FOR IMMEDIATE RELEASE

Hitachi Announces “2012 Mid-term Management Plan”
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 “2012Mid-term Management Plan” are below.
1. Key Strategy(1) FY2009 Results and FY2012 Targets
FY2009 Results
Revenues
8,968.5 billion yen
Operating income
202.1 billion yen(2.3%)
Net income attributable to(106.9 billion yen)
Hitachi, Ltd.
D/E ratio*
1.04 times
Total Hitachi, Ltd.
14.4%
Stockholders’ equity

FY2012 Targets
10,500 billion yen
Over 5%
Consistently generate
least 200 billion yen
0.8 times or below

at20%* 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
a. Leverage Hitachi’s strengths to promote a global growth strategy
Strengthen locally led project control centers, develop detailed strategies in eachregionb. Focus business resources on the Social Innovation BusinessInvest 1 trillion yen in the FY2010 to FY2012 period, spend 600 billion yen on
R&D expensesc. Strengthen the business structure to stabilize profitability
Rigorously cut costs, improve net other deductions, etc., become a global CSR- more --2-leader(3) Key Strategy: Management Focus
a. Global/ Leverage Information, Experience and Trust of Hitachi to develop globally
b. Fusion/ Address social innovation needs by synergistic integration of social
infrastructure and IT
c. Environment/ Refine ability to build environmental systems by drawing onenvironmental protection technologies and experience
2. Global Growth Strategy(1) Promote and expand global localizationa. Strengthen project control center via local leadershipb. Accelerate development of a detailed strategy in each region
Maintain Japan as a strong business base
Emerging markets: Tap into robust social innovation demand, cooperate withpartners
Industrialized countries: Make environmental and integrated technology proposals to
address demand to upgrade social infrastructure
Japan: Develop environmental and integrated services leveraging a strong businessbase(2) Expand business opportunities in collaboration with partners
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.]
India/ Delhi Mumbai Industrial Corridor [Delhi Mumbai Industrial Corridor
Development Corporation Limited]
Singapore/ Strengthening of Social Innovation Business in the “Asian belt” zone
[Singapore/Economic Development Board](3) Expand new businesses leveraging Hitachi’s strengths- Eco-friendly city
- Water and sewage operation and management- Eco-friendly data centers- Energy-saving systems for LNG plants- more --3-(4) Global Growth Strategy Target
Overseas revenue ratio
Head count in Japan
Head count overseas

FY2009 Results
41%
231 k
129 k

FY2012 Targets
Over 50%
217 k
161 k

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
Allocate 70% of total amount (1.4 trillion yen) for capital expenditures and strategicinvestments
FY2010-FY2012 total investment 1 trillion yen(2) Strategically allocate R&D investment
Allocate 50% of total amount (1.2 trillion yen)
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 driveHigh Functional Materials & Components- Develop materials for batteries, inverters and other environmental products- more --4-

4. Strengthening the Business Structure to Stabilize Profitability(1) Status of Improvement in “Underperforming” Businesses
Ceased in-house production of panels and TVs overseas
Flat-panel TV business→Using OEM and production outsourcing
Structural reforms (Cost cutting, base realignment,Automotiveworkforce reductions)systems-related business →Respond to hybrid and electric vehicles, andhigh-efficiency engine needs
Profitable for past two years, posted record earnings inJanuary-March 2010 quarterHard Disk Drive business→Grow new businesses such as SSD* and external
HDDs*: Solid State Drive(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 freecash 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- more --5-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 theU.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 whichindicate future events and trends may identify “forward-looking statements.” Such statements are basedon 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 offuture 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’smajor 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 orin which Hitachi’s assets and liabilities are denominated, particularly against the U.S. dollar and theeuro;•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 andintensifying price competition for such products, particularly in the Components & Devices and theDigital Media & Consumer Products segments;•uncertainty as to Hitachi’s ability to continue to develop and market products that incorporate newtechnology 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, forwhich 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 offluctuations 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;- more --6-•

uncertainty as to the success of restructuring efforts to improve management efficiency by divesting orotherwise exiting underperforming businesses and to strengthen competitiveness and other costreduction measures;•

general socio-economic and political conditions and the regulatory and trade environment of Hitachi’smajor 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 businesscustoms 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 notcontrol, 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 ofwhich 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 (endedMarch 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 onHitachi, please visit the company's website at http://www.hitachi.com.
###- more --------------------------------------------------------------------------------------------------------------------

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