Mitsubishi Electric to Expand Photovoltaic Cell/Module Production Capacity to 500MW...

Mitsubishi Electric to Expand Photovoltaic Cell/Module Production Capacity to 500MW by 2012

TOKYO--(Business Wire)--
Mitsubishi Electric Corporation (President and CEO: Setsuhiro
Shimomura) announced today that it will invest a total of some 7
billion yen to expand annual production capacity of photovoltaic (PV)
cells, at its Nakatsugawa Works Iida Factory (Nagano Prefecture), and
modules, at its Nakatsugawa Works Kyoto Factory (Kyoto Prefecture), in
response to a sharp increase in demand for solar power generation
systems. This investment will expand Mitsubishi Electric's annual PV
production capacity from 150MW to 220MW in October 2008. Looking to
the future, the company aims to establish a production system with an
annual capacity of 500MW by fiscal 2013 (April 1, 2012-March 31,
2013).

-0-
*T
Projected Growth of Annual Production Capacityfor PV Cells/Modules
----------------------------------------------------------------------

Date Jan. Sep. Jun. Apr. Aug. Oct. 2008 2012
2003 2003 2004 2005 2007 (plan) (target)
======================================================================
Annual
production
capacity (MW) 35 50 90 135 150 (1) 220 500

(1)Increase due to improvements in productivity
*T

Background

Recently, the PV market has been growing rapidly, reflecting
concerns of increasing prices of petroleum and other materials, as
well as increased environmental awareness arising from international
activities aimed at reducing carbon dioxide emissions to prevent
global warming. Mitsubishi Electric forecasts a global PV market size
of 1,950MW in fiscal 2008 (April 1, 2007-March 31, 2008), an increase
by 26 percent compared to the previous fiscal year, and demands are
expected to continue increasing.

Having started the residential PV systems business in 1996,
Mitsubishi Electric then opened the Nakatsugawa Works PV facility in
1998, where production of cells and modules began. A lead-free solder
module(2) production line, the first in Japan, was opened in January
2003, the same year as the opening of the Kyoto Factory. Total annual
production capacity was increased to 35MW in January 2003, to 50MW in
September 2003, to 90MW in June 2004, and then up to 135MW in April
2005. In September 2006, Mitsubishi Electric began production of
residential PV inverters for the European market, and in August 2007,
the company improved factory productivity, increasing its annual PV
production capacity to 150MW. Around the same time, the Iida Factory
was assigned to specialize in production of PV cells, while the Kyoto
Factory made modules.

(2)The first to be produced by domestic (Japanese) silicon crystal
solar cell manufacturers (as of January, 2003)

Mitsubishi Electric expects a 30-percent increase in global
shipment volume for fiscal 2008 compared to the previous fiscal year.
The company has decided on the investment to meet these increasingly
active market demands.

Mitsubishi Electric also has prospects to obtain stable supplies
of silicon wafers, which would become the basis of PV cells.

As one of the approaches for "Environmental Vision 2021," a
long-term environmental management vision of the Mitsubishi Electric
Group announced on October 22, 2007, the company plans to reduce
carbon dioxide emissions by further promoting PV installation and by
developing technologies to increase module efficiency. Specifically,
Mitsubishi Electric intends to improve output of solar power
generation systems by combining the company's multi-crystal silicon
cell technologies, having just achieved the world's highest(3)
photoelectric conversion efficiency rate(4) of 18.6 percent(5), with
its PV inverters, which have the industry's highest(6) energy
conversion efficiency rate of 97.5 percent. The company plans to
promote these PV systems worldwide, thus contributing to preserving
the environment and achieving a sustainable society.

(3)As of March 19, 2008, based on Mitsubishi Electric's research.

(4)Efficiency that solar light energy is converted to direct
current electrical energy.

(5)Results from evaluation by the National Institute of Advanced
Industrial Science and Technology (AIST), a public standards agency in
Japan.

(6)PV-PN40G: 97.5%, as of March 19, 2008. Based on JIS C8961
regulated rated load efficiency.

About Mitsubishi Electric

With over 80 years of experience in providing reliable,
high-quality products to both corporate clients and general consumers
all over the world, 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. The company recorded consolidated group sales
of 3,855 billion yen (US$ 32.7billion(7)) in the fiscal year ended
March 31, 2007. For more information visit
global.mitsubishielectric.com

(7)At an exchange rate of 118 yen to the US dollar, the rate given
by the Tokyo Foreign Exchange Market on March 31, 2007

Mitsubishi Electric Corporation
Ikumasa Kojima, +81-573-66-8019 (Product Inquiries)
Marketing Department, Nakatsugawa Works
Kojima.Ikumasa@ah.MitsubishiElectric.co.jp
here
Yurika Fujimoto, +81-3-3218-3380 (Media)
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
here

Copyright Business Wire 2008