Tokyo - NISSAN MOTOR CO., Ltd. (Nissan), Mitsubishi Motors Corporation (MMC) and JATCO TransTechnology Ltd. (JTT) today concluded a contract to integrate the automatic transmission and CVT business of MMC and JTT business.

The contract is based on the Memorandum of Understanding signed on October 2001 among the three companies. This project aims to make JTT a globally competitive manufacturer specialized in AT/CVT through the integration of MMC Kyoto and Mizushima Plants AT/CVT business into JTT. JTT will become one of the biggest global AT/CVT manufacturers with approximately 3.3 million in annual unit production with the expectation JTT will further grow with annual production around 4 million units within a few years.

The three parties have agreed to the following steps:

• April 1, 2002

  MMC to spin off its AT/CVT business and incorporate it with a new company, established by MMC as a 100% owned subsidiary, named Diamondmatic Co., Ltd. (DMC) on April 1.

• Mid-May, 2002

  JTT and DMC to conclude a contract to exchange shares.

• Early-July, 2002

  DMC and JTT to exchange shares. The ratio of the Share Exchange is 1.31423 share of JTT per share of DMC.

  As a result, DMC will become JTT's 100% owned subsidiary; Nissan to own approximately 82% and MMC to own 18% of JTT shares.

  JTT and DMC are aiming to merge in the spring 2003.

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For inquiries:

Nissan Motor Co., Ltd
Communications Department
Telephone: +81(0)3-5565-2141

Mitsubishi Motors Corporation
Corporate Communications Department
Telephone: +81(0)3-5232-7165

JATCO TransTechnology Ltd.
General Administrations Department
Telephone: +81(0)545-51-0047