TOKYO Japan, August 8, 2001 - Hitachi, Ltd., (NYSE: HIT/TSE:6501 hereinafter abbreviated as Hitachi) and the Beijing Polytechnic University (hereinafter abbreviated as BPU) today announced that they have agreed to contribute to realization of e-Government in China, by jointly establishing a showroom specialized in e-Government and conduct market research to realize the “e-Government” system for the Chinese market, bringing together their technologies and know-how.

Based on this agreement, Hitachi and BPU will bring together Hitachi's e-Government system technologies and BPU's know-how. Hitachi's e-Government system technology has a proven record of implementation of the system in Japan. And BPU's know-how has been gained from computerizing the Beijing Municipal Government offices. The two parties are going to open China's first e-Government showroom, “China CyberGovernment Square” (hereinafter abbreviated as “CCGS”) in BPU campus beginning in October 2001. The companies will start research and development of e-Government systems for the Chinese market and investigate e-Government related business prospects at “CCGS”.

Based on the “The Tenth Five-Year Plan” that is mainly focused on IT, the Chinese government is promoting construction of network infrastructure, preparing for the realization of e-Government in 2005. With its “Digital Beijing” initiative, the Beijing Municipal Government is actively working toward the computerization of administration procedures and e-education.
The driving force of this “Digital Beijing” is a system of cooperation among universities, research institutions and industries centering around Zhongguancun that is dubbed as the Silicon Valley of China. With the support of the Chinese government, “cooperation between industry and academia” has been actively promoted in China. For example, a coherent effort from research and development to commercialization of products has been conducted by collaboration among universities, research institutions and joint ventures set up in cooperation with universities.

BPU has been actively promoting “cooperation between industry and academia”. It has established several joint ventures and has been developing software by contract for Hitachi. As a university that has a close tie to the local community, it has been participating in the IT promotion plan of the Beijing Municipal Government, utilizing its accumulated know-how. The university has been designated as one of the most important universities to produce top-class personnel, and is expected to become an important center for future development of Beijing, especially for promotion of computerization.

Hitachi announced the e-Government solution for the Japanese market, “Solutionmax for CyberGovernment” in September 1999. It has accumulated ample know-how and a proven record of accomplishment in developing e-Government systems, by providing fundamental technologies that are crucial to implementing e-Government such as security and authentication technologies and various systems utilizing these fundamental technologies. Hitachi has been taking a lead in this business field. It opened Japan's first showroom specialized in featuring e-Government system, “CyberGovernment Square” in March 2000. Since then more than seven thousand government officials have visited there, getting more than 100 purchase orders.

In order to build e-Government system, it is necessary to promote international collaboration. So Hitachi will establish “CCGS” with BPU in China, which is one of the most important markets for Hitachi. “CCGS” will be the first e-Government showroom outside of Japan as a Japanese company.

The contents of agreement between Hitachi and BPU are as follows.
[Contents of agreement]
1. To Establish an e-Government Showroom “China CyberGovernment Square” (CCGS)
     Both parties plan to establish an e-Government showroom “CCGS” in BPU campus next October. At “CCGS”, they make presentations guided with video and demonstrations to government officials about e-Government. And they interview them and obtain market information, such as comments and requests.

2. Market Research and Analysis to Develop e-Government Systems in China
     With this showroom as the research base, the two parties are to jointly conduct market research regarding e-Government in China. They are also to study the Chinese government from various aspects such as administration and legal, and analyze a system that can be applicable for the e-Government market of the Beijing Municipal Government and the Chinese government.

Hitachi and BPU consider establishment of “CCGS” as the first international cooperation in the e-Government field. They seek to build wide-ranging and long-term partnership in the future.

[Outline of the showroom]