CYPRESS, Calif. --- September 17, 2002 --- Mitsubishi Electric & Electronics USA, Inc. (MEUS) has announced that Paceon Corporation of Duluth, GA, fully owned by Mitsubishi Electric Corporation, will be closed effective October 1, 2002. On that day, a new division (the "Paceon Division") of MEUS, will be established to market FSAN-compliant, passive optical network- (PON-) based broadband solutions for home and business in the United States. The Paceon Division will offer a diverse set of broadband access solutions that are carrier-class, cost-effective and easy to manage, and pursue the same broadband markets within North America.

"Mitsubishi Electric is a recognized leader in the research, engineering, manufacturing and marketing of electrical and electronic equipment used in communications, consumer electronics, industrial technology, energy and transportation," said Tom Sterbenc, who will be general manager of the Paceon Division of MEUS. "The combined resources of Mitsubishi Electric and MEUS’s new Paceon Division will strengthen the company’s ability to be the preferred broadband access vendor in North America for applications such as Fiber to the Business (FTTB) and Fiber to the Home (FTTH), over passive optical networks."

Administrative, sales and marketing operations for the Paceon Division will be located at 3885 Crestwood Parkway, Suite 300, Duluth, GA, 30096. For more information, call 770.717.6769.

About the Paceon Division of Mitsubishi Electric & Electronics USA, Inc. (MEUS)
The Paceon Division’s mission is to be the preferred vendor to help network service providers build out their access networks in the first/last mile. Using Mitsubishi Electric’s passive optical networking technology and chip sets, MEUS’s Paceon Division will market and sell FSAN-compliant, North American products to provide high bandwidth and low-cost solutions for both home and business.

About Mitsubishi Electric US
Mitsubishi Electric US represents roughly a dozen companies that market an extensive line of consumer, commercial and industrial electronics products. With nearly 6,000 employees in 30 locations throughout North America, sales in fiscal year 2001 were approximately $2.6 billion. For additional information visit www.MitsubishiElectric.com.

For More Information:
Cayce Blanchard
Mitsubishi Electric News Bureau
714/229-3837 for media use only
cayce.blanchard@meus.mea.com