Tokyo, June 14, 2006 - Mitsubishi Heavy Industries, Ltd. (MHI) and Beiren Printing Machinery Holdings Limited, the largest printing machinery manufacturer in China, have established a joint venture company (JV) in Beijing to undertake manufacturing and sales of sheet-fed printing machinery. Through establishment of the JV, MHI aims to further increase its presence within the Chinese printing machinery market, where demand for printing is increasing sharply in the run up toward the 2008 Beijing Olympic Games and the 2010 Shanghai World Expo. The JV will commence operation later this month with the ultimate target of solidifying the new company's position as a major player within China's mammoth market.

The JV, named Beijing Mitsubishi Heavy Industries Beiren Printing Machinery Co., Ltd., will engage in manufacturing and sales of small-format (B2) sheet-fed presses for high-quality printing. MHI will license its advanced high-speed multicolor sheet-fed printing technologies to the JV. The presses manufactured by the JV are expected to reach the market this autumn and will be sold through the sales network of Beiren Printing Machinery. The goal is to generate 300 million yuan (approximately 4 billion yen) in sales and capture 25% share of the Chinese market in this size format by 2010.

The JV is capitalized at 46 million yuan (approximately 600 million yen), with MHI owning a 51% share and Beiren Printing Machinery holding the remaining equity. The office and manufacturing plant of the JV are located on the premises of Beiren Printing Machinery in the Beijing Economic-Technological Development Area (BDA), and will initially be operated by about 40 employees (to be expanded to 120 within three years). Zhu Wu-an, Board Chairman of Beiren Printing Machinery, is serving as the JV Chairman, and Yuzuru Ichimasa of MHI is General Manager.

Beiren Printing Machinery Holdings, a company under the aegis of the Beijing Municipal Bureau of Industrial Development, operates brand-new manufacturing facilities in the BDA. The company enjoys an abundant track record in the manufacture of diversified printing machinery, including sheet-fed presses, web presses, gravure printing machines and business form printing machines. The company employs approximately 3,000 people, and its fiscal 2005 sales totaled 995 million yuan (about 14 billion yen).

While China continuously grows as the "world's factory," at the same time it is rapidly becoming an enormous consumer market, producing significant demands for sheet-fed presses and other printing machinery. However, to date the country has not yet established its own technologies for sheet-fed presses capable of high-quality, multicolor printing at high speeds. While Beiren Printing Machinery Holdings was looking for a partner possessing the needed technologies, MHI was searching for a production base in China. The favorable meshing of the two companies' goals led to the decision to establish the new JV.

The newly formed company will pursue enhanced competitiveness in small-format sheet-fed presses and focus on expansion of its market share in China. As to large-size sheet-fed presses (Size 3) and web presses, MHI will continue to manufacture and supply these independently, and will further step up its related marketing activities in China.