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Press Release

March 25, 2002

Mitsubishi and JATCO conclude a contract to

Integrate AT/CVT Business

Tokyo - NISSAN MOTOR CO., Ltd. (Nissan), Mitsubishi Motors Corporation (MMC) and JATCO TransTechnology Ltd. (JATCO) today concluded a contract to integrate the automatic transmission and CVT business of MMC and JATCO business.

The contract is based on the Memorandum of Understanding signed on October 2001 among the three companies. This project aims to make JATCO a globally competitive manufacturer specialized in AT/CVT through the integration of MMC Kyoto and Mizushima Plants AT/CVT business into JATCO. JATCO will become one of the biggest global AT/CVT manufacturers with approximately 3.3 million in annual unit production with the expectation JATCO will further grow with annual production around 4 million units within a few years.

The three parties have agreed to the following steps:

œApril 1, 2002

MMC to spin off its AT/CVT business and incorporate it with a new company, established by MMC as a 100% owned subsidiary, named Diamondmatic Co., Ltd. (DMC) on April 1.

œMid-May, 2002

JATCO and DMC to conclude a contract to exchange shares.

œEarly-July, 2002

DMC and JATCO to exchange shares. The ratio of the Share Exchange is 1.31423 share of JATCO per share of DMC.

As a result, DMC will become JATCOfs 100% owned subsidiary; Nissan to own approximately 82% and MMC to own 18% of JATCO shares.

JATCO and DMC are aiming to merge in the spring 2003.


For inquiries:

Nissan Motor Co., Ltd

Communications Department

Telephone: +81(0)3-5565-2141

Mitsubishi Motors Corporation

Corporate Communications Department

Telephone: +81(0)3-5232-7165

JATCO TransTechnology Ltd.

General Administration Department

Telephone: +81(0)545-51-0047