Tokyo, May 30, 2005 - Mitsubishi Motors Corporation (MMC) today announced that it had reached an agreement with Hindustan Motors Limited (HML), its local partner in India, on working together in driving forward MMC business strategy in India. HML began local production of the Mitsubishi Lancer sedan in 1998. In recently taken decisions aimed at bolstering MMC's operations, HML is to start production of another model in the Lancer range in January 2006. HML is also to add Mitsubishi models such as Pajero, Outlander and Grandis to its lineup of imported built-up models. All of these Mitsubishi brand models will be sold through the HML sales network in India. The two companies have also agreed to explore the possibility of HML supplying MMC with automotive parts made in India. As part of the company's global sourcing program, this move would allow MMC to reduce procurement and material costs. The strengthening of operations in India announced today forms part of
MMC's strategy for the BRIC countries (Brazil, Russia, India and China), which are seen as promising growth markets.

HML corporate profile

Company name: Hindustan Motors Limited (part of the Birla group, a major Indian business combine)
Date of establishment: 1942
Location: Head office: Kolkata Lancer production plant: Chennai
Senior management: Chairman: C.K. Birla President: R. Santhanam
Headcount: Approx. 400 (Mitsubishi Motors division)
Capitalization: Approx. INR1.6 billion (JPY4.0 billion @ JPY1 = IRP2.5)
Business lines: Manufacture and sales of motor vehicles
Models sold: Lancer & Pajero
2004FY sales volume: Approx. 2,200 units

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