November 11, 2005 No.1085

MHI Licenses Low-speed Diesel Engine Technology To State-owned Vietnamese Shipbuilder

Tokyo, November 10, 2005 - Today Mitsubishi Heavy Industries, Ltd. (MHI) signed an agreement under which it will license its UE low-speed diesel engine* technology to Vietnam Shipbuilding Industry Corporation (VINASHIN). With the move MHI aims to further promote penetration of its UE engines into the Vietnamese shipbuilding industry, which is expected to grow rapidly amid the current boom in international shipping.

Mitsubishi UE low-speed diesel engine     Under the agreement, MHI will provide VINASHIN with the licensing rights to manufacture its large-sized diesel engines. The contract applies specifically to the Mitsubishi UEC-LA, LS, LSII and LSE engines with cylinder bores ranging from 330 to 680 mm. The licensing agreement also encompasses marketing and servicing of these engines in Vietnam. The period of licensing is from 2005 to 2014. VINASHIN is a state-owned corporation, established in 1996, engaging in shipbuilding and production of ship-related machinery. Including its more than 50 subsidiaries, VINASHIN has roughly 15,000 employees and generates annual sales of US$160 million (2004). Mitsubishi UE engines are one of the world's three major brands of large-sized marine diesel engines, along with offerings from MAN-B&W and Wärtsilä Sulzer. The UE models cover a wide range of power outputs from 1,520 to 63,600 PS (pferdestärke: metric horsepower). Since the introduction of a market economy under the "Doi Moi" policy adopted in 1986, the Vietnamese economy has marked nearly steady development (the sole exception being during the Asian currency crisis of 1997). Since 2000 it has sustained close to 7% growth every year and investments from overseas have increased robustly, as illustrated by 14.3% growth in 2004 over the previous year. With the major shipbuilding countries - Korea, Japan and China - now producing at peak levels, the Vietnamese shipbuilding industry shows signs of rapid growth. By strengthening its relationship with VINASHIN, MHI aims to increase its UE engines' share in the global market. *Note: Low-speed marine diesel engines operate at modest speeds ranging from 60 to 300 revolutions per minute. They are widely used as the main engine for propulsion of ships, including container ships, bulk carriers and crude oil carriers. # # # 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 2,590 billion yen in fiscal 2004 (year ended March 31, 2005). 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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