MHI Receives Successive Orders for Large-scale FGD Systems from Spain - 4 Units for Major Electricity Providers to Satisfy New EC Standards -.

Tokyo, Japan, Nov 21, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI), Mitsubishi Corporation  and Duro Felguera, S.A., a leading Spanish heavy machinery manufacturer, have jointly received orders in succession for large-scale flue gas desulfurization (FGD) systems, four units in total, from two major Spanish electricity providers: Iberdrola Generacion, SAU and Endesa Generacion, SA. The FGD system for Iberdrola will be an altogether new installation while that for Endesa is to upgrade a previously delivered FGD system in order to boost desulfurization capacity.

The FGD system for Iberdrola, which features MHI's Double Contact Flow Scrubber (DCFS)* technology, will be installed in the No. 2 coal-fired power generation unit at the Velilla power station in northern Spain. The latest system on order complies with new EU standards** for flue gas set to go into force in 2008. It will be used to remove SO2 (sulfur dioxide) from the flue gas - 1,400,000 Nm3 per hour - emitted from the power station's 367 MW (megawatt) coal-fired boiler system. The desulfurization ratio will be approximately 95%.

The FGD system for Endesa will also comply with the new EU standards. In 1999, MHI delivered three grid tower type* FGD units for the No. 1, 2 and 3 coal-fired power generation units at the Teruel power station in eastern Spain. These units will now be converted to systems using MHI's proprietary DCFS technology. Through conversion, total quantity of SO2 to be treated will be enhanced by 10%, enabling to process 4,200,000 Nm3 flue gas per hour (1,400,000 Nm3 per hour x 3) emitted from three 350 MW boilers. Again, the desulfurization ratio will be approximately 95%.

The latest orders bring the total number of FGD units ordered by Spain to MHI to nine. They follow an order the team received in January for two large-scale FGD systems from Endesa, for that company's Compostilla power generation station No. 4 and 5 units. The high evaluation accorded to MHI's FGD systems and to the proven operational record of MHI's FGD systems delivered to Spain resulted in the award of the latest orders.

Under the contracts for both orders, MHI will be responsible for the basic design and supply of major system components. Duro Felguera will perform the detailed design work, civil engineering and installation as well as supply the peripheral equipment.

Amid the enforcement of stricter environmental protection regulations worldwide, tighter SO2 emission control standards are currently being sought in the EU, in addition to the U.S. and China. At the same time, the global market for FGD installations is expanding greatly, resulting in a sharp increase in demand for higher desulfurization capacity. In recognition of this trend and on the strength of the latest orders, MHI will continue aggressive marketing of its FGD systems globally as it probes further system refinements.

Notes:

* In the DCFS system, limestone slurry, a liquid absorbent of SO2, is evenly distributed throughout the absorber from spray nozzles installed at the bottom, in contrast to conventional grid tower systems in which slurry is sprayed from the top. As a result the slurry contacts with the flue gas twice, first when sprayed upward and second upon its descent. The increased slurry and flue gas contact provides greater desulfurization capability. The DCFS system features higher desulfurization efficiency and a simpler configuration than the conventional system.

** The new EC regulations are expected to include a clause requiring existing facilities to reduce their SO2 emission level to 400mg/Nm3 (200mgNm3 for new facilities), half the earlier requirement.

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

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