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Mitsubishi Motors' 1998 Sales Produce Profit Turnaround

5 January 1999

Mitsubishi Motors' 1998 Sales Produce Profit Turnaround; New Galant Leads Company's Sales Effort

    CYPRESS, Calif., Jan. 5 -- Meeting its financial objectives
for 1998, Mitsubishi Motor Sales of America, Inc., (MMSA) today announced that
it would earn a pre-tax profit for the 1998 fiscal year, the company's first
to be reported in several years.  The company's new management team is
confident that the new business practices implemented during the past 18
months, along with the current "Driving to Win" initiative, was responsible
for the turnaround.
    December sales were up 17 percent over the same month last year, with a
10 percent increase in passenger car sales and a 33 percent increase in sport
utility vehicle sales.  Montero Sport sales were up 37 percent in December
1998 over the same month last year, and Galant mid-size sedan sales were up
31 percent over December 1997.  With a strong second half sales performance
that is expected to continue throughout 1999, MMSA ended 1998 with sales of
190,515 vehicles.
    "We've made it a top priority to create a truly cooperative and inclusive
relationship with our dealer body," said Pierre Gagnon, executive vice
president and chief operating officer.  "We're not only working to find better
ways to satisfy our customers, but as important, we're working with our retail
partners to make the kind of decisions that assure all of us a secure future
in the U.S. market."
    Strong products remain key in meeting dealer needs.  "We've got the full
commitment of Mitsubishi Motors Corporation (MMC) to the U.S. market,
particularly when it comes to product," said Gagnon.  "Within the July 1998 to
July 1999 time frame, each of our core products will have been completely
redesigned or significantly improved, all with distinctive styling and
performance enhancements, reinforcing our commitment to maintaining product
competitiveness."
    The newly redesigned '99 Galant, one of the company's three core products,
has continued to be a sales winner for Mitsubishi Motors.  Comparing fourth
quarter 1997 Galant sales with fourth quarter 1998 sales, the new Galant is
outselling the previous model by 45 percent.  With safety as one of the most
important buying considerations for mid-size sedan owners, Gagnon announced
that currently published NHTSA (National Highway Traffic Safety
Administration) ratings show that the '99 Galant, with available side air
bags, is the first popularly priced mid-sized sedan to achieve a "5-star"
rating in the driver's position during side impact tests -- scoring better
than Galant's key competitors.
    Two additional core products for MMSA include Montero Sport mid-size
S.U.V. and Eclipse sports coupe and Spyder convertible.  Montero Sport sales
posted a year-to-date increase of 21 percent in 1998, and sales momentum is
expected to continue with the early release next summer of the MY2000 Montero
Sport, incorporating updated styling and a more refined drivetrain.
    Gagnon noted that the Eclipse sports coupe and Spyder convertible remained
the company's most popular product, with the current body style continuing to
sell well, and a dramatically redesigned new model scheduled for retail
introduction late next summer.
    "We look forward to combining an excellent retailer relationship with a
dynamic product lineup to create more and more satisfied owners of Mitsubishi
products in the American market," said Gagnon, who expects sales volume to
reach 200,000 units in 1999.
    Mitsubishi Motor Sales of America, Inc. was established in 1982 by
Mitsubishi Motors Corporation, Tokyo, and markets a full line of vehicles,
including coupes, convertibles, sedans and sport utility vehicles.

                                   Dec. '98        Dec. '97      % Change
                                  Month/YTD       Month/YTD     Month/YTD

    Passenger Car Sales*     10,361/147,956   9,380/150,382      +10%/-2%
    Sport Utility Vehicles**   4,829/42,559    3,635/38,574     +33%/+10%
    Trucks***                           0/0           0/207       0/-100%
    Total Vehicle Sales      15,190/190,515  13,015/189,163      +17%/+1%

    Note: U.S.-Assembled
     Vehicle Sales            7,359/102,156   6,869/101,159        +7/+1%
    (Includes Eclipse/Eclipse
     Spyder/Galant)

    *   Above totals include sales of U.S.-assembled Mitsubishi Motors
        vehicles
    **  Includes Montero and Montero Sport
    *** Truck sales include inventory stock only; MMSA stopped selling the
        Mighty Max pickup truck early in 1996