Mitsubishi Motors Corporation has decided to transfer MMC group company property management and catering operations (see below for details) in Japan to leading specialist companies and has recently signed basic agreements with those companies.

The transfer of these operations will bring significant quality and cost benefits to MMC as a result of the merits of scale realized by having these services provided by leading specialist companies. This will enable MMC to accelerate concentration of management resources on core and core-peripheral business. MMC will also be reviewing the operations of its subsidiary companies that have provided these services to date, and the dissolution of capital ties with these companies will lead to a simpler corporate organization.

MMC sees the review of strategic ties with, and reorganization of, its subsidiary companies that run operations outside the sphere of core and core-peripheral operations as vital to the achievement of MMC Turnaround, the new management vision. The company will be discussing details of these latest transfers with its labor union. In terms of service unit operations, the transfers announced today follow on from the strategic IT operation alliance announced in December last year.

Outsourcing details

   1. Property management operations

Safety, maintenance, management and administration, repairs, security and cleaning operations for corporate office buildings, welfare facilities, and production facility buildings.
To be outsourced to:	Nippon Kanzai Co., Ltd. (President, Takeshi Fukuda; listed First Section Tokyo Stock Exchange)
Transfer date:	Early July, 2002
Operations to be transferred:	All property management operations for the MMC head office in Tamachi Tokyo, for major production plants in Kawasaki, Nagoya, Kyoto and Mizushima and for neighboring facilities
Personnel to be transferred:	570

   2. Catering operations

To be outsourced to:	Green House Co., Ltd. (President, Chiaki Tanuma; listed on the Japan Securities Dealers Association (JASDAQ) over-the-counter market)
Transfer date:	Early July, 2002
Operations to be transferred:	Catering operations at dormitories in Tamachi Tokyo area and at all major production plants in Kawasaki,Nagoya, Kyoto and Mizushima and neighboring facilities
Personnel to be transferred:	130

The companies from which these operations are to be transferred are all MMC subsidiaries.

Some of the operations and personnel of Leadtech Co., Ltd., Ryoto Estec Co., Ltd., MMC General Service Co., Ltd., Ryomei Estec Co., Ltd., Ryokei Estec Co., Ltd., Ryosui Estec Co., Ltd., Suiryou Service Co., Ltd., companies related to property management, and all of the operations and personnel of Meiryo Securities Co., Ltd. will be transferred to a fully-owned subsidiary of Nippon Kanzai Co., Ltd.

In the catering field, all the operations and personnel of MMC subsidiaries Ryomei Catering Co., Ltd. and Shoku Co., Ltd. will be transferred to a fully-owned subsidiary of Green House Co., Ltd.