	(5.51)	(36.31)	-

Fiscal 2003: April 1, 2002 - March 31, 2003

Note:

1) Consolidated financial charts made according to U.S. GAAP. 2) Company has 142 consolidated subsidiaries.

2. NON-CONSOLIDATED FINANCIAL RESULTS

(In billions of yen)

	FY '03 (A) (April 1, 2002 - March 31, 2003)	FY '02 (B) (April 1, 2001 - March 31, 2002)	(A) / (B) (%)
Net sales	2,319.2	2,409.3	96
Ordinary profit (loss)	26.4	(109.5)	-
Net income (loss)	(12.1)	(143.6)	-
Dividend per share	3	-	-
__Annual dividend
__Interim dividend	-	-
__Term-end __Biannual dividend	3	-
Net income (loss) per share (in yen)	(5.67)	(66.92)	-

Fiscal 2003: April 1, 2002 - March 31, 2003

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	FY '03 (A) (April 1, 2002 - Mar. 31, 2003)	% of total	FY '02 (B) (April 1, 2001 - Mar. 31, 2002)	% of total	Comparison to last year (A) - (B)	(A) / (B)(%)
Net sales	3,639,071	100.0	3,648,986	100.0	(9,915)	100
Cost of sales	2,782,180	76.5	2,842,658	77.9	(60,478)	98
Selling, general and administrative expenses	793,751	21.8	874,355	24.0	(80,604)	91
Operating income (loss)	63,140	1.7	(68,027)	(1.9)	131,167	-
Non-operating income	57,236	1.6	48,645	1.3	8,591	118
__Interest and __Dividends	11,486	0.3	14,246	0.4	(2,760)	81
__Other income	45,750	1.3	34,399	0.9	11,351	133
Non-operating expenses	117,901	3.2	135,760	3.7	(17,859)	87
__Interest	20,407	0.5	28,799	0.8	(8,392)	71
__Other	97,494	2.7	106,961	2.9	(9,467)	91
Income (loss) before income taxes	2,475	0.1	(155,142)	(4.3)	157,617	-
Income tax	16,332	0.5	(74,244)	(2.1)	90,576	-
Equity in earnings of affiliated companies	2,032	0.1	2,928	0.1	(896)	69
Net income (loss)	(11,825)	(0.3)	(77,970)	(2.1)	66,145	-

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	FY '03March 31, 2003 (A)	FY '02March 31, 2002 (B)	(A) - (B)
(Assets) Current assets	1,937,537	2,157,889	(220,352)
Cash and cash equivalents	363,595	454,890	(91,295)
Short-term investments	22,523	13,793	8,730
Trade receivables	821,943	818,817	3,126
Inventories	510,750	643,642	(132,892)
Prepaid expenses and other current assets	218,726	226,747	(8,021)
Long-term receivables	19,795	40,150	(20,355)
Investments	359,961	447,283	(87,322)
Net property, plant and equipment	727,770	893,965	(166,195)
Other assets	628,574	518,117	110,457
Total assets	3,673,637	4,057,404	(383,767)
(Liabilities and shareholders' equity) Current liabilities	1,589,322	1,960,863	(371,541)
Bank loans and current __portion of long-term debt Trade payables Other current liabilities	555,863 650,696 382,763	813,865 667,078 479,920	(258,002) (16,382) (97,157)
Long-term debt	628,361	740,180	(111,819)
Employee retirement and severance benefits	995,765	748,779	246,986
Other fixed liabilities	11,596	10,639	957
Minority interests	54,006	55,233	(1,227)
Shareholders' equity	394,587	541,710	(147,123)
Capital	175,820	175,820	--
Capital surplus	210,671	210,644	27
Retained earnings	350,851	362,676	(11,825)
Accumulated other comprehensive income (loss)	(342,687)	(207,420)	(135,267)
Treasury stock at cost	(68)	(10)	(58)
Total liabilities and stockholders' equity	3,673,637	4,057,404	(383,767)

Balance of debt		1,184,224	1,554,045	(369,821)
Accumulated other comprehensive income (loss):
__Foreign currency translation adjustments		(686)	3,073	(3,759)
__Minimum pension liability adjustments		(346,546)	(221,543)	(125,003)
__Net unrealized gains on securities		4,545	11,050	(6,505)

CONSOLIDATED CASH FLOW

(in millions of yen)

	FY '03 April 1, 2002 - March 31, 2003 (A)	FY '02 April 1, 2001 -March 31, 2002 (B)	(A) - (B)
I. Cash flows from operating activities
1 Net income (loss)	(11,825)	(77,970)	66,145
2 Adjustments to reconcile net income (loss) to net cash provided by operating activities
(1) Depreciation	208,884	230,518	(21,634)
(2) Deferred income taxes	(27,669)	(115,715)	88,046
(3) Decrease (increase) in trade receivables	(36,183)	170,543	(206,726)
(4) Decrease in inventories	96,715	83,135	13,580
(5) Decrease (increase) in prepaid expenses and other assets	(1,702)	18,434	(20,136)
(6) Increase (decrease) in trade payables	53,813	(226,930)	280,743
(7) Increase (decrease) in other liabilities	(38,877)	(3,214)	(35,663)
(8) Other, net	(4,691)	34,628	(39,319)
Net cash provided by operating activities	238,465	113,429	125,036
II. Cash flows from investing activities
1 Capital expenditure	(133,223)	(221,092)	87,869
2 Proceeds from sale of property, plant and equipment	17,449	16,344	1,105
3 Purchase of short-term investments and investment securities	(37,068)	(54,998)	17,930
4 Proceeds from sale of short-term investments and investment securities	56,463	75,760	(19,297)
5 Other, net	2,694	(169)	2,863
Net cash used in investing activities	(93,685)	(184,155)	90,470
I + II Free cash flow	144,780	(70,726)	215,506
III. Cash flows from financing activities
1 Proceeds from long-term debt	304, 814	439,388	(134,574)
2 Repayment of long-term debt	(415,445)	(320,417)	(95,028)
3 Increase (decrease) in bank loans, net	(118,853)	16,955	(135,808)
4 Dividends paid	-	(12,883)	12,883
5 Purchase of treasury stock	(491)	-	(491)
Net cash provided by (used in) financing activities	(229,975)	123,043	(353,018)
IV. Effect of exchange rate changes on cash and cash equivalents	(6,100)	8,198	(14,298)
V. Net increase (decrease) in cash and cash equivalents	(91,295)	60,515	(151,810)
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	363,595	454,890	(91,295)

Fiscal 2003: April 1, 2002 - March 31, 2003

CONSOLIDATED SALES AND OPERATING INCOME (LOSS)

1. Information by Product Segment

(in millions of yen)

Product Segment	FY '03April 1, 2002 - March 31, 2003			FY '02April 1, 2001 - March 31, 2002			(A)/(B) (%)
	Sales (A)	% of total	Operating profit (loss)	Sales (B)	% of total	Operating profit (loss)
Energy and Electric Systems	861,120	21.5	59,406	920,667	22.8	46,580	94
Industrial Automation Systems	639,422	16.0	57,969	600,589	14.8	33,165	106
Information and Communication Systems	686,432	17.2	(27,273)	762,586	18.8	(90,246)	90
Electronic Devices	460,469	11.5	(53,078)	470,225	11.6	(80,560)	98
Home Appliances	789,149	19.7	36,195	726,151	17.9	37,170	109
Others	566,199	14.1	11,080	569,799	14.1	8,563	99
Sub Total	4,002,791	100.0	84,299	4,050,017	100.0	(45,328)	99
Eliminations and other	(363,720)	-	(21,159)	(401,031)	-	(22,699)	-
Total	3,639,071	-	63,140	3,648,986	-	(68,027)	100

Fiscal 2003: April 1, 2002 - March 31, 2003

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

2. Information by Location Segment

(in millions of yen)

	FY '03		FY '02		(A)/(B) (%)
	Sales (A)	Operating profit (Loss)	Sales (B)	Operating profit (Loss)
Japan	3,168,639	42,559	3,232,688	(36,980)	98
North America	301,034	3,628	327,648	(18,086)	92
Asia (except Japan)	384,891	23,189	305,957	17,544	126
Europe	206,946	(9,921)	232,260	(46,852)	89
Others	15,268	471	13,625	364	112
Total	4,076,778	59,926	4,112,178	(84,010)	99
Eliminations	(437,707)	3,214	(463,192)	15,983	-
Total	3,639,071	63,140	3,648,986	(68,027)	100

Fiscal 2003: April 1, 2002 - March 31, 2003

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

3. Overseas Sales

(in millions of yen)

	FY '03		FY '02		A/B (%)
	Sales (A)	% of total net sales	Sales (B)	% of total net sales
North America	361,774	9.9	324,259	8.9	112
Asia (except Japan)	406,316	11.2	342,313	9.4	119
Europe	200,049	5.5	218,996	6.0	91
Others	84,476	2.3	73,063	2.0	116
Total overseas sales	1,052,615	28.9	958,631	26.3	110

Fiscal 2003: April 1, 2002 - March 31, 2003

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 (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 3,639 billion yen (US$30.3 billion*) in the year ended March 31, 2003.
For more information about Mitsubishi Electric, visit http://global.mitsubishielectric.com
*At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2003.

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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