TOKYO, July 31, 2003--Mitsubishi Electric Corporation (hereafter, the Company) today announced its financial results for the first fiscal quarter ending June 30, 2003 as follows:

Consolidated:
Net sales	740.2 billion yen	(2% increase year on year)
Operating income	8.9 billion yen	(16% increase year on year)
Income before income taxes	8.3 billion yen	(785% increase year on year)
Net income	0.6 billion yen	(23% decrease year on year)

In the first quarter of fiscal 2004 (April 1, 2003 - March 31, 2004) some Asian countries continued to experience economic expansion. But the global economy on the whole slowed down, especially in the United States and Europe, with the Japanese economy experiencing a decrease in exports along with the ongoing stagnant recovery in domestic demand. Consequently, the business environment facing the Company continues to be severe.

Under these conditions, the Company continued to restructure its businesses by spinning off most of its semiconductor business, mainly system LSIs, and established Renesas Technology Corp. (a joint venture with Hitachi Ltd. established on April 1, 2003, an affiliated company accounted for by the equity method). The Company also made efforts to improve and reinforce profitability in each business and implemented company-wide managerial improvement measures, including "E21 Project Activities" for drastically reducing procurement costs and "EA21 Activities" for curtailing inventory and other assets and fixed costs. These efforts combined with our promotion of growth strategies for expanding added value were pursued to further improve business performance and financial standing and to strengthen our management foundation.

Consolidated Results by Business Segment

In the Energy and Electric Systems segment, sales rose 5% to 141.0 billion yen year on year with an operating loss of 1.2 billion yen, which worsened by 0.6 billion yen year on year.

Sales and orders in the social infrastructure business were lower compared to the same quarter last year. This was partially due to a decrease in private capital investment by domestic power and manufacturing companies and in public investment. In addition, the spinning off of our power electric systems and power transformer businesses contributed to these lower sales and orders. For the building systems business, despite a slump in demand in new domestic elevator installations, it posted the same level of orders as the same quarter last year, but achieved an increase in sales thanks to large overseas projects.

As a result, total sales for this segment were up 5% year on year while operating income worsened by 0.6 billion yen due to price declines, etc.

In the Industrial Automation Systems segment, sales rose 16% to 167.2 billion yen year on year while operating income increased by 2.7 billion yen to 16.1 billion yen year on year.

The industrial products business posted increases in both sales and orders. This was due to an increase in domestic demand by manufacturers of semiconductors, liquid crystal displays (LCD) and automobile products for processing machinery, along with increased foreign demand of programmable controllers, servo motors and numerical controllers (NC) in Taiwan, South Korea, China and other Asian countries. Sales for this quarter in the automotive equipment business exceeded that of the preceding year due to increases in electronic equipment for Japanese and overseas automobile manufacturers.

As a result, total sales for this segment were up 16% year on year and operating income increased by 2.7 billion yen due to stronger sales, etc.

In the Information and Communication Systems segment, sales rose 25% to 149.8 billion yen year on year with an operating loss of 1.1 billion yen, which represents an improvement of 3.9 billion yen, year on year.

Sales and orders in the telecommunications business increased thanks to a rise in domestic mobile handset sales and wireless base stations to China. The information systems and services business posted increased sales thanks to a growth in mainly system integration and system operation service projects. Orders in the space business fell year on year due to the between season of major government projects. But sales rose compared to the same quarter last year. The defense electronics business also saw a drop in orders due to reduction in major projects, while sales gained against the same quarter last year.

As a result, total sales for this segment increased 25% year on year and operating income improved by 3.9 billion yen due to improved profitability in the mobile handset business, etc.

In the Electronic Devices segment, sales fell 60% to 43.3 billion yen year on year with an operating loss of 3.3 billion yen, which represents an improvement of 5.6 billion yen, year on year.

The semiconductor business faced reduced sales and orders. This occurred because of the spinning off of the system LSIs and system memory businesses that offset the increases in power amplifiers for mobile handsets with digital cameras and laser diodes for recordable DVDs. The liquid crystal business also experienced a decrease in both sales and orders due to a wide-scale price collapse in the commodity market (i.e. PC-use, etc.) despite solid results in the display business for factory equipment and other industrial products.

As a result, total sales for this segment decreased 60% year on year and operating income improved by 5.6 billion yen due to improved semiconductor business performance, etc.

In the Home Appliances segment, sales rose 12% to 195.9 billion yen year on year while operating income was 4.9 billion yen, which represents a decrease of 8.0 billion yen, year on year.

Sales rose in this segment due to increases in ventilators, hot water heaters, solar power generation systems and other residential home equipment, DVD-related equipment and packaged air conditioners for Japan and Europe while sales in home air conditioners and liquid crystal projectors decreased.

As a result, total sales for this segment increased 12% year on year while operating income worsened by 8.0 billion yen due to price declines, etc.

In the Others segment, sales fell 12% to 111.9 billion yen year on year while operating income was 1.1 billion yen, which represents a decrease of 2.3 billion yen, year on year.

Overall sales decreased due mainly to the change of our financial subsidiary into an affiliated company accounted for by the equity method, and other factors.

As a result, total sales for this segment decreased 12% year on year while operating income worsened by 2.3 billion yen due to weak sales, etc.

Forecast for 1st Half Period (April 1, 2003 to September 30, 2003)
Although the recovery in demand both in Japan and overseas remains unforeseeable as the harsh business environment is expected to continue, the current interim forecasts for Fiscal 2004 (April 1, 2003 - September 30, 2003) are the same as its original forecast, which was announced on April 28, 2003 as per below:

Consolidated:
Net sales	1.5000 trillion yen	(8% decrease year on year)
Operating income	5.0 billion yen	(78% decrease year on year)
Income before income taxes	5.0 billion yen	(58% decrease year on year)
Net income	Nil

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

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	FY '04 1st quarter April 1-June 30, 2003 (A)	% of total	FY '03 1st quarter April 1-June 30, 2002 (B)	% of total	A - B	A / B (%)
Net sales	740,212	100.0	726,876	100.0	13,336	102
Cost of sales	562,790	76.0	535,801	73.7	26,989	105
Selling, general and administrative expenses	168,473	22.8	183,350	25.2	(14,877)	92
Operating income	8,949	1.2	7,725	1.1	1,224	116
Non-operating income	12,340	1.7	8,280	1.1	4,060	149
___Interest and ___Dividends	2,841	0.4	3,797	0.5	(956)	75
___Other income	9,499	1.3	4,483	0.6	5,016	212
Non-operating expenses	12,965	1.8	15,064	2.1	(2,099)	86
Interest	4,393	0.6	5,543	0.8	(1,150)	79
Other expenses	8,572	1.2	9,521	1.3	(949)	90
Income before income taxes	8,324	1.1	941	0.1	7,383	885
Income taxes	5,351	0.7	339	0.0	5,012	16 times
Equity in earnings (losses) of affiliated companies	(2,315)	(0.3)	255	0.0	(2,570)	-
Net income	658	0.1	857	0.1	(199)	77

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	FY '04 1st quarter ending June 30, 2003 (A)	FY '03 ending March 31, 2003 (B)	A - B
(Assets) Current assets	1,815,288	1,937,537	(122,249)
Cash and cash equivalents	417,507	363,595	53,912
Short-term investments	22,489	22,523	(34)
Trade receivables	654,277	821,943	(167,666)
Inventories	487,172	510,750	(23,578)
Prepaid expenses and other current assets	233,843	218,726	15,117
Long-term trade receivables	13,285	19,795	(6,510)
Investments	448,375	359,961	88,414
Net property, plant and equipment	596,771	727,770	(130,999)
Other assets	573,787	628,574	(54,787)
Total assets	3,447,506	3,673,637	(226,131)
(Liabilities and shareholders' equity) Current liabilities	1,410,715	1,589,322	(178,607)
Bank loans and current portion of long-term debt Trade payables Other current liabilities	486,458 555,976 368,281	555,863 650,696 382,763	(69,405) (94,720) (14,482)
Long-term debt	621,232	628,361	(7,129)
Employee retirement and severance benefits	938,786	995,765	(56,979)
Other fixed liabilities	12,536	11,596	940
Minority interests	52,629	54,006	(1,377)
Shareholders' equity	411,608	394,587	17,021
Capital	175,820	175,820	--
Capital surplus	210,671	210,671	--
Retained earnings	345,068	350,851	(5,783)
Accumulated other comprehensive income (loss)	(319,879)	(342,687)	22,808
Treasury stock at cost	(72)	(68)	(4)
Total liabilities and stockholders' equity	3,447,506	3,673,637	(226,131)

Balance of Debt	1,107,690	1,184,224	(76,534)
Accumulated other comprehensive income (loss)
___Foreign currency ___translation ___adjustments	(2,143)	(686)	(1,457)
___Minimum pension ___liability adjustments	(332,712)	(346,546)	13,834
___Net unrealized gains ___on securities	14,976	4,545	10,431
Fiscal 2004, 1st quarter: April 1, 2003-June 30, 2003

CONSOLIDATED CASH FLOWS

(in millions of yen)

	FY '04 1st quarter April 1-June 30, 2003 (A)	FY '03 1st quarter April 1-June 30, 2002 (B)	A - B
I. Cash flows from operating activities
1 Net income	658	857	(199)
2 Adjustments to reconcile net income to net cash provided by operating activities
__(1) Depreciation	26,165	49,764	(23,599)
__(2) Decrease in trade __ receivables	123,649	149,379	(25,730)
__(3) Decrease (increase) in __ inventories	(18,971)	(65,394)	46,423
__(4) Increase (decrease) in __ trade payables	(49,404)	(91,393)	41,989
__(5) Other, net	(13,565)	(27,523)	13,958
____Net cash provided by ____operating activities	68,532	15,690	52,842
II. Cash flows from investing activities
1 Capital expenditure	(15,761)	(27,608)	11,847
2 Proceeds from sale of property, plant and equipment	2,983	1,527	1,456
3 Purchase of short-term investments and investment securities	(19,997)	(3,985)	(16,012)
4 Proceeds from sale of short-term investments and investment securities	21,723	9,694	12,029
5 Other, net	8,146	1,794	6,352
Net cash used in investing activities	(2,906)	(18,578)	15,672
I + II Free cash flow	65,626	(2,888)	68,514
III. Cash flows from financing activities
1 Proceeds from long-term debt	51,879	68,681	(16,802)
2 Repayment of long-term debt	(17,230)	(60,344)	43,114
3 Increase (decrease) in bank loans, net	(41,237)	(101,461)	60,224
4 Dividends paid	(6,440)	--	(6,440)
5 Purchase of treasury stock	(4)	--	(4)
Net cash provided by (used in) financing activities	(13,032)	(93,124)	80,092
IV. Effect of exchange rate changes on cash and cash equivalents	1,318	(64)	1,382
V. Net increase (decrease) in cash and cash equivalents	53,912	(96,076)	149,988
VI. Cash and cash equivalents at beginning of period	363,595	454,890	(91,295)
VII. Cash and cash equivalents at the end of period	417,507	358,814	58,693

CONSOLIDATED SALES AND OPERATING INCOME
BY BUSINESS SEGMENT

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 3,639 billion yen (US$30.3 billion*) in the year ended March 31, 2003.
*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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