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March 4, 2004 No.0983

Anti-Rolling Gyros to be Installed on Luxury Yachts
Of Ferretti Group of Italy,
World Leader in Luxury Craft
Tokyo, March 4, 2004 - Mitsubishi Heavy Industries, Ltd. (MHI) and the Ferretti Group have signed an important exclusive European agreement for installing a new stabilization system on vessels produced by the companies of the Ferretti Group.

  Anti Rolling Gyro MSM-4000
   
  Custom Line Navetta 30
(By courtesy of the Ferretti Group)
   
Tokyo, March 4, 2004 - Mitsubishi Heavy Industries, Ltd. (MHI) and the Ferretti Group have signed an important exclusive European agreement for installing a new stabilization system on vessels produced by the companies of the Ferretti Group. This innovate system, called ARG - Anti Rolling Gyros - is produced by MHI, and applies the operating principle of a control moment gyro (CMG) to suppress a boat's rolling motion or rolling angular velocity on the water surface - the main cause of seasickness - thus enabling passengers to sail in comfort.

MHI will supply three models of its ARG systems, MSM-2000, 4000 and 12000, mainly MSM-4000, to Ferretti Group until 2006, marking the first export of ARG units.

The ARG, developed by MHI based on its CMG technology for attitude control of satellites, automatically reduces boat rolling by more than 50%, for a more comfortable ride. In essence, an ARG consists of a flywheel, damper, gimbal (on which the flywheel is suspended) and a motor (to drive the flywheel). Based on the same principle as that of a spinning gyroscope, the high-speed rotation of the flywheel produces force to counter a boat's rolling motion.

Although other devices that reduce rolling during cruising exist - fin stabilizers, for example - the ARG is the first system in the world capable of reducing rolling of a small boat even at anchor or when trolling. Finally, thanks to the ARG's extreme quietness, one can even activate the stabilizers at night without disturbing the shipowners and guests' sleep.

Before signing the agreement, Ferretti Group Engineering department in cooperation with MHI's team undertook some tests (comparison testing focused on rolling motion suppression efficiency vis-à-vis use of a fin stabilizer) on the Custom Line Navetta 30, the Group's first boat in which an ARG unit has been installed. During the past months, the excellent results obtained by the tests convinced the Ferretti Group of the important advantages offered by this innovative system.

Ferretti Group will install the ARG systems on-board equipment in the models of luxury yachts built by all the Group's companies: Ferretti Yachts, Pershing, Bertram, Riva, Apreamare, Mochi Craft, Custom Line and CRN.

MHI's first ARG, the MSM-500, was developed and marketed in 1995 for small boats with displacements below 5 tons. It features angular momentum of 500 Nms (Newton meter second), weighs 130kg, and measures 710mm in width, 516mm in height, and 470mm in length. Subsequently, in response to customer needs MHI has developed higher-power models: the MSM-2000/4000/12000.

By installing ARG systems in multiple units, it is possible to accommodate vessels with displacements above 5 tons all the way up to 500 tons. In Japan, MHI has already sold 220 ARG systems for public-sector, commercial and private use, including cruise ships, sightseeing boats, fishing boats, pleasure craft and patrol boats.

The number of motor-powered vessels worldwide is estimated to exceed 5 million; of that amount 80,000 are luxury yachts, and 2,500 more are being built every year. Ferretti's decision to adopt the ARG is expected to have a significant impact on the boat industry, and MHI anticipates further expansion of ARG sales throughout the world.

Presently MHI is working to expand ARG sales beyond boat builders to also include public-sector applications by foreign countries, such as coast guards and police vessels, in view of the ARG's contribution to boat stability as required for surveillance operations.


Major Specifications of MSM-4000 ARG

Angular momentum: 5000 Nms (Newton meter second)
Dimensions (width x height x length): 1000 x 700 x 700 mm
Power consumption (max/reg): 4300/3000 W (AC200V, 3-phase)
Weight: 700 kg


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About Ferretti Group:
Ferretti Group is one of the world's leaders in the engineering and manufacturing of luxury motor yachts from approximately 7 meters (23 ft) to approximately 65 meters (200 ft). The Ferretti Group includes the following brands: Ferretti Yachts - head company of the Group, Pershing, Bertram, Riva, Apreamare, Mochi Craft, Custom Line and CRN. Headquartered in Forli - Italy, the Group owns 15 shipyards - 14 in Italy and one in Miami - employing more than 1,900 people in addition to subcontractors.

Furthermore, the following companies are also part of the Ferretti Group: Ferretti Group USA, Ferretti Group Luxury Yachts Asia Pacific, Apreamare of North America, Cantieri M.Morini, Pinmar SA, Spezia Luxury Yachts Service, Resin Sistem, Diesse Arredamenti and Diesel Center. On 31st of August 2003, the Group's consolidated revenues were 385 million euro, with an increase of 15% on the previous year (nautical fiscal year, September, 1st - August 31st); the orders' portfolio on 30th of September 2003 were over 430 million euro.
For more information, please see the attached Company Profile or visit www.ferrettigroup.com.

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:

Ferretti Group
Mr. Domenico Pirazzoli
Ferretti Group Vice President public relations dept
domenico.pirazzoli@ferrettigroup.com
Ms. Lisa Lelli
Ferretti Group public relations dept.
lisa.lelli@ferrettigroup.com
Tel. +39-0543-787511
Fax +39-0543-473069

Mitsubishi Heavy Industries
Mr. Hideo Ikuno
Daiya PR, in charge of PR for Mitsubishi Heavy Industries

h.ikuno@daiya-pr.co.jp
Tel. +813-6716-5277
Fax +813-6716-5929
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