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Booking of extraordinary income and loss

Tokyo, April 25, 2008 — Mitsubishi Motors Corporation hereby gives notice that it has booked the extraordinary income and loss detailed below in its full-year financial results announced today for the term ending March 31, 2008.
  1. Impairment losses

    The company booked extraordinary losses totaling 21.3 billion yen in its consolidated financial results for the term, ending March 31, 2008. These losses stem from impairment losses incurred by the company's American subsidiary Mitsubishi Motors North America, Inc. (MMNA) and from impairment losses relating to sales-related assets in Japan.
    The principal reason for the losses in America is the company employed impairment accounting methods for production plant and equipment due to the fall in demand accompanying the slow-down in the American economy and increased competition. The impairment loss at MMNA totaled 15.2 billion yen.


  2. Australian subsidiary factory closure costs

    The company booked an extraordinary loss of 14.6 billion yen in its consolidated financial results for the term ending March 31, 2008 for costs related to the closure of the factory at its Australian subsidiary Mitsubishi Motors Australia Ltd. (MMAL).
    The company and MMAL announced on February 5, 2008 that in order to achieve long-term growth they would withdraw from local production operations and focus on sales of imported built-up vehicles. The company has booked an extraordinary loss of 14.6 billion yen in its fiscal 2007 consolidated results to cover some of the restructuring and other costs related to the closure of the factory.
    The company had announced that it would take a charge of 22.0 billion yen in relation to the closure but, in the end, has booked a total loss of 19.8 billion yen, this including operating and other expenses.


  3. Gain on allowance for doubtful accounts and on allowance for guarantees

    The company booked an extraordinary gain of 2.2 billion yen in its consolidated financial results for the term ending March 31, 2008 from its allowance for doubtful accounts because of a decrease in accounts receivable.
    The company also booked an extraordinary gain of 26.6 billion yen in its non-consolidated financial results for the term ending March 31, 2008 against its allowance for doubtful accounts and an extraor-dinary profit of 7.4 billion yen against its allowance for guarantees due primarily to a recovery in net asset value at its European subsidiary. This accounting method has not affected the consolidated financial results.


  4. Unrealized loss on subsidiary company shares

    The company booked in its non-consolidated financial results for the term ending March 31. 2008 an extraordinary loss of 80.7 billion yen*1 to cover declines in net asset value at its American and Australian subsidiaries for the reasons given in sections 1 and 2 above. This accounting method has not affected the consolidated financial results.


  5. *1  Of the 80.7 billion yen charge, the company has already announced in its FY07 first-half results that it had booked 5.8 billion yen as an unrealized loss on its subsidiary shares due to a drop in the net asset value of its Australian subsidiary.

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