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Friday, April 15, 2005
Mitsubishi Electric Plans to Close Its Subsidiary European Mobile Phone R&D Facility MMCE

Mitsubishi announced today it plans to liquidate and eventually dissolve its European mobile phone R&D subsidiary company, Melco Mobile Communications Europe S.A. (MMCE).

Sales activity in Europe would be discontinued after the currently released models, but after-sales-service and customer support service will be maintained.

Since its foundation in January 2003, MMCE has been involved in the research and development of Mitsubishi Electric GSM mobile phones. However, despite efforts to launch a number of highly regarded GSM models with the latest technology for European operators, there has been fierce competition with industry leaders like Nokia, Motorola, Samsung etc. Since the European mobile phone business has not forecasted a return to profitability for the foreseeable future, for the above reason, Mitsubishi Electric has planned the liquidation of MMCE. The timeframe for liquidation will be decided based on talks with local employee representatives.

Outline of Melco Mobile Communications Europe S.A.

-- Founded: January 2003
-- Start of Business Operation: April 2003
-- Capital: 30 millions Euro
-- Shareholding: Mitsubishi Electric 100%
-- Number of Employees: 156 (as of March 2005)
-- Business Domain: Research and Development for GSM mobile telephone
-- Location: France

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