I. FY 2002 Business Results Overview
This is the last financial year MMC will include the results for truck and bus operations in its overall results due to the spin-off of its truck and bus operations on January 6, 2003.

In its FY 2002 consolidated operations, MMC's preliminary net sales is at 3,962 billion yen. Even after neutralizing the effect of a change in accounting period for the overseas subsidiaries, this figure represents a 10 percent increase over the preceding year on the back of strong overseas sales.

Preliminary operating profit is 83 billion yen (207 percent of FY 2001); ordinary income is 55 billion yen (464 percent of FY 2001); and net income is 38 billion yen (338 percent of FY 2001), the best result in company history.

"Despite a difficult market environment we managed to beat our earlier forecast," said MMC President and CEO Rolf Eckrodt. "On top of our significant cost and efficiency improvements, MMC has increased net sales for the first time since 1997 and returned to growth. The successful spin-off of our truck and bus operations will enable MMC to focus on passenger cars to achieve further growth and profit in the future."

By various ongoing initiatives and supported by the deconsolidation of its truck & bus operations, MMC's gross interest bearing debt is now lowered to 1 trillion yen, which can be broken down into 572 billion yen for automotive debt and 428 billion yen for financial services debt.

FY 2002 business results (estimates)

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 in order to synchronize with MMC's fiscal year reporting. This change will improve transparency and the quality of MMC's group financial reporting. FY 2002 figures for these companies will thus include results for the last 15 months. The impact of this accounting change on overall net sales is approximately 446 billion yen, with a negative impact on profit, mainly due to the difficult North American market environment in the first quarter of 2003. (Operating profit 10 billion yen, ordinary profit 12 billion yen and net income 6 billion yen)

II. FY 2002 Passenger Car Retail Sales Results by Region
In FY 2002, MMC's passenger car sales in overseas markets rose by 4.9 percent to 1.21 million units, the best result in the company's history. This figure does not include the impact of the change in accounting period. Total passenger car sales in FY 2002 rose to 1.56 million units.

Japan
Passenger car sales in Japan declined by 12.3 percent to 354,000 units in FY 2002. With the successful launch of the subcompact Colt, second half unit sales amounted to 191,000 units, a 17.2 percent increase over the first half-year period. The sales momentum picked up especially in March when 14,137 Colts were sold, making March 2003 the company's best-ever sales month for any single MMC product (excl. mini-cars). At the same time, the renovation of the domestic sales network is proceeding at high speed including the integration of the company's two different sales channels into a single one as of January 1, 2003.

Europe
Despite a generally weakening market, MMC European unit sales have stabilized and amounted to 203,000 units during CY 2002. The discontinuation of low-profit, low-volume models led to some sales decline, partially balanced by the successful launch of the new Space Star. In the fast growing Eastern European market, MMC increased its sales by 36.2 percent to 17,000 over the previous year.

North America
In CY 2002, MMC continued its sales increase in the North American market for the fourth consecutive year. North American sales rose 6.6 percent over the previous year to the new record figure of 360,000 units. This expansion was supported by additional sales in the Canadian market, which MMC entered in September. Further growth is expected from the market entry into Mexico in January 2003 as well as from the recent successful launch of the Lancer Evolution VIII and the SUV Endeavor to the U.S. market.

In 2002, Mitsubishi Motor Credit of America suffered from a trend towards higher than anticipated credit losses. Operational improvement countermeasures, such as tightened credit policies and strengthened collection function, have already been implemented. Necessary provisions to accommodate for higher credit losses have already been incorporated in the preliminary FY 2002 result.

Asia and Rest of the World
MMC unit sales in these markets increased strongly by 7.3 percent to 646,000 units over the last 12 months through March 2003, another record figure for MMC in this region. Sales benefited from a strengthened product line-up and an economic recovery in many Asian markets. In March, MMC accelerated its sales growth in China by launching the Pajero Sport-the first Mitsubishi-badged vehicle to be manufactured locally-which is currently in production at Beijing Jeep, an affiliate of DaimlerChrysler in China. Total sales of MMC derived vehicles in China over the last 12 months amounted to 92,000 units.

Passenger car retail sales by region (1000 units)