Mitsubishi Electric Jointly Establishes New Elevator Company in Korea; Re-Enters Korean Market as Part of Its Global Elevator and Escalator Strategy.

Business Editors/High-Tech Writers

TOKYO--(BUSINESS WIRE)--Nov. 21, 2001

Mitsubishi Electric  Corporation announced today it will establish Mitsubishi Elevator Korea Co., Ltd. with Mitsubishi Electric Building Techno-Service Co., Ltd. and Mitsubishi Corporation . The new company is scheduled to begin operations Dec. 1, 2001 and will carry out sales, installation, and maintenance of Mitsubishi Electric's elevators and escalators in the Korean market.

Re-entry into the Korean Market

Mitsubishi Electric will target the Korean market mainly with its high-quality and high-speed model elevators, a strength of the company. By fortifying the reputation of its products and presence in the Korean market, Mitsubishi Electric expects to expand its scale of orders.

Furthermore, through the introduction of remote monitoring systems that provide quick service, Mitsubishi Electric will gain greater customer satisfaction in the maintenance field, which will lead to an expansion in service contracts.

Background

      1.  In 1978, Mitsubishi Electric entered the Korean domestic
        elevator and escalator market by conducting sales activities
        through Shinkwang Electric Corporation (now LG Industrial
        Systems Co., Ltd.). However, due to Otis Elevator
        Corporation's acquisition of LG Industrial Systems, Mitsubishi
        Electric withdrew from the Korean market.

      2.  Although market demand for elevators and escalators fell by
        10,000 installations in one year as a result of the Asian
        currency crisis in 1997, the Korean economy and demand for
        elevators and escalators has recovered steadily since.
        According to Mitsubishi Electric estimates, demand for
        installations will be steady at 15,000 per year in the near
        future, which will make Korea the No. 3 market in Asia after
        China and Japan, and No. 7 worldwide.

      3.  As re-entering the huge Korean market is an essential part of
        Mitsubishi Electric's global elevator and escalator strategy,
        the company resumed sales activities via its Korea branch
        office in October 2000. During this period, Mitsubishi
        Electric received many prominent orders such as the "Samsung
        T3 Project" which includes building the highest building in
        Korea, and the "Su-Won Station Project" in Su-Won city, a site
        of the 2002 FIFA World Cup.

      4.  Based on orders from these projects, Mitsubishi Electric
        ascertained that clients in Korea still think highly of the
        company's product quality and continue to have a trust-based
        relationship fostered by past sales activities. Accordingly,
        Mitsubishi Electric has decided to establish a new company in
        Korea to begin more localized business activities.

      Profile of Mitsubishi Elevator Korea Co., Ltd. The new company
will import finished production goods from Mitsubishi Electric's
Inazawa Works in Japan and Mitsubishi Elevator Asia Co., Ltd. in
Thailand. Sales, installation, and maintenance activities will be
conducted in Korea.

Company name:              Mitsubishi Elevator Korea Co., Ltd.
President:                 To be assigned from Mitsubishi Electric
Date of establishment:     December 1, 2001 (plan)
Capital:                   3 billion won (approx. 270 million yen)

Amount of investment:

Mitsubishi Electric Corporation                             51%
Mitsubishi Electric Building Techno-Service Co., Ltd.       26%
Mitsubishi Corporation                                      20%
Local partners                                               3%

Company location:          Seoul, Korea
Type of business:          Sales, installation and maintenance of
elevators/escalators
Sales volume:              6 billion yen (2006 estimate)

About Mitsubishi Electric Corporation

With 80 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (FTSE: 6503q.l) 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 construction. The company has operations in 34 countries and recorded consolidated group sales of over US$33BN in the year ended March 31, 2001. Additional information on Mitsubishi Electric is available at www.mitsubishielectric.com.