News Releases

Reseller Agreement with Finnish Company, Comptel Corporation
for Policy Control (PCRF) Software for Telecommunication Carriers

Accelerating Hitachi 's Network solution development
of Traffic Management Solutions (TMS)
and Network Function Virtualization businesses

Tokyo, September 11, 2014 --- Hitachi, Ltd. (TSE: 6501, “Hitachi”) today announced that it has signed a reseller agreement with Comptel Corporation (NASDAQ OMX Helsinki: CTL1V, “Comptel”), a Finnish telecommunication software company that develops and provides network middleware for telecommunications carriers worldwide, for reselling Comptel Policy Control Solution (PCRF) to Hitachi's customers.

Within recent years, data communication traffic through mobile networks has been dramatically increasing due to the rapid uptake of mobile devices, such as smart phones and tablet devices, and creation of variety of contents, including social network and video services. Network carriers are rapidly bringing new services to market in response to users' needs, and are now in need to build network platforms that can flexibly respond to these increasing market changes.

Hitachi has been strengthening its telecommunication and network systems business including systemizing and launching the provision of ICT solutions centered on TMS*1 in October 2013. Through this reseller agreement, Hitachi will provide Comptel's data management software and related services, such as PCRF*2 that controls surging network traffic, allows fast offering creation and flexibility and increases Hitachi's telecommunication and network systems business competitiveness. Comptel possesses an extensive customer base of more than 290 customer deployments in 87 countries around the world, along with a strong track record for high quality software products and related services. In particular, Comptel has strengths in Network Policy Control and Charging Management technology, and is working to develop solutions to achieve for example QoS*3 control for individual users and services, and real-time charging processing for individual content.

Through this reseller agreement, Hitachi will provide total solutions which combine TMS and vEPC*4 possessed by Hitachi with the product expertise of Comptel to enable network carriers to expand their service portfolio, increase the operation and management efficiency of their core networks and the return on their investments with highly increased competitive advantage.

Comptel reseller agreement includes an appointment of Hitachi to act as a global reseller for Comptel Policy Control Solution as part of Hitachi's telecommunication and network solutions. Hitachi and Comptel will target the joint offering to telecommunication carriers globally with primary focus in Japan and US markets. Hitachi will provide solutions adapted to meet the needs of telecommunication and network carriers in Japan and other global projects which Hitachi participates in.

Going forward, Comptel Policy Control Solution will play an important role as a part of Hitachi's Social Innovation Business with an eye on next-generation networks such as NFV*5.

“With the aim of accelerating the Hitachi Group's development of the Social Innovation Business." Mr. Hiroyuki Wada, COO of Information & Telecommunication Systems Company, Hitachi, Ltd. remarked "In a recent variety of mobile device deploying into the network, network policy control technology is one of important factor of today and tomorrow's network solution. With a leading global telecommunications software company, Comptel, Hitachi is going to strengthen telecommunication and network solutions as a part of our network middleware strategy. We are looking forward to create joint proposal together with Comptel.”

Mr. Juhani Hintikka, President and CEO of Comptel said: “Comptel is very excited to enter into this reselling partnership with Hitachi's which enable Hitachi to integrate Comptel Policy Control offering with Hitachi portfolio. Hitachi has a strong customer base in Japan and US and their committed and competent sales teams will bring Comptel new opportunities to penetrate these major markets faster”

*1

TMS(Traffic Management Solutions): Hitachi's network solutions for measuring the traffic of dramatically increasing data communication, and then analyzing and controlling it in accordance with the intended use. TMS manages a wide variety of traffic that is generated by people and software, and ensures efficiency of flow and maximization of value.

*2

PCRF(Policy and Charging Rule Function): A function for specifying bandwidth limitations and available data traffic capacity in line with policies and setting charging rules.

*3

QoS(Quality of Service): Technology that guarantees a certain level of communication speed on a network by delivering the data in order of priority in accordance with the data type, and by reserving a network bandwidth for certain specific communications.

*4

vEPC(Virtual Evolved Packet Core): The virtualization of the LTE mobile control function.

*5

NFV(Network Function Virtualization): The virtualization of network functions.

About Comptel Corporation

Name	Comptel Corporation
Headquarters	Helsinki, Finland
Established	1986
Representative	Juhani Hintikka, President and CEO
Employees	Approximately 700
Businesses	Comptel's solutions are built on an Event - Analysis - Action strategic framework that leverages the company's strengths in collecting and analyzing Big Data and turning intelligence into opportunities in real time. Comptel's service fulfillment, mediation, charging and policy control, and advanced predictive analytics products with implementation and professional services enable service providers to automate customer interactions and other business decisions, to create revenue, reduce costs and lessen churn
Revenues	EUR 83 million ( as of December, 2013 )

• Comptel Web site

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges with our talented team and proven experience in global markets. The company's consolidated revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional materials & components, automotive systems, healthcare and others. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.