MHI Receives M701F Gas Turbine Orders From Egyptian Power Producers -- Two Units Each for Power Stations of WDEPC and MDEPC --

The gas turbines on order will be installed at WDEPC's existing Sidi Krir Power Station located approximately 30 kilometers west of Alexandria, Egypt's second-largest city, and at MDEPC's El Atf Power Station, some 60 kilometers west of Alexandria. The El Atf Power Station will be newly built on vacant property formerly occupied by a power station.

Each new GTCC power plant will have a generation capacity of 750 MW (megawatts) and will comprise two 26.5 MW gas turbines, a steam turbine, three generators and two heat recovery steam generators (HRSG). MHI's Takasago Machinery Works will be responsible for supply, installation and overall coordination of the gas turbines and their auxiliary equipment. Mitsubishi Electric Corporation will provide the generators. Power Generation Engineering & Services Company (PGESCo), a local power plant engineering and consulting company, will be responsible for coordination of the steam turbines, HRSGs and civil engineering work, which are expected to be ordered separately.

WDEPC and MDEPC, electricity producers under the aegis of the Egyptian Electricity Holding Company (EEHC), supply electricity to the Nile Delta region. Previously, in 2003 MHI received an order from WDEPC for two steam turbines for a GTCC power generation facility at its Nubaria Power Station. MHI also has received two orders from another EEHC affiliate, Cairo Electricity Production Company (CEPC) - one in 2002 for two gas turbines for use in a GTCC power generation system at its Cairo North Power Station; and one in July this year for two steam turbines for its natural gas/heavy-oil fired steam-turbine power generation facility. MHI believes that the high evaluation accorded to these earlier projects led to the award of the latest orders.

Egypt, which has been actively implementing economic reforms, has recovered from the economic slowdown earlier this decade and is now tracing a steadily rising economic trajectory, with real GDP growth reaching 6.9% in fiscal 2005/2006. In tandem with economic recovery, many new power plant constructions are being planned to accommodate increasing electricity demand. Leveraging the latest power plant orders, MHI will further strengthen its aggressive approach to power plant construction projects in Egypt, including GTCC power generation systems.