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October 4, 2001

FOR IMMEDIATE RELEASE

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Toward integration of Mitsubishi Motors Corporationfs

AT/CVT business with JATCO TransTechnology

~ Objective is to become a world class AT/CVT manufacturer producing

4 million units per year ~

JATCO TransTechnology today signed a Memorandum of Understanding (MOU) with Mitsubishi Motors Corporation and Nissan Motor Co., Ltd. to study integration of Mitsubishi Motors Corporationfs AT/CVT businesses with JATCO TransTechnology.

The MOU outlines a plan for integration of operations as follows:

AT/CVT production in the Kyoto plant, Yagi plant and Mizushima plant, as well as its

R&D capacity.

partnership.

(Note 1) AT c Automatic Transmission

(Note 2) CVT c Continuously Variable Transmission

JATCO TransTechnology believes the company will gain through the integration solid ground for expanded scale in production, economy of scale, leveraged use of investment in development, reinforced R&D strength, and expanded product line-up as an AT/CVT manufacturer. As a result, JATCO TransTechnology should able to make further advancements in order to further build its international competitiveness.

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JATCO TransTechnology

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Automakers around the world are today focusing its resources on vehicle and engine development to cope with the social demands for protection of the environment. Especially in the field of AT/CVTs, costs ranging from development to investment in equipment to introduce new products weigh heavily on automobile manufacturers if they choose to manufacture in-house. They have increasingly started to purchase AT/CVT components from manufactures specializing in AT/CVT production.

JATCO TransTechnology looks to building the integrated business into a world class AT/CVT manufacturer, producing 4 million units per year, and to becoming a true global supplier within several years after integration.

JATCO TransTechnology considers such integration will become a major opportunity for the company to drive itself further into becoming a global supplier that will produce steady results to fulfill the growing demand for quality AT/CVT components and technology from automobile manufacturers around the world.

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For inquires, contact:

JATCO TransTechnology Ltd.

General Administration Department

Tel +81(0)545-51-0047