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Mitsubishi Motors Announces Results for First Quarter Fiscal 2006
- Operating Loss Cut in Half from Previous Period Last Year -

Tokyo, August 2, 2006 — Mitsubishi Motors Corporation (MMC) today announced its financial results for the first quarter of the fiscal year ending March 31, 2007.

  1. Performance overview
    Mitsubishi Motors reported consolidated net sales of 483.9 billion yen for the first quarter of fiscal 2006 (April 1 through June 30, 2006), a very slight decrease of 1.9 billion yen over the same period last year (485.8 billion yen). The decrease stemmed mainly from a drop in sales volume in the company's Asia & Other region markets, which was not completely offset by increases in Japan, North America and Europe.
    The company reported an operating loss of 6.8 billion yen, an improvement of 7.0 billion yen over the same period last year. Factors contributing to this improvement and helping to offset the lower net sales reported above include: the weaker yen, reductions in advertising outlays in the United States, and an improvement in profitability at the company's U.S. financial services subsidiary.
    Mitsubishi Motors also achieved reductions in the size of its ordinary and net losses: reporting an ordinary loss of 12.2 billion yen, a year-on-year improvement of 7.8 billion yen, and a net loss of 15.1 billion yen, an improvement of 6.5 billion yen.

  2. Sales volume
    Global market sales of Mitsubishi Motors vehicles in the first quarter of fiscal 2006 totaled 292,000 vehicles, 34,000 fewer than the 326,000 sold in the same period last year.
    In Japan, MMC sold 52,000 vehicles, a year-on-year increase of 4,000, as sales grew year-on-year for the 15th consecutive month (through July 2006) since May 2005. This first quarter increase reflected positive gains stemming from the new Outlander and i models the company launched in FY2005, as well as by the release of the Colt RALLIART Version-R, i Play Edition, and other special edition models in a domestic market where total demand fell over the period under review.
    In North America, Mitsubishi Motors halted the slide in sales volume selling 42,000 vehicles, an increase of 1,000 over the same period last year. This reflected sales-boosting measures introduced under the new management structure at Mitsubishi Motors North America, Inc. and strong sales of the new Eclipse Spyder that began full sales in April.
    In Europe, the company sold 71,000 vehicles, a year-on-year increase of 5,000 driven mainly by a substantial increase in sales volume in Russia and the Ukraine, major growth markets in the region.
    In markets in its Asia & Other region, Mitsubishi Motors sold 127,000 vehicles, 44,000 fewer than in the same period last year. Markets in the Middle East and Africa posted solid growth but total sales volume for the region was impacted by slower sales in Taiwan and ASEAN-block countries where total demand fell due to higher oil prices and other factors, and by increased consumption tax in China.

  3. FY2006 forecasts
    Mitsubishi Motors leaves the first half and full-year forecasts for fiscal 2006 announced on April 27, 2006 unchanged.

Note on forward-looking statements
All statements herein, other than historical facts, contain forward-looking statements and are based on our current forecasts, expectations, targets, plans, and evaluations. Any forecasted value is calculated or obtained based on certain assumptions. Forward-looking statements involve inherent risks and uncertainties. A number of significant factors could therefore cause actual results to differ from those contained in any forward-looking statement. Significant risk factors include:
    - feasibility of each target and initiative as laid out in this presentation;
    - fluctuations in interest rates, exchange rates and oil prices, etc;
    - changes in laws, regulations and government policies;
    - regional and/or global socioeconomic changes
Potential risks and uncertainties are not limited to the above and MMC is not under any obligation to update the information in this presentation to reflect any developments or events in the future.

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