News Releases from Headquarters


Hitachi Kokusai Electric to Sell its Akita Electronics Stock to Hitachi
--Akita Electronics to Become Wholly-owned Subsidiary of Hitachi--

Tokyo, Japan, March 29, 2001 -- Hitachi, Ltd. (TSE: 6501) and Hitachi Kokusai Electric Inc. (TSE: 6756) have reached an agreement concerning Akita Electronics Co., Ltd., a manufacturer of electronic components that is owned jointly by Hitachi, which has 51% of Akita Electronics shares, and Hitachi Kokusai Electric, which has the remaining 49%. Under the agreement, Hitachi Kokusai Electric will sell its 49% to Hitachi, making Akita Electronics a wholly-owned subsidiary of Hitachi, Ltd. The transfer of the shares will take place on March 30.

Akita Electronics, which was established in 1969, is engaged mainly in backend process packaging and testing of semiconductor devices, most of which are sold to Hitachi via Hitachi Kokusai Electric.

In its medium-term business plan, the “i.e. HITACHI Plan,” announced in November 1999, Hitachi stated its intention to strategically employ the resources of the Hitachi Group to reform itself, both qualitatively and structurally, into the best solutions partner for its customers. Also, as part of Hitachi's basic policy of increasing its total market value, the company has been moving ahead with the implementation of a consolidated management system, in line with Hitachi Group based reorganizations, reappraisals and coordinations.

Making Akita Electronics a wholly-owned subsidiary will provide a stronger integration between wafer fabrication and assembly fabrication, enabling Hitachi to respond with more flexibility and mobility to rapid changes in the semiconductor market.

Since its merger last October, Hitachi Kokusai Electric has been undergoing a reorganization and a reappraisal of its scope of operations, with the focus on future business development and progress. The selling of its shares in Akita Electronics is one part of this process, while another is a decision to refocus operations in the three areas of wireless communications and information systems, broadcasting and video systems, and semiconductor manufacturing systems, in place of the previous four divisions, which included electronic components.

About Akita Electronics Co., Ltd.
1. Company Name: Akita Electronics Co., Ltd.
2. Head Office: 64, Naganuma, Tennou, Tennou-machi, Minami-akita-gun, Akita
3. President: Shunji Shimada
4. Capital: 480 million yen
(Hitachi: 51%; Hitachi Kokusai Electric: 49%)
5. Sales: Approximately 60 billion yen
(estimated for fiscal year ending March 31, 2001)
6. No. of Employees: Approximately 1,000 (estimated as of March 31, 2001)
7. Business: Assembly fabrication of semiconductor products and manufacture and sales of semiconductor related software

About Hitachi, Ltd
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://global.hitachi.com.

*At an exchange rate of 106 yen to the dollar

About Hitachi Kokusai Electric Inc.
1. Company Name: Hitachi Kokusai Electric Inc.
2. Head Office: 14-20, Higashi-Nakano 3-chome, Nakano-ku, Tokyo
3. President: Makoto Endo
4. Capital: 10,058 million yen (as of October 1, 2000)
5. Sales: 125 billion yen
(consolidated basis, for fiscal year ended March 31, 2000)
6. No. of Employees: 3,754 (non-consolidated basis, as of October 1, 2000)



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