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Mitsubishi Ends U.S. Phone Effort

Mitsubishi Electric Corp., which has failed to date to make a dent in the U.S. wireless market, said Friday that it will stop developing wireless phones in the U.S.

The company long has struggled in the U.S. against vendors such as Nokia, Ericsson and Motorola. It said in a statement that the U.S.-based Mitsubishi Wireless Communications, Inc. will cease to exist at the end of next March and all remaining employees will be terminated.

Instead, wireless phones for the U.S. market will be developed by subsidiaries in Japan and Europe.

The company's Mitsubishi Electric & Electronics USA will support those phones after April 1, 2002, the company said.

Mitsubishi's wireless division is based in Duluth, Georgia. The company said the division currently has 155 employees and has been in operation since 1995.