2002

Agreement of Business and Capital Alliance We, MITSUBA Corporation ("MITSUBA") and Jidosha Denki Kogyo Co., Ltd. ("JIDECO"), are pleased to announce that both companies signed an "Agreement of Subscription for Stock and Business Alliance" after approvals were given by each company's board for a comprehensive business and capital alliance, held on December 13, 2002. The details of the alliance are as follows: December 13, 2002 1.Rationale Due to increasing fierce global competition, we agreed on a capital alliance through MITSUBA's subscription for JIDECO's new shares allocated for a third party, to promote efficient use of shared management resources. The capital alliance will establish a global supply system and develop system products for newly evolving innovational equipment mounted on automobiles. This will improve our cost competitiveness, and assure a stronger position as automotive parts manufacturers with a global competitive edge. We expect to meet our customers' needs further by a closer cooperation based on the alliance. 2.Alliance (1) Comprehensive business alliance The purpose of our comprehensive alliance is to grow together as group companies through synergies in technology, R&D, procurement, production, and so forth. We shall confirm further details in the near future. (2) MITSUBA's subscription for JIDECO's stock Structure: MITSUBA is to subscribe for JIDECO's all new shares allocated to a third party. Numbers of shares: 15,000,000 shares of common stock (or approx. 35.8% of outstanding issues after the given third party allocation) Issue price: 169 Formula for issue price: Based on JIDECO's average final transaction price (187.55) at the Tokyo Stock Exchange for the latest one month to the previous business day of the approval to issue new shares at the board meeting (or November 13, 2002 through December 12, 2002) with a discount rate of 9.89%. After the above subscription, JIDECO shall be a company to which MITSUBA's equity method applies. 3.Company overview (as of March 31, 2002) Company name MITSUBA JIDECO Principal office 1-2681, Hirosawa-cho, Kiryu, Gunma, Japan 1760, Higashi-Matano-cho, Totsuka-ku, Yokohama, Kanagawa, Japan Representative Noboru Hino, President Yoshimichi Urabe, President Business description Transportation equipment business (manufacturing/sales of electrical equipment for automobiles) and Information processing services Manufacturing/sales of electrical and control parts for automobile Foundation March 1946 September 1947 Major shareholders Honda Motor (4.35%) Bank of Yokohama (4.31%) Nissan Motor (22.73%) Hitachi, Ltd. (21.42%) Paid in capital 9,885 million 3,091 million Number of employees 2,576 on a non-consolidated basis 1,295 on a non-consolidated basis Performance in the latest fiscal years on a consolidated basis ( in millions) MITSUBA JIDECO Fiscal year ended in March 2001 March 2002 March 2001 March 2002 Sales 125,632 128,744 56,096 53,915 Operating profit 6,378 5,277 848 (419) Ordinary income 6,169 5,401 553 (588) Net income (495) 1,843 97 (940) Total assets 113,123 115,213 42,465 45,065 Shareholders' equity 41,294 44,388 15,676 14,922 Shareholders' equity per share in 1,080.73 1,161.72 589.83 561.25 Net income per share in (12.97) 48.24 3.69 (35.39) There is no capital or human resource relationship between the two companies as of December 13, 2002. 4.Schedule December 13, 2002 (Friday) Signing "Agreement of Subscription for Stock and Business Alliance" January 17, 2003 (Friday) JIDECO's new shares allocation to a third party (planned) 5.Projection (Effect of the alliance on both companies) Both companies' future performance will be affected by the alliance. An assessment of future performances will be undertaken and the results of which will be announced in the near future. * For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top ISO9001 certification With regard to international standards has become a basic necessity for companies that are carrying out business activities on a global scale, ISO9001 certification has become a basic necessity. As our company confronts the major objective of reconstructing our quality systems, we are actively pursuing ISO9001 certification among the members of the Mitsuba Group. We are quite pleased to announce at this time that one of our group members, the Ochiai Manufacturing Co., Ltd., has recently been granted ISO9001 certification for the year 2000 for its quality assurance activities. The following is an outline of the events leading up to this certification. November 20, 2002 1. Objective range of the certification Ochiai Manufacturing Co., Ltd. (location : 250-11 Uda, Tomioka City, Gunma Pref, Japan) 2. Objective range of the certification investigation the manufacturing of electric components for Automobiles 3. Certification Authority and Investigative Recording Authority UKAS (United Kingdom Accreditation Service, Certification Deliberation Council) SGS ICS Japan, Inc. 4. A History of the Certification Activities and Progress Jul. 2001 Kickoff of the certification activities Jun. 11, 2002 Preparatory investigation carried out Sep. 24-25, 2002 Final certification investigation carried out Nov. 4, 2002 ISO9001 certification registration Dec. 13, 2002 tenative date for the hold of the Certification Ceremony at the company 5. Future Developments At the Ochiai Manufacturing Co., Ltd., the granting of ISO9001 certification is to serve as a starting point for further efforts to establish their system. It is also expected to increase customer satisfaction with regard to the company's response to customer demands. Furthermore, system improvements are to be treated as an ongoing process that will help to strengthen and reform the company. * An outline of the Ochiai Manufacturing Co., Ltd. 1) established: November 1, 1961 2) location: 250-11 Uda, Tomioka City, Gunma Pref, Japan 3) president : Yoshikazu Mada 4) capital investment: 12,000,000 JPY 5) employees: 45 6) sales volume: 840,000,000 JPY (for FY 2001) 7) business activities: manufacturing of components for automobiles 8) percentage of the Mitsuba investment: 41.7% *For inquiries concerning this subject, please contact Mr. Tomio Sato, Section Manager, Quality Guarantee Section, Ochiai Manufacturing Co., Ltd. Tel. 0274-62-3221 or Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top Sales of solar car race motor to begin During the past few years, a racing team composed of members connected with the Mitsuba Corporation has established an very commendable list of accomplishments in a variety of EV Eco Run races. Also, through the successful participation of this team in these races, a strong appeal for the distribution of the motors used by this team has also developed. In response to these requests, we are now pleased to announce that the Mitsuba Corporation will begin to sell these motors. Details regarding the sale of these motors are as follows. November 15, 2002 1. Background Through the development and distribution of our company's motor system for solar racing cars, the Mitsuba motor technology and brand name has to come to be recognized throughout the world through these races. In order to further generate the appeal of these motors, we established an inner-company project promoting their development on July 1, 2001. Recently, we have been able to complete our preparations to offer these motors on the market. On Saturday, November 9, our team made a special appearance in the 2002 Workshop on Solar Cars & Solar Vehicles! on the campus of Tamagawa University. The motors that will be offered on the market were placed on exhibit and we made an official announcement that they would now be available. *The 2002 Workshop on Solar Cars & Solar Vehicles!. The Tamagawa University team, one of the top teams in the field of solar cars in Japan, sponsors this workshop and it is an oral session as well as a poster session event. Leading teams from all over Japan participate in this workshop that is held annually as panel discussions and research presentations are held by a wide range of groups. *Solar cars are cars fitted with electric motors that our powered by the rays of the sun that are transformed into electricity and stored in a storage cell. 2. Outline of the product Name: DD motor for solar racing cars The motor is attached to the surface of frame of the car Outline: The compact, lightweight DD motor showed superb output, construction and special qualities as a most suitable motor when it was used as the base motor in experimental cars that participated in two domestic races in 2002. The core material demonstrated high performance and minimal loss, while the controller was compact and lightweight and added to the user set-ups. These motors are available with 96 V and 48 V outputs and are acceptable for races held in Japan. Sales product: motors controllers terminals and terminal harnesses switch and harness units parameter set-up application software Sales conditions: 1)Since these motors have been manufactured as racing products, they do not have quality guarantees. 2)Users are requested to show two of our company seals on the body of the cars using these motors. Specifications 96 V 48 V << motor >> model M1596D M1548D external dimensions 262mmL59mm weight 10kg form DC brushless motor in-wheel DD standard power output 1.5kw maximum power output approx 5kw with controls highest efficiency over 93% standard RPMs loaded (at standard voltage) 870 RPMs << controller >> model M1596D M1548D external dimensions W164mmD226mmH92mm weight 3kg cooling method natural air cooling input standards standard input voltage 96V 48V input voltage 63140V 3263V output standards drive method 120 simple wave conduction control method RPM control PWM control electric current control input current revolution method forward: CCW as seen from the surface attached to the wheel reverse available (with speed limiter) recovery recovery volume possible, voltage limit function (user set-up) 3. Price 900,000 (with reduction system) 4. Sales schedule orders accepted from November 15 December 15, 2002 Shipping scheduled for April 25, 2003 For further details about the sales of these motors, contact: SCR Project, Mitsuba Corporation 1-2681 Hirosawa-cho, Kiryu City, Gunma Pref, Japan 376-8555 Leader: Masakatsu Kimura TEL 0277-52-0296 (ext. 5431) Cell phone: 070-5462-1527 m-kimura@mitsuba.co.jp Motor information: Hidekazu Uchiyama TEL 0277-52-5036 (ext. 5503) h-uchiya@mitsuba.co.jp Electrical information Yoshihiro Takemoto TEL 0277-52-5036 (ext. 5502) y-takemo@mitsuba.co.jp *For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top ISO/TS16949 certification granted to an overseas affilate company We are pleased to announce that ISO/TS16949 certification has been granted to Corporacion Mitsuba de Mexico S.A. DE C.V., an overseas (Mexico) affiliate of the Mitsuba Corporation. This is the first time that any of the companies within the Mitsuba Group has received ISO/TS16949 certification. The following is an outline of the events leading up to this certification. November 11, 2002 1. Background In coordination with ISO9001, and with regard to quality management system standards designed for businesses related to the automobile industry throughout the world, the ISO/TS16949 standards were originally published in 1999. Up until this time, the most popular standards for the automobile industry have been represented by the QS-9000 as determined by the Big Three (American automobile manufacturers). However, it has been decided to abolish the QS-9000 from December 2006. The current movement among western automobile manufactures, including the Big Three, is a trend towards demanding ISO/TS16949 recognition among all suppliers, and this trend is rapidly picking up momentum. 2. Objective range of the certification Name: Corporacion Mitsuba de Mexico S.A. DE C.V. (CMM) Location: Antyguo Camino a Huinala No. 210 Apodaca, N.L. C.P. 66600, Mexico TEL: (81) 8321-2470 FAX: (81) 8321-1989 3. Objective range of the certification Motors for automobiles and 2-wheeled vehicles 4. Certification Authority and Investigative Recording Authority TUV AMERICA DE MEXICO S.A. de C.V. * Headquarters: TUV Product Service GmbH. 5. History of the ISO/TS16949 Certification Activities and Progress with regard to the CMM Site Nov. 2001 QS-9000 certification granted Apr. 2002 ISO/TS16949 certification investigation completed Oct. 2002 ISO/TS16949 certification granted 6. Future Developments Currently plans call for Tatsumi D.V. (a CMM site) to investigate ISO/TS16949 certification by December 2002. * For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top By winning the 5th Round of the 2002 WEMGP, the "WEM in Toyota", the Team "Yoishoto!" Mitsuba wins the 2002 WEMGP Grand Championship We are extremely pleased to announce that with its victory in the recent GP-1 (Grand Prix Open Class) of the "WEM in Toyota", the 5th Round of the 2002 World Econo Move Grand Prix (WEMGP), held on Saturday, November 2 and Sunday, November 3 in the city of Toyota in Aichi Prefecture, our team won the overall 2002 WEMGP Grand Prix Championship. Details of the race are as follows. November 8, 2002 1. The Contest Name: Battery Car Race 2002 World Econo Move in Toyota Promoters: Executive Committee of the 2002 World Econo Move in Toyota Venue: a course set up around the Toyota Stadium, 7-2 Sengoku-cho, Toyota City, Aichi Prefecture Categories: Just as in the WEM in Akita, participating cars were outfitted with 4 equal condition batteries and competed for the longest distance achieved on a course set up around the Toyota Stadium. Racers competed for total distance and maximum energy efficiency over an 800 m circuit within a 2-hour time limit. Aside from the 35 vehicles that raced in the Grand Prix Class, 30 other cars competed in Open and Junior class categories in 1-hour races. *The World Econo Move Grand Prix (WEMGP) and the various races that make up this competition are being held throughout Japan in order to encourage the further development of electric vehicles through competition in various venues across the country. The 2002 WEMGP Races include the following: 1st Round Ogata WEM in Akita 2002.5.4-5 2nd Round Tsukuba WEM in Tsukuba 2002.8.18 3rd Round Sugo 2002 E.V. Ecorun in Sugo 2002.8.24-25 4th Round Shirahama 6th EV Enjoy Trial in Shirahama 2002.10.26-27 5th Round Toyota WEM in Toyota 2002.11.2-3 2. The MITSUBA Team Team Name: Team "Yoishoto!" Mitsuba Members: 11 (led by Kimura Masakatsu) Vehicle name: Hyper USO 800 The Car: Length: 300 cm, width: 65 cm, height: 51 cm, weight: 20 kg, frame: semi- monocock (employing carbon fiber + alamido honeycomb), three wheels. Loaded with an original "in-wheel D-D" (direct drive motor) 3. Race Results Grand Prix Class (35 vehicles) 1st place: Team "Yoishoto!" Mitsuba Hyper USO800 92 laps 2nd place: Nakayoshi ZDP Super Mothra 92 laps 3rd place: Team Unyanyan Kamekichi Econo Kamekichi #2 91 laps 4th place: Meijo University Econo Power Club Nova 91 laps 5th place: Nakayoshi ZDP Super Denchi-kun 91 laps 4. Team "Yoishotto!" Mitsuba performance for 2002 1st Round Ogata WEM in Akita 2002.5.4-5 1st place 2nd Round Tsukuba WEM in Tsukuba 2002.8.18 32nd place 3rd Round Sugo 2002 E.V. Ecorun in Sugo 2002.8.24-25 USO800: 2nd place Hyper USO800: 28th place 4th Round Shirahama 6th EV Enjoy Trial in Shirahama 2002.10.26-27 1st Heat: 1st place 2nd Heat: 4th place 5th Round Toyota WEM in Toyota 2002.11.2-3 1st place 5. Comments from MITSUBA regarding the race Thanks to the results of the preliminaries held the day before the race, Team "Yoishoto!" Mitsuba was able to start in the pole position in the finals. Our car was able to pull away from the pack immediately after the race began as our pace continued to elevate. After establishing our "Yoishotto" pace, our lead continued to grow lap by lap until we eventually found ourselves just behind the 2nd place car. Our team was able to maintain this lead throughout the race. But in the final two laps, other cars started to close in on us and, when we crossed the finish line, our lead had dwindled to a mere 5 meters. This was enough, however, for us to win the race. As a result, Team "Yoishoto!" Mitsuba was able to come away with the grand prize in the 2002 WEMGP. By winning the final round, and with the grand prize, we feel that it has been a truly wonderful year for all of the members of our team and we are extremely happy with their performance. As defending champions and with the 2003 WEMGP now ahead of us, our team is concentrating on the first round race to be held in March in Osaka. We have also received word from the WEM Headquarters asking for our cooperation with regard to the fuel cells to be used in the EV Eco Run races. According to WEM, they want to make the races ever more friendly to the environment. An agreement has also been reached with regard to maintaining the current "team policy" in order to encourage participants to confront new challenges in their efforts to create new technologies. It now looks like the cars that run in next year's Eco Run races will be equipped with fuel cells. The members of Team "Yoishotto!" Mitsbua would like to take this opportunity to express their deep appreciation to all of the people who have supported the team and their efforts this year. We are now preparing to make our very best effort to defend our championship in next year's WEMGP 2, and we look forward to your continuing support and cooperation * For further information regarding this race is available on the World Econo Move Grand Prix 2002 Official website. http://www2.ogata.or.jp/wem/02wemgp/wemgp.htm Battery Car Race 2002 Worl Econo Move in Toyota website. http://t-face.com/wem/ Team "Yoishoto" Mitsuba website http://users.hoops.ne.jp/mick_inaba/econo_move/index.html * For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top "Yoishoto!" Wins in the Time Trials in the 4th Round of the 2002 WEMGP, the "6th EV Enjoy Trial in Shirahama" We are pleased to announce that the MITSUBA Team came in 1st in first heat of the time trials in the 4th Round of the 2002 World Econo Move Grand Prix (WEMGP) held on Saturday, October 26 and Sunday, October 27 at the "6th EV Enjoy Trial in Shirahama" held in Shirahama, Wakayama. Our team also took 3rd place in the open class of the second heat (a one-hour race) and ranked 4th overall for this particular event. Details of the races are as follows. November 1, 2002 1. The Contest Name: 6th EV Enjoy Trial in Shirahama Promoters: Industrial Education Division, Wakayama Prefectural High School Board of Education Research Association, EV Enjoy Trail Executive Committee Venue: the Former Nanki Shirahama Airport Runway in Shirahama, Wakayama Prefecture Objectives: This competition was based upon the promotion of the true spirit of creating a machine, and the comprehensive echnological efforts of a racing team including the pit crew and the driver. Participants competed to achieve maximum efficiency from a limited amount of electric energy within a limited amount of time in terms of total distance covered. Categories: 1st Heat: time trial (free selection of batteries and motors). Participants competed for the best times starting at the center of the runway and returning to the starting position from the end of the runway. This 1/2 lap covered a 1.2 km straight course with racers making a 180 degree turn at the end of the runway. Starting positions for the second heat were determined by the results of this race. 2nd Heat: Equal condition batteries (12V3Ah x 2 units) were distributed to the participants by the race sponsors. Racers competed for total distance and maximum energy efficiency over a 2.4 km circuit within a 1-hour time limit. Competitors: Open Class (19 vehicles),Junior Class (19 vehicles) The World Econo Move Grand Prix and the various races that make up this competition are being held throughout Japan in order to encourage the further development of electric vehicles through competition in various venues across the country. The 2002 World Econo Move Grand Prix Races include the following: 1st Round Ogata WEM in Akita 2002.5.4-5 2nd Round Tsukuba WEM in Tsukuba 2002.8.18 3rd Round Sugo 2002 E.V. Ecorun in Sugo 2002.8.24-25 4th Round Shirahama 6th EV Enjoy Trial in Shirahama 2002.10.26-27 5th Round Toyota WEM in Toyota 2002.11.2-3 2. The MITSUBA Team Team Name: Team "Yoishoto!" Mitsuba Members: 11 (led by Kimura Masakatsu) Vehicle name: Hyper USO 800 The Car: Length: 300 cm, width: 65 cm, height: 51 cm, weight: 20 kg, frame: semi- monocock (employing carbon fiber + alamido honeycomb), three wheels. Loaded with an original "in-wheel D-D" (direct drive motor) 3. Race Results 1st Heat (Time Trial) 1st place: Team "Yoishoto!" Mitsuba Hyper USO800 O 1:31 2nd place: TGMY Ashida Catcher O 1:59 3rd place: Kihoku Industrial High School Manufacturing Technology Club Kihoku TECK EV S 2:09 4th place: Team Unyanyan Kamekichi Econo Kamekichi #2 O 2:17 5th place: Ahiru Ecopa Racing PURSUITER O 2:22 2nd Heat (WEMGP Race) 1st place: Ahiru Ecopa Racing PURSUITER O 27,697m 2nd place: Meijo University Econo Power Club Nova O 27,458m 3rd place: Kihoku Industrial High School Manufacturing Technology Club Spirit of Kihoku S 27,449m 4th place: Team "Yoishoto!" Mitsuba Hyper USO800 O 27,396m 5th place: Team Unyanyan Kamekichi Econo Kamekichi #2 O 27,247m 4. Comments from MITSUBA regarding the race This was the first time for Team "Yoishoto!" Mitsuba to participate in this competition, the 4th round of this year's WEMGP. With its unique, 2-heat organization, and the standardized batteries made by different manufacturers, with the number of batteries reduced from 4 to 2, and the time limit reduced from 2 hours to 1 hour, our team found it necessary to make many difficult adjustments and strategies. In the first heat, where there were no restrictions with regard to batteries and motors, our specialized motor and powerful batteries led to the foregone conclusion of victory. In the second heat, however, in which it was assumed necessary to cover approximately 34 km (14 laps), we were counting on an average lap time of 4 minutes and 17 seconds. But when we completed the first lap in only 4 minutes and 4 seconds, our pace was too high. The time for the second lap slowed to 4 minutes and 11 seconds, which we felt was a much better pace for the first part of the race. However, in spite of this slower pacing, there were no changes in the electrical current settings, and the voltage began to drop. Clearly this was a problem unique to the batteries that were being used in the car. By the time our pit crew realized what was happening, it was too late to make the necessary adjustments, and our pace continued to fall. As a result, the third place team eventually passed us, since they had been able to control its own electrical current consumption more successfully than we had. With regard to the overall WEMGP competition, our current point total finds us still in first place as we prepare to face our final challenge this weekend on Saturday, November 2 and Sunday, November 3, at the WEM in Toyota. We are all rooting for Team "Yoishoto!" Mitsuba to win this first grand championship. For further information regarding this race is available on the World Econo Move Grand Prix 2002 Official website. http://www2.ogata.or.jp/wem/02wemgp/wemgp.htm Team "Yoishoto" Mitsuba website http://users.hoops.ne.jp/mick_inaba/econo_move/index.html * For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Email : koho@mitsuba.co.jp page top The Establishment of a Joint Venture with 2 Companies We are extremely pleased to announce the establishment of a joint venture relationship with two of our affiliated companies at this time. The companies are Kowa Electric Co., Ltd., and San Vip Inc. Details of the establishment are as follows. September 27, 2002 1. Goals of the JV: Our goals are to further unify the automotive components and accessories sales function within the Mitsuba Group, and to elevate the efficiency of our business activities. We also seek to further stabilize the management foundation of our group company through this joint venture. 2. The shape of the JV: Kowa Electric Co., Ltd., will dissolves and San Vip Inc., will continue to exist as independent companies, after the merger. And San Vip name will be changed. An outline of the JV companies: (1) Company Name: SANKOWA Inc. (2) Location: 1-2789, Hirosawa-cho, Kiryu-city, Gunma Pref Japan (3) Established: October 1, 2002 (4) Capital: 10,000,000 JPY (100% from Mitsuba Corporation) (5) Employees: 14 (6) Company Representative: Takeo Niwa, president (current president of San Vip Inc. since June, 1996) (7) Enterprise: Development, manufacturing and sale of automotive components and accessories (8) Customers: Empire Motor Co., Ltd. Central Automotive Products Ltd. Mitsuba Corporation (9) Sales Plans: 1,200,000,000 JPY for FY 2002 An outline of the San Vip Inc. (1) Established: October 28, 1994 (2) Location: 3-5-36, Honcho, Higashimurayama-City, Tokyo, Japan (3) Company Representative: Takeo Niwa, president (since June, 1996) (4) Capital: 10,000,000 JPY (100% from Mitsuba Corporation) (5) Employees: 9 (6) Sales: 774,000,000 (FY 2001) (7) Enterprise: Manufacturing and sales of automotive accessories An outline of the Kowa Electric Co., Ltd. (1) Established: August 28, 1957 (2) Location: 2-14-1-107, Higashi Shinbashi, Minato Word, Tokyo, Japan (3) Company Representative: Takeo Niwa, president (president of San Vip Inc. since June, 1996) (4) Capital: 10,000,000 JPY (100% from Mitsuba Corporation) (5) Employees: 5 (6) Sales: 427,000,000 (FY 2001) (7) Enterprise: Sale of automotive parts and electrical components for 4- and 2-wheeled vehicles Sale of parts for small electrical components Sale of automotive accessories. * For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, General Affairs & Public Relations Section Email : koho@mitsuba.co.jp page top The Establishment of a New Company in Brazil Thanks to progress based upon our considerations of a long cherished desire, we are extremely pleased to have this opportunity to announce the establishment of a new company in Brazil. Details of the establishment are as follows. September 9, 2002 1. Details In response the expansion of the domestic market in Brazil, as well as with regard to the construction of a 2-wheel vehicle parts supply system base for the European and American regions, we are now moving ahead with the establishment of a new manufacturing base that will concentrate primarily on the production of starters for 2-wheel vehicles. 2. New Company (1)Company Name: MITSUBA do Brazil Ltda. (2)Location: AV. Guiherme Paraense, 215/A-Sala07-Adrianopolis Cep69060-000 Manaus, Amazonas Brazil (3)Established: September 10, 2002 (4)Capital investment: 1,500,000 BRL (Brazil Reals) (5)Employees: 19 by the time the plant opens for operations (6)Company Representative: Teruaki Yamagishi, President (on site consultant) (7)Products manufactured: starters for 2-wheel vehicles (8)Customers: 2-wheel vehicle manufacturers within Brazil, as well as other European and American affiliates (9)Start up: Manufacturing to begin in April 2003 (10)Sales forecast: 9,768,000 BRL (2003) (11)Investment plans: 8,000,000 BRL (2003) * For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, General Affairs & Public Relations Section Email : koho@mitsuba.co.jp Tel. 0277-52-0187 (direct line) page top World Solar-Bicycle Race Victory We are extremely happy to announce that the MITSUBA team participating in the World-Solar Bicycle Race held in Ogata Village in Akita Prefecture from Friday to Sunday, July 26 - 28, won first place in the high-speed contest. Details of the race are as follows: July 31, 2002 1. The Contest Name: 2002 World-Solar Bicycle Race Promoters: The World-Solar Bicycle Race Executive Committee Venue: Solar Sports Line, Ogata Vil., Akita Prefecture Objectives: 1) To promote the development and pursuit of the efficient utilization of solar energy, and to provide young riders and engineers with an opportunity to pursue their dreams and romantic ideals. 2) To dispatch a message throughout Japan and the world about the usefulness and true potential of solar energy, as well as to elevate concerns about problems dealing with our environment and energy resources. 3) To enlarge our "circle of friends" who share in a desire to "become friends with the sun" so that we may protect our beautiful earth and preserve this beauty for future generations. Races: Speed competitions involving the utilization of batteries, solar batteries and manpower. Categories: 1) High Speed Contest: riders race over a predetermined course (over a 200 m course with a 300 m running start) with the speeds achieved being their average speed over the final 200 meters. 2) Marathon: riders would cover 3 laps (1 lap = 31.256 km) as they competed for the quickest times for 3 laps of this course. 3) CG Cup Endurance Rally: riders competed for the total distance covered on the course (1 lap = 31.256 km) used in 2) above during a 5-hour time period. Categories: Category A 33 bicycles Category B 40 bicycles (including our team) Category S 88 bicycles *Vehicles racing in Category B included free production with modifications that coincided with standards for this category. Vehicles that met these standards had to be no more than 3 m long, 120 cm wide and 160 cm high. The total surface area of each solar cell fitted onto the bicycles had to be less than 1.2 m2 (not including the gaps between each cell.) Batteries were to be provided by the racing teams Standard secondary cell (with specified weight standards for each type) batteries. Pedaling mechanisms and full cowl outfitting were acceptable. 2. The MITSUBA Team •Team Name: Team "Yoishoto!" Mitsuba (composed of company employees) •Members: 11 (led by Kimura Masakatsu) •Vehicle: Name: Hyper USO 800 Body: Length: 300 cm width: 65 cm height: 51 cm weight: 20 kg frame: semi-monocock (carbon fiber + alamido honeycomb, with three wheels. Loaded with an original "in-wheel D-D" (direct drive motor) 3. Race Results High Speed Contest (70 participants) 1st place: Hyper USO800 (MITSUBA), 88.08 km/h, Team "Yoishoto!" Mitsuba 2nd place: Super Brew, 71.86 km/h, (Honda Tochigi Engineering) 3rd place: Super Energy Ver 5.3 spec 02: 67.60 km/h, Team Super Energy (Fuji Heavy Industries, powered by MITSUBA) 4. Comments from MITSUBA regarding the race This year's race employed certain regulation revisions, and the "marathon race" previously included in the Category S was altered from a 3-lap (93 km) course to an endurance race covering a 5-hour run. Since our team had no substitute riders, they were only able to compete in the "High Speed Contest". The team has made much progress in the development of their system since last year. Prior to the start, a charge is sent from the batteries to a super capacitor (high performance electrical double layer condenser)as the motor approaches the high revolution range, the batteries are connected in a series in order to elevate the power voltage and to achieve greater extension in the higher speed ranges. Speeds of over 100 km/h were recorded during test runs enabling the team to confirm the reliability of their system, which included wiring that allowed for the switching to a higher current of up to 400A. While the MITSUBA team was able to win this race with a speed of 88.08 km/h, anticipations for next year's race call for speeds exceeding 100 km/h as well as the acquisition of technology that would allow the utilization of lithium-ion batteries. The team also is looking forward to competing in next year's marathon race and achieving the fastest time. On the one hand, we were pleased to hear requests for MITSUBA to continue to sell the Eco-Run in-wheel DD motors from many of the participating teams and the sponsors. However, since we intend to be able to sell motors for solar cars next season, it will not be feasible for us to manufacture and sell Eco-Run motors since they would belong to the same line of products. But we do intend to give these requests our serious consideration in the future. Finally, we are pleased to report that our team will be participating in the Tsukuba EV Eco-Run to be held on Sunday, August 18 as well as the in the EV Eco-Run in SUGO to be held on Saturday and Sunday, August 24 and 25. Both of these races serve are races sanctioned by the WEM-GP (Grand Prix). We are anticipating some very tough competition as we aim for consecutive victories this month. For further information regarding this race is available on the WSR Official website. http://www2.ogata.or.jp/wsbr/02wsbr/index.htm Team "Yoishoto" Mitsuba website http://users.hoops.ne.jp/mick_inaba/econo_move/index.html * For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section Tel. 0277-52-0187 page top

Team "Yoishoto!" Mitsuba Victorious in the EV Eco-Run Race

It gives us great pleasure to announce that the MITSUBA Team achieved another victory in the Open Class of the "2002 WEM" (World Econo Move) held on Saturday, May 4, and Sunday, May 5 in the village of Ogata in Akita Prefecture. Details of the race are as follows:

May 9, 2002

1. The Contest

Name:	2002 WEM (World Econo Move) (held for the eighth time this year)
Promoters:	WEM (World Econo Move) Executive Committee, CAR GRAPHIC, AAB, Akita Asahi, Broadcasting, ENERGY PROMOTION CLUB JAPAN
Venue:	Solar Sports Line, Ogata Vil., Akita Prefecture
Objectives:	1) the pursuit of efficient energy utilization 2) the nurturing and development of future engineers
Competition:	Batteries (12V3Ah x 4 units [144Wh]) distributed by the Eco-Run Headquarters were used in vehicles that were competing for total distance (in kilometers) on a flat 6-km circuit within a 2-hour time limit.
Competitors:	Open Class (59 vehicles, incl. MITSUBA), Junior Class(32 vehicles)

2. The MITSUBA Team

3. Race Results

Open Class

4. Comments from MITSUBA regarding the race

After consecutive victories in the 1999 and 2000 races, our team lost to the Team Super Energy (Fuji Heavy Industries, Ltd), Ironically, it was carrying motors provided by MITSUBA. the Honda Engineering team and the ZDP (Nakayoshi). Keenly feeling the importance of the car body aerodynamics, the car used in this year's race was outfitted with a new body and renamed the "HyperUSO800".
The competition among these powerful teams was intense all the way from the start to the finish of the race. All eyes were riveted on the rapid gains near the end of the race of the "Aqua", running for the Honda Engineering EVER-BLUE team. After completing its 13th lap, our Team "Yoishoto!" Mitsuba went on to run another 750 meters to establish a lead of approximately 1 km over the Aqua.
We feel that one of the major factors in our victory was the aerodynamic efficiency of the new body. Wind resistance on this new body was 40% less than that of our previous entry when running at 40 km/h. Furthermore, at an output of 60W, we were able to achieve an additional 4 km/h. These factors led to the establishment of a new record in this year's race. Another major factor were some major improvements in the drive system and the motor that helped the driver maintain his composure throughout the race.
As of this year, the name EV Eco-run has been changed to WEM GRAND PRIX and it is to consist of a series of 5 races to be held over the course of the year. Cars will compete for a "Champion of the Year" award based upon total finish points. This competition was the first of 5 to be held this year, and with our recent victory, we are all eagerly anticipating the possibility that the first "Champion of the Year" trophy will go to Team "Yoishoto!" Mitsuba.

For further information regarding this race is available on the WEM Official website.
http://www2.ogata.or.jp/wem/02wem/02wem.htm
Team "Yoishoto" Mitsuba website
http://users.hoops.ne.jp/mick_inaba/econo_move/index.html

* For inquiries concerning this subject, please contact Mr. Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Tel. 0277-52-0187

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ISO14001 certification

The MITSUBA Corporation strives for a continuous symbiosis with our natural environment through the development of technology that leads to harmony between our society and the environment. Among our activities that have been designed to help maintain the abundance and peace of mind of our environment is our pursuit of the ISO14001 certification for our environmental management systems in our facilities. We are pleased to announce that with the certification of our Head Office Management Division site, all of our strategic sites have now been recognized as facilities that strive for environmental preservation.

The following is an outline of the events leading up to this certification.

March 8, 2002

1. Objective range of the certification
Head Office Management Division site
(location : 2681, 1-Chome, Hirosawa-Cho, Kiryu City, Gunma Pref. , Japan)

2. Objective range of the certification investigation
The environmental management system operated for the sake of managing and handling environmental influences generated by the manufacturing and sales of electric parts for automobiles and nursing care equipment as well as influences generated by any and all business activities carried out within our Head Office Management Division building.

3.Certification Authority and Investigative Recording Authority
SGY Yardsley (Great Britain) ********UKAS
SGS Japan, Inc. ********JAB

4. A History of MITSUBA ISO14001 Certification Activities and Progress with regard to the Headquarters Site

Jul. 1998 ISO14001 certification acquisition at the Kiryu Site Jun. 1999 Certification acquisition at the Tone Site Nov. 1999 ISO14001 certification acquisition at the Oniishi Site Jul. 2000 Certification acquisition at the Niisato Site Dec. 2000 Certification acquisition at the Akagi Site Oct. 2001 Activities initiated at the Head Office Management Division Site

Jan. 31~ Feb.1, 2002 Investigation carried out at the Head Office Management Division Site Feb. 19, 2002 Certification acquisition at the Head Office Management Division Site

5. Future Developments
Progress is currently being made in arranging for ISO14001 certification acquisition at our Head Office Management Division by the end of the year 2001. Activities are being carried out in order to achieve ISO14001 certification at our distribution sites and affiliated companies as well.

* For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Email:koho@mitsuba.co.jp

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Changes in the Financing for a Joint Venture Company in China

We would like to take this opportunity to announce certain changes that have been made by the Mitsuba Corporation in the financing of a joint venture company in China.

Details of the changes are as follows.

February 13, 2002

1. The Details of the Changes
The Mitsuba Corporation is currently involved in a Joint Venture project with a company located in the Peoples of Republic of China. The name of this domestic company is Qingdao Qingqi Mitsuba Electric Co., Ltd., and it was established for the purpose of manufacturing and selling starter motors for 2-wheeled vehicles. Later on, however, due to certain changes in the sales conditions, production delays became unavoidable.
At this time, after consulting with our joint venture partner, our discussions led to the purchase of the entire company financing of the Chinese side by the Mitsuba Group. Our aim is to expand business affairs under a new organization. In light of the new financial arrangement, the company was given a new name and the following new organization.

2. The New Company

* Outline of the original Qingdao Qingqi Mitsuba Electric Co., Ltd.
^. Company name: Qingdao Qingqi Mitsuba Electric Co., Ltd.
^. Established: November 1995
^. Capital financing: US$2,500,000 (45% invested by the Chinese Qingqi Group et al., 55% invested by the Mitsuba Group)
^. Location: South of Gangtouchen Qingdao Economical & Technological Development Zone, Shandong, China
^. Representatives: President Yang Ren Fa, Vice President, Mitsuyoshi Komoriya
^. Employees: 25

* For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Email:koho@mitsuba.co.jp

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The Introduction of a "Second Life" Support System

We would like to take this opportunity to announce the establishment, start up and execution of our "Second Life" Support System. This system will serve as a link in the chain of a new Mitsuba personnel system designed to activate our services for employees currently on the job.

Details of the system are as follows.

February 7, 2002

1. The Introduction of the System
With the arrival of the rapid aging of our society, there is an increase in the request for companies to extend their age limits for employees. On the one hand, the provisions of public pensions advance step by step. In such an environment, Mitsuba has established and introduced a new personnel system designed to stimulate employee activation. As a link in this chain, and from the perspective of activating talented individuals, we have given serious consideration to methods that might allow us to take full advantage of the skills and talents accumulated throughout the lengthy career experiences of our employees. These considerations included discussions with the labor union of our company and we are now considering a continuation of employment for employees up to the age of 65. Also, as stated above, we have decided to establish what we call our "Second Life" Support System.
One of our affiliates, the Ability Staff Service Co., Ltd. (a personnel activation company), will serve as the core of this system as we strive to put it into practice as we strive to promote personnel activation throughout the entire Mitsuba Group.

2. The Aim of This Introduction
By introducing this system, our aims are to make it possible for each employee to select a method of work that matches up with his/her own incentives and life plan. At the same time we also seek to activate the technical skills, techniques and knowledge possessed by our employees within the Mitsuba Corporation and the member companies of the Mitsuba Group in order to assure that these talented individuals will be gainfully employed up until the age of 65.

3. Details of the System
The system consists of three distinct courses including 1) retirement at the age of 60, 2) continued employment until the age of 65, and 3) a change of job. Employees may receive lump-sum payments depending upon their selection of one of the above options.

1)Retirement at the Age of 60 Employees may select one of the following options:
	1.	Retirement pension plan Employees retire when they reach retirement age.
	2.	Employment beyond the age of 60 After retirement, retirees continue to work on a part-time basis, under 1-year contracts until reaching the age of 65.
2) Continued Employment up until the Age of 65
	1.	General employment plan Employees select their retirement plan between the ages of 50 and 55. When they reach the age of 60, they may continue their employment under 1-year contracts until reaching the age of 65.
	2.	Special employment plan (1) Employees select their retirement plan between the ages of 50 and 55. When they reach the age of 60, they may continue their employment under 1-year contracts until reaching the age of 65.
	3.	Special employment plan (2) Employees select their retirement plan between the ages of 50 and 53. They may continue their employment until reaching the age of 65.
3) Change of Job The following job-transfer plans are available for employees desiring such an option:
	1.	Transfer to an Affiliated Company Employees select their retirement plan between the ages of 50 and 55. Working conditions are based upon the situation at the affiliated company.
	2.	Transfer to Another Company Employees select their retirement plan between the ages of 50 and 59. Retirement Support System (with special vacation amounting to up to 3 months and the payment of 60% of the basic salary)

4. Execution of the System
Recruitment for participants in this system are to be held twice a year,once in April and once in October.

* For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Email:koho@mitsuba.co.jp

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Transfer of the Goodwill from a Subsidiary

Mitsuba is pleased to announce that it has been decided to purchase the goodwill of the subsidiary Oshima Electric Works Co., Ltd.

Details of the purchase are as follows.

January 22, 2002

1. Background
Mitsuba included a plan to investigate on the reorganization of the group as a part of its 6th mid-term management plan, which is to start this April.
Based upon this perception, Mitsuba has decided to purchase the goodwill.

2. Time of Transfer
From April 1, 2002

3. Rights to Be Purchased
The rights to be purchased from the Oshima Electric Works include thefollowing:
(1) Rights to be purchased by Mitsuba: Rights to the operation of the automotive mirror and lamp businesses
(2) Right to remain with Oshima: Rights to the operation of the helmet business

4. Concomitants
(1) Transactions accounts: As the rights are transferred, the transactions accounts used for transactions with major customers including Fuji Heavy Industries Ltd.
and the account used for material purchases will also be transferred to Mitsuba.
(2) Employees: Employees engaged in development, quality assurance, purchasing and sales works will be sent on loan to Mitsuba (over 30 employees).
(3) Purchase price: To be decided by the end of March.

5. Advantages
Mitsuba considers the advantages of the purchase to include:
(1) Increased product competitiveness through improvements in the capability of development and quality assurance.
(2) Increased overall productivity through the integration of the non-manufacturing divisions within the group.

6. Other
After the transfer, Oshima Electric Works will continue to achieve business results as a special production base of the Mistuba Group.

* An Outline of the Oshima Electric Works Co., Ltd.

Founded:		December 1960
Location:		135-10,Nishishin-machi, Ota City, Gunma Pref.
President:		Masayuki Ito
Capital:		380 million yen (Mitsuba investment, 77%)
Employees:		195 (as of March 2001)
Sales:		5,755 million yen (fiscal year ended March 31, 2001)
Business:		Development, production and marketing of automotive mirrors,lamps and molded resin parts. Production and marketing of various types of helmets.

* For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Email:koho@mitsuba.co.jp

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The Establishment of the 6th Mid-term Management Plan

Mitsuba has established its 6th mid-term management plan, which is to cover management policies for the next 3 years beginning this April.
Details are as follows:

January 22, 2002

Details

1. Environmental Perception
The international reorganization of automakers will accelerate outsourcing on a global scale and intensify cost reduction competition among the rival makers, especially Chinese makers. Demands will increase with regard to research and development in issues such as systematization, modularization, measures for the protection of the environment and safety, the development of high-functional low-cost products, solutions and suggestions for next-generation technology.
Four-Base system for production and supply as well as localized development will continue to increase on a global scale. The mid-term management plan was designed, taking all of the above issues into
consideration.

2. Term for the Plan
From the 58th to 60th terms of the Mitsuba Corporation
(From April 2002 to March 2005)

3. Slogan
"The Creation of New Values"

4. Management Policies
(1) Achieve customer satisfaction through the quality of our products and services
(2) Enhance cost competitiveness to stimulate global growth
(3) Create new products and technology
(4) Set high goals

5. Targets
By the end of the final year (fiscal year ending March 31, 2005):
3.0% operating income
4.5% ROE

6. Priority Measures
Priority considerations will be given to the following three basic measures:
(1) WING plan (business strategies)
(2) Constitutional reform plan
(3) Reformation of organizational structure

1) WING plan (business strategies)
Mitsuba will pursue its business strategies, which consist of competitiveness strategies to enhance the cost competitiveness of our products, and growth strategies aiming towards future business expansion with our auto-related business affiliated companies.
The plan's name, WING, is meant to signify concepts such as "global," "group," "growth," and "win."
Under the WING plan, Mitsuba will strive to expand its marketing achievements globally by developing new products and technology, and by improving quality and marketing ability.
Mitsuba will also endeavor to improve its cost competitiveness through global group purchasing and global optimum production and distribution.

2) Constitutional reform plan
Mitsuba will reform its personnel affairs system and corporate culture, improve productivity by utilizing advanced information technology, and increase customer satisfaction through the quality of its products and services to strengthen its financial constitution.

3) Reformation of organizational structure
Mitsuba will reform its organizational structure in order to accelerate the implementation of the strategies and decision-making.

7. Policies for Individual Management Functions
1) Marketing
Expand sales both with new and existing customers on a global scale and strengthen marketing in order to increase customer satisfaction.

2) Development
Emphasize the development of next-generation products with higher levels of functionality and cost competitiveness as well as the development of element technology based on a broad vision of the needs of the markets.

3) Production
Pursue strategic TP management, reform the corporate constitution to achieve the same level of quality for all parts of the world, and construct a system for controlling global production and distribution.

4) Equipment investment
Utilize existing facilities effectively and keep equipment investments within the depreciation expenses.

5) Personnel affairs
Gradually reduce total labor costs by improving functional efficiency within the group and construct and operate a system that fully supports the optimization of group members.

6) Financial affairs
Create a concrete function of the financial center for the group and optimize consolidated financial structures through balance sheet management.

* For inquiries concerning this subject, please contact Mr Noriyoshi Tabata of the General Affairs Department, Public Relations Section
Email:koho@mitsuba.co.jp

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