[ Presentation Slides ( 11 slides ) ]

• First quarter worldwide unit sales slightly higher than previous year
• New forecast of full-year result due to difficult U.S. market conditions and extraordinary loss at U.S. financing business
• Full-year operating profit at 60 billion yen

First quarter results

In the months of April through June, MMC's consolidated net sales reached 607.0 billion yen (US$5.06 billion, euro 4.86 billion)*, an increase of 20.7 billion yen or 4 percent compared with the same period of the previous year. Net sales declined by 35 percent to 139.6 billion yen in North America but increased in all other regions: Japan (152.0 billion yen, +31 percent), Europe (159.4 billion yen, +34 percent), Asia and rest of the world (156.0 billion yen, +16 percent).

In total, MMC sold 375,200 vehicles globally on a retail basis over the last three months, a slight increase from the same period in 2002 (373,600 units). Unit sales in Japan increased by 7 percent to 78,600 units, backed by strong sales of its new Grandis minivan, which was launched in Japan on May 17. Sales in North America declined by 12 percent to 76,400 units as a result of tough competition in the increasingly incentive-driven U.S. market and a tightened credit offering. Sales in Europe slightly decreased by 3 percent to 52,700 units in line with the overall development of the European market. Sales in Asia and the rest of the world improved by 5 percent to 167,500 units, further solidifying MMC's already strong position in these growth markets.

FY2003 revised outlook

Difficult global economic conditions and challenges in the North American market have impacted MMC growth and profitability in Q1 FY2003.

MMC anticipates a continuation of the difficult world economic climate for the foreseeable future. In North America, MMC forecasts a delay in the full-scale recovery of the U.S. economy, which places additional competitive pressure on all manufacturers in the incentive-driven market. Against this background, MMC has revised its retail sales forecast for North America for fiscal year 2003 to 340,000 units, down from the 370,000 unit sales originally planned. MMC is addressing these market challenges through new product offerings, including the launch of four new models in 2003, competitive incentive spending that exceeds the original plan as well as other marketing adjustments.

"North America remains an integral market for Mitsubishi Motors and we are well on our way to overcoming challenges that in varying degrees have impacted all manufacturers," said MMC President and CEO Rolf Eckrodt.

While improvement efforts are underway to restore stability to MMC's U.S. financing business unit Mitsubishi Motors Credit of America (MMCA), losses resulting from poorly performing loans caused MMC to adopt a new and more conservative approach to reassess the outstanding credit portfolio of MMCA. Upon completion of this re-assessment MMC is expecting an extraordinary provision in the range of 50 billion yen (US$420 million, euro 400 million). To avoid similar losses in the future, MMCA has already improved the quality of its portfolio by radically reducing the use of "balloon" and "deferred" loans to a minimal level (from 55 percent to below 5 percent over the last 12 months) for newly originated business.

Mainly due to this expected extraordinary provision, MMC revised its forecasted consolidated net income in fiscal year 2003 to 10 billion yen (US$83 million, euro 80 million) (original forecast: 40 billion yen). Additionally, MMC revised its full-year operating profit forecast on a consolidated basis to 60 billion yen (US$500 million, euro 480 million), down from 90 billion yen. Ordinary income in FY2003 is now expected to come in at 30 billion yen (US$250 million, euro 240 million), down from 65 billion. Global consolidated net sales in fiscal year 2003 are forecasted at 2,720 billion yen (US$22.7 billion, euro 21.8 billion) against an original forecast of 2,900 billion yen.

In addition to various profitability improvement measures, such as further cost reduction and asset divestment, MMC is temporarily adjusting its production plans for North America. As has previously been announced in the U.S., MMC has pushed back by six months the completion date for a $200 million expansion project at its Illinois manufacturing facility. The delay will give Mitsubishi Motors additional time to evaluate the most appropriate products and production mix. While MMC has no immediate plans for additional production expansion in North America, it remains fully committed to the market and will continue to evaluate expansion opportunities based on a close monitoring of overall market development.

*US dollar and euro amounts are translated from yen for convenience only at the company's projected FY03 rate of 120 yen/dollar and 125 yen/euro.

Note on forward-looking statements

This document contains forward-looking statements about Mitsubishi Motors Corporation's plans, strategies, beliefs and performance that are not historical facts. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which Mitsubishi Motors Corporation operates, management's beliefs, and assumptions made by management. As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, they may cause actual results to differ materially from those projected. Mitsubishi Motors Corporation, therefore, wishes to caution readers not to place undue reliance on forward-looking statements. Furthermore, Mitsubishi Motors Corporation undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments.