Mitsubishi Motors to Make Pajero Manufacturing Co. Wholly Owned Subsidiary; Continued Focus on Core Business as Part of Ongoing Turnaround

Tokyo, Japan, Jan. 31, 2003 - (JCN Newswire) - Mitsubishi Motors
Corporation (MMC) today announced plansto make Pajero Manufacturing Co.,
Ltd. (PMC) a wholly owned subsidiary via an equity swap set for March
20, 2003.

MMC currently holds a 66.6 percent stake in PMC. To see the transaction
through, MMC will issue about 3.8 million common shares, which
represents 0.3 percent of its outstanding shares.

"Pajero Manufacturing is an important member of the Mitsubishi Motors
group. By making it a wholly owned subsidiary, we will be able to
integrate functions to further streamline operations and improve product
quality," said MMC President and CEO Rolf Eckrodt.

PMC is responsible for assembling sports utility vehicles, one of MMC's
main product segments. In 2002, capacity utilization at PMC reached 130
percent and it produced a record 170,000 vehicles, driven mainly by
strong demand from overseas markets. MMC's 2002 overseas sales increased
to 1.2 million units, up more than 4 percent on 2001.

The move marks the latest step in MMC's drive to focus on its core
businesses as part of its ongoing Turnaround. With PMC as a wholly owned
subsidiary, MMC will achieve even greater competitiveness in terms of
quality and cost while continuing to produce spirited products for
spirited people.

Outline of Pajero Manufacturing Co., Ltd. 


Business Area:       Automobile manufacturing 
Models Produced:     Pajero, Pajero Sport/Montero Sport (export model),
Jeep 
Established:         1943 
Paid-in Capital:     610 million yen 
Head Office:         Gifu, Japan 
Employees:           Approx. 1,200 



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>