Tokyo, September 24, 1999 -- Mitsubishi Heavy Industries, Ltd. (MHI) announced that it has established a wholly owned subsidiary, Mitsubishi Heavy Industries Australia, Pty. Ltd. located in Australia and will commence operations on October 1st, 1999.
Mitsubishi Heavy Industries Australia headquartered in Melbourne, Victoria, will have its Air-Conditioning & Refrigeration Dept. in Sydney. The new company is capitalized at A$300,000, or approximately 24 million yen. Mr. Shingo Ueda, currently the Chief Representative of MHI's Australia Representative Office was appointed as managing director of the company. Mr. Hirokazu Kanamori, currently a manager at the Air-Conditioning & Refrigeration Systems International Operations Dept. of MHI's headquarters in Tokyo, will become the general manager of the new company's Air-Conditioning & Refrigeration Dept. The company will initially commence operations with nine staff members.

MHI has been providing a wide range of its products to Australia, including ships, power plants, industrial machinery and construction machinery and has previously established its Australia Representative Office in July 1998. Along with its business expansion in Australia, MHI has decided to fully develop the office into a corporation. With the establishment of the new company, MHI's business structure in Australia will be enhanced, allowing the possibility to directly conduct such activities as the marketing of MHI's entire products, construction, local procurement and after sales services, which will further accelerate its market development activities in Australia. The headquarters in Melbourne will conduct these activities succeeding from the existing representative office. .

The Air-Conditioning & Refrigeration Dept. in Sydney will conduct marketing and service activities for air-conditioners and after sales service of marine container refrigeration (refer) units. At the same time, packaged air-conditioners and residential-use air conditioners which have been exported from MHI to Australia and sold through local distribution agent will be changed to being sold through the Air-Conditioning & Refrigeration Dept. in Sydney. By restructuring the distribution network with its greater initiatives, MHI aims to increase its market share and further enhance after sales services.

In accordance with the establishment and business commencement of the new company, the Australia Representative Office will be closed effective September 30, 1999.

Mitsubishi Heavy Industries Australia, Pty. Ltd. will be located at:

Level 24, Rialto North Tower, 525 Collins Street, Melbourne, Victoria

Office 1, level 2, 81 Railway Street, Rockdale, New South Wales