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October 4, 2004 No.1024

MHI Awarded Contract by All Nippon Airways
For Maintenance of Low-pressure Compressor Modules
Tokyo, October 4, 2004 -- Mitsubishi Heavy Industries, Ltd. (MHI) has signed a contract with All Nippon Airways Co., Ltd. (ANA) covering maintenance and repair of low-pressure compressor modules used in the aero-engines of its Boeing 777s.

The contract calls for maintenance and repair of compressor modules of the PW4074, 4077 and 4090 engines manufactured by Pratt & Whitney of the U.S. Until now maintenance of their low-pressure compressor and turbine modules has been carried out by P&W. By the contract of this time, low-pressure compressor module maintenance duties were transferred to MHI. Further negotiations are now under way toward transfer of maintenance work on the low-pressure turbine modules as well.

Since acquiring certification in engine maintenance from the U.S. Federal Aviation Administration in August 2002, MHI has received a number of significant orders to date. From China Airlines of Taiwan, it was contracted to perform aero-engine maintenance work on nine items, including inner cylinders in the third stage of PW4000 low-pressure turbines. From Malaysia Airlines, it was hired to maintain the high-pressure compressor modules of PW4056 engines. And for Thai Airways International, it conducts maintenance of PW4158 engines. This solid record and the high level of technological expertise already demonstrated by MHI in maintenance and repair of parts, modules and engines led ANA to place its order with MHI. The order will also help ANA reduce its engine maintenance costs and shorten work period by eliminating the need to transport modules in need of repair to the U.S.

The PW4000 series of turbo-fan engines was co-developed by an international group of partners centered on Pratt & Whitney. MHI contributes 10% to the final product. As part of its business plans focusing on expansion of aero-engine business, MHI has been strengthening its overseas marketing activities relating to maintenance and repair services to air carriers throughout Southeast Asia. With the leverage of the latest order from ANA, MHI now aims to approach airlines more aggressively with ever more attractive proposals, as a way of developing its engine maintenance business into a major pillar of aero-engine service operations.

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About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of 2,593 billion yen (US$21.6 billion) in fiscal 2002 (year ended March 31, 2003). MHI's diverse lineup of products and services encompasses shipbuilding, steel structures, power plants, chemical plants, steel plants, environmental equipment, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

For more information, please visit the MHI website (http://www.mhi.co.jp).


PRESS CONTACT:
Hideo Ikuno: h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277, Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)
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