| GLOBAL HOME | UP |

DOWNLOAD

Hitachi to Integrate Two Telecommunications-Affiliated Companies, Advance Restructuring of Communications Equipment Business

Tokyo, Japan, July 24 - Hitachi, Ltd. (TSE:6501, NYSE:HIT, Hitachi) today announced the integration of two Hitachi Group companies as part of ongoing efforts to restructure its communications equipment business. Hitachi Communication Systems, Inc. (President: Nobuyoshi Uno) and Hitachi Shonan Denshi Co., Ltd. (President: Shigetoshi Hiratsuka) will be merged on October 1, 2002 to form a new company, Hitachi Hybrid Networks Co., Ltd. Earlier this year, Hitachi announced the separation of the Telecommunication Systems Division from the parent company and its integration with Hitachi Telecom Technologies, Ltd. (President: Yukio Kawamoto), also on October 1, 2002, along with other restructuring measures to strengthen the Hitachi Group's communications equipment business. The latest move is part of the same restructuring drive and is designed to improve competitiveness through greater economies of scale and by capturing synergies. The new company is another element of the framework Hitachi is assembling to respond to new markets in the evolving networked society. Hitachi Hybrid Networks will take over the respective design, manufacturing and sales operations of Hitachi Communication Systems and Hitachi Shonan Denshi. The former is involved with information and telecommunication-related systems and software, while the latter handles information and telecommunication-related hardware. By also marrying the communications software/network technologies and fine-mechanics and electro-optical technologies of both companies, Hitachi Hybrid Networks will open up new markets and win new customers in the network solutions field, developing a solutions business tailored to regional needs. Some of the key markets include VoIP-related solutions for communities, network systems for the elderly and image-based network systems for local governments. Profile of the New Company Company name Hitachi Hybrid Networks Co., Ltd. Representative President Kouji Hirai (Presently Senior Managing Director, Hitachi Telecom Technologies, Ltd.) Capital ¥0.45 billion (Hitachi, Ltd. 76%, Chuo Shoji Co., Ltd. 24%) Head office 393, Totsuka-cho, Totsuka-ku, Yokohama, Kanagawa Main business lines • Manufacture and sales of network-related products • Development on consignment of information and communications-related systems and software Net sales Approx. ¥29.0 billion (projected figure for the fiscal year ending March 31, 2003) No. of employees 1,460 (At establishment) Profiles of Companies to Be Integrated Company name Hitachi Communication Systems, Inc. Hitachi Shonan Denshi Co., Ltd. Representative President Nobuyoshi Uno President Shigetoshi Hiratsuka Capital (Shareholding) ¥0.3 billion (Hitachi, Ltd. 100%) ¥0.2 billion (Hitachi, Ltd. 11%, Chuo Shoji Co., Ltd. 89%) Date established September 1978 September 1965 Head office 180, Totsuka-cho, Totsuka-ku, Yokohama 393, Totsuka-cho, Totsuka-ku, Yokohama Main business lines Design, manufacture and sales of information and communications software and systems Design, manufacture and sales of information and communications hardware Net sales Approx. ¥13.0 billion (Fiscal 2002 est.) Approx. ¥16.0 billion (Fiscal 2002 est.) No. of employees Approx. 940 (At merger) Approx. 520 (At merger)

WRITTEN BY Corporate Communications Division