MITSUBISHI ELECTRIC ANNOUNCES FINANCIAL RESULTS
(APRIL 1, 2000-MARCH 31, 2001)

TOKYO, April 27, 2001 --Mitsubishi Electric today announced its financial results for the fiscal year ended March 31, 2001 as follows:

Consolidated:
Net sales	4.1294 trillion yen (9% increase from last year)
Operating income	195.3 billion yen (147% increase from last year)
Income before income taxes	210.4 billion yen (423% increase from last year)
Net income	124.7 billion yen (403% increase from last year)

(Reference)
Targets for year ended March 31, 2002 announced in the Mid-term Corporate Strategy, October 1999

Net sales 4 trillion yen (or more) Operating income 140.0 billion yen (or more) Income before income taxes 120.0 billion yen (or more) Net income 75.0 billion yen (or more)

Non-consolidated:

Net sales	2.9326 trillion yen (8% increase from last year)
Operating income	188.1 billion yen (128% increase from last year)
Ordinary profit	137.1 billion yen (327% increase from last year)
Net income	32.4 billion yen (165% increase from last year)

During the year under review, the Japanese economy saw an industrial recovery primarily in production and capital investment against the backdrop of the stable overseas economic climate and an expansion in IT-related demand. However, personal consumption continued to fluctuate with no discernible improvements in the employment and income environments. In addition, at the end of the year, the impact of the sharp deceleration in the US economy had an effect with a spreading sense of a global economic slowdown. A slowdown in the speed of the industrial recovery in Japan has also rapidly become apparent.
    Under these conditions, Mitsubishi Electric and its affiliates already achieved the numerical targets for fiscal 2002 set forth in the medium-term corporate strategy as detailed below. This achievement has been the result of the expanded business opportunities accompanying the increase in IT-related demand and improvements in management that include reform to the structure of the business.

Cash Flow
Cash flow (income) obtained through sales activities amounted to 395.9 billion yen (an increase of 3.2 billion yen compared to the same period last year). Cash flow (spending) in investment activities came to 260.1 billion yen (a spending increase of 92.2 billion yen compared to the same period last year) due to an increased capital expenditure (acquisition of property, plant and equipment) of 106.7 billion yen and other factors.
     As a result, even though there was a decrease of 89.0 billion yen compared to the previous year, free cash flow resulted in an income of 135.8 billion yen.

Consolidated Results by Business Segment
In the Energy and Electric Systems segment, compared to the previous year, sales increased 3% to 910.5 billion yen and operating income increased 2% to 39.9 billion yen. Despite a decline in capital investment by domestic power companies, both orders and sales for power equipment remained at the same level as last year due to an increase in overseas business. Although the demand environment for industrial machinery remains bleak, orders and sales remained the same as last year. As a result of an expansion in overseas business, orders for transportation products were the same as last year while sales rose both in Japan and overseas exceeding last year's results. In the public works sector, the effect of public investment, particularly by local governments, is declining, but both orders and sales were at the high level of the previous year. In building systems, demand for elevators fell in Japan and overseas, and both orders and sales were lower than last year. As a result, overall sales in the segment rose 3% year-on-year. Despite a decline in prices, operating income rose in the segment overall due to cost improvements.

The Industrial Automation Systems segment, on a year-on-year basis, experienced an increase of 11% in sales to 662.9 billion yen while operating income increased 85% to 54.6 billion yen. The industrial products business enjoyed orders and sales that were higher than last year for factory automation equipment, such as programmable controllers and servo motors, as a result of increased domestic demand against a background of the expansion in IT-related investment and growth in demand in overseas markets, primarily Asia. Orders and sales for power supply controllers also exceeded last year benefiting from building renovation demand and increased demand for energy saving devices. Orders and sales in the industrial mechatronics business were also up over last year due to greater domestic and overseas demand for machine tools for IT-related use. Automotive electronics also registered orders and sales that exceeded the previous year due to the growth in car electronics equipment including motors for electric power steering and electronic control units. As a result, overall sales in the segment rose 11% year-on-year. Operating income increased significantly in the segment overall due to the increase in profits in the industrial products business and others.

The Information and Communications segment recorded sales of 934.9 billion yen, an increase of 10% compared to the previous year while operating income registered a loss of 13.0 billion yen. In telecommunications, both orders and sales greatly exceeded last year's figures with the growth in cellular phones mainly for Japan and Europe resulting from the steady expansion in the global cellular phone market. Information systems and services saw orders and sales for solutions for e-business exceed those of last year, but orders and sales were down over last year due to the withdrawal from FDDs and the drop in demand for hardware, primarily servers for small and medium-sized companies. In the space business, there were large-scale orders for the MTSAT-2 (Multi-functional Transport Satellite-2), the first success by a Japanese manufacturer in an international tender for a commercial satellite for domestic use. This, together with sales of the Superbird satellite, led to increased sales and orders. Defense orders remained at last year's level while sales fell due to a lull in spending on major projects. As a result, overall sales in the segment increased 10% year-on-year. Operating income in the segment overall was in the red mainly as a result of the deterioration in earnings in the overseas cellular phone and other businesses.

In the Electronic Devices segment, compared to last year, sales increased by 14% to 714.3 billion yen and profitability was achieved with operating income at 95.1 billion yen. The semiconductor business enjoyed higher orders and sales than last year. This was due to the light impact of the decline in prices in the DRAM market resulting from the reform in the structure of the business and the growth in demand for non-DRAM devices incorporating system LSIs primarily aimed at growth markets in telecommunications, networks, digital information equipment and automobiles. The sharp expansion in IT-related products for cellular phones and the Internet made a particularly significant contribution. Despite the growth in 15.0-inch products for liquid crystal display monitors, the liquid crystal business suffered a major decline resulting from a change in market conditions for 12.1-inch products for notebook PCs, and both sales and orders were down on the previous year. As a result, overall sales in the segment were up 14% year-on-year. Operating income for the segment overall went into the black by a good margin as a result of the improved earnings of the semiconductor business.

In the Home Appliances segment recorded sales of 733.0 billion, a 14% increase compared to the last fiscal year, and an operating income of 28.5 billion was attained, a 391% increase. Sales in the home appliance and audio-visual products business were higher than last year due to increased sales of air conditioners because of the hot summer and an expansion in demand for televisions, refrigerators, air conditioners and washing machines prior to the enforcement of the Law for Recycling of Specified kinds of Home Appliances at the end of the fiscal year. The household equipment business recorded higher sales than last year due to the growth in ventilators, its core product, while the air-conditioning business also enjoyed increased sales with expansion in its core business of air conditioners. In the image data business, increased demand for liquid crystal projectors and video copy processors led to growth in sales over the previous year. Sales for the overseas business expanded as a result of the growth in the air-conditioning business, mainly in China, and the increased demand for large projection televisions in the United States. As a result, overall sales in the segment grew 14% year-on-year. Operating income in the segment overall rose significantly because of the increase in sales.

The Others segment saw sales of 599.7 billion yen, a 3% increase compared to the same period last year and recorded an operating income of 9.4 billion yen, a 32% increase. Sales of affiliated companies in distribution, engineering and maintenance rose over the previous year while sales of affiliates in the real estate business were down. As a result, overall sales in the segment rose 3% year-on-year. Operating income for the segment overall rose because of the increase in sales.

Dividend Policy
The year-end dividend for the year under review is 6.⁰ yen. Together with the mid-term dividend of 4.⁰ yen, the company is proposing a total dividend of 10.⁰ yen per share. (In the previous year, the mid-term dividend was 2.⁵ yen and the year-end dividend was 2.⁵ yen, yielding a total dividend of 5.⁰ yen per share).

Forecast for Next Fiscal Year
Amid fading expectations of a rapid recovery for the US economy, the business environment surrounding Mitsubishi Electric and its affiliates is forecast to look increasingly bleak with private domestic demand ever more likely to continue to falter, an intensification in competition and a drop in product prices.
     Given these conditions, Mitsubishi Electric intends to focus its management resources on telecommunications including cellular phones and on the semiconductor business based on system LSIs as well as aiming for expansion in the information systems business. We are also planning to further strengthen competitiveness in our core businesses, such as energy and electric systems, industrial automation systems and home appliances.

The company's forecasts at the present time for the year ended March 31, 2002 are as follows:

Consolidated:
Net sales	4.3 trillion yen (4% increase from this year)
Operating income	150.0 billion yen (23% decrease from this year)
Income before income taxes	120.0 billion yen (43% decrease from this year)
Net income	75.0 billion yen (40% decrease from this year)

Net sales and operating profit by business segment

(in billions of yen)

	Forecasts for fiscal 2002		Results of fiscal 2001
	Net sales	Operating income (loss)	Net sales			Operating income (loss)
Energy and Electric Systems	920.0	40.0	910.5			39.9
Industrial Automation Systems	640.0	43.0	662.9			54.6
Information and Communication Systems	1,080.0	23.0	934.9			(13.0)
Electronic Devices	740.0	21.0	714.3			95.1
Home Appliances	760.0	31.0	733.0			28.5
Others	600.0	11.0	599.7			9.4
Subtotal	4,740.0	169.0	4,555.5			214.6
Eliminations and other	(440.0)	(19.0)	(426.0)			(19.2)
Total	4,300.0	150.0	4,129.4			195.3

Non-consolidated:
Net sales	3.0 trillion yen (2% increase from this year)
Operating income	100.0 billion yen (47% decrease from this year)
Ordinary profit	80.0 billion yen (42% decrease from this year)
Net income	40.0 billion yen (23% increase from this year)

Note: The forecast of results above is based on assumptions deemed reasonable by the company at the present time, and actual results may differ significantly from forecasts.

Management Policy

Fundamental Management Policy
With increasingly dramatic changes in the business environment surrounding the company, including the economic climate and the industrial structure, we are seeking to further strengthen high income, high growth businesses through the priority investment of management resources. We are also promoting a strengthening of the consolidated business base by further enhancing every aspect of the group's management infrastructure including development, procurement of resources, manufacturing, sales and finances in order to respond appropriately to change.
     With this strategy, the company is aiming to further increase corporate value in order to meet the expectations of all our stakeholders including customers and shareholders.

Basic Policy on Profit Sharing
Mitsubishi Electric's basic policy on profit sharing is to maintain stable dividends over the long term. Dividends are decided after taking all factors into consideration including capital investment required for future business expansion and strengthening of profitability, securing of in-house capital for research and development and other projects and business results in the year under review and in the future.

Individual Business Unit Strategies for the Establishment of a High-Profitability and High-Growth Foundation
Mitsubishi Electric will seek to further strengthen its semiconductor operations by continuing to have system LSI as a foundation for profitability and at the same time strengthen and expand its optical and microwave device business. We will also make efforts to improve our communications systems business, particularly in regard to the mobile phone business.
    In the information systems business, our aim is to improve customer service with the business reorganization based on the spin off of the Information Systems Group and its merger with the network service division. We are also seeking to expand the business by achieving a synergy between the Internet-related business and the information systems business.
     In its core businesses of energy and electric systems and industrial automation, Mitsubishi Electric will step up its global business development with a focus on cooperation with other companies. Mitsubishi Electric will also further improve profitability by expanding business in the IT-solutions field where we can leverage the strengths of affiliates.

Strategy on Establishing New Management Organization
In order to step up the strengthening of its IT-related businesses, as of April 1, 2001, Mitsubishi Electric established a new "IT Business Strategy Committee" with the President as Chairman and a newly appointed an executive to supervise IT-related businesses. Mitsubishi Electric also reorganized and spun off the former Information Systems Group and integrated the Information Network Services Group to establish the newly formed Information Systems Service Group, which will supervise the information network systems services business.
     Also, the company appointed a Corporate Communications Officer on April 1, 2001 to better respond to the needs of its stakeholders (customers, shareholders, employees, communities and others) and further improve its corporate activities.

CONSOLIDATED AND NON-CONSOLIDATED FINANCIAL RESULTS

1. CONSOLIDATED FINANCIAL RESULTS

	Fiscal 2001	Fiscal 2000	'01/'00 (%)
Net sales	4,129.4	3,774.2	109
Income before income taxes	210.4	40.2	523
Net income	124.7	24.8	503
Net income per share (in yen)	56.55	11.57	489

Fiscal 2001: April 1, 2000 - March 31, 2001

Note:

1) Consolidated financial charts made according to U.S. GAAP. 2) Company has 139 consolidated affiliates. 3) From this fiscal year, SFAS No. 115 has been applied

2. NON-CONSOLIDATED FINANCIAL RESULTS

(in billions of yen)

		Fiscal 2001	Fiscal 2000	'01/'00 (%)
Net sales		2,932.6	2,705.0	108
Ordinary profit		137.1	32.1	427
Net income		32.4	12.2	265
Dividend per share
	Annual dividend	10.00 yen	5.00 yen	200
	Interim dividend	4.00 yen	2.50 yen
	Term-end Biannual dividend	6.00 yen	2.50 yen
Net income per share (in yen)		15.13 yen	5.70 yen	265

Fiscal 2001: April 1, 2000 - March 31, 2001

CONSOLIDATED PROFIT AND LOSS STATEMENT

(in millions of yen)

	Fiscal 2001 (A)	% of total	Fiscal 2000 (B)	% of total	(A) - (B)	(A)/(B) (%)
Net sales	4,129,493	100.0	3,774,230	100.0	355,263	109
Cost of sales	3,062,392	74.2	2,823,741	74.8	238,651	108
Selling, general andAdministrative expenses	871,711	21.1	871,225	23.1	486	100
Operating income	195,390	4.7	79,264	2.1	116,126	247
Non-operating income	121,981	3.0	61,653	1.6	60,328	198
Interest and Dividends	19,404	0.5	18,299	0.5	1,105	106
Gains on securities contributions to employee retirement benefit trust	66,914	1.6	--	--	66,914	--
Other income	35,663	0.9	43,354	1.1	(7,691)	82
Non-operating expenses	106,929	2.6	100,653	2.6	6,276	106
Interest and discount charges	29,858	0.7	35,055	0.9	(5,197)	85
Other	77,071	1.9	65,598	1.7	11,473	117
Income before income taxes	210,442	5.1	40,264	1.1	170,178	523
Income tax	91,990	2.2	20,289	0.5	71,701	453
Equity in earnings of affiliated companies	6,334	0.1	4,858	0.1	1,476	130
Net income	124,786	3.0	24,833	0.7	99,953	503

CONSOLIDATED BALANCE SHEETS

(in millions of yen)

	Fiscal 2001 (A)	Fiscal 2000 (B)	(A) - (B)
(Assets) Current assets	2,353,374	2,143,873	209,501
Cash and cash equivalents	394,375	326,329	68,046
Short-term investments	18,047	60,981	(42,934)
Trade receivables	976,379	945,334	31,045
Inventories	714,529	579,023	135,506
Prepaid expenses and other current assets	250,044	232,206	17,838
Long-term receivables	43,154	18,833	24,321
Investments	502,996	671,801	(168,805)
Net property, plant and equipment	934,759	868,795	65,964
Other assets	347,346	299,992	47,354
Total assets	4,181,629	4,003,294	178,335
(Liabilities and shareholders' equity) Current liabilities	2,179,466	1,835,502	343,964
Current portion of short-term debt Trade payables Other current liabilities	773,080 894,792 511,594	607,769 777,810 449,923	165,311 116,982 61,671
Long-term debt	630,544	826,023	(195,479)
Employee retirement and serverance benefits	633,514	598,241	35,273
Other fixed liabilities	10,706	15,273	(4,567)
Minority interests	49,226	36,504	12,722
Shareholders' equity	678,173	691,751	(13,578)
Capital	175,820	175,820	0
Capital surplus	210,644	210,643	1
Retained earnings	453,529	342,699	110,830
Accumulated other comprehensive income (loss)	(161,820)	(37,411)	(124,409)
Total liabilities and stockholders' equity	4,181,629	4,003,294	178,335

Balance of debt		1,403,624	1,433,792	(30,168)
Other comprehensive income
Foreign currency translation adjustments		(13,338)	(21,225)	7,887
Minimum pension liability adjustments		(175,662)	(100,894)	(74,768)
Net unrealized gains on securities		27,180	84,708	(57,528)
Fiscal 2001: Ended March 31, 2001

*Note:

From this fiscal year, SFAS No. 115 has been applied. Figures from previous years have been restated.

CONSOLIDATED CASH FLOW

(in millions of yen)

	Fiscal 2001 (A)	Fiscal 2000 (B)	(A) - (B)
I. Cash flows from operating activities
1 Net income (loss)	124,786	24,833	99,953
2 Adjustments to reconcile net income (loss) to net cash provided by operating activities
(1) Depreciation	235,031	215,969	19,062
(2) Deferred income taxes	39,226	(13,882)	53,108
(3) Decrease (increase) in trade receivables	(40,106)	42,304	(82,410)
(4) Decrease (increase) in inventories	(110,456)	2,444	(112,900)
(5) Decrease in prepaid expenses and other assets	2,400	1,707	693
(6) Increase in trade payables	109,756	56,405	53,351
(7) Increase in other liabilities	71,826	61,551	10,275
(8) Other, net	(36,465)	1,467	(37,932)
Net cash provided by operating activities	395,998	392,798	3,200
II. Cash flows from investing activities
1 Capital expenditure	(296,996)	(190,289)	(106,707)
2 Proceeds from sale of property, plant and equipment	16,237	14,366	1,871
3 Purchase of short-term investments and investment securities	(61,372)	(65,407)	4,035
4 Proceeds from sale of short-term investments and investment securities	76,993	69,379	7,614
5 Other, net	5,019	4,076	943
Net cash used in investing activities	(260,119)	(167,875)	(92,244)
III. Cash flows from financing activities
1 Proceeds from long-term debt	152,939	79,846	73,093
2 Repayment of long-term debt	(247,938)	(100,762)	(147,176)
3 Increase (decrease) in bank loans, net	31,874	(220,800)	252,674
4 Dividends paid	(13,956)	(11,809)	(2,147)
Net cash provided by (used in) financing activities	(77,081)	(253,525)	176,444
IV. Effect of exchange rate changes on cash and cash equivalents	9,248	(13,052)	22,300
V. Net increase (decrease) in cash and cash equivalents	68,046	(41,654)	109,700
VI. Cash and cash equivalents at beginning of year	326,329	367,983	(41,654)
VII. Cash and cash equivalents at the end of year	394,375	326,329	68,046

Free cash flow

135,879

224,923

(89,044)

Fiscal 2001: April 1, 2000 - March 31, 2001

CONSOLIDATED SEGMENT INFORMATION - 1

1. Sales by Product Segment

(in millions of yen)

	Fiscal 2001			Fiscal 2000			(A)/(B) (%)
Product Segment	Sales (A)	% of total	Opera- ting profit (loss)	Sales (B)	% of total	Opera- ting profit (loss)
Energy and Electric Systems	910,520	20.0	39,903	882,376	21.1	39,172	103
Industrial Automation Systems	662,963	14.6	54,615	596,285	14.3	29,500	111
Information and Communi- cation Systems	934,900	20.5	(13,040)	851,141	20.3	18,912	110
Electronic Devices	714,391	15.7	95,166	626,714	15.0	(7,001)	114
Home Appliances	733,039	16.1	28,518	644,399	15.4	5,803	114
Others	599,760	13.1	9,469	581,094	13.9	7,148	103
Sub Total	4,555,573	100.0	214,631	4,182,009	100.0	93,534	109
Eliminations and other	(426,080)	--	(19,241)	(407,779)	--	(14,270)	--
Total Net Sales	4,129,493	--	195,390	3,774,230	--	79,264	109

Fiscal 2001: April 1, 2000 - March 31, 2001
*Note:	For this fiscal year, business segments have been recategorized. Accordingly, segment data from previous fiscal years has been redisplayed to fit the new format. Intersegment sales are included in the above chart.

2. Sales by location segment

(in millions of yen)

	Fiscal 2001		Fiscal 2000		(A)/(B) (%)
	Sales (A)	Operating profit (loss)	Sales (B)	Operating profit (loss)
Japan	3,750,545	212,465	3,423,053	70,287	110
North America	397,151	(3,310)	323,358	(2,669)	123
Asia (except Japan)	345,352	17,262	299,588	8,077	115
Europe	284,783	(20,507)	252,866	(2,877)	113
Others	13,415	44	20,291	(124)	66
Total	4,791,246	205,954	4,319,156	72,694	111
Eliminations	(661,753)	(10,564)	(544,926)	6,570	--
Total Net Sales	4,129,493	195,390	3,774,230	79,264	109

Fiscal 2001: April 1, 2000 - March 31, 2001 (Intersegment sales are reflected in the above chart)

CONSOLIDATED SEGMENT INFORMATION - 2

3. Overseas Sales

(in millions of yen)

	Fiscal 2001		Fiscal 2000		A/B (%)
	Sales (A)	% of total net sales	Sales (B)	% of total net sales
North America	397,525	9.6	342,738	9.1	116
Asia (except Japan)	353,052	8.6	320,524	8.5	110
Europe	268,634	6.5	230,623	6.1	116
Others	71,682	1.7	60,452	1.6	119
Total overseas sales	1,090,893	26.4	954,337	25.3	114

Fiscal 2001: April 1, 2000 - March 31, 2001

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. With operations in 36 countries, Mitsubishi Electric Corporation recorded consolidated group sales of over 4.12 trillion yen in the year ended March 31, 2001. Additional information on Mitsubishi Electric Corporation is available at global.mitsubishielectric.com.