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October 31, 2003 No.0967

MHI To Boost Small Diesel Engine Production
OEM Supplies Launched
To Caterpillar and Perkins Engines
Tokyo, October 31, 2003 -- Mitsubishi Heavy Industries, Ltd. (MHI) has commenced the shipment of small-size diesel engines to Caterpillar's Sanford manufacturing plant in North Carolina. The initiative is based on an OEM (original equipment manufacturer) supply agreement concluded with Caterpillar Inc. and Perkins Engines Company Limited of the U.K. in February 2002. Under that agreement, MHI will supply 15,000 units per annum.

S4S small-size diesel engine


The engine to be supplied is the S4S, a 3.3-liter 4-cylinder unit that conforms to the U.S. Environmental Protection Agency's (EPA) Tier 2 emission standards for nonroad compression-ignition engines. The S4S, offering a power output ranging from 53kW to 60kW, was developed for construction machinery and industrial applications. It is now in broad usage globally, including MHI's own bulldozers, forklift trucks and generators. An acclaimed feature of the S4S is that customers can select the fuel combustion system matching their needs: either a direct-injection (DI) or indirect-injection (IDI) swirl-chamber configuration.

The engines to be supplied under the supply agreement will be mounted in Caterpillar's construction machinery as "CAT3044" series engines. They will also be available as "Perkins 800" series engines through Perkins' distribution network for use in construction machinery and as industrial engines. MHI already started deliveries to Perkins for Perkins brand engines in June 2003.

Even prior to this latest development, MHI has enjoyed a cooperative relationship with Caterpillar in the construction machinery and forklift truck areas. It has also served Caterpillar as an OEM supplier of 5-liter S6S, 4.2-liter S4K, and 6.4-liter S6K engines. The commencement of engine supplies under the new arrangement now further enhances MHI's relationship with the Caterpillar group, especially with Perkins, a division of Caterpillar.

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About Mitsubishi Heavy Industries
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world's leading global heavy machinery manufacturers, with consolidated sales of 2,593 billion yen (US$21.6 billion) in fiscal 2002 (year ended March 31, 2003). 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)
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