Mitsubishi Electric to Obtain Ownership of Renesas Technology's Kumamoto Factory

TOKYO--(Business Wire)--Mitsubishi Electric Corporation (President and CEO: Setsuhiro
Shimomura; hereafter "Mitsubishi Electric") and Renesas Technology
Corp. (Chairman and CEO: Satoru Ito; hereafter "Renesas") announced
today that they have reached an agreement for Mitsubishi Electric to
acquire buildings and its manufacturing facilities of Renesas'
Kumamoto factory.

In April 2003, Mitsubishi Electric transferred its system LSI and
system memory businesses to Renesas, which was established as a joint
venture between Mitsubishi Electric and Hitachi Ltd. Mitsubishi
Electric currently concentrates its resources on power and
high-frequency optical devices, which prove effective in achieving
high synergies within the company.

Reflecting the increasing demand to save energy and protect the
environment globally, the inverter controller equipment market, where
power devices are used in industrial machinery, home appliances and
others, has been steadily growing and is expected to expand. To meet
the growing demand for these devices, Mitsubishi Electric has been
trying to increase its wafer production capabilities, thus boosting
the company's business. Specifically, Mitsubishi Electric has been
working to increase the production capability for 6-inch wafers at its
existing factory, the Kumamoto Factory of Power Device Works, also
located in Kumamoto. Meanwhile, the company has been seeking to
manufacture its products using 8-inch wafers to further increase its
production capability.

Renesas has concentrated its resources on three main business
segments: microcontrollers, system solutions and standard products.
With this focus, Renesas decided to withdraw from the flash memory
business in December 2005. Since then, Renesas' Kumamoto factory,
which was used primarily to produce flash memory products, has been
operating under its capacity due to the business change. Maximizing
its value has been a challenge to Renesas.

The Renesas Kumamoto factory is located on the same grounds as
Mitsubishi Electric's Kumamoto Factory of Power Device Works.
Furthermore, the Renesas factory has already been commissioned to
manufacture Mitsubishi Electric's power devices using 8-inch wafers.
Given the close proximity of the location, technical alignment and
economic value, Mitsubishi Electric concluded that it would be best to
acquire these facilities from Renesas. For Renesas, transferring the
factory to Mitsubishi Electric will improve their manufacturing
efficiency in the focused segments.

Mitsubishi Electric and Renesas will discuss the details of the
terms and conditions for this transfer, and Mitsubishi Electric will
officially obtain the ownership of the factory on April 1, 2008.

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$ 32.7 billion(1)) in the fiscal year ended
March 31, 2007. For more information visit
http://global.mitsubishielectric.com.

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

About Renesas Technology

Renesas Technology Corp. is one of the world's leading
semiconductor system solutions providers for mobile, automotive and
PC/AV (Audio Visual) markets and the world's No.1 supplier of
microcontrollers. It is also a leading provider of LCD Driver ICs,
Smart Card microcontrollers, RF-ICs, High Power Amplifiers, Mixed
Signal ICs, System-on-Chip (SoC), System-in-Package (SiP) and more.
Established in 2003 as a joint venture between Hitachi, Ltd.
(TOKYO:6501) (NYSE:HIT) and Mitsubishi Electric Corporation
(TOKYO:6503), Renesas Technology achieved consolidated revenue of 953
billion JPY in FY2006 (end of March 2007). Renesas Technology is based
in Tokyo, Japan and has a global network of manufacturing, design and
sales operations in around 20 countries with about 26,500 employees
worldwide. For further information, please visit
http://www.renesas.com.

Renesas Technology Corp.
Yoichi Kobayashi, +81-3-6756-5555 (Japan)
kobayashi.yoichi2@renesas.com
or
Renesas Technology America Inc.
Akiko Ishiyama, +1-408-382-7407 (U.S.)
akiko.ishiyama@renesas.com
or
Renesas Technology Europe Limited
Caroline Gearing, +44-1628-585163 (Europe)
Caroline.Gearing@renesas.com
or
Renesas Technology Singapore Pte. Ltd.
Tan Swee Cheng, +65-6213-0211 (Singapore)
Singapore_PR@renesas.com
or
Renesas Technology (Shanghai) Co., Ltd.
Carrie Yu, +86-21-5877-1818 (#803) (China Mainland)
carrie.yu@renesas.com
or
Renesas Technology Hong Kong Ltd.
Silkie Lau, +852-2265-6611 (Hong Kong)
silkie.lau@renesas.com
or
Renesas Technology Taiwan Co., Ltd.
Frankie Tseng, +886-2-3518-3392 (Taiwan region)
frankie.tseng@renesas.com
or
Renesas Technology Korea Co., Ltd.
Jin-Hyoung, Kim, +82-2-799-0326 (Korea)
kim.jinhyoung@renesas.com
or
Mitsubishi Electric Corporation
Yurika Fujimoto, +81-3-3218-3380
Public Relations Division
prd.gnews@nk.MitsubishiElectric.co.jp
http://global.mitsubishielectric.com/news/

Copyright Business Wire 2008