Mitsubishi Motors Reports March 2006 U.S. Sales

CYPRESS, Calif., April 3 -- Mitsubishi Motors North America, Inc., today reported March sales of 10,250 units, an increase of 28.5% compared to February sales of 7,976.

"March was a very strong month, particularly in the retail sector (up 41% from February), which is critical for the success of our dealers and our company," said President & CEO Hiroshi Harunari. "This consistent, month-over-month growth sets us up for dramatic sales increases in our new business year, which begins in April."

* Galant was the volume leader at 2,521, up 32.8% from last month's
volume.

* Eclipse closed at 2,486 and was up 44.1% from last month's volume and
up 71.2% from last March 2005's volume. This was the second best sales
month for Eclipse in the past 30 months.

* Endeavor closed at 1,290 and was up 51.9% from last month's volume.

"Our aggressive national leasing program on Galant ($199/month) and Endeavor ($299/month) continues in April," added Harunari. "We expect a tremendous month, because our exciting all-new Eclipse Spyder convertible has arrived in showrooms just in time for Spring."

Mitsubishi Motors North America, Inc., (MMNA) is responsible for all manufacturing, finance, sales, marketing, research and development operations of the Mitsubishi Motors Corporation in the United States. Mitsubishi Motors sells coupes, convertibles, sedans, sport utility vehicles, and light trucks through a network of more than 540 dealers. For more information, contact the Mitsubishi Motors News Bureau at (888) 560-6672 or visit media.mitsubishicars.com.

* -- Note: March 2005 total Mitsubishi sales were 14,776

# Forecasts for fiscal 2006

On the strength of the introduction of a number of new models in fiscal 2006 scheduled in the revitalization plan, Mitsubishi Motors will aim to achieve the revitalization plan target of increasing global sales volume by 5% over fiscal 2005 to 1,408,000 units. Regional forecasts are the following. Japan: 302,000 vehicles, an 18% increase over the previous year; North America: 181,000 vehicles, a 16% increase; Europe: 271,000 vehicles, a slight increase; Asia and other regions: 654,000, a slight decrease. In terms of key financial figures, for fiscal 2006 Mitsubishi Motors forecasts total sales of 2,230.0 billion yen, a 5% increase, consummate with the volume increase, of 109.9 billion over last year. The company forecasts operating income of 43.0 billion yen, up 36.2 billion yen from fiscal 2005. Factors driving the increase include: upturns in unit volume/model profitability mix stemming from the introduction of new models in the lineup; reduced sales promotion spending; reductions in material costs; and cut backs in general administrative expenses. Also contributing to the improvement will be the beneficial effects of booking asset impairment charges and restructuring implemented in fiscal 2005. Mitsubishi Motors forecasts an ordinary profit of 21.0 billion yen, a year-on-year improvement of 38.8 billion yen, and a full-year net profit of 8 billion yen, an improvement of 100.2 billion yen.

# Fiscal 2006 operational plans

Operational measures by region
(1) Japan
- Introduce fully redesigned eK Wagon, Pajero and Delica models and of special editions of other models.
- Strengthening sales ability through stronger partnerships with sales companies.
- Restructuring sales networks.

(2) North America
- Continue implementation of measures designed to normalize sales activities.
- Strengthen dealer marketing and selling capabilities through training.
- Consistent communication message.
- Effective financial services operations.
- Improve productivity at the company's U.S. production facility.
- Introduce new products that attract more customers & boost sales.

(3) Europe
- Introduce a number of new cars throughout the fiscal year.
- Expand sales of current models.
- Maintain sales momentum in Germany, U.K and other volume markets.
- Expand sales in Russia, the Ukraine and other growth markets through the introduction of a full-size sedan.

(4) Asia and other regions
- China: Make an equity investment in South East (Fujian) Motor Co., Ltd. Build up and extend company's operating base in China by expanding the Mitsubishi brand lineup.
- Thailand: Expand export shipments of new Triton 1-ton pickup model.
- Australia: Strengthen sales through the introduction of three new models (imports) and new trim versions of locally produced models.
- Latin America, Middle East and Africa: Boost sales through introduction of new 1-ton pickup model.