News Releases Corporate Profiles

July 4, 2000

TOKYO, Japan, July 4, 2000– Mitsubishi Electric Corporation and Hitachi, Ltd. (NYSE : HIT) today announced that they have agreed to unite their respective home elevator operations and establish an equal partnership joint venture, Mitsubishi Hitachi Home Elevator Ltd. (temporary designation) on October 1, 2000.

Through the establishment of this new company, both partners will be able to marshal their home elevator development abilities and combine their respective technologies to achieve quicker time-to-market for new products, integrate their product lineups, condense production facilities, and achieve more efficient manufacturing. It will also allow them to expand sales channels and strive for a top market share.

Outline of New Company
The new company will leverage the combined strength of both partners to:
1) Accelerate product development through the merging of both companies' development abilities and the fusing of their respective technologies
2) Streamline manufacturing by condensing production facilities
3) Expand sales routes to home construction firms and building contractors, deepen ustomer trust, and provide customer-satisfying home elevators

New Company Profile:

1. Name: Mitsubishi Hitachi Home Elevator, Ltd. (Tentative)
2. Head office/plant: 38 Kaededai, Mino-shi, Gifu Prefecture, Japan
3. Paid-in capital: 600 million yen(controlling share: Mitsubishi Electric Corp.: 50%, Hitachi, Ltd.: 50%)
4. President: As yet undecided (candidate expected to come from Mitsubishi Electric Corp.)
5. Main operations: Development, sales, production, and installation of home elevators
6. Net sales: 6 to 7 billion yen (projection for fiscal 2001)
7. Number of employees: approximately 170

With the rapid greying of Japanese society, an increase in multigenerational households, and growth in three-story homes, the demand for home elevators is growing. Despite the decline in new housing construction, a 10% increase in demand for home elevators is anticipated in fiscal 2000 (according to estimates by both companies). This trend is expected to continue in the months and years ahead.

Several new manufacturers have also entered the home elevator market, intensifying competition and driving down prices. Present prices have fallen by nearly 50% since home elevators were introduced to the market a decade ago. At the same time, such customer needs as space saving and energy efficiency have become increasingly complex, requiring manufacturers to further enhance their development abilities and reduce costs.

Mitsubishi Electric and Hitachi are both top manufacturers in the elevator market. Both maintain full-range product lineups and extensive experience spanning from express elevators for skyscrapers through the latest machine-room-less elevators and home elevators. Both companies enjoy high customer praise for their product development abilities, high reliability, and extensive nationwide service networks.

About Mitsubishi Electric Corporation
With more than 75 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation is a recognized world leader in the manufacture, marketing and sales of electrical and electronic equipment used in information processing and communications, space development and satellite communications, consumer electronics, industrial technology, energy, transportation and construction. With operations in 34 countries, Mitsubishi Electric Corporation recorded consolidated group sales of over US$35* billion in the year ended March 31, 2000. Additional information on Mitsubishi Electric Corporation is available at www.mitsubishielectric.com .

About Hitachi , Ltd.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1999 (ended March 31, 2000) consolidated sales of 8,001 billion yen ($75.5 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp .

*At an exchange rate of 106 yen to the dollar.

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WRITTEN BY Corporate Communications Division
(C) Hitachi, Ltd. 2000. All rights reserved.