Mitsubishi Motors and Proton Sign Memorandum on New Cooperation Agreement

Tokyo, Japan, Feb 3, 2006 - (JCN Newswire) - Mitsubishi Motors Corporation (MMC) and Malaysia's major automobile manufacturer Proton Holdings Berhad (Proton) today signed a memorandum of understanding for wider areas of corporation between the two companies.

The formal signing was witnessed by Datuk Seri Rafidah Aziz, Malaysia's Minister of International Trade and Industry.

The agreement includes cooperation in the following areas: - Product development of new Proton vehicles - Supply of components between Proton and Mitsubishi - Technical support for production engineering and quality control - Optimization of Proton's manufacturing facilities

The agreement is expected to help MMC expand its business in Malaysia, above its current importing business of CBU vehicles from Japan.

Meanwhile, Proton will be able to diversify its vehicle range and accelerate the effort to achieve better quality and manufacturing process.

MMC currently supplies various levels of components, including engine and transmission, to Proton for vehicles such as the Iswara, Wira, Satria, Arena, and Perdana.

Proton's first car, the Proton Saga, introduced in 1985, was manufactured with intensive collaboration between Proton and MMC. MMC had sold its 7.9% equity in Proton on March 9, 2004, although it continues to supply component technology and parts to Proton.

The cooperation between MMC and Proton is expected to contribute positively to the development of Malaysia's automobile industry, under the terms of the Japan-Malaysia Economic Partnership Agreement signed by Japanese Prime Minister Junichiro Koizumi and Malaysian Prime Minister Datuk Seri Abdullah Ahmad Badawi during the 9th Asean-Japan Summit last December.

About Proton Holdings Berhad

Established in 1983 as a joint venture between Heavy Industries Corporation of Malaysia Bhd. (HICOM), Mitsubishi Motors Corporation and Mitsubishi Corporation to realize former Prime Minister Dato' Seri Dr Mahathir Mohamad's project to build a Malaysian car. In 1985 Proton produced the Proton SAGA, the first Malaysian car, with all-round assistance from Mitsubishi Motors and Mitsubishi Corporation. Launching the WAJA - the first Proton model to be largely designed and engineered in-house - in 2000 and the GEN-2 - powered by the first engine developed by the company itself - in 2004, the company continues to build up its engineering and technical capabilities and today enjoys wide-based support from the Malaysian population as a symbol of the country's on-going industrialization.

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.