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Mitsubishi Electric and Toshiba Announce New Company

22 July, 2003


Integrating Industrial Electric and Automation Systems Businesses

TOKYO, July 22, 2003 -- Mitsubishi Electric Corporation (hereafter, Mitsubishi Electric) and Toshiba Corporation (hereafter, Toshiba) today announced the outline of their new joint venture company, integrating their businesses in industrial electric and automation systems for manufacturing plants for which they reached a basic agreement earlier on April 18, 2003.

On October 1st, this new company, tentatively to be named "Toshiba Mitsubishi-Electric Industrial Systems Corporation" will be founded and commence operations. At present, Mr. Isamu Matsuyama (former Managing Director of Mitsubishi Electric) is scheduled to become president of this new company.

The new company will handle sales, engineering, installation and servicing of industrial electric and automation systems (industrial supervisory control systems, drive systems, power distribution systems, etc.) used in steel, pulp and paper, petrochemical, automobile, food and other manufacturing plants.

It will bring together all key functions in the partners' respective businesses including development, manufacturing and engineering, sales, installation and services which will integrate the assets of the relevant divisions of each partner, TMA Electric Corporation, an equally owned joint venture of Mitsubishi Electric and Toshiba for large capacity motors, and Toshiba GE Automation Systems Corporation, a Toshiba subsidiary in Japan. GE Toshiba Automation Systems LLC, currently a U.S. joint venture between Toshiba and General Electric Company, will become a subsidiary of the new company. The combined operations of the new company are expected to promote overall competitiveness and a global presence, and to support an operating structure that will position the new entity as a leading system integrator in industrial electric and automation systems.

Outline of New Company

Company name Toshiba Mitsubishi-Electric Industrial Systems Corporation (tentative)
Start of operations October 1, 2003
Capitalization 15 billion Japanese yen (plus approximately 20 billion Japanese yen in capital reserves)
Shareholding Toshiba 50%, Mitsubishi Electric 50%
President Isamu Matsuyama
(former Managing Director of Mitsubishi Electric)
Headquarters Minato Ward, Tokyo Japan
Manufacturing facilities Fuchu, Kobe, Keihin, Mie and Nagasaki
Business areas Sales, engineering, installation and servicing of industrial electric and automation systems primarily for manufacturing plants; and development and manufacture of supervisory control systems, power electronic equipment and motors (large capacity motors, etc.)
Sales target 147 billion Japanese yen (fiscal year 2006)
No. of employees Approximately 2,200 (at initial operation)

About Mitsubishi Electric Corporation

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. For more information, visit http://global.mitsubishielectric.com

* At an exchange rate of 120 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2003.

About Toshiba Corporation

Toshiba Corporation, a world leader in high technology, is a diversified manufacturer and marketer of advanced electronic and electrical products, spanning information and communications equipment and systems, internet-based solutions and services, electronic components and materials, power systems, industrial and social infrastructure systems, and household appliances. The company's integration of these wide-ranging capabilities assures its position as a leading company in all aspects of industrial electric and automation systems. Toshiba has 166,000 employees worldwide and annual sales of over US$47 billion. Visit Toshiba's web site at http://www.toshiba.co.jp/index.htm

For media inquiries only:

Mitsubishi Electric Corporation
Robert Barz
Public Relations Department
Tel: +81-3-3218-2346
Robert.Barz@hq.melco.co.jp

Toshiba Corporation
Junko Furuta
Corporate Communications Office
Tel: +81-3-3457-2105
press@toshiba.co.jp


Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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