Mitsubishi Electric to Record Reserve for Refund Payments Resulting From Overcharged Expenses on Certain Contracts With Four

  Mitsubishi Electric to Record Reserve for Refund Payments Resulting From
  Overcharged Expenses on Certain Contracts With Four Public Entities

Business Wire

TOKYO -- December 21, 2012

Mitsubishi Electric Corporation (TOKYO: 6503) announced today that in its
consolidated financial results for the third quarter of the current fiscal
year ending March 31, 2013, it expects to record a reserve that could amount
to 77.3 billion yen (65.5 billion yen of which attributable to Mitsubishi
Electric Corporation) as a non-operating expense, for refund of overcharged
expenses, related penalties and interest on certain contracts in its
electronics systems business. The precise amount of the reserve may change
depending on further investigations to be conducted in cooperation with the
involved parties.

In contracts with the Ministry of Defense (MOD), the Cabinet Satellite
Intelligence Center, the Japan Aerospace Exploration Agency and the National
Institute of Information and Communications Technology, Mitsubishi Electric
overcharged expenses by shifting work records among different orders. Similar
practices have been identified in relation to separate contracts between four
affiliate companies and MOD.

In view of these developments, the company announced separately today its
revised consolidated financial results forecast for the current fiscal year
ending March 2013.

About Mitsubishi Electric Corporation

With over 90 years of experience in providing reliable, high-quality products,
Mitsubishi Electric Corporation (TOKYO: 6503) is a recognized world leader in
the manufacture, marketing and sales of electrical and electronic equipment
used in information processing and communications, space development and
satellite communications, consumer electronics, industrial technology, energy,
transportation and building equipment. Embracing the spirit of its corporate
statement, Changes for the Better, and its environmental statement, Eco
Changes, Mitsubishi Electric endeavors to be a global, leading green company,
enriching society with technology. The company recorded consolidated group
sales of 3,639.4 billion yen (US$ 44.4 billion*) in the fiscal year ended
March 31, 2012. For more information visit http://www.MitsubishiElectric.com.
*At an exchange rate of 82 yen to the US dollar, the rate given by the Tokyo
Foreign Exchange Market on March 31, 2012

Contact:

Mitsubishi Electric Corporation
Investor Relations Inquiries:
Investor Relations Group
Corporate Finance Division
Tel: +81-3-3218-2391
Cad.Irg@rk.MitsubishiElectric.co.jp
or
Media Contact:
Yurika Fujimoto, +81-3-3218-3380
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
http://www.MitsubishiElectric.com/news/
 
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