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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

March 4, 2019

Hitachi to Strengthen Business Structures by Integrating
Five Group Companies in the Information and Telecommunication
Systems Field in China for Expansion of Digital Solution Business

Tokyo, March 4, 2019 --- Hitachi, Ltd. (TSE: 6501, "Hitachi") today announced that it will strengthen its business structures to enhance its digital solution business as a strategy to further expand business in the People's Republic of China ("China").
Specifically, Hitachi will merge the business of five companies, including Hitachi Solutions(China)Co.,Ltd., Hitachi Beijing Tech Information Systems Co.,Ltd., Hitachi Systems(Guangzhou)Co.,Ltd., Hitachi Consulting(China)Co.,Ltd. and Hitachi Consulting Information Technology Delivery (Guangzhou) Co., Ltd., into Hitachi Solutions(China)Co.,Ltd. after April 2019 to combine and further develop its technology and knowhow to support solutions for challenges faced by society and corporations in China. By providing a capital increase to Hitachi Solutions(China)Co.,Ltd. from Hitachi, Hitachi Solutions(China)Co.,Ltd. will become one of Hitachi's subsidiaries, instead of a subsidiary of Hitachi Solutions, Ltd., to drive the expansion of the Social Innovation Business in China.

Currently, the Hitachi Group has been accelerating the global development of its social innovation business and China is one of its most important markets. While the Hitachi Group has been aiming to further develop its business in fields of focus such as industry, urban, energy, and elder and nursing care, the importance of digital solutions using Hitachi Group's accomplishments in the OT*1 and IT business as well as its diverse accumulated knowledge and expertise has been growing.

*1
OT: Operational Technology

Through the business restructuring, the knowledge ,knowhow ,resources and solutions in the IoT and data analytics fields accumulated by each of the above five companies are merged to achieve greater efficiency in the development of digital solutions and accelerate the creation of new values in the fields of the Hitachi Group's focus. Hitachi Group will also improve its productivity and enhance its sales capabilities, thus further accelerating collaborative creation with the partners in China, and will respond diversely to customer needs centered on digital solutions that support the Social Innovation Business.

The Hitachi Group will continue to offer digital solutions globally for the social infrastructure with higher added values. Through this effort, the Hitachi Group will continue to contribute to improving people's QoL*2 and building a sustainable society.

*2
QoL: Quality of Life

Profile of the Companies Involved in the Merger [as of February 28, 2019]

[Hitachi Solutions(China)Co.,Ltd.]

Business Name Hitachi Solutions(China)Co.,Ltd.
Location of Head Office Beijing, China
Business Provision of system integration/solution services, software development, etc.
Establishment Date October 1, 2011
Title and Name of Representative Chairman of the board: Kenji Kubota
Capital Amount CNY 50 million
Number of Employees 117 (including employees of the subsidiary) (as of December 31, 2018)
Major Shareholders and Ratio of Shareholding Hitachi Solutions, Ltd. (90%), Hitachi (China) Ltd. (10%)

[Hitachi Beijing Tech Information Systems Co.,Ltd.]

Business Name Hitachi Beijing Tech Information Systems Co.,Ltd.
Location of Head Office Beijing, China
Business Provision of system integration/solution services, software development, etc.
Establishment Date September 10, 2003
Title and Name of Representative Chairman of the board: Yoshinori Hosoya
Capital Amount USD 833,000
Number of Employees 94 (as of December 31, 2018)
Major Shareholders and Ratio of Shareholding Hitachi, Ltd. (90%), Hitachi (China) Ltd. (10%)

[Hitachi Systems(Guangzhou)Co.,Ltd.]

Business Name Hitachi Systems(Guangzhou)Co.,Ltd.
Location of Head Office Guangzhou, China
Business Provision of system integration/solution services, etc.
Establishment Date April 28, 2011
Title and Name of Representative Chairman of the board: Tatsumi Kenji
Capital Amount JPY 187 million
Number of Employees 42 (as of December 31, 2018)
Major Shareholders and Ratio of Shareholding Hitachi Systems, Ltd. (100%)

[Hitachi Consulting(China)Co.,Ltd.]

Business Name Hitachi Consulting(China)Co.,Ltd.
Location of Head Office Shanghai, China
Business Provision of IT consulting, solution services, etc.
Establishment Date June 17, 2010
Title and Name of Representative Chairman of the board: Steven Goodman
General Manager: Justin Winter
Capital Amount CNY 318.1288 million
Number of Employees 105 (as of December 31, 2018)
Major Shareholders and Ratio of Shareholding Hitachi Consulting Co., Ltd. (90%), Hitachi (China) Ltd. (10%)

[Hitachi Consulting Information Technology Delivery (Guangzhou) Co., Ltd.]

Business Name Hitachi Consulting Information Technology Delivery (Guangzhou) Co., Ltd.
Location of Head Office Guangzhou, China
Business Software development, etc.
Establishment Date June 6, 2005
Title and Name of Representative Chairman of the board: Steven Goodman
General Manager: Justin Winter
Capital Amount USD 3.253 million
Number of Employees 102 (as of December 31, 2018)
Major Shareholders and Ratio of Shareholding Hitachi Consulting Software Services Inc. (100%)

Status after Merger [After April, 2019 (scheduled)]

Business Name Hitachi Solutions(China)Co.,Ltd.
Location of Head Office Beijing, China
Business Provision of system integration/solution services, software development, IT consulting, etc.

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society's challenges, combining its operational technology, information technology, and products/systems. The company's consolidated revenues for fiscal 2017 (ended March 31, 2018) totaled 9,368.6 billion yen ($88.4 billion). The Hitachi Group is an innovation partner for the IoT era, and it has approximately 307,000 employees worldwide. Through collaborative creation with customers, Hitachi is deploying Social Innovation Business using digital technologies in a broad range of sectors, including Power/Energy, Industry/Distribution/Water, Urban Development, and Finance/Social Infrastructure/Healthcare. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

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