April 19, 2005 No.1057

MHI To Commence Industrial Engine Production in France To Meet Rising European Demand

Tokyo, April 19, 2005 - Mitsubishi Heavy Industries, Ltd. (MHI) and Wärtsilä France S.A.S., headquartered in Mulhouse, have reached a basic agreement under which MHI Equipment Alsace S.A.S. (MEA), a local producer of medium- and large-scale industrial engines established by MHI in December 2004, will acquire most of Wärtsilä France's existing production facilities in Mulhouse and take on employees currently engaged at the plant. MHI is targeting May for the production launch of V-type diesel engines its SR series, with power outputs in the 1,250-2,000 kW range, capitalizing on the incorporation of MHI production technology.

Engine production plant of MHI Equipment Alsace S.A.S.     MEA will have 75 staff members, including two Japanese. Morihide Oodate will serve as the inaugurating president. The company will have a capital base of approximately 7 million euro (900 million yen). Annual sales are projected to exceed 3 billion yen . MEA will undertake machining of con-rods, cylinder heads and crankcases, as well as assembly and on-site testing of engines. Other required parts will be supplied from Japan. The completed engines will be sold exclusively to MHI Equipment Europe B.V. (MEE) for the European market. MEE, headquartered in the Netherlands, is a European manufacturing/sales arm of MHI's General Machinery & Special Vehicle Headquarters. MHI opted to launch local production in France for two reasons: a) because production of medium and large-size engines at its domestic Sagamihara plant (Kanagawa) is nearing full capacity due to the booming Chinese market and recovery in the North American market; and b) to accommodate rising demand anticipated in the European market. On the strength of the establishment of MEA, MHI aims to further strengthen its engine business in Europe as that market expands in the coming years. # # # 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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