Tokyo--Mitsubishi Electric Corporation and Toshiba Corporation today announced that they will integrate their power transmission and distribution businesses in a joint venture company that will be incorporated in April this year and start business on October 1, 2002.

The new joint venture will bring together the sales, engineering, development and manufacturing functions of the parent companies for Japan's largest company dedicated to power transmission and distribution. The scale and business volume of the combined operation will match those of the world's top three companies in the business and allow the new company to implement an operating structure that leads a global presence.

The announcement by the Mitsubishi Electric and Toshiba reflects the tough realities of the transmission and distribution industry. In Japan, reduced investment by power utility companies has eroded the market. Overseas, demand remains stable, but competition is fierce against industry leaders. Mitsubishi Electric and Toshiba's first response to these market conditions was an October 2000 comprehensive agreement aimed at enhancing product development and productivity. The latest announcement reinforces and extends this collaboration and is expected to promote the two companies' fundamental competitiveness in the transmission and distribution business.

The business integration is expected to bring multiple benefits.

1. Reinforced technology capabilities and lower costs.
   

   *	Standardization of products and reorganization of manufacturing allocation to improve cost competitiveness.
   *	Centralization of development activities to speed product development.
   *	Integration of procurement to promote cost savings.

2. Reinforced overseas presence
   

   *	Creation of a global network utilizing the overseas manufacturing facilities and sales offices.
   *	Reinforcement of product line-up to expand sales in the world market.

3. Reinforced operating efficiency

   *	Realization of asset-light operation by reduction of overhead.
   *	Speedy decision-making by a dedicated company.

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 (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.

About Toshiba Corporation

Toshiba Corporation is a leader in information and communications systems, electronic components, consumer products and power systems. The company's integration of these wide-ranging capabilities assures its position as a leading company in all aspects of power generation, transmission and distribution. Toshiba has 188,000 employees worldwide and annual sales of over US$47 billion. Visit Toshiba's website at http://www.toshiba.co.jp/index.htm