News Releases Corporate Profiles

May 31, 2000
Hitachi Asia Ltd., a regional headquarters of Hitachi, Ltd., and Hewlett-Packard 
Singapore ( Sales ) Pte. Ltd. ( HP ) today announced that they will jointly launch their 
computer application service provider ( ASP ) business in South East Asia on 1 June, 2000.  
Through this announcement, Hitachi Asia and HP seek to improve the quality and reliability
of ASP services.  
Hitachi Asia will provide software and consultation expertise from its experience as a 
systems integrator and from Hitachi's knowledge as a leading global manufacturer.  
HP will manage and operate its existing e-business hosting infrastructure, called e-ontap 
which is driven by its industry leading mission-critical HP9000 Enterprise Servers.  
Hitachi, Ltd. and Hewlett-Packard Company have been partners since 1991 for various 
technology alliances.

The ASP business model allows corporate computer users to use software installed in 
the provider's data center through the network, for example the Internet, and to operate 
the system by way of a subscription fee payment.  
With the business climate recovering in South East Asia and the anticipated increase in 
the flow of goods and services across a borderless economy, innovation in business 
operations and higher productivity are an urgent challenge for companies.  Hitachi Asia's 
ASP services instantly enable users to have a business solution at a reasonable cost 
without investment in in-house software development, IT engineers and fixed assets, 
allowing the customer to focus on its core business operations.

Through its accumulated knowledge, Hitachi has been able to develop various business 
process software templates. This, combined with the ASP program ensures that Hitachi will 
be able to implement our customers' system.  
Hitachi Asia estimates that users of its ASP services can enjoy savings of between 25% 
to 40% in the first three years, compared with implementing an in house system.

The ASP service is in line with Hitachi, Ltd.'s mid-term business strategy called the  
"i.e. Hitachi Plan" (The "i.e." of  "i.e. Hitachi Plan" stands for information electronics). 
This plan aims to use the Company's wealth of knowledge and information technology (IT)
as a basis for utilizing the Internet to become a best solutions partner. 

Hitachi, Ltd., Hitachi Asia's parent company, has been a player in the South East Asian
computer business through distributors since 1980.  
And in 1995, Hitachi Asia, the regional headquarters, established its Open System 
Solution Center ( Asia ) ( OPCA ).  The center markets systems integration services of 
enterprise resource planning ( ERP ) software, mainly to Japanese companies.  
With its ASP service, Hitachi Asia aims to expand its service offerings as a business 
solutions provider, and to non-Japanese companies as well.

Mr. Takashi Muraki, Managing Director, Hitachi Asia said, "Hitachi Asia's OPCA goes into 
the ASP business, with more than five years of industry experience as an ERP system 
integrator.  Hitachi also has had a long history and know-how as a manufacturer.  
We will contribute to higher productivity and success for our customers."

This ASP service will be hosted on HP's e-ontap, a S$10 million e-business hosting 
E-ontap enables companies to operate their mission-critical e-businesses in a highly 
available and scalable environment.  
The hosting facility speeds up time to market and reduces operational costs, while 
ensuring that quality of service is assured.

Mr. Garry Duursma, *General Manager of  Hewlett-Packard's Corporate Accounts Business 
Unit, Asia-Pacific said, "HP is delighted to be a *solutions partner with Hitachi Asia 
in this pioneering effort.  Through this initiative we are also extending our 
partnership with Hitachi, a valued HP global customer."

"With this partnership in the ASP arena, both companies are entering into a new phase of 
collaboration in a whole new marketspace," said Mr. Duursma.  With our pasttrack record, 
HP is confident of leading the ASP market in this region with our leadingedge 
technologies," he added.

Hitachi Asia will launch its ASP service with 3 solution offerings; 1) business 
administration support for accounting, human resource and payroll, 2) core operation 
support handling manufacturing and logistics, and 3) SCM support for manufacturer's 
procurement & distribution.  Since the business administration operation consists of 
comparatively standard and structured operations, Hitachi Asia feels that this ASP 
service easily fits into any existing enterprise without software customization.  
For core operation support for manufacturing and logistics, package software and 
templates are highly applicable.  For SCM support, Hitachi Asia will introduce homegrown 
Furthermore, Hitachi Asia will also be expanding the ASP service menu.

Key components for application services include Hitachi's homegrown solution for 
supply chain management, and other software products.  Hitachi Asia is currently 
selling BAAN software, is proceeding advanced discussions with BAAN to use its products 
for the ASP service also.  In addition, Hitachi Asia will also be in 
discussion with ORACLE.

Hitachi Asia is starting this ASP service in Singapore, Malaysia and Thailand, and will 
extend the offering to the Philippines, Hong Kong, Indonesia and others in a later 
The initial target industry sectors are manufacturing, distribution and sales.

Hitachi Asia estimates annual sales of the ASP business solutions to be S$ 32 million 
in 2003.

About Hitachi Asia Ltd.
Established in 1989, Hitachi Asia Ltd., a wholly owned subsidiary of Hitachi, Ltd., 
oversees the marketing, sales and procurement operations of Hitachi for Asia, Oceania 
and the Middle East. In addition to its regional headquarters (RHQ) in Singapore, 
the company has 21 other subsidiaries and offices spread across 10 Asian countries. 
Hitachi Asia markets a wide variety of products including power and industrial 
systems, industrial systems and components, information systems and electronic 

Hitachi Asia has more than 800 employees and its sales totaled more than S$5.1 billion 
for the fiscal year ending 31 March 2000. For more information about Hitachi Asia, 
please visit its website at http://www.hitachi.com.sg.    

About HP 
Hewlett-Packard Company -- a leading global provider of computing and imaging 
solutions and services -- is focused on making technology and its benefits accessible 
to individuals and businesses through simple appliances, useful e-services and an 
Internet infrastructure that's always on.

Excluding Agilent Technologies, HP has 86,000 employees worldwide and had total 
revenue from continuing operations of $42.4 billion in its 1999 fiscal year. 
Information about HP and its products can be found on 
the World Wide Web at http://www.hp.com.

For Business Inquiries :
Open System Solution Centre ( Asia ), Hitachi Asia Ltd.
16 Collyer Quay, Hitachi Tower #20-00, Singapore 049318
TEL +65-231-2237     FAX +65-538-9022

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WRITTEN BY Secretary's Office
(C) Hitachi, Ltd. 2000. All rights reserved.