MHI Receives Order from China for M251S Gas Turbine, Core Component of TISCO's GTCC Power Generation Plant.

Tokyo, Japan, Mar 13, 2007 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (TSE:7011), jointly with Marubeni Corporation, has received an order for an M251S gas turbine from Taiyuan Iron & Steel (Group) Co., Ltd. (TISCO), one of China's leading steelmakers. The gas turbine will serve as a core component of a blast-furnace-gas (BFG) fired gas turbine combined-cycle (GTCC) power generation plant that TISCO is building in the city of Taiyuan, in Shanxi Province. BFG-fired GTCC power plants effectively utilize exhaust gas from blast furnaces to meet part of a steel plant's electricity

The TISCO power plant project is being financed in conjunction with a yen (ODA) loan for the Taiyuan Environmental Improvement Project. The 50 MW (megawatt) BFG-fired GTCC power plant will consist of one M251S gas turbine, a steam turbine, a heat recovery steam generator (HRSG) and a generator. The 30 MW M251S gas turbine will be manufactured and supplied by MHI's Takasago Machinery Works. The steam turbine will be supplied by Hangzhou Steam Turbine Co., Ltd., and the HRSG will be procured by TISCO separately.

TISCO, which is based in Shanxi Province, is ramping up production of stainless-steel plates in its quest to become one of the world's largest manufacturers of stainless steel. A new production line went into operation in 2006.

The Chinese steel manufacturing industry has been expanding its output every year, supported by the robust growth of the domestic economy. In 2006 production of raw steel in China reached nearly 420 million tons, an 18.5% increase over the previous year, and in tandem with this sharp expansion the country is pushing for efficient energy utilization and reductions in carbon dioxide (CO2) emissions. In response, there is a growing trend in the steel industry to introduce high-efficiency GTCC power plants that utilize BFG for fuel.

Because BFG has a lower calorie rating than natural gas, stable combustion of BFG-fired gas turbines requires sophisticated technology. MHI independently established its BFG GTCC power generation technology in the 1980s, including development of BFG-dedicated combustors. Since then, the company has delivered numerous systems to iron and steel manufacturers at home and abroad, enjoying nearly a 70% share of the world's BFG gas turbine market. This technological lead and track record have been highly acclaimed by customers, and contributed heavily to MHI's winning of this newest order.

Buoyed by the new order from China, going forward MHI intends to further strengthen its marketing activities for BFG GTCC plants that contribute to effective utilization of energy and reduction of environmental burdens.

About Mitsubishi Heavy Industries, Ltd.

Mitsubishi Heavy Industries, Ltd. (TSE: 7011, 'MHI'), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,792 billion yen in fiscal 2005 (year ended March 31, 2006). MHI's diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems. For more information, please visit the MHI website at http://www.mhi.co.jp

Source: Mitsubishi Heavy Industries, Ltd.

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