Hitachi, Ltd. (TSE:6501, NYSE:HIT) today announced the establishment, effective July 1, 
of the Hitachi Corporate Venture Capital Fund (Hitachi CVC Fund).  The 10 billion-yen 
fund will be used to create new business opportunities by investing in promising 
technology startup companies or ventures.

On the same date, Hitachi will also establish a new organization, the CVC Office, to 
manage the fund.  Shigemichi Matsuka, Executive Vice President and Director, 
Hitachi, Ltd., will be the general manager of the office.

The mission of the Hitachi CVC Fund will be to explore new business frontiers and 
accelerate the creation of new business opportunities in line with the objectives 
of the "i.e. HITACHI Plan," the medium-term business plan announced last November 
by Hitachi, Ltd. president, Etsuhiko Shoyama.

Specifically, the main aim of the Hitachi CVC Fund is to seek out globally and 
invest in high-technology entrepreneurial ventures developing innovative technologies 
and concepts in advanced business fields, such as next-generation Internet technologies 
and biotechnology. 
Hitachi will build collaborative structures among the venture businesses and provide 
its own technology, sales networks and business resources to nurture and incubate these 
ventures.  The fund will also be preparing for spin-offs innovated within Hitachi itself.  
Through such investment activities, Hitachi also expects to acquire knowledge of, and 
access to, new technologies and market trends, on a timely basis, which can be utilized 
in Hitachi's own business strategies.

The initial size of the fund will be 10 billion yen.  The fund will be managed by the CVC 
Office, which will consist of experts from business planning and finance departments, 
as well as members from the R&D division, who have an extensive knowledge of technology 
in the investment arena.  In the U.S., Hitachi America, Ltd., Hitachi's subsidiary company 
in North America, is setting up a new office, the U.S. CVC Center, which will be headed 
by Dr. Kenji Takeda, Senior Vice President and Chief Technology Officer of Hitachi 
America.  Dr. Takeda will head a group responsible for analyzing the type of companies 
to fund, arranging investments and supporting venture company management in the North 
America marketplace.

The establishment of the Hitachi CVC Fund will accelerate the opening up of new markets 
and the creation of new business opportunities for Hitachi, helping to achieve 
the goals of the "i.e. HITACHI Plan" and thereby enhancing the company's value to 
its customers, shareholders and other stakeholders.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global 
electronics companies, with fiscal 1999 (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 http://www.hitachi.co.jp.
* At an exchange rate of 106 yen to the dollar.

Hitachi America, Ltd., a subsidiary of Hitachi, Ltd., markets and manufactures a broad 
range of electronics, computer systems and products, consumer electronics and 
semiconductors, and provides industrial equipment and services throughout North 
America.  For more information on Hitachi America, visit URL: http://www.hitachi.com.