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February 3, 2005 No.1039

MHI Takes Bulk Order for 21 Gear Cutting Machines
From Shaanxi Fast Gear in China
Tokyo, February 3, 2005 - Mitsubishi Heavy Industries, Ltd. (MHI) has received a bulk order for 21 gear cutting machines from Shaanxi Fast Gear Co., Ltd. (SFG), one of China's leading gear makers, and its subsidiary, Xi'an Fast Auto Drive Co., Ltd. Deliveries will be completed by the end of March. The gears produced by these machines will be shipped to a major U.S. truck parts manufacturer for use in transmission systems, and will also be sold in the local Chinese market.

The machines on order are 20 large-size gear hobbing machines for tooth cutting on lathe-worked workpieces and one gear shaping machine. The gear hobbing machines consist primarily of the model GD30CNC, which accommodates a maximum workpiece diameter of 300 millimeters (mm). The gear shaping machine is MHI's SD25CNC, for workpieces up to 250 mm in diameter.

Starting with delivery of a first gear hobbing machine in 2002, to date MHI has delivered many systems to SFG, including its "SuperDry" gear hobbing machines. The operational records of these machines have been highly rated by the company. Also highly appraised by SFG are MHI's superior expertise as a pioneer in gear cutting machines, its meticulous sales activities in China, and its support capabilities in service and engineering. Together these factors led to MHI's successful receipt of the new bulk order, the largest ever placed by a Chinese customer to a Japanese company. The majority of orders from China have conventionally been to machine tool makers in the U.S. or Europe or local Chinese manufacturers.

China has rapidly developed into the world's largest machine tool market, and the expansion continues at a brisk pace. SFG, located in Xi'an city in Shaanxi province, is one of the country's foremost gear producers driving that growth. The company produces high-precision gears used mainly in the automotive industry: for example, transmissions and gears for heavy-duty trucks. MHI's gear cutting machines are helping SFG to meet the stringent requirements of its customers in good faith.

To further promote machine tool business in the booming Chinese market, late last year MHI established MHI Machine Tools H.K., Ltd. in Hong Kong, a company dedicated to machine tool sales and services. This spring the firm will open branch offices in Beijing and Shanghai in order to serve the broader Chinese market. On the strength of the latest bulk order, MHI aims to conduct sales and service activities optimally suited to the special product demands of each region.

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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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