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Mitsubishi Motors Announces 3Q FY2007 Financial Results & Full-year Forecasts

Tokyo, February 5, 2008 — Mitsubishi Motors Corporation (MMC) today announced its sales and financial results for the first nine months of the fiscal year ending March 31, 2008 and its full-year forecasts.
  1. 3Q FY2007 results

  2. (1) Performance overview
    Mitsubishi Motors reported that consolidated net sales in the first nine months of fiscal 2007 (April 1 through December 31, 2007) totaled one trillion 947.3 billion yen, a 26 percent increase of 403.2 billion yen over the same period last fiscal year (one trillion 544.1 billion yen). The gain stems principally from higher sales of vehicles in Europe and in Asia and other regions and from favorable yen exchange rates.
    The company posted an operating profit of 52 billion yen, 45.6 billion yen better than the same period last fiscal year. Factors contributing to this improvement include a significant upturn in sales volume and a more profitable model mix in Europe, Asia and other regions, and the benefits of a weaker yen.
    The company moved into the black in terms of ordinary income posting an ordinary profit of 39.3 billion yen, a year-on-year gain of 45.7 billion yen.
    The company also moved into the black in terms of net income, reporting a net profit of 21.7 billion yen, a year-on-year gain of 33.5 billion yen that would have been greater but for increased tax expenses due to increased profits at its overseas consolidated subsidiaries and other minor expenses.

    (2) Sales volume
    Global retail sales of vehicles in the first nine months of fiscal 2007 totaled 1,016,000 vehicles, a 13 percent increase of 117,000 on the 899,000 sold in the same period in fiscal 2006.
    In Japan, Mitsubishi Motors sold 151,000 vehicles, an 11 percent decline of 19,000 vehicles. Registered vehicle sales increased due to the introduction of the new Delica D:5 and Galant Fortis (new Lancer in overseas markets) models, but failed to offset a drop in minicar sales in a domestic market that still shows no sign of recovery in overall demand.
    In North America, the company sold 134,000 vehicles in the nine months from April through December, up 11,000 over the same period last year. Sales in the United States for October through December were down 3,000 units year-on-year, impacted by increased market competition stemming from growing uncertainty about the future of the United States economy due to the sub-prime loan problem. The gain in sales for the period is attributable to factors including continued firm sales of the new Outlander and new Lancer models and to higher sales in Canada. In Europe, Mitsubishi Motors sold 254,000 vehicles, a 23 percent year-on-year growth in volume of 48,000. This gain was attributable to fast sales of the new Outlander and new Lancer, with the fast expanding Russian, Ukrainian and other East European markets acting as the main engine driving the growth.
    In Asia and other regions, MMC sold 477,000 vehicles, up 77,000 over the same period last fiscal year. This gain was due to continued firm sales of the Triton pickup truck and the Pajero in Latin America, the Middle East and Africa and to a sales recovery in Indonesia and other countries in the ASEAN block.

  3. FY2007 full-year forecasts

  4. Mitsubishi Motors has revised the full-year forecasts for fiscal 2007 it announced on October 30 2007 to reflect the current sales environment and the restructuring costs related to the closure of the production facility in Australia announced today.
    The company has revised its full-year global retail sales volume forecast to 1,337,000 vehicles, a reduction of 25,000 on the figure announced on October 30 2007, on the basis of current market trends.
    The company has reduced its full-year net sales forecast to 2,670 billion yen, 30 billion yen less than the October forecast, to reflect the impact of the revised sales volume forecast.
    Despite these downward revisions, however, the company upwardly revises its operating income forecast by 10 billion yen to 80 billion yen and ordinary income forecast by 13 billion yen to 60 billion yen as it expects to make up the drop in sales as a result of favorable changes in exchange rates, mainly the Euro, and through cost reductions.
    Mitsubishi Motors leaves its full-year net income forecast of 20 billion yen unchanged as it expects to make up extraordinary losses incurred through the closure of its production facility in Australia by raising the profitability of its operations.

Note on forward-looking statements
All statements herein, other than historical facts, contain forward-looking statements and are based on MMC's 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;
    - 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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