Mitsubishi Electric Corporation Restructures U.S. Operations

Organization Streamlined, Business Units to Focus on Key Industries

CYPRESS, Calif., October 29, 1998 - Mitsubishi Electric Corporation (MELCO) of Japan, a diverse global electronics company, today announced a restructuring of its U.S. operations. To strengthen its presence in key industries and increase its efficiency, the company is streamlining some of its divisions and functions.

"Our reorganization enables us to focus on those industries in which we have superior technology and engineering, and which we believe will have the most impact on society now and in the future," explained Mr. Akira Katayama, president and chief executive officer of Mitsubishi Electric America, Inc. "Digital television, computer hardware and software, and telecommunications are among the industries that will dominate the future. We already are leaders in those industries; today's announcement reaffirms our global commitment to those markets and will allow us to continue as preeminent electronics manufacturer."

Specifically, Mitsubishi Electric Corporation is closing its U.S. holding company, Mitsubishi Electric America, Inc. (MEA), and opening The Americas Corporate Office as part of Mitsubishi Electronics America, Inc. (MELA), the largest MELCO subsidiary in the U.S. The Americas Corporate Office will be responsible for representing MELCO's businesses in North and South America. Additionally, MEA's functions - HR, IT, Legal, Public Affairs, Corporate Communications, Finance, etc. as well as strategic planning - will now be functions of The Americas Corporate Office.

Also new to Mitsubishi Electronics America is the formation of the CCV Marketing Group, which will be a counterpart to MELCO's CCV (Computer, Communication & Visual) Systems Integration Group. The existing eight MELA business units, e.g., the Electronic Device Group, Information Technology Group, Mobile Computing Division, etc. remain unchanged.

Additionally, Mitsubishi Electric Corporation is:

• Closing the Audio/Visual division of Mitsubishi Consumer Electronics America (MCEA) and opening a new digital consumer electronics company, primarily responsible for the manufacturing and sales of projection televisions, and the manufacturing of display monitors. This company will be based out of the present MCEA's corporate headquarters in Irvine, Calif. and will retain the staff from MCEA's A/V division and its manufacturing subsidiary located in Mexicali, Mexico.

   

• Streamlining its cellular telephone operations by closing Astronet Corporation and MCEA's Cellular Mobile Telephone division, and establishing comparable functions within Mitsubishi Wireless Communications, Inc. of Duluth, Georgia.

   

• Establishing a design function within the Electronic Device Group (EDG) of Mitsubishi Electronics America, which will be based in North Carolina. (In September, MSAI announced that it is closing its assembly/test/module operations, effective November 6, 1998.)

The reorganization will be completed by March 1999. As a result, Mitsubishi Electric Corporation will be a flatter organization, with nine companies throughout the United States, in industries ranging from information technology, telecommunications, consumer electronics and R&D labs to power products, automotive parts and factory automation equipment.

About Mitsubishi Electric Corporation
With more than 75 years of experience in providing reliable, high quality products to clients and consumers all over the world, Mitsubishi Electric is a recognized world leader in the manufacture, marketing and sales of electrical and electronics equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. Based in Tokyo, the company has operations in more than 35 countries around the world.

About Mitsubishi Electric America, Inc.
Mitsubishi Electric Corporation of Japan established Mitsubishi Electric America, Inc., headquartered in Cypress, Calif., in 1973 as the holding company for 11 U.S. subsidiaries. Operations include research, marketing, sales, engineering and manufacturing at more than 30 locations throughout the United States. For additional information, visit www.MitsubishiElectric.com.

For more information:
Mitsubishi Electronics News Bureau
(800) 828-6372 for media use only