News Releases from Headquarters


UFJ Bank and Hitachi Sign Basic Agreement for IT Outsourcing
Tokyo, Japan, July 25 - UFJ Bank Limited (a wholly owned subsidiary of UFJ Holdings, Inc., TSE:8307) and Hitachi, Ltd. (NYSE:HIT, TSE:6501) today announced the conclusion of an IT Outsourcing agreement. Under the terms of the basic agreement outlined below, Hitachi will start providing services to UFJ Bank on October 1 this year.

1. Outline of the Basic Agreement
Long-Term Outsourcing Agreement
Details UFJ Bank will outsource the development of systems for domestic banking operations and the operation of these systems to Hitachi.
Term 10-year period from October 1, 2002 through September 30, 2012
Amount Approx. ¥250.0 billion over 10 years

Joint Development of Modular Computer System for Banking
UFJ Bank and Hitachi will jointly develop a mainframe banking system made up of application modules. This will greatly simplify the addition of new services and the provision of multi-faceted services. There will be sub-systems designed specifically for each product and service. Together, these advances will create a more stable, open system.

2. Other Terms of the Agreement
The long-term, 10-year outsourcing agreement, which stems from a longstanding partnership between UFJ Bank and Hitachi, will allow UFJ Bank to pare IT costs and continuously introduce the latest IT technologies.

Hitachi will take an equity interest in a wholly owned UFJ Bank subsidiary Sanwa System Development Co., Ltd. This company (see the Reference) will then be renamed and positioned as the fulcrum of Hitachi's outsourcing business.

UFJ Bank will sell software assets* to Hitachi Capital Corporation (President and Representative Director: Kaichi Murata), which Hitachi will then lease for use in its outsourcing business and for facilitating business to other banks.
*The estimated sales price of the software, which relates to domestic banking operations, is approximately ¥50 billion.

3. Objectives of Outsourcing
(UFJ Bank)
Computer systems for banking are growing in importance as a vital social infrastructure and are also tending to become faster and more complex in nature. These trends require systems to be more reliable and efficient.

UFJ Bank has achieved the planning, development and operation of the systems by itself and its subsidiaries. The IT outsourcing to a leading company like Hitachi and the collaboration with it through the IT vehicle will make possible the development and operation of systems that are even more advanced and stable.

Risk management will also be strengthened by drawing on Hitachi's high level of expertise.

Greater efficiency in systems development and operations from outsourcing these functions will allow UFJ Bank to cut IT costs.

Hitachi will further develop its IT outsourcing business, which is one of the core in its information and telecommunication businesses, taking advantage of this outsourcing assignment of UFJ Bank's system, one of the best of its type in Japan.

Through participating in the management of UFJ Bank's system development subsidiary, Hitachi will gain advanced know-how in banking businesses, and utilize it in providing other financial institutions with value-added services, including consultation and system development.

Hitachi will aggressively promote sales of systems and software packages to be developed through the collaboration with the UFJ Group on this project.

About UFJ Bank
UFJ Bank Limited, a wholly owned subsidiary of UFJ Holdings, Inc., is the core company of the UFJ Group, one of the four leading financial groups in Japan. Under the holding company, the Bank was formed through the merger of The Sanwa Bank, Limited and The Tokai Bank, Limited in January 2002. It consists of three business lines, namely, retail banking, corporate banking, and global banking and trading, and has the strong franchise in Tokyo, Nagoya and Osaka areas. As of March 31, 2002, the total assets were 72.3 trillion yen, loan amount was 42.5 billion yen, and deposit amount was 53.1 trillion yen.

About Hitachi
Hitachi, Ltd., headquartered in Tokyo, Japan, is a leading global electronics company, with approximately 320,000 employees worldwide. Fiscal 2001 (ended March 31, 2002) consolidated sales totaled 7,994 billion yen ($60.1 billion).The company offers a wide range of systems, products and services in market sectors, including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's Web site at http://global.hitachi.com.


Profile of the New Company
Company name UFJ Hitachi Systems Co., Ltd. (tentative)
Head office Chuo-ku, Tokyo
Capital ¥50 million
President Sunao Urakami
Shareholding UFJ Bank 51%, Hitachi 49%
No. of employees Approx. 450
Main business lines
Planning, development and operation of banking systems on consignment.
Development of systems packages for other financial institutions.
All related work
Change of company name October 1, 2002 (Coinciding with Hitachi's investment)


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.

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