Date: Nov. 13, 2000

Consolidated results

1. First half fiscal 2000 results: overview

During the first half of fiscal 2000, the economies of the United States and of the countries of Europe continued to expand, while those of the countries of Southeast Asia showed that they were firmly on the road to recovery.

In Japan, the economy displayed a gentle improvement fueled by increased capital investment in the private sector and by higher exports, to Asia in particular. Record levels of unemployment, however, mean that the overall situation remains difficult.

In the Japanese automotive industry, the launch of a number of new models saw total vehicle sales for the first half grow to 2,820,000 units, an increase of 1% over the same period in fiscal 1999. Sales of domestically produced vehicles were 2,680,000 units, 1% up, while sales of imports were 140,000 units, the same level as in 1999. Buoyant shipments to North America and Asia saw exports grow to 2,260,000 units, a 7% increase over the same period in 1999.

In its consolidated operations for the first half of fiscal 2000, MMC reports total sales volume of 675,000 units, virtually the same figure as for the same period last year. Consolidated sales was 1,542.5 billion yen, a decrease over the same period in 1999 and due principally to the strong Japanese yen.

Looking at profits, group-wide efforts were made to reduce costs and to otherwise improve the financial standing of MMC companies. However, the cost reductions achieved were more than countered by a deterioration in profitability caused by the strong Yen and sluggish sales on the domestic market, and by a one-time charge of pension liabilities. As a result, MMC reports an operating loss of 23.2 billion yen and an ordinary loss of 29.5 billion yen. Net loss for the interim period was 75.6 billion yen, a larger loss than that reported for the same period in fiscal 1999..

Looking at the cash flows for the first half of fiscal 2000: cash flows from operating activities were 94.2 billion yen, while cash flows relating to acquisition or disposal of tangible fixed assets and other investing activities were 176.4 billion yen. After subtracting the repayment of loans and other such disbursements, and issuance of bonds, cash flows relating to financial activities were 120.3 billion yen. The balance of cash and cash equivalents at the end of the first half of fiscal 2000 was 129.6 billion yen, a 40 billion yen increase over the position at the end of fiscal 1999.

2. Segment information

(1) By business

Sales from the automotive business for the interim period were 1,502.1 billion yen, producing an operating loss of 20.4 billion yen.

Revenues from the financial services business were ｴ46.1 billion, producing an operating loss of 500 million yen.

(2) By geographical region

Sales in Japan were 1,205.2 billion yen, an increase of 51.9 billion yen, and operating loss was 19.3 billion yen, an improvement of 1.5 billion yen over the same period in fiscal 1999.

Sales in North America were 412.2 billion yen, an increase of 76.0 billion yen, and operating income stood at 21.0 billion yen, an increase of 6.3 billion yen over the same period in fiscal 1999. (Note: In reality, however, there was a 15.6 billion yen increase in operating income taking into account the 9.3 billion yen decrease in operating profit due to change in classification of expenses at the Company's financial services subsidiary.)

Sales in Europe were 178.4 billion yen, a decrease of 71.0 billion yen, and operating loss was 13.3 billion yen, a deterioration of 16.0 billion yen over the same period in fiscal 1999.

Sales in Asia were 64.3 billion yen, an increase of 4.6 billion yen, and operating loss was 4.8 billion yen, an deterioration of 5.2 billion yen over the same period in fiscal 1999.

Sales in other regions were 102.4 billion yen, a decrease of 21.5 billion yen, and operating loss was 5.6 billion yen, a deterioration of 5.1 billion yen over the same period in fiscal 1999.

3. Dividend payment

MMC regrets to announce that it intends once again to defer payment of the first half dividend. The Company apologizes sincerely to its shareholders and asks for their continuing understanding and patience.

4. Consolidated forecast for full year in fiscal 2000

Looking ahead to the rest of fiscal 2000, in terms of the global economy there is some concern that the growth in the United States economy will slow. Any recovery in the Japanese economy, meanwhile, is expected to remain mild, as slower exports impact the general tone of recovery fueled mainly by demand in the private sector. In the automotive industry, the Company expects to find itself operating in an increasingly difficult business environment as the launch of new models brings a further intensification in sales competition, and as the nature of issues that need to be addressed by management - the environment and globalization of management included - undergo substantial changes.

While fluctuations in the major currencies, price reductions required by intensifying market competition, the degree to which domestic consumption in Japan will recover and other factors make accurate forecasting difficult, the Company offers the following forecast for its consolidated operations in fiscal 2000.

Cautionary statement:
The fiscal 2000 forecasts are based on management assumptions and predictions made in the light of the information currently available. Undue reliance should not be placed on these forecasts. A number of factors, including, but not limited to, changes in the business environment surrounding MMC operations, market trends and currency fluctuations could cause actual results to differ materially from those discussed in the forecasts.

5-33-8, Shiba, Minato-ku, Tokyo, 108-8410, Japan

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Copyright 2000 by Mitsubishi Motors Corporation.