MHI to Increase Production of Engine Parts for Commercial Airplanes; Factory Dedicated to the Parts Production to Be Built.

Tokyo, Japan, Sept 27, 2006 - (JCN Newswire) - Mitsubishi Heavy Industries, Ltd. (MHI; TSE:7011) will expand its production capacity of aero-engine parts for commercial aircrafts at its Nagoya Guidance & Propulsion Systems Works in Komaki-city, Aichi Prefecture. With capital investment of approximately 5 billion yen, MHI will build a factory dedicated to the production of the engine parts to increase the production capacity of parts for the high demand PW4000 and V2500 and to prepare for commencement of parts production for the new Trent 1000. The Trent 1000 engine is currently being developed for the Boeing 787. The new factory is slated for completion in September 2007 and is expected to begin production in January 2008.

The decision to increase production capacity was made based on MHI's anticipation of a substantial increase in engine production beyond initial expectations. The production of PW4000 and V2500 engines, used for main commercial aircrafts manufactured by Boeing and Airbus, are sharply increasing as global airline demand has recovered since 2004.

Due to strong demand for Boeing 787, substantial production increase is also requested for parts for the Trent 1000 engines, MHI's first cooperative effort with UK's Rolls-Royce. MHI will set the production capacity to enable the manufacturing of eight Trent 1000 engines per month to start.

The new two-story factory dedicated to production of aero-engine parts for commercial airplanes will have a total floor space of approximately 11,000 square meters (120,000 square feet). The new factory will be built adjacent to the current production facility.

Both the PW4000 and V2500 are products of an international joint development program. The PW4000 Series is a family of large-scale commercial aircraft engines with a takeoff thrust ranging from 52,000 to 98,000 pounds (lbs). Pratt & Whitney of the U.S. took a leading role in the development of the PW4000 series. Companies from several countries including Japan and Germany also participated in this project. MHI is responsible for manufacturing key components, such as combustion chambers and parts for turbines and compressors.

In the case of the V2500 Series with 22,000 to 33,000 lb thrust, six companies from four countries participates in - Japan, USA the UK and Germany. MHI undertakes the production of cases for low-pressure compressors and high-pressure turbines.

For the new Trent 1000 with 53,000 to 75,000 lb thrust to be used for the 787, MHI is responsible for the development and manufacturing of the combustor and low pressure turbine blades, two core parts of the engine.

Through these initiatives, MHI responds to growing demands, satisfying customer needs in both product quality and delivery punctuality.

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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Hideo Ikuno
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