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December 24, 2004 No.1036

MHI Receives Order for 4 Replacement Steam Generators
For U.S. Nuclear Power Plant
Tokyo, December 24, 2004 - Mitsubishi Heavy Industries, Ltd. (MHI) has received an order from Southern California Edison (SCE), one of the largest electric utilities in the U.S., to supply four Replacement Steam Generators (RSG) for use in nuclear power generation. Prior to the contract signing, Alan J. Fohrer, Chief Executive Officer of SCE, visited Japan and met with MHI president Kazuo Tsukuda.

The order calls for delivery of four RSGs to the San Onofre Nuclear Generating Station (SONGS), located approximately six kilometers southeast of San Clemente. Two RSGs will be put into service at Unit 2 and the other two at Unit 3. SONGS Units 2 and 3, respectively with electrical outputs of 1,070 and 1,080 MWe (megawatts of electricity), commenced operation in the early 1980's. The replacements are planned to boost operating reliability and economy.

Nuclear power generation is currently coming into focus in the U.S. again for its merits with respect to environmental compatibility and national security, amid demand for stable electricity supplies. In addition to rising momentum in the construction of new plants, negotiations for replacement of NSSS (Nuclear Steam Supply System) components are active in the US. Electricity supplies are particularly tight in California, and replacement of the four steam generators is expected to contribute significantly to preventing any worsening of the state's forecasts for future electricity availability. NSSS is the nuclear reactor and its closely associated heat removal systems which produce steam for turbine.

MHI has already received numerous orders for important components for nuclear power plants overseas. The latest order calls for MHI to provide four large-scale steam generators with each of them sized so as to be included on a list of the largest steam generators in the United States. It marks the second steam generator order from the U.S., following an order received in February 2003 for two RSGs for Omaha Public Power District's Fort Calhoun Nuclear Station in Nebraska.

The newly ordered RSGs will be manufactured at MHI's Kobe Shipyard & Machinery Works and delivery is set for between 2008 and 2009. The contract does not include installation work.In recent years MHI has been aggressively promoting its nuclear power components in the major international nuclear power markets, and orders for RSGs have been received from the U.S. and Europe. MHI believes that, in addition to the successful delivery and operation of previously ordered RSGs, SCE awarded the new contract to MHI in recognition of the company's proven technological capabilities and demonstrated product quality in this area.

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About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading heavy machinery manufacturers, with consolidated sales of 2,373 billion yen in fiscal 2003 (year ended March 31, 2004). 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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