Today's meeting discussed and considered the following three subjects:

1. An overview of the Mitsubishi Motors Revitalization Plan.
2. The progress of the investigation into recall problems being conducted by a team of outside lawyers.
3. A presentation by the company of its Compliance Action Program for fiscal 2005.

Framework of Mitsubishi Motors Revitalization Plan

Mitsubishi Motors chairman and CEO Takashi Nishioka and company president, COO and CBEO Osamu Masuko gave the committee a summary of the new business plan — the Mitsubishi Motors Revitalization Plan — announced by the company on January 28. The committee was told that the company considered restoring customer and general public trust and confidence and reforming the corporate culture to be matters of the utmost priority and that the company remained totally committed to achieving these objectives under the new business plan. Chairman Nishioka and president Masuko asked the committee to continue, from a "external watchdog" and "generally accepted norms" perspective, to provide the advice and guidance necessary for the company to fully rectify its corporate ethics practices and to implement sweeping reforms in the corporate culture.

The committee agreed to comply with this request.

Recall problem investigation by team of outside lawyers

The committee was told that the investigation into past recall problems had now entered its final stage and was due to be completed by the end of March.

The committee gave its opinions and recommendations as follows:

• The committee believes that the supplementary investigation requested by the committee covered the points raised by the committee and pinpointed the problems.
• The committee believes that the company should, on the basis of the findings of the investigation, reach a decision on the internal disciplinary measures to be taken as soon as possible and that it should also make public those measures in three categories, one of which being the steps to be taken to prevent a recurrence.
• Committee member Mr Yamamoto made recommendations from his position as professional counselor on the subject of safety compliance as it relates to a motor vehicle manufacturer.

Fiscal 2005 Compliance Action Program

The committee was told that the company had conducted a number of activities in fiscal 2004 aimed at reforming employee awareness on matters of corporate ethics and compliance. These included the holding of business ethics seminars for, and the submission of signed pledges by, all company officers and employees. The committee was told that the company has designated fiscal 2005 as a Year of Action and that it would be implementing a program designed to ensure that ethics and compliance principles and practices take deeper root among all employees. This program will be structured around the following activities: extensive training for code leaders; training sessions in legal knowledge; the holding of meetings to consider ethics and compliance issues, such meeting having proved popular among employees last year.

The committee gave its opinions and recommendations as follows:

• In any consideration of the subject of ethics and compliance, it is vital to ensure that those involved are given the means to put the principles into practice with emphasis being placed on behavior in actual situations and not just on considering the subject in some abstract manner.
• Compliance is not something that exists separately from employee's daily work and duties. Employees must be strongly aware of and recognize the fact that compliance provides the bedrock to the corporate competitiveness that underpins vehicular performance and design as well as product quality.
• The idea of "corporate integrity" that lies at the core of compliance is the product of the integrity of the company's officers and rank-and-file employees. It is vital that everyone from top management down conducts himself or herself with a firm ethical awareness and that the organization be shaped to allow them to do so.
• There is no short cut to raising compliance effectiveness; it requires steady, unremitting effort. Education on ethics and compliance must concentrate on putting principles into practice. It should avoid an over-formal approach that takes goals for means and places emphasis on completing the curriculum.

The thirteenth meeting of the business ethics committee has been scheduled for March.

Noboru Matsuda
Business Ethics Committee Chairman