Press release

Mitsubishi Electric Launches New Elevator and Escalator Company in Laos

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Electric Corporation
(TOKYO:6503) announced today that it has
established MELCO Elevator Lao Sole Co., Ltd. (MLAO) to accelerate its
elevator and escalator business growth in the highly promising Mekong
regional market. The new company, which was established by Mitsubishi
Elevator (Thailand) Co., Ltd. (MET), a Mitsubishi Electric subsidiary,
will commence operations on July 1, 2019. The new company is expected to
strengthen Mitsubishi Electric’s sales of elevators and escalators as
well as related provision of high-quality maintenance services. Annual
sales in Laos are expected to rise to US$ 3.82 million by the fiscal
year ending in March 2024, up 50% from the fiscal year that ended in
March 2019.

Laos, which has been posting year-to-year GDP growth of approximately 7%
for the past several years, is an emerging market with much potential
for growth in elevator and escalator demand. Mitsubishi Electric
forecasts annual demand rising from approximately 180 units in the
fiscal year ending in March 2019 to approximately 290 units in five
years’ time.

Mitsubishi Electric and its subsidiary MET have been distributing
elevators and escalators in Laos through a local agent, Souvanny Home
Center Public Company (SVN), since 2013. Mitsubishi Electric is a
recognized leader with a market share of some 30%, primarily in the
premium segment such as luxury hotels and offices.

MET, having successfully completed many elevator and escalator projects
in Thailand, purchased and integrated SVN’s elevator and escalator
business with MLAO. The new company will focus on delivering elevators
and escalators that offer increased safety and peace of mind, backed by
MET’s support and guidance for installation and maintenance operations.

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