Mitsubishi Motors Merges European Units; Turnaround of European Business Operations on Track

Tokyo, Japan, Dec. 20, 2002 - (JCN Newswire) - Mitsubishi Motors
Corporation (MMC) today announced the merger of Mitsubishi Motors Europe
(MMC's European holding company) and Mitsubishi Motor Sales Europe
(MMC's European distribution company). As of today, they become one
single entity called Mitsubishi Motors Europe B.V. (MME), a 100% owned
MMC company.

Based in Amsterdam, the new MME will handle sales, marketing and
distribution of Mitsubishi Motors passenger cars, parts and accessories
in Europe, as well as head and oversee the local production of cars
(NedCar, IPF) and the local production of engines at the new engine
plant (MDC Power GmbH) jointly with DaimlerChrysler.

"This new structure will be clearer for all our partners with a unified,
logical and lean organization," said Steven Torok, MMC's executive vice
president in charge of car operations. "It also stresses a new identity
with MME as a strategic entity within the turned-around MMC."

Today's announcement concludes a milestone year for MMC in Europe.
Despite an overall European market decline, MMC forecasts full-year
sales to stabilize above the 200,000 unit level. MMC expects to halve
its losses in FY2002 compared to FY2001 by focusing on profit-generating
models, reorganizing its sales network and reorganizing production at
its NedCar plant in the Netherlands, which is set to produce a new
compact car for Europe from 2004 as part of MMC's alliance with
DaimlerChrysler.

MME will operate out of brand new premises in Amsterdam, where it is
joined by its Dutch distributor and affiliate, Mitsubishi Motor Sales
Netherlands, as well as Mitsubishi Trucks Europe.

About Mitsubishi Motors Corporation

Mitsubishi Motors Corporation was established in 1970 and is
one of the few automobile companies in the world that produces a full
line of automotive products ranging from 660-cc mini cars and passenger
cars to commercial vehicles and heavy-duty trucks and buses. The company
also operates consumer financing services and provides this to its
customer base. Automobile operations accounted for 98% of fiscal 2000
revenues and financing business, 2%. The company has one hundred and
eighty nine consolidated subsidiaries worldwide. Overseas sales
accounted for 56.8% of fiscal 2000 revenues. Mitsubishi Heavy
Industries, Ltd. is the major shareholder with 25.62% of issued
stock.For further information, please visit the Mitsubishi Motors
Corporation home page at: www.mitsubishi-motors.co.jp
<http://www.mitsubishi-motors.co.jp>