Hitachi, Ltd. today announced that head office is to be reorganized, effective July 1. 
Based on the reorganization, head office staff will be divided into personnel whose
function is to support strategic decision-making by top management, and corporate support 
personnel involved in day to day parent company functions.  This will create a flat
 organization directly under the president, helping to speed up decision-making.

In conjunction with the reorganization implemented on April 21, this will reduce the size
of the head office staff to around 400, a decrease of some 700.

In April 1999, in order to speed up the decision-making process, head office authority was 
largely delegated to the various business groups, which became virtually independent 
companies.  At the same time, the head office workforce was reorganized into a corporate 
staff whose function was to support strategic decision-making by top management and 
handle everyday parent company tasks, and a business staff to support the operations of the 
business divisions.

In April, the business staff was reorganized as a separate profit center built around a 
contractual system with payment based on services rendered to the business divisions and 
Hitachi Group companies.

In line with this latest reorganization, the role of the corporate staff will be focussed
more on providing high-level support for top management, and decision-making will be speeded 
up by implementing a flat organization that is directly under the president. 

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics 
companies, with fiscal 1998 (ended March 31, 2000) consolidated sales of 8,001 billion yen 
($75.5 billion*).  The company manufactures and markets a wide range of products, 
including computers, semiconductors, consumer products and power and industrial 
equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at 
URL:http://www.hitachi.co.jp.
* At an exchange rate of 106 yen to the dollar.

< Corporate management staff > 
A corporate management staff has been defined whose functions are divided into five 
categories:  1. Management strategy; 2. Corporate communications and legal affairs; 3. 
Financial affairs; 4. Human resources development; and 5. Audit and overview functions. 
 The departments in each category are listed below.

In overall terms, within the context of consolidated management, the focus is on supporting 
the decision-making process of the Senior Executive Committee and executives, and 
achieving the mission based on policy decisions.

1. Management strategy
Corporate Planning ¡õ Development Office, Group Strategy Office, Affiliated Companies 
Office, Corporate Strategic Planning Office, Investment Planning Office, Information 
Technology Strategy Office, Procurement Strategy Office, Sales Management Division, 
International Business Planning ¡õ Development Division

2. Corporate communications and legal affairs
Legal Division, Corporate Communications Division

3. Financial affairs
Finance Department 1, Finance Department 2, Finance Department 3

4. Human resources development
Human Resources Strategy Office, Human Resources Management Department, 
Education Planning Department, Labor Administration Department

5. Audits and overview functions
Internal Auditing Office

< Corporate support staff >
A corporate support staff has been defined, which is responsible for external liaison in such 
areas as export administration, environmental matters and quality assurance, and for handling 
matters relating to day to day head office operations.  The departments concerned are listed 
below.
Special Review Office, Corporate Export Regulation Division, Corporate Environmental 
Policy Division, Quality Assurance Division, Customer Satisfaction Promotion Center, 
Occupational Health Promotion Center, Overseas Offices, New Business Promotion Center

Note:  Preliminary names are in italics.