The latest agreement, which covers the full set of documentation and patents, is for the manufacture of the Outlander. The Outlander, which has just recently been launched successfully in the U.S., is MMC's newest crossover vehicle combining the off-road capabilities of a SUV with the urban style and comfort of a modern sedan. It is scheduled to be manufactured at the BJC facility in Beijing starting in the first quarter of 2004.

"China is a very important market for us and we are glad to have BJC as our partner. Today's signing is an important milestone in our overall China strategy," said MMC CEO Rolf Eckrodt. " It demonstrates our commitment to providing Chinese consumers with locally manufactured high quality products."

MMC has developed a close relationship with BJC and agreed in June this year to begin manufacturing the Mitsubishi Pajero Sport at BJC in early 2003. BJC has already installed and aligned the production equipment, completed personnel training, and run a trial assembly and road test. Meanwhile BJC is conducting quality inspections to prepare for mass production. The Mitsubishi Pajero Sport is scheduled to be launched early next year. The Outlander agreement signed today will further promote the partnership between MMC and BJC.

The Outlander has a 2.4 L engine, equipped with a computerized automatic transmission that can be manually shifted. Furthermore, the Outlander's combination of all-wheel drive performance with a wheelbase of 2625 mm and a ground clearance of 205 mm give the Outlander excellent off-road capabilities. While the Pajero Sport will cater to the high-end market in China, the Outlander will satisfy mass demand in the mid-high market by setting the trend with futuristic styling ideal for youthful customers.

As the second locally manufactured MMC product branded under the Mitsubishi name, the Outlander symbolizes more than MMC's commitment to provide Chinese customers with cutting-edge products - localizing production also demonstrates MMC's continued dedication to China's development. Producing the Outlander locally in China will allow MMC to react faster to the specific demands of the Chinese market, as well as further upgrade its services in parts supply and inventory control, in order to speed up the development and success of MMC's presence in China.