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4 October 1996

Hitachi, Ltd. hereby revises its business forecast for fiscal 1996 as follows.

Unconsolidated forecast

Yen(millions)

	Fiscal 1996			Fiscal 1995 results (B)
	Revised forecast (A)	(A)/(B) x100	Initial forecast(*)
Net sales	4,150,000	101%	4,200,000	4,126,419
Ordinary income	70,000	54%	110,000	128,806
Net income	55,000	77%	75,000	71,786

* The initial forecast was released in May 1996.

- Factors relating to the revision of the forecast -

Although sales of large computers and telecommunications equipment were good and consumer products showed improvement, DRAM prices fell more than expected, and as a result Hitachi estimates that net sales will amount to 4,150,000 million yen (an increase of 1% compared to the preceding fiscal year), 50,000 million yen less than the initial forecast, ordinary income will come to 70,000 million yen (a decrease of 46% compared to the preceding fiscal year), 40,000 million yen less than the initial forecast, and net income will amount to 55,000 million yen (a decrease of 23% compared to the preceding fiscal year), 20,000 million yen less than the initial forecast.

Consolidated forecast (for reference)

Yen(millions)

	Fiscal 1996			Fiscal 1995 results (B)
	Revised forecast (A)	(A)/(B) x100	Initial forecast(*)
Net sales	8,130,000	100%	8,240,000	8,123,810
Income before income taxes	225,000	65%	310,000	348,627
Net income	80,000	56%	135,000	141,770

* The initial forecast was released in May 1996.