FY 2002 Business Results Overview
In its FY 2002 consolidated operations, operating profit doubled to 83 billion yen (US$690 million, euro 639 million); ordinary income nearly quadrupled to 54 billion yen (US$449 million, euro 416 million). Net income tripled to 37 billion yen (US$308 million, euro 285 million), the best result in the history of the company.

MMC's net sales reached 3,885 billion yen (US$32.32 billion, euro 29.92 billion). This is the first net sales growth in the last five years and represents an 8 percent increase over fiscal year 2001, even after adjusting for the effect of a change in accounting period for overseas subsidiaries.

"During the second year of our Turnaround we have continued our successful strategy not only to reduce costs but also to improve overall processes and to invest heavily for the future," said MMC President and CEO Rolf Eckrodt. "After achieving the first net sales growth since 1997, we are confident of further increasing our profits and sales this year and beyond, our first as a pure car company."

Note on change in accounting period:
Starting this year, MMC's consolidated overseas subsidiaries changed their annual closing date from December 31 to March 31 to synchronize with MMC's fiscal year reporting and to improve transparency and the quality of MMC's group financial reporting. FY 2002 figures for these companies include results for the last 15 months ("Bridge").

FY 2002 Passenger Car Operations
MMC achieved its original targets of adjustment in domestic production capacity and headcount one year ahead of schedule. Material costs were lowered by 15 percent at the end of fiscal year 2002, another target originally set for March 2004. Overall Turnaround improvements in FY 2002 amounted to 293 billion yen (US$2.44 billion, euro 2.26 billion) against the original target of 175 billion yen.

Operating profit for passenger cars only in FY 2002 rose to 74 billion yen (US$616 million, euro 570 million), an increase of 43 billion yen (142 percent) over FY 2001. While Japan and Europe remained negative in FY 2002, profits in North America and Asia/Rest of the World amounted to 90 billion yen (US$749 million, euro 693 million) and 73 billion yen (US$607 million, euro 562 million) respectively.

Net sales rose by 216 billion yen to 2,736 billion yen (US$22.76 billion, euro 21.07 billion), a 9 percent increase over the preceding year after adjusting for the impact of the change in accounting period.

The strong retail net sales increase is a direct result of high overseas sales. In FY 2002, passenger car sales overseas topped 1.2 million units for the first time in MMC's history. Sales in Asia/Rest of the World set a new record with 646,000 units. North American sales in CY 2002 rose for the fourth consecutive year to the new record figure of 360,000 units (FY 2002: 347,000), while European sales declined slightly to 203,000 units (FY 2002: 200,000), basically in line with a weaker overall market. Japanese sales fell to 354,000 units. Total passenger retail car sales rose to 1.56 million units.

Supported by the deconsolidation of its truck & bus operations and various other initiatives, MMC reduced its gross interest bearing debt to the 1 trillion yen level (US$8.3 billion, euro 7.7 billion). Net automotive debt was lowered to 506 billion yen (US$4.21 billion, euro 3.9 billion).

Outlook and FY 2003 Forecast
MMC sees the threat of several factors adversely affecting the automotive business in FY 2003. This includes weakening economic conditions worldwide, including Japan, and the possibility of a further spread of the SARS disease. In addition, continued incentive rises in the United States could be expected to put pressure on automakers' profitability in this region.

Against this background, MMC filed the following forecast for fiscal year 2003 with the Tokyo Stock Exchange. Consolidated net sales are expected at 2.9 trillion yen (US$24.2 billion, euro 23.2 billion), up 6 percent over FY 2002, and operating profit is expected to be 90 billion yen (US$750 million, euro 720 million), up 9 percent over FY 2002. Ordinary income and net income are expected to be 65 and 40 billion yen (US$542 million, euro 520 million; US$333 million, euro 320 million), respectively. This forecast is based on exchange rates of 120 yen/dollar and 125 yen/euro.

MMC forecasts that its total retail sales volume in FY 2003 will grow to 1.670 million units mainly due to an increase in Japan (400,000 units, up 46,000 on FY 2002), North America (370,000, up 23,000 on FY 2002) and Asia/Rest of the World (700,000, up 55,000 on FY 2002). Sales in Europe are forecasted to remain stable at 200,000 units. In addition, MMC expects a reduction of operating losses in Japan and forecasts that European operations will return to profitability in FY 2003, making all of the company's three overseas regions profitable.

FY 2002 Truck and Bus Operations
Total unit sales in fiscal year 2002 amounted to 153,000 units after adjusting for the impact of the change in accounting period. This represents an 8 percent increase over fiscal year 2001. Of this, 65,000 trucks and buses were sold in Japan and exports stood at 88,000 units.

Despite intensified competition in the Japanese commercial vehicles market, consolidated net sales of MMC trucks and buses increased by 6 percent to 724 billion yen (US$6.02 billion, euro 5.58 billion) in FY 2002, generating an operating profit of 9 billion yen.

Note: US dollar and euro amounts are translated from yen for convenience only at the rates of 120.20 yen/dollar and 129.83 yen/euro, the exchange rates prevailing on March 31, 2003. Forecasts are translated at the company's projected 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.