Tokyo, Japan, April 17, 2000---Hitachi, Ltd.(TSE:6501)today announced that the company has formulated an Internet-driven net business strategy that is based on the "i.e. HITACHI" medium-term business plan disclosed last November.
      The Internet is rapidly evolving into a social infrastructure that shows limitless potential with respect to changing the way people live and do business. To make the best of the convenience and choices offered by this new infrastructure requires platforms that can participate reliably and effortlessly, and a full range of business solutions.
      To answer the needs of network communities, Hitachi is using its customer base, expertise, knowledge and Internet technology to build and provide network infrastructures that are secure and competitive.
      For this, Hitachi is moving forward on two fronts: a business platform operation that provides secure, competitive net infrastructures, and a solutions business in which the focus is on providing support for the planning, implementation and operation of Internet businesses based on those infrastructures.
      Hitachi's solutions business offers net business solutions for each industry or business model in the following five market categories.

 1) Business: Solutions for the financial, distribution, manufacturing and service sectors

 2) Industry: Network services for industrial, transportation and electric power systems having a high public utility component

 3) Consumer: Services oriented toward lifestyles of consumers in the net society

 4) Government: Solutions for central and local government ministries and agencies

 5) Academia: Total services for educational and research institutions

      For these net businesses, on April 21st a new organization, the Information & Network Services, will be established under the direct control of President Shoyama. The Information & Network Services will work with the Electric Service & Business Development Division, which was established in February 2000, as well as with internal and third-party service providers and content holders to promote the net business of the Hitachi Group.
      For business platform operations, a new company, called Hitachi netBusiness, Ltd. will be established, also on April 21st. Hitachi netBusiness, Ltd. will provide a full range of the type of services required for business platforms, including operation of Internet data centers, proxy operation, collection of fees and charges, customer management, certification and encryption.
      Working together, the aim of Hitachi's business platform operations and solutions business is to be the net society's best solutions partner able to create Internet-based value networks that surpass industry divisions and borders. By 2003, this is expected to increase annual net-related sales by the Hitachi Group, which now stand at 180 billion yen, to 900 billion yen.