10 May 2010

Tokyo, May 11, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced its consolidated financial results for fiscal 2009, ended March 31, 2010.

Note: All figures, except for the outlook for fiscal 2010, were converted at the rate of 93 yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange Market as of March 31, 2010.

1. Qualitative Information Concerning Consolidated Business Results

1-1. Summary of Fiscal 2009 Consolidated Business Results

(1) Business Results

The global economy in fiscal 2009, the fiscal year ended March 31, 2010, experienced an economic recovery during the second half of the fiscal year following the worst period of the economic recession in the first half. In particular, the Chinese economy achieved a high rate of economic growth, as highlighted by 8.7% year-over-year GDP growth in the 2009 calendar year, largely in part due to significant governmental economic counter measures and other contributing factors. The other Asian economies also experienced modest recovery due to exports to China and government economic stimulus measures.

The U.S. and European economies, although struggling to put the first half of the fiscal year behind them, were improved by bold quantitative easing and government spending programs, enabling them to also see a moderate recovery in the latter half of 2009. Additionally, rebounding exports to emerging nations also aided in this recovery. However, with the continued fragile state of the financial environment, new problems have surfaced such as risks surrounding public finances in some southern European countries.

In Japan, the economy began to experience a gentle recovery during the latter half of 2009 on the back of exports to China and other emerging nations, progress with inventory adjustments of electronic components and devices and semiconductor- and automotive-related products, and the benefits of government programs such as the eco-points program and tax breaks on eco-friendly cars. Still, Japan has yet to achieve a self-sustaining recovery, with capital investment slow to pick up and employment and personal income conditions remaining difficult.

Hitachi’s consolidated revenues for fiscal 2009 declined 10% year over year, to 8,968.5 billion yen, despite strong growth from the Power Systems segment. The decline in revenues were led by the Information & Telecommunication Systems, High Functional Materials & Components, and Components and Devices segments, all due to the economic recession.

Overseas revenues decreased 12% year over year, to 3,654.7 billion yen due to a worldwide downturn in demand.

Hitachi posted consolidated operating income of 202.1 billion yen, up 59% year over year. Although earnings were lower in the Information & Telecommunication Systems and Construction Machinery segments, largely due to constraints on capital expenditures, earnings were significantly improved in the Automotive Systems and Digital Media & Consumer Products segments, reflecting the benefits of business structure reforms and other factors. The better operating income result also reflected cuts to fixed costs and procurement costs.

Net other deductions were 138.5 billion yen, an improvement of 278.4 billion yen from the previous fiscal year. This reflects improved net equity in losses due to better performances by semiconductor-related affiliates and other entities, improved exchange gains due to the weaker yen, and decreased expenses related to the completion of business restructuring compared with the previous fiscal year, including impairment losses on fixed assets.

As a result, Hitachi recorded income before income taxes of 63.5 billion yen, 353.4 billion yen better year over year.

Income taxes decreased 357.2 billion yen year over year to 147.9 billion yen due to a decline in write-off of deferred tax assets subject to consolidated taxation.

Consequently, Hitachi posted a net loss of 84.3 billion yen, a year-over-year improvement of 710.7 billion yen. Net loss attributable to noncontrolling interests was 22.5 billion yen and net loss attributable to Hitachi, Ltd. was 106.9 billion yen, representing a 680.3 billion yen improvement over fiscal 2008.

Hitachi resumed posting quarterly net income attributable to Hitachi, Ltd. from the third quarter (October-December 2009) of fiscal 2009.

(2) Revenues and Operating Income (Loss) by Business Segment

Effective from fiscal 2009, Hitachi has adopted FASB Accounting Standards Codification (ASC) 280, “Segment Reporting,” and therefore changed its business segmentation. In accordance with this, Hitachi has shown figures for the previous fiscal year under the new segment classifications. Previously, Hitachi prepared segment information based on Japanese accounting standards.

Results by business segment were as follows.

[Information & Telecommunication Systems]

The segment recorded revenues of 1,705.5 billion yen, a decrease of 12% year over year. Software and services posted lower revenues year over year due to the impact of constrained IT investment, which was a byproduct of the sluggish Japanese economy. Hardware revenues also fell year over year, reflecting a decline in storage revenues due to the impact of foreign currency exchange rate fluctuations and lackluster demand. Furthermore, unit shipments of ATMs fell in Japan.

Segment operating income dropped 43.8 billion yen, to 94.5 billion yen. Software and services overall recorded lower operating income, reflecting lower services earnings due to decreased revenues, although software earnings were steady. Hardware also posted lower operating income in line with lower revenues.

[Power Systems]

Segment revenues were 882.1billion yen, up 2% year over year. One reason was strong sales of coal-fired thermal power generation systems overseas, notably in Europe and South Africa. In addition, sales of nuclear power generation systems were robust due to the construction of new plants and preventative maintenance in Japan. Moreover, higher sales of renewable energy-related systems, such as wind power generation systems, also contributed to the segment revenue growth.

Segment operating income improved 18.5 billion yen to 22.0 billion yen, the result of higher revenues, and better project management.

[Social Infrastructure & Industrial Systems]

The segment recorded revenues of 1,250.2 billion yen, down 6% year over year, reflecting lower sales of elevators and escalators, and industrial equipment for the manufacturing industry, as a consequence of the economic recession.

Segment operating income was 42.0 billion yen, an improvement of 7.6 billion yen year over year. Although earnings were impacted by lower revenues, the segment had fewer unprofitable projects due to better project management and also steps were taken to reduce costs.

[Electronic Systems & Equipment]

Segment revenues were 998.6 billion yen, up 2% year over year, despite a sharp drop in sales of semiconductor- and LCD-related manufacturing equipment due to constrained capital expenditures in the electronics field. The increase related mainly to the consolidation of Hitachi Kokusai Electric Inc. and Hitachi Koki Co., Ltd. in March 2009.

The segment reported an operating loss of 5.2 billion yen, which was 30.9 billion yen more than in fiscal 2008, as it fell into the red in the first half of fiscal 2009 due to much lower revenues. However, the segment returned to profitability from the third quarter (October-December 2009) due to reductions to fixed costs and materials procurement costs, as well as a partial recovery in capital investment, centered on semiconductors.

[Construction Machinery]

The segment reported a 19% decline in revenues year over year, to 583.6 billion yen due to soft global demand for construction equipment. However, a right spot was sharply higher sales of hydraulic excavators due to infrastructure building in China, which was part of the government’s stimulus package.

Segment operating income fell 33.6 billion yen year over year, to 17.6 billion yen due to the impact of lower revenues, despite the segment implementing cost-reduction measures.

[High Functional Materials & Components]

Segment revenues declined 20% year over year, to 1,249.3 billion yen. Although there were signs of a recovery from the latter half of fiscal 2009 in automotive components and LCD- and semiconductor-related products, revenues declined due to lower sales at Hitachi Metals, Ltd., Hitachi Chemical Co., Ltd. and Hitachi Cable, Ltd. attributable to declining global demand.

Operating income improved 19.1 billion yen, to 44.4 billion yen, even though revenues declined. This improved performance reflected reductions in fixed costs and materials procurement expenses and improved earnings from products for LCD- and semiconductor-related applications.

[Automotive Systems]

Segment revenues decreased 6% year over year, to 638.8 billion yen, reflecting the negative impact of sluggish demand worldwide through the first half of fiscal 2009. However, the second half of fiscal 2009 saw an improvement in revenues due to recovering demand in North America and market expansion in China. Economic stimulus programs by governments around the world also drove the rebound.

The segment recorded an operating loss of 5.4 billion yen, but this was a 55.0 billion yen improvement year over year. Although revenues declined, the segment realigned and integrated bases, adjusted its workforce and made progress with other business structure reforms as part of product portfolio realignment, helping the segment to become profitable from the third quarter (October-December 2009) of fiscal 2009.

[Components & Devices]

Segment revenues declined 23% year over year, to 754.8 billion yen, the result of lower sales of HDDs due to sluggish demand caused by constrained IT investment, and lower sales of displays for mobile phones and game consoles.

Operating income declined 4.6 billion yen, to 1.1 billion yen due to lower earnings in HDDs in line with decreased sales, despite the segment cost reduction measures within the segment.
 

Note: The HDD operations are conducted by Hitachi Global Storage Technologies (Hitachi GST), which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the year ended March 31, 2010 include the operating results of Hitachi GST for the period from January through December 2009.

[Digital Media & Consumer Products]

The segment recorded a 16% decrease in revenues, to 929.2 billion yen. In addition to lower sales of flat-panel TVs due to a large reduction of overseas sales channels, the decline was attributable to lower sales of air conditioners due to constrained capital investment and a cool summer in 2009 in Japan.

The segment reported an operating loss of 7.2 billion yen, but this was a 103.3 billion yen improvement year over year. The segment was profitable as a whole from the second quarter (July-September 2009) due to higher earnings from optical disc drives, in addition to improvement resulting from business structure reforms in flat-panel TVs. The latter included switching to procuring panels from outside the Hitachi Group, reducing overseas sales channels and adjustments to the workforce.
 

Note: The Optical disk drive operations are conducted by Hitachi-LG Data Storage, Inc (HLDS), which has a December 31 fiscal year-end, different from Hitachi’s March 31 year-end. Hitachi’s results for the year ended March 31, 2010 include the operating results of HLDS for the period from January through December 2009.

[Financial Services]

The segment reported a 5% year-over-year increase in revenues, to 419.6 billion yen, largely due to recording large cancellation penalty payment receipts, in addition to strong revenues from agricultural equipment leases and housing loans for consumers at Hitachi Capital Corporation.

Operating income improved 1.8 billion yen year over year, to 8.5 billion yen, as operating costs and financing costs declined and the segment implemented other cost-reduction measures.

[Others]

The segment recorded a 8% fall in revenues year over year, to 763.6 billion yen due to lower revenues at Hitachi Transport System, Ltd. due to soft demand, as well as lower revenues in other services businesses.

Segment operating income dropped 5.0 billion yen year over year, to 19.4 billion yen, due to the lower revenues and other factors.

(3) Revenues by Market

Revenues in Japan were 5,313.7 billion yen, down 9% year over year.

Outside Japan revenues declined 12%, to 3,654.7 billion yen due to falling global demand and other factors. As a result, the ratio of overseas revenues to consolidated revenues was 41%, the same as fiscal 2008.

(4) Capital Investment, Depreciation and R&D Expenditures

Capital investment on a completion basis, excluding leasing assets, decreased 42% year over year, to 247.4 billion yen. Hitachi continued to strictly select investments as a whole, but did increase investments in the Power Systems segment.

Depreciation, excluding leasing assets, decreased 9%, to 356.4 billion yen, mainly due to the strict selection of capital investments and realignment and integration of manufacturing bases.

R&D expenditures declined 11%, to 372.4 billion yen, which corresponded to 4.2% of consolidated revenues. This decline was the result of moving forward with business structure reforms, although Hitachi did increase development focused on the Power Systems segment.

(5) Outlook for Fiscal 2010

In terms of the overall business environment going forward, the Chinese economy is expected to maintain a high growth rate due to robust internal demand and the beneficial effects of government policy, although it faces such problems as dealing with rising real estate and other prices, and revaluation of the yuan. Southeast Asian countries, India, Brazil and certain other nations are also expected to maintain a steady recovery path in general. Emerging economies will thus more clearly become the key drivers of the world economy. Industrialized nations should also see their moderate recoveries continue, with growth rates of approximately 2% to 3% compared with the previous year. However, there are concerns that the pace of economic recovery will slow as the effects of economic stimulus measures wear off and monetary policy is normalized. There are also other causes of instability, including the possibility that sovereign debt　problems will spread in southern Europe and the yen’s appreciation.

The Japanese economy is expected to continue recovering, too. However, the ability of the economy to sustain a recovery under its own steam will be called into question even more as economic counter measures run their course.

Due to these economic conditions, at present Hitachi is forecasting the results shown above for fiscal 2010, the year ending March 31, 2011.
 

Making full use of the business base the Hitachi Group has built over the years, Hitachi will concentrate even more on the Social Innovation Businesses from three perspectives to create a more stable profit base: transforming into a truly global company, fusing information and telecommunication systems and power and industrial systems, and expanding environmental businesses.

Projections for fiscal 2010 assume an exchange rate of 85 yen to the U.S. dollar and 120 yen to the euro.

1-2. Financial Position

(1) Financial Position  

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Total assets as of March 31, 2010 decreased 451.9 billion yen from March 31, 2009, to 8,951.7 billion yen. This was the result of reducing operating assets, centered mainly on inventories, and implementing business structure reforms to improve cash flows. Interest-bearing liabilities declined 452.9 billion yen, to 2,367.1 billion yen, as Hitachi returned working capital to normal operating levels. Stockholders’ equity increased 234.7 billion yen, to 1,284.6 billion yen, due to capital raising and an improvement in pension liability adjustments. As a result, the total Hitachi, Ltd. stockholders’ equity ratio improved 3.2 points from March 31, 2009, to 14.4%. The debt-to-equity ratio, including noncontrolling interests, improved 0.25 points, to 1.04.

(2) Cash Flows

Operating activities provided net cash of 798.2 billion yen, a 239.3 billion yen increase from the previous fiscal year. In addition to a major improvement in net loss, this was due to the reduction of inventories and other factors.

Investing activities used net cash of 530.5 billion yen, 19.4 billion yen less year over year. The decrease was mainly due to the stricter selection of investments in property, plant and equipment.

Free cash flows, the sum of cash flows from operating and investing activities, was 267.7 billion yen.

Financing activities used net cash of 502.3 billion yen, a 786.7 billion yen change from the net cash provided in fiscal 2008. Although Hitachi procured funds through a capital raising, this decrease reflected tender offers for five publicly listed companies and the repayment of short-term debt due to the normalization of working capital.

The net result of the above items was a decrease of 230.3 billion yen in cash and cash equivalents, to 577.5 billion yen.

(3) Trends in Cash Flow Indexes

1. Hitachi, Ltd. stockholder’s equity ratio: Total Hitachi, Ltd. shareholders’ equity / Total assets
2. Equity ratio based on market value: Market capitalization / Total assets
3. Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flows from operating activities
4. Interest coverage ratio: Cash flows from operating activities / Interest charges

Note: Market capitalization is computed based on the number of issued shares, excluding treasury stock.

1-3.Basic Policy on the Distribution of Earnings and Fiscal 2009 and 2010 Dividends

Hitachi views enhancement of the long-term and overall interests of shareholders as an important management objective. The industrial sector encompassing energy, information systems, social infrastructure and other primary businesses of Hitachi is undergoing rapid technological innovation and changes in market structure. This makes vigorous upfront investment in R&D and plant and equipment essential for securing and maintaining market competitiveness and improving profitability. Dividends are therefore decided based on medium-to-long term business plans with an eye on ensuring the availability of internal funds for reinvestment and the stable growth of dividends, with appropriate consideration of a range of factors, including Hitachi’s financial condition, results of operations and dividend payout ratio.

Hitachi believes that the repurchase of its shares should be undertaken, when necessary, as part of its policy on distribution to shareholders to complement the dividend payout. In addition, Hitachi will repurchase its own shares on an ongoing basis in order to implement a flexible capital strategy, including business restructuring, to maximize shareholder value so far as consistent with the dividend policy. Such action will be taken by Hitachi after considering its future capital requirement under its business plans, market conditions and other relevant factors.

Based on the above policies, regrettably, Hitachi determined to forgo the payment of the dividend for fiscal 2009. For fiscal 2010, Hitachi plans to pay the interim dividend of 5 yen per share, which consists of ordinary dividend of 3 yen per share and commemorative dividend of 2 yen per share for Hitachi's centennial anniversary. Year-end dividend has not been determined.

1-4. Business Risk and Other Risks

The Hitachi Group is engaged in a broad range of business activities on a global scale. Furthermore, the group utilizes highly sophisticated and specialized technologies and information to conduct these businesses. As a result, business activities are vulnerable to a diverse array of risk factors.

Major risk factors include, but are not limited to, economic trends in major markets; changes in foreign exchange rates; the fundraising environment; falls in prices of shareholdings; losses related to investments in affiliated companies; intensifying competition; rapid technological innovations; changes in estimates and costs related to long-term contracts, the procurement of raw materials and components; supply and demand balance; the ability to develop an effective strategy for strengthening the Social Innovation Business; progress in business restructuring; overseas business activities; the ability to implement mergers and acquisitions and to form strategic alliances; protection, maintenance and acquisition of intellectual property; litigation and other legal proceedings; product and service quality and liability; natural disasters and similar events; reliance on information systems; the management of confidential information; retirement benefit liabilities; and recruiting activities.

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
• exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
• the potential for significant losses on Hitachi’s investments in equity method affiliates;
• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
• rapid technological innovation;
• the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials;
• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
• general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
• uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

2. Management Policy

(1) Basic Management Policy

Amid intensifying competition in world markets, the Hitachi Group has been expanding its business through development of Hitachi and its related companies (subsidiaries and affiliated companies). Hitachi aims to improve its development by delivering competitive products and services imbuing higher value for customers. By taking full advantage of the diverse resources of the Hitachi Group while at the same time reviewing and restructuring businesses, Hitachi will bolster its competitiveness. This process will be consistent with Hitachi’s basic management policy, which is to increase shareholder value by meeting the expectations of customers, shareholders, employees and other stakeholders.

(2) Medium- and -Long-term Management Strategy

Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them, in order to build a more stable earnings base. The Company will concentrate on three key areas— transforming into a truly global company; fusing information and telecommunication systems and power and industrial systems; and expanding environmental businesses—capitalizing fully on the Hitachi Group’s business base built up over the years.

(3) Issues Facing Hitachi Group

The Hitachi Group aims to achieve strong growth by implementing the following measures to improve its earnings and drive growth going forward. Hitachi sees increasing demand for addressing global environmental problems, particularly in industrialized nations, and the building of social infrastructure in emerging nations as perfect business opportunities in this context.

• Hitachi will channel business resources to the Social Innovation Business. It intends to leverage the collective strengths of the Hitachi Group to bring about social innovation through the fusion of information and telecommunication systems and social infrastructure businesses.
• Hitachi will draw upon the Hitachi Group’s outstanding environmental technologies to provide products and services with a lower environmental impact and thereby help protect the natural environment.
• Hitachi plans to develop the Social Innovation Business globally. In order to address customer needs, Hitachi will team up with local partners and develop more locally based operations. Furthermore, Hitachi will recruit and develop diverse human resources from various regions.
• The year 2010 marks the centenary of Hitachi’s foundation. In order to engineer the revival of a strong Hitachi for the next 100 years, the Company will implement the following measures.
• Adhering to its corporate credo of contributing to society through technology, Hitachi will engage in advanced R&D activities and fully utilize intellectual property.
• Hitachi will continuously seek to optimize its business portfolio, restructuring businesses as necessary, including withdrawal and divestment, based on business profitability and on synergies with the Social Innovation Business.
• Hitachi will work to improve its operations by continuously implementing cost-reduction programs to decrease fixed, procurement and other costs. Additionally, Hitachi will work to improve cash flows by reducing inventories, quickly collecting accounts receivables and taking other actions.
• Hitachi will rigorously strengthen MONOZUKURI (manufacturing) capabilities to achieve high quality so that it can provide safe and reliable products to customers.

Recognizing the importance of living up to the trust placed within society, Hitachi will ensure that it remains steadfast and compliant, so as not to infringe upon any laws or regulations in order to raise the value of the Hitachi brand.

Contacts

Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com

21 May 2010

Tokyo, Japan, May 21, 2010 - The Government of Saskatchewan (“Saskatchewan”) and Hitachi, Ltd. (NYSE:HIT/TSE:6501, “Hitachi”) announced today that they have reached a landmark agreement with the signing of a joint declaration to work together and share information for developing energy and environmental technologies, including Carbon Capture & Storage (CCS) for thermal power plants, renewable energy and smart grid technologies.

Saskatchewan is committed to protecting the environment and to promoting the sustainable use of natural resources to enhance economic and social benefits. Saskatchewan has adopted a target of a 20 percent reduction in greenhouse gas emissions from 2006 levels by 2020.

Hitachi, for its part, has set a goal of curbing 100 million tons per annum of CO2 emissions from Hitachi Group products by fiscal 2025. Hitachi is aiming to help create a low-carbon society by providing products such as nuclear power plants, renewable energy and highly efficient coal-fired thermal power plants in the electric power generation field, which accounts for around 70% of Hitachi’s targeted CO2 emission reductions. Hitachi is particularly strengthening the development of CCS technologies, which have attracted interest as a means of drastically reducing CO2 emissions from thermal power plants. Hitachi boasts proprietary CCS technologies, including Oxyfuel combustion technologies that efficiently capture CO2 and chemical absorption technologies which capture liquefied CO2 in flue gas emissions.

Hitachi and Saskatchewan province have a 40-year cooperative relationship in the power generation field, including work on coal, natural gas and wind generation technologies. Hitachi has provided generation facilities to Saskatchewan Power Corporation (“SaskPower”), a power utility based in Saskatchewan province. In 1988, Hitachi established Hitachi Canadian Industries Ltd. as a manufacturing base for power generation equipment in Saskatchewan province with SaskPower, deepening its relationship with this power utility and Saskatchewan province. In February 2010, SaskPower and Hitachi agreed to collaborate on the advancement and implementation of technology in the fields of low-carbon energy technologies, including CCS.

Today’s agreement with Hitachi is Saskatchewan’s first such agreement with an energy company in the energy and environmental technologies field and will strengthen existing and ongoing efforts to commercialize low-carbon energy technologies. Additionally, it will enable the further enhancement of energy security while assisting in the protection of the environment and natural resources.

A primary focus of this agreement is to commercialize low-carbon energy technologies that involve CCS—a field led by Saskatchewan, which is home to the world’s largest monitored CCS demonstration project. The agreement also potentially benefits the energy sectors in Canada’s resource-rich New West region as successful commercialization would create new demand for conventional energy resources.

Based on today’s agreement, Saskatchewan and Hitachi will supply each other with information on new low-carbon energy technologies as well as cooperate in five fields: CCS technologies, AQCS (Air Quality Control Systems), boiler and steam turbine generators, renewable energy technologies and smart grid technologies.

“This agreement reinforces a healthy, well-established partnership between two world leaders in clean energy innovation,” Saskatchewan Premier Brad Wall said. “Saskatchewan is serious about clean energy innovation and about helping to set the pace internationally, not only in terms of expertise and infrastructure but also with respect to commercialization of technology. This agreement will help us jointly pursue these goals.”

Hitachi President Hiroaki Nakanishi commented, “Hitachi has various outstanding technologies in the environment and energy field, including CCS, and we are strengthening and proactively developing new technologies for creating a low-carbon society. I feel extremely honoured that our highly reliable energy and environmental technologies were recognized by Saskatchewan province for their sophistication and in becoming the first private-sector partner in the province. Hitachi has built relationships of trust with Saskatchewan province and SaskPower over many years. Based on these relationships, we are committed to stepping up efforts in fields that can utilize CCS, renewable energy and other low-carbon energy technologies in Canada, and develop this business around the world.”

Hitachi and Saskatchewan will contribute to the realization of a low-carbon society and environmental and natural resource protection by promoting the development of energy and environmental technologies under this agreement.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts
Province of Saskatchewan
Wes Jickling
Phone: +1-306-787-7855
E-mail: wes.jickling@gov.sk.ca

Hitachi, Ltd.
Japan: Matt Takahashi
Hitachi, Ltd.
+81-3-5208-9324
Masahiro.takahashi.rh@hitachi.com

U.S.: Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
Masayuki.Takeuchi@hal.hitachi.com

31 May 2010

Tokyo, May 31, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it has formulated a management plan “2012 Mid-term Management Plan” to promote "Growth Driven by Social Innovation Business" & "Solid Financial Base". Summary of “2012 Mid-term Management Plan” are below.

1. Key Strategy

(1) FY2009 Results and FY2012 Targets

* including noncontrolling interests

(2) Key Strategy: "Growth Driven by Social Innovation Business" & "Solid Financial Base"

Growth by the Social Innovation Business; made up of fusion of social infrastructure and IT, and materials and key devices

1. Leverage Hitachi’s strengths to promote a global growth strategy
   Strengthen locally led project control centers, develop detailed strategies in each region
2. Focus business resources on the Social Innovation Business
   Invest 1 trillion yen in the FY2010 to FY2012 period, spend 600 billion yen on R&D expenses
3. Strengthen the business structure to stabilize profitability
   Rigorously cut costs, improve net other deductions, etc., become a global CSR leader

(3) Key Strategy: Management Focus

1. Global/ Leverage Information, Experience and Trust of Hitachi to develop globally
2. Fusion/ Address social innovation needs by synergistic integration of social infrastructure and IT
3. Environment/ Refine ability to build environmental systems by drawing on environmental protection technologies and experience

2. Global Growth Strategy

(1) Promote and expand global localization

1. Strengthen project control center via local leadership
2. Accelerate development of a detailed strategy in each region
   1. Maintain Japan as a strong business base
   2. Emerging markets: Tap into robust social innovation demand, cooperate with partners
   3. Industrialized countries: Make environmental and integrated technology proposals to address demand to upgrade social infrastructure
   4. Japan: Develop environmental and integrated services leveraging a strong business base

(2) Expand business opportunities in collaboration with partners

1. China/ Cooperative projects in low-carbon society building and resource recycling fields [National Development and Reform Commission], Sino-Singapore Tianjin Eco-City project [Sino-Singapore Tianjin Eco-City Investment and Development Co., Ltd.]
2. India/ Delhi Mumbai Industrial Corridor [Delhi Mumbai Industrial Corridor Development Corporation Limited]
3. Singapore/ Strengthening of Social Innovation Business in the “Asian belt” zone [Singapore/Economic Development Board]

(3) Expand new businesses leveraging Hitachi’s strengths

1. Eco-friendly city
2. Water and sewage operation and management
3. Eco-friendly data centers
4. Energy-saving systems for LNG plants

(4) Global Growth Strategy Target

3. Focusing Business Resources on the Social Innovation Business

Focusing business resources／investment total 1.6 trillion yen on the Social Innovation Business

(1) Concentrate investments in FY2010-FY2012

1. Allocate 70% of total amount (1.4 trillion yen) for capital expenditures and strategic investments
2. FY2010-FY2012 total investment 1 trillion yen

(2) Strategically allocate R&D investment

1. Allocate 50% of total amount (1.2 trillion yen)
2. FY2010-FY2012 R&D investment 600 billion yen

<Major investment items>

Information & Telecommunication Systems
- Data center business

Power Systems
- Ramp up production of nuclear power plants

Social Infrastructure & Industrial Systems
- Increase production of railway systems, Elevator and escalator research laboratory, Healthcare

Construction Machinery
- Increase production in emerging markets, develop hybrid, electric drive

High Functional Materials & Components
- Develop materials for batteries, inverters and other environmental products

4. Strengthening the Business Structure to Stabilize Profitability

(1) Status of Improvement in “Underperforming” Businesses

(2) Cost-Cutting Measures

Reduce procurement costs, continue reducing fixed cost

(3) Reinforce Financial Position

• Improve profitability
  Expand strong products to improve operating income ratio, solid asset management, expand scope of consolidated tax filing
  - Consistently generate net income attributable Hitachi, Ltd. of at least 200 billion yen
• Strengthen financial position
  Raise net income attributable Hitachi, Ltd. to strengthen stockholders’ equity, reduce total assets, reduce interest-bearing debt, and continuously generate positive free cash flows
  - D/E ratio (including noncontrolling interests) to 0.8% times or below, total Hitachi, Ltd.’s stockholders’ equity ratio 20%

(4) Promote In-house Company System

In-house Company: Strengthen ability to quickly respond to change

• Delegation of authority in accordance with internal ratings
  - Speedy, autonomous management
• In-house Company evaluations based on FIV(Future Inspiration Value), operating income and cash flows

Corporate: Promote Hitachi Group management focused on generating synergies

• Share global advanced IT platform, manufacturing, procurement and brand
  - Lead the improvement of in-house companies competitiveness
• Capture faster synergies in corporate marketing, R&D and engineering divisions
  - Expand business coordination fields across in-house companies

(5) Become a Global CSR Leader

• Integrate CSR with management and business strategy
  - Transform into a truly global company with the same values as society

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
• exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
• the potential for significant losses on Hitachi’s investments in equity method affiliates;
• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
• rapid technological innovation;
• the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
• fluctuations in product demand and industry capacity;
• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials;
• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
• general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
• uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts

Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com

9 June 2010

Tokyo, June 9, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced strategies for seven businesses toward achieving the goals of its “2012 Mid-term Management Plan. On May 31, 2010, Hitachi announced “2012 Mid-term Management Plan,” which is three year plan until the fiscal year ending March 31, 2013. The primary goals of this new medium-term management plan are to achieve growth driven by the Social Innovation Business and establish a solid financial base.

Key Strategy

1. Information & Telecommunication Systems Business

1-1. FY2009 Results and FY2012, 2015 Targets [Billions of yen]

1-2. Business Targets

“Transform into a global company capable of providing reliability and security in high-profile fields around the world as a solutions partner based on strong products and services”

1-3. Business Strategy

(1) Strengthen and expand global business [Billions of yen]

[1] Expand business globally based on three pillars (Storage solution business, Consulting business, Integrated IT services business) [Billions of yen]

[2] Expand Business in Emerging Markets
- Business development based on strong products such as storage and ATMs [Billions of yen]

[3] Develop a social infrastructure building business by combining the Hitachi Group’s collective strengths

(2) Add value to businesses and create services [Billions of yen]

[1] Expand highly reliable cloud computing services [Billions of yen]

[2] Expand platform services

[3] Add value to the systems integration and services businesses

[4] Establish a global consulting network

(3) Reinforce management base

 [1] Develop new customers and expand business scale by optimizing tasks among Hitachi Group companies
[2] Strengthen operations
[3] Pursue improved quality and productivity by strengthening MONOZUKURI (Manufacturing Capabilities) and increase customer satisfaction further

2. Power Systems Business

2-1. FY2009 Results and FY2012, 2015 Targets [Billions of yen]

2-2. Business Targets

“To become a leading Company in creating global society’s future with cutting-edge energy technologies”

2-3. Business Strategy

(1)Focus on Growth Regions and Fields

[1] Expand revenues focusing on emerging markets (Asia, etc.)
[2] Focusing on growth fields with high contribution to the environment

(2)Promoting Globalization

[1] Expand global business operations centered on three core regional bases (Europe, Asia and the Americas)
[2] Promoting localization and partnering
[3] Cooperate to realize low-carbon society --- Collaborate with China’s National Development and Reform Commission

(3) Strengthen Business Competitiveness

[1] Optimize and strengthen production and procurement
[2] Bolster overseas project management capabilities
[3] Promote globalization of services and strengthen services business
[4] Strengthen global R&D Network and promote development of future technologies

(4) Fusion of Power System and ICT: Total proposals for creating highly eco-friendly new social infrastructure

[1] Provide new solutions through “fusion”
[2] Established Smart City Business Management Division in April 2010 for creating solutions

2-4. Each Business Strategy

(1)Thermal Power Business [Billions of yen]

[1] Strengthen highly efficient coal-fired thermal power business
[2] Accelerate development of “clean coal” technology
[3] Expand medium-capacity gas turbine business

(2)Nuclear Power business [Billions of yen]

[1] Deploy new nuclear power plants in the global market
[2] Provide one stop service through the total nuclear fuel cycle
[3] Develop nuclear technologies and increase production capacity
 

(3) Renewable Energy Business [Billions of yen]

[1] Strengthen business base as systems integrator
[2] Differentiate through systems proposal capabilities based on advanced technologies

3. Social Infrastructure & Industrial System Business

3-1. FY2009 Results and FY2012, 2015 Targets [Billions of yen]

3-2. Business Targets

“Innovate by fusing IT and technologies supporting social infrastructure and industrial systems”

3-3. Business Strategy

(1) Social Infrastructure Systems Business [Billions of yen]

*FY2015 Targets: Operating income ratio 6%, Overseas revenue ratio over 30%
[1] Strengthen develop water business savices in Japan
[2] Enter overseas water business in earnest

(2) Industrial Systems Business [Billions of yen]

*FY2015 Targets: Operating income ratio 5%, Overseas revenue ratio over 35%
[1] Expand highly efficient, environmentally friendly components and systems businesses

(3) Railway Systems Business [Billions of yen]

*FY2015 Targets: Operating income ratio 8%, Overseas revenue ratio over 60%
[1] Sustainable growth in Japan
[2] Expand overseas businesses

4. Information Control Systems Business Strategy

4-1. FY2009 Results and FY2012, 2015 Targets [Billions of yen]

*Revenues are included separately those of Information & Telecommunication Systems Company, Power System Company, and  Industrial& Social Infrastructure Systems Company.

4-2. Business Targets

“We will drive the Social Innovation Business through Smart & Smooth social infrastructure systems that fuse information and control.”

4-3. Business Strategy

(1) Promote businesses involving collaborative creation with customers

[1] Provide solutions that fuse information and control for railways
[2] Provide complete systems by developing a support package for plant operation and maintenance
 

(2) Develop next-generation social infrastructure systems by drawing on the collective strengths of the Hitachi Group

[1] Concentrate investment in joint R&D with the Supervisory Office for Business coordination (energy, transport, etc.)
[2] Collaboration with Smart City Business Management Division (Control of business and development across the group)
[3] Development of next-generation smart grid solutions
 

(3) Use urban development projects as a springboard for expanding into global growth markets

[1] Strengthen ties with governments to create projects (Tianjin Eco-City, Delhi Mumbai Industrial Corridor feasibility study, etc)
[2] Establish global manufacturing and SI bases
[3] Actively propose inter-city high-speed rail plans

5. Urban Planning and Development Systems Business Strategy

5-1. FY2009 Results and FY2012 Targets [Billions of yen]

5-2. Business Targets

“Strengthen and expand the “Whole Buildings” facility management business in Japan, including elevator and escalators. Reinforce the elevator and escalator business in the “Asian Belt Zone”, especially in China.”

5-3. Business Strategy

(1) Business Strategy (Japan)

<Elevators and Escalators business>
[1] Continue securing new equipment orders
[2] Strengthen modernization business to counter falling new equipment demand
[3] Generate stable earnings by strengthening maintenance business
<Building Facility Management business>
[1] Provide services for whole buildings with environmental consideration

(2) Business Strategy (Overseas)

[1] Expand business in China
[2] Implementing Measures to expand business by Asia regional HQ
[3] Highly efficient development framework in 4 location (Japan, China (Shanghai, Guangzhou) and Singapore)
[4] Build a highly efficient global manufacturing and supply framework

6. Automotive Systems Business Strategy

6-1. FY2009 Results and FY2012, 2015 Targets [Billions of yen]

6-2. Business Targets

”Establish a presence as a global supplier.”

6-3. Business Strategy - Basic Strategy by Value Chain

[1] Strengthen R&D, Design  
[2] Strengthen MONOZUKURI (Manufacturing capabilities)
[3] Strengthen marketing and sales
[4] Strengthen global business foundation
 

6-4. Priority Policies

[1] Bolster “Multifaceted MONOZUKURI” (Strengthen R&D and Innovate production technology)
[2] Strategic cooperation with domestic and overseas manufacturers
[3] Achieve global operations (Accelerate localization)

7. Consumer Business

7-1. FY2009 Results and FY2012 Targets

(1) Consumer Business [Billions of yen]

(2) Hitachi Consumer Electronics Co., Ltd. [Billions of yen]

(3) Hitachi Appliances, Inc [Billions of yen]

7-2. Business Strategy

(1) Consumer Business

[1] Expand earnings through video and components businesses created from visual technologies
[2] Home appliance business
- Achieve stable profitability in flat-panel TVs
- Expand electrical home appliance business overseas, expand new environment fields
[3] Air conditioning business
- Expand further globally

(2) Hitachi Consumer Electronics Co., Ltd.

“Create a continuously profitable structure centered on the video and components business.”
[1] LCD projectors: Secure No.1 share worldwide (FY2011) and increase earnings
(*)Share in monetary terms. Excludes home use and SVGA
[2] Optical disk drive: Maintain No.1 share worldwide and increase earnings  (*)Share in unit
[3] Flat-panel TV: Achieve stable profitability

(3) Hitachi Appliances, Inc.

[1] Home Appliances Business
“Expand global business and new environment fields revenues”     [Billions of yen]

　*The above figures include revenues of solar power generation business etc. of Hitachi Consumer Marketing, Inc (sales, engineering, and maintenance service company of Home Appliances)
- Promote a strategy of adding value with core energy-saving and environmental technologies

[2] Air Conditioning Business
“Expand global business further”                                                   [Billions of yen]

- Expand environmentally friendly products based on core heat pump technologies

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
• exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
• the potential for significant losses on Hitachi’s investments in equity method affiliates;
• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
• rapid technological innovation;
• the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
• fluctuations in product demand and industry capacity;
• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials;
• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
• general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
• uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts

Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com

17 June 2010

Promoting the large-scale industrial battery business, with a view toward Smart Grids

Tokyo, June 17, 2010 --- Hitachi, Ltd. (NYSE:HIT/TSE:6501,hereinafter Hitachi) today announced that its strategy for strengthening the battery business which includes batteries for hybrid and electric vehicles and railcars. On April 1, Hitachi established the Battery Systems Company as a new in-house company to further strengthen the battery business with a focus on the steadily growing lithium-ion battery market. Hitachi will promote the Battery Solution Business, which includes systems for maintaining optimum control of battery recharging and discharging in large-scale industrial applications such as construction machinery and uninterruptible power system (UPS), as well as smart grids and other future applications. This business will also include maintenance and other services related to the above applications. Battery Systems Company will aim for revenues of 250 billion yen in fiscal 2014 in the battery business, with a particular focus on lithium-ion batteries.

In recent years, lithium-ion batteries – a key device in the context of environmental measures – have gained attention as lightweight, compact, high-energy-density secondary batteries that deliver the same performance as nickel metal-hydride batteries in a package that is about half the size and weight, and about one-third the size and weight of equivalent lead acid batteries. Currently, the lithium-ion battery market focuses on consumer product applications, including mobile phones, notebook PCs, and digital cameras, but the market for these batteries is expected to continue growing in the future, with a focus on environment-friendly vehicles such as hybrid and electric vehicles and electric scooters, as well as construction machinery and other industrial applications. With new applications arising in UPS, smart grids, and other fields, the lithium-ion battery market is expected to grow to a scale of about 4 trillion yen in 2018.

Based on these market trends, on April 1 of this year, Hitachi established the “Battery Systems Company,” a new in-house company comprised of two existing companies – Hitachi Maxell, Ltd. and Hitachi Vehicle Energy, Ltd. – to further strengthen the battery business with a focus on the steadily growing lithium-ion battery market.

Under the leadership of the Battery Systems Company, Hitachi will expand its business targeting the sales of battery cells, and at the same time will promote the rollout of the Battery Solution business, which includes systems for maintaining optimum control of battery recharging and discharging, as well as maintenance and other related services. In battery recharging/discharging control systems, Hitachi will utilize the control technologies cultivated within the Hitachi Group in a variety of business fields. At the same time, it will collaborate with Shin-Kobe Electric Machinery Co., Ltd., a group company currently involved in the lead rechargeable battery and lithium-ion battery businesses, in promoting batteries for large-scale industrial applications.

In May of this year, as part of efforts to strengthen the industrial battery business, Hitachi initiated a Group-wide development project with a view toward “smart cities,” and began development of cells and control platforms that can be used in common in a wide range of industrial applications. This project will be conducted over a period of three years, with a total investment of 5 billion yen.

By unifying production, procurement, and other activities, Hitachi will promote optimization of business structures throughout the Hitachi Group in a wide range of battery business fields, from consumer products to large-scale industrial batteries.
Through the Battery Solution Business, Hitachi will support the Social Innovation Business in diverse fields including Green Mobility and new energy.

Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
• exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
• the potential for significant losses on Hitachi’s investments in equity method affiliates;
• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
• rapid technological innovation;
• the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
• fluctuations in product demand and industry capacity;
• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials;
• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
• general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
• uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts
Japan
Hajime Kito
Hitachi, Ltd.
+81-3-5208-9325
hajime.kito.qy@hitachi.com

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com

22 June 2010

Tokyo, June 22, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) and Mitsubishi Heavy Industries, Ltd. (MHI) today announced that they have entered into a basic agreement to work cooperatively in the field of intra-city railway systems for overseas markets, with the goals of strengthening competitiveness in global markets and expanding business as a result. Hitachi and MHI find overseas intra-city railway systems are the area where the two companies can demonstrate their competitiveness most, thus they decide to work together ranging from marketing to construction, installation and maintenance in the field.

Social infrastructure such as power systems and railway systems, is expected to expand as a market, particularly in emerging countries. Even in developed nations and regions, which already have a certain level of social infrastructure, there is demand for upgrading social infrastructure supported by advanced information and telecommunications systems.

Railway systems, which are a form of green mobility, are winning increasing recognition as a means of transporting large volumes of passengers and freight with a small environmental impact. As a consequence of this, there are active moves in a host of regions around the world, including Europe, Asia, the Middle East, North America, and Central and South America, to build new railway systems or extend existing ones, or make systems faster with improved railcars and systems. The overseas railway systems market is thus continuing to grow.

Today’s agreement seeks to capitalize on these sorts of market trends. Hitachi and MHI will work together as appropriate in a broad range of fields in overseas intra-city railway system projects, ranging from marketing to design, manufacturing, procurement, engineering, construction, installation, maintenance and development. With their complementary product lineups, Hitachi and MHI will respond to various railway system needs in the urban transportation field. The mixed product lineups include conventional commuter trains for subways and other systems; new transportation systems such as automated people movers (APM) and light rail transit (LRT); and monorails.

Hitachi and MHI each boast advanced product lineups, technologies and know-how concerning entire railway systems, as well as their individual constituent elements, including railcars, signaling systems, telecommunications, power systems and tracks. Above all else, the two companies have earned the trust of markets, Hitachi for its railway systems hardware and software development capabilities, and system engineering strengths, and MHI for its technological development capabilities, overseas project record, plant engineering know-how, and wide range of partnerships.

Under this agreement, Hitachi and MHI aim to leverage each other’s experience and expertise to actively develop the railway systems business overseas.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

About Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated sales of 2,940.8 billion yen in fiscal 2009 (year ended March 31, 2010). MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.
For more information, please visit the MHI website (http://www.mhi.co.jp/en/index.html).

Contacts
Japan
Matt Takahashi
Hitachi, Ltd.
+81-3-5208-9324
Masahiro.takahashi.rh@hitachi.com

Hideo Ikuno
Mitsubishi Heavy Industries, Ltd.
+81-3-6716-5277
h.ikuno@daiya-pr.co.jp
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
Masayuki.Takeuchi@hal.hitachi.com

30 June 2010

Tokyo, Japan, June 30, 2010 --- Panasonic Corporation (NYSE: PC / TSE: 6752, “Panasonic”), Hitachi, Ltd. (NYSE:HIT / TSE:6501, “Hitachi”) and Hitachi Displays, Ltd. (“Hitachi Displays”), Hitachi’s subsidiary which is engaged in the small and medium-sized LCD panel business, announced that Hitachi Displays conducts a corporate split today to establish IPS Alpha Support Co., Ltd (“IPS Alpha Support”). IPS Alpha Support will assume Hitachi Displays’ entire shareholding of 50.02% shares of IPS Alpha Technology, Ltd. (“IPS Alpha”), which designs, manufactures and sells large-sized LCD TV panels. Also today, Hitachi Displays transfers 94% shares of IPS Alpha Support to Panasonic, and 6% shares to Hitachi.

As a result of these transactions, Panasonic will effectively acquire 47.02% shares of IPS Alpha. Adding to its existing shareholding of 44.98%, Panasonic will have an effective investment in IPS Alpha of 92%.

Hitachi will have an effective investment in IPS Alpha of 5% during the current fiscal year, by acquiring 6% shares of IPS Alpha Support and other measures.

Outline of IPS Alpha Technology (As of June 30, 2010)

Outline of Hitachi Displays (As of June 30, 2010)

About Panasonic Corporation
Panasonic Corporation is a worldwide leader in the development and manufacture of electronic products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated net sales of 7.42 trillion yen (US$79.4 billion) for the year ended March 31, 2010. The company's shares are listed on the Tokyo, Osaka, Nagoya and New York (NYSE: PC) stock exchanges. For more information on the company and the Panasonic brand, visit the company's website at http://panasonic.net.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts
PR Group, Corporate Communications Headquarters
Panasonic Corporation
(Osaka) +81-6-6908-0447
(Tokyo) +81-3-3436-2621

Hajime Kito
Hitachi, Ltd.
+81-3-5208-9325

Hiromichi Moriguchi
Hitachi Displays, Ltd.
+81-3-4554-5555

Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987

5 July 2010

Tokyo, July 5, 2010 – Hitachi, Ltd. (NYSE: HIT / TSE: 6501, “Hitachi”), Mitsubishi Electric Corporation (TSE: 6503, “Mitsubishi Electric”) and Mitsubishi Heavy Industries, Ltd. (TSE: 7011, “MHI”) today announced that they have reached a basic agreement calling for the three companies to initiate concrete discussions toward consolidation of their hydroelectric power generation system operations in a quest to strengthen and expand related business. Going forward the three companies look to jointly establish an operational company and build up a coherent business structure by integrating their various activities pertaining to hydroelectric power generation systems, including marketing, servicing, engineering, development and design, in order to further develop the business aggressively.

In the coming years, hydroelectric power generation is expected to attract continuous demand as a clean renewable energy contributing toward the realization of a low-carbon society. In Japan, while the number of projects to build large-scale new plants has been decreasing, demand for renovation and preventive maintenance of existing power generation facilities and for upgrading of power generation capacity is expected to remain solid. In overseas markets, vigorous and sustained demand is anticipated in such countries as China, where large-scale electric power development projects leveraging the nation’s abundant water resources are in progress, as well as in Latin America and India. The business environment continues to be severe, however, due to Chinese manufacturers’ expansion into overseas markets, in addition to existing competition with European companies.

Under these business circumstances, Hitachi, Mitsubishi Electric and MHI reached a common recognition that the most effective and expeditious means to strengthen and expand related business would be to pool their respective operating resources and engage jointly in hydroelectric power generation system operations. Through integration of their engineering, development and design functions, the three companies will secure the human resources to maintain and pass on to the next generation their technologies and expertise unique to hydroelectric power generation system business. With this initiative, the companies also will strengthen the competitiveness of their world-leading technologies in pumped storage power generation, particularly in a field where high speeds, large capacities and high heads are required. Especially in the area of variable-speed pumped-storage power generation*, which is superior in responding to fluctuations in electricity demand and therefore expected to attract rising market demand, the three companies aim to secure the world’s leading position. For manufacturing, an optimal production structure will be established through organic coordination of the three companies’ production facilities and development of overseas activities as well.

Through business integration, the three companies will secure knowledge of market needs precisely and strengthen and expand their hydroelectric power generation system business through development and provision of products offering the advanced technologies required. Through these activities, the three companies look to contribute further toward the realization of a low-carbon society and stable supply of electricity.

* Note: A pumped storage power generation system consists primarily of an underground power generation plant and two water reservoirs – on the upper and lower sides of the plant. By releasing the water stored in the upper reservoir into the lower reservoir and thereby driving pump-turbines, power is generated. By pumping up the water in the lower reservoir to the upper reservoir using surplus electricity when electricity demand is low, repetitive power generation becomes possible. A variable-speed pumped-storage power generation system, which is capable of instant adjustment of power generation, is regarded as a promising technology for large-scale power generation/storage systems that contribute to power grid stability.

Outline of New Company (as currently planned)

1. Operation commencement: October 1, 2011
2. Shareholders:
   • 50%: Hitachi, Ltd.
   • 50%: Two Mitsubishi companies (Mitsubishi Electric Corporation and Mitsubishi Heavy Industries, Ltd.), with each company’s shareholding ratio to be decided later.
3. Scope of business:
   • Marketing, installation and after-sale servicing of hydroelectric power generation systems, for electric utilities both in Japan and overseas.
   • Engineering relating to hydroelectric power generation systems
   • Development and design of main components for hydroelectric power generation systems, including water turbines, water turbine generators and control systems

N.B. The company name, representative, head office location, capitalization, etc. will be decided at a later date.

About Hitachi, Ltd.
Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them.

For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

About Mitsubishi Electric Corporation
With over 85 years of experience in providing reliable, high-quality products to both corporate clients and general consumers all over the world, Mitsubishi Electric Corporation (TSE: 6503) 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 building equipment. The company recorded consolidated group sales of 3,353.2 billion yen (US$ 36.1 billion*) in the fiscal year ended March 31, 2010.

For more information visit http://global.mitsubishielectric.com
*At an exchange rate of 93 yen to the US dollar, the rate given by the Tokyo Foreign Exchange Market on March 31, 2010

About Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries, Ltd. (TSE: 7011,”MHI”), headquartered in Tokyo, Japan, is one of the world’s leading heavy machinery manufacturers, with consolidated sales of 2,940.8 billion yen in fiscal 2009 (year ended March 31, 2010). MHI’s diverse lineup of products and services encompasses shipbuilding, power plants, chemical plants, environmental equipment, steel structures, industrial and general machinery, aircraft, space rocketry and air-conditioning systems.

For more information, please visit the MHI website (http://www.mhi.co.jp/en/index.html).

PRESS CONTACT
Hitachi, Ltd.
Japan:
Takeshi Kawakami
Hitachi, Ltd.
Tel: +81-3-5208-9324
takeshi.kawakami.mk@hitachi.com

U.S.:
Mickey Takeuch
i Hitachi America, Ltd.
Tel: +1-914-333-2987
Masayuki.Takeuchi@hal.hitachi.com

Mitsubishi Electric Corporation
Public Relations Division
Tel: +81-3-3218-3380
prd.gnews@nk.MitsubishiElectric.co.jp
http://global.mitsubishielectric.com/news/

Mitsubishi Heavy Industries, Ltd.
Hideo Ikuno: h.ikuno@daiya-pr.co.jp
Tel: +813-6716-5277, Fax: +813-6716-5929
Daiya PR (in charge of public relations for Mitsubishi Heavy Industries, Ltd.)

30 July 2010

Tokyo, July 30, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced revisions to the Company’s consolidated business forecasts for the first half of fiscal 2010, the year ending March 31, 2011, which were announced on May 11, in light of recent business performance.

1. Revisions of Consolidated Interim Business Forecasts for Fiscal 2010

(From April 1 to September 30, 2010) (Millions of yen)

Reasons for Revisions
Hitachi has raised its overall revenue forecast for the first half of fiscal 2010, the six-month period from April 1 to September 30, 2010, from the previous forecast issued on May 11, 2010, due to expectations for firm growth as a whole in line with recovering demand, particularly in automotive- and electronics-related fields.

Hitachi has also raised its forecast for operating income from the previous forecast due to projected higher revenues, primarily in the Electronic Systems & Equipment, High Functional Materials & Components and Digital Media & Consumer Products segments, as well as to progress cutting costs, including fixed costs.

Furthermore, Hitachi is forecasting an improvement in net other income from its previous forecast, reflecting mainly an improvement in equity in net loss of affiliated companies. Consequently, income before income taxes, net income and net income attributable to Hitachi, Ltd. are all projected to be better than the previous forecasts.

However, Hitachi has not revised its previous forecasts at this time for the full year because of uncertainty surrounding the business environment in the second half of fiscal 2010. This uncertainty includes trends in the global economy, especially in the U.S. and Europe, foreign currency fluctuations, fluctuations in raw material prices, and the impact of unwinding economic stimulus measures such as the Eco-Points program and tax breaks on environmentally friendly products in Japan.

2. Revisions of Consolidated Interim Business Forecasts by Business Segment for Fiscal 2010

(1) Revenues by Business Segment (Billions of yen)

(2) Operating Income by Business Segment (Billions of yen)

Cautionary Statement

Certain statements found in this document may constitute “forward-looking statements” as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-looking statements” reflect management’s current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as “anticipate,” “believe,” “expect,” “estimate,” “forecast,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends may identify “forward-looking statements.” Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the “forward-looking statements” and from historical trends. Certain “forward-looking statements” are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on “forward-looking statements,” as such statements speak only as of the date of this document.

Factors that could cause actual results to differ materially from those projected or implied in any “forward-looking statement” and from historical trends include, but are not limited to:

• economic conditions, including consumer spending and plant and equipment investments in Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, as well as levels of demand in the major industrial sectors which Hitachi serves, including, without limitation, the information, electronics, automotive, construction and financial sectors;
• exchange rate fluctuations for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and the euro;
• uncertainty as to Hitachi’s ability to access, or access on favorable terms, liquidity or long-term financing;
• uncertainty as to general market price levels for equity securities in Japan, declines in which may require Hitachi to write down equity securities that it holds;
• the potential for significant losses on Hitachi’s investments in equity method affiliates;
• increased commoditization of information technology products and digital media-related products and intensifying price competition for such products, particularly in the Components & Devices and the Digital Media & Consumer Products segments;
• uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate new technology on a timely and cost-effective basis and to achieve market acceptance for such products;
• rapid technological innovation;
• the possibility of cost fluctuations during the lifetime of or cancellation of long-term contracts, for which Hitachi uses the percentage-of-completion method to recognize revenue from sales;
• fluctuations in the price of raw materials including, without limitation, petroleum and other materials, such as copper, steel, aluminum and synthetic resins;
• fluctuations in product demand and industry capacity;
• uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact of fluctuations in product demand, exchange rates and/or price of raw materials;
• uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy to strengthen its Social Innovation Business;
• uncertainty as to the success of restructuring efforts to improve management efficiency by divesting or otherwise exiting underperforming businesses and to strengthen competitiveness and other cost reduction measures;
• general socio-economic and political conditions and the regulatory and trade environment of Hitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, without limitation, direct or indirect restrictions by other nations on imports, or differences in commercial and business customs including, without limitation, contract terms and conditions and labor relations;
• uncertainty as to the success of alliances upon which Hitachi depends, some of which Hitachi may not control, with other corporations in the design and development of certain key products;
• uncertainty as to Hitachi’s access to, or ability to protect, certain intellectual property rights, particularly those related to electronics and data processing technologies;
• uncertainty as to the outcome of litigation, regulatory investigations and other legal proceedings of which the Company, its subsidiaries or its equity method affiliates have become or may become parties;
• the possibility of incurring expenses resulting from any defects in products or services of Hitachi;
• the possibility of disruption of Hitachi’s operations in Japan by earthquakes or other natural disasters;
• uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, as well as Hitachi’s ability to protect its confidential information and that of its customers;
• uncertainty as to the accuracy of key assumptions Hitachi uses to valuate its significant employee benefit related costs; and
• uncertainty as to Hitachi’s ability to attract and retain skilled personnel.

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

Contacts

Japan
Masanao Sato
Hitachi, Ltd.
+81-3-5208-9324
masanao.sato.sz@hitachi.com

U.S.
Mickey Takeuchi
Hitachi America, Ltd.
+1-914-333-2987
masayuki.takeuchi@hal.hitachi.com

25 August 2010

Tarrytown, New York and WASHINGTON (August 25, 2010) – Some people will do anything for a good cause – at Hitachi Communication Technologies America this means wearing a clown suit in the office all day to help fight hunger. During the month of July, employees from Hitachi Group companies in the United States and Canada joined together for their 11th annual summer food drive.  Using both creativity and friendly competition as strategies, Hitachi employees in 62 locations throughout North America collected a total of 45,810 pounds of food and $80,231.18 to donate to local community food banks and other organizations providing food assistance to the hungry.

“The drive provides Hitachi and its employees with the opportunity to address a critical global issue in a very local and meaningful way,” said Tadahiko Ishigaki, Chief Executive for the Americas, Hitachi, Ltd.

 In many locations, employees divided into teams and competed against each other to collect the most food or money. Other locations also used the drive as a way to honor Hitachi’s 100th anniversary by organizing activities reflecting the company’s history and culture. Whether playing their own version of the World Cup or competing to bring in the most canned vegetables, Hitachi employees raised enough food and money to feed more than 27,474 people for a week during the month-long effort. In many locations, Hitachi employees also volunteered at local food banks to help sort and repackage the donated food.

“Given the fact that so many people are facing economic hardship, our employees were more determined than ever to make the drive a success, and they have accomplished this objective. We challenged our employees to increase the quantity of food or amount of money raised by 10% this year. In both categories, our employees far exceeded that goal. Our annual Food Drive is just one of the many programs Hitachi Group Companies support during the year. The effort underscores our commitment to help improve our society through local community outreach,” noted Ishigaki.

The summer months can be especially difficult for families facing hunger due to free and reduced-fee school lunches not being available, making the 11th annual Hitachi North American Food Drive all the more important. And that’s why, at Hitachi Communications Technologies America office in Texas, employees donated food and money as a way of “voting” for the executive who would have to wear a clown suit to work one day.  At Hitachi America, Ltd. headquartered in Tarrytown, NY, employees were divided into four “World Cup” teams where employees ended their drive with a soccer shoot-out that raised pounds of food for the winning team.  

In all, 55 teams of Hitachi employees from 62 locations across the United States and Canada took part in this year’s drive.

“When we look at the current statistics regarding food insecurity, 36 % of households served by agencies in the United States have at least one working person in the family” added Barbara Dyer, president and CEO of The Hitachi Foundation. “The working poor are one of the fastest growing groups of people accessing food banks for assistance in both the United States and Canada. This Food Drive makes a meaningful difference, both in the food and money that is collected for local communities and in the awareness it brings to the issue of hunger in our backyards.”

“Drives like the one done by Hitachi each year are very important,” said Christina Rohatynskyj, Executive Director of the Food Bank for Westchester, the organization receiving the food donation from Hitachi America, Ltd. in Tarrytown, NY. “We have fewer donations coming in during the summer. At the same time we are experiencing an increase in the need for our services.”

The annual food drive is a joint initiative between the Hitachi Group companies across North America and The Hitachi Foundation. It was inspired by the Hitachi Community Action Partnership (HCAP), Hitachi’s comprehensive program for employee community engagement.

ABOUT HITACHI
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the Social Innovation Business, which includes information and telecommunication systems, power systems, environmental, industrial and transportation systems and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at www.hitachi.com.

The Hitachi Foundation was established as an independent nonprofit philanthropic organization by Hitachi, Ltd. in 1985.  Governed by a Board of Directors composed of highly accomplished Americans, the Foundation seeks to discover and expand business practices that create tangible and enduring economic opportunities for low-wealth Americans, their families, and the communities in which they reside. For more information about the Foundation, visit www.hitachifoundation.org.

Contact
Lauren Garvey
Hitachi America, Ltd.
(914) 333-2986
lauren.garvey@hal.hitachi.com