Mitsubishi Motors Corp. Reports Sales Projections

Tokyo May 26, 2003: Dow Jones Reported the Mitsubishi sales numbers.

Year Ended March 31: GROUP 2003 2002 Sales Y3.885 tln Y3.201 tln Operating Profit 82.76 bln 40.23 bln Pretax Profit 54.34 bln 11.86 bln Net Profit 37.36 bln 11.26 bln Per share Earnings 25.35 7.66 Diluted earnings 23.43 7.42

Figures may differ from headline due to rounding.

Results are audited and based on Japanese accounting standards.

   Year Ended March 31:
 PARENT                     2003          2002
Sales                     Y1.877 tln    Y1.849 tln
Operating Profit           50.12 bln     16.70 bln
Pretax Profit              47.76 bln      4.73 bln
Net Loss                   (2.65 bln)   (70.51 bln)
Per share
  Earnings                 (1.80)       (47.96)
  Dividend                  0.00          0.00
   Figures in parentheses are losses.

Figures may differ from headline due to rounding.

Mitsubishi Motors Corp. also released the following forecasts:

 GROUP        1st Half To Sep 2003     Yr Ending Mar 2004
Sales                Y1.420 tln            Y2.900 tln
Operating Profit                            90.00 bln
Pretax Profit         15.00 bln             65.00 bln
Net Profit            10.00 bln             40.00 bln
Per share
  Earnings                                  26.96
 PARENT       1st Half To Sep 2003     Yr Ending Mar 2004
Sales               Y740.00 bln            Y1.570 tln
Operating Profit                            40.00 bln
Pretax Profit          7.00 bln             30.00 bln
Net Profit             3.00 bln             10.00 bln
Per share
  Earnings                                   6.74

TOKYO -(Dow Jones)- Mitsubishi Motors Corp. (J.MOT or 7211) said Monday its group net profit for the year ended March 31 more than tripled to a record high thanks to substantial cost cuts and robust sales.

Mitsubishi Motors, 37% owned by DaimlerChrysler AG , posted a group net profit of Y37.4 billion, up from Y11.3 billion in the previous year.

The group net profit figure is generally in line with company estimates.

Group sales increased 21.4% to Y3.885 trillion from Y3.201 trillion in the previous year as earnings for the 15 months ended March at its overseas affiliates were included. Mitsubishi changed the fiscal year at consolidated affiliates overseas to April-March from the calendar year in order to synchronize reporting cycles with the parent firm.

If the change in period at affiliates is discounted, sales grew 8%.

For the current year through March 2004, Japan's fourth largest auto maker in terms of production expects a group net profit of Y40 billion on group sales of Y2.900 trillion.

Mitsubishi attributes the expected fall in sales and slowing profit growth to the spin-off of its strong commercial vehicle division in January.

Mitsubishi Motors is stepping up efforts to boost growth with the help of DaimlerChrysler.

Its group operating profit more than doubled to Y82.8 billion from Y40.2 billion in the previous year as cost cuts increased operating profit by Y88.4 billion. The gains were partly offset by a rise in research and development costs.

Group pretax profit more than quadrupled to Y54.3 billion from Y11.9 billion.

The change in earnings period at overseas affiliates reduced group net profit by Y6.5 billion as market conditions proved difficult in North America during the final quarter ended March.

Mitsubishi boosted its global sales volume 17.8% to Y1.96 million vehicles from 1.67 million in the previous year.

Mitsubishi expects global sales volume to fall 16.8% to 1.63 million vehicles this fiscal year.

The auto company aims to lift group operating profit 8.7% to Y90 billion for the current fiscal year. It aims to cut costs by Y54 billion to offset rising sales costs and the spin-off of the commercial vehicle division.