FOR IMMEDIATE RELEASE

Hitachi to Realign Small Air Compressor Business by Corporate DivisionTokyo, November 28, 2008 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501, Hitachi) today
announced that it has reached an agreement with Hitachi Industrial Equipment Systems Co.,
Ltd., which is a wholly-owned company of Hitachi to transfer its small air compressor
business to Hitachi Industrial Equipment Systems on April 1, 2009. This agreement is aimed
at optimizing Hitachi Group’s business structure, expanding and growing the compressor
business. Specifically, Hitachi will split and transfer its design and manufacturing activities aswell as associated divisions relating to small compressors which are currently carried out byHitachi’s Automotive Systems Group to Hitachi Industrial Equipment Systems.
Air compressors are one of the core products in Hitachi’s industrial components andequipment business and are used in a diverse range of applications. These include providing
the compressed air needed for spraying paint and other coatings, powering dental drills andblowing away metal fragments during machine processing. In small air compressors, theHitachi Group commands a leading share in the Japanese market in both lubricated andoil-free products, which are sold under the BEBICON® brand. Heretofore in the HitachiGroup, small air compressors have been designed and manufactured by the former TOKICO
LTD., which merged with Hitachi in October 2004, and sold by Hitachi Industrial Equipment
Systems, which also provides services.
The Hitachi Group is presently pushing ahead with management reforms based on a corporate
strategy “collaborative creation and profits,” with the goal of establishing a stable, high-profit
structure that consistently generates high profits. This will be achieved through a rigorous
focus on a market-oriented approach and profit creation. The decision to realign the small air- more --2-compressor business so as to integrate design, manufacturing, sales and services in one entity
is geared toward not only effectively utilizing the Hitachi Group’s business and humanresources, but also at establishing a structure capable of quickly responding to market needs
for these products.
The integration of small air compressor business organizations will enable the Hitachi Groupto cater to diversifying market needs by supplying unrivaled products in terms of theirperformance, usability, compactness and other qualities. The ultimate aim is to maintain theGroup’s leading market share in Japan and capture a higher share in overseas markets.
-BEBICON® is a registered trademark of Hitachi Industrial Equipment Systems.

1. Overview of the Corporate split(1) Schedule
Late February, 2009 Entering into Corporate Split Agreement
April 1,2009
Effective Date of Corporate Split- This corporate split is deemed to be a simplified corporate separation pursuant to Article 784, Paragraph 3 ofthe Company Law of Japan. Therefore, Hitachi does not plan to convene a shareholders’ meeting to seek
approval for the corporate split agreement.

(2) Method of Corporate Split
This will be an absorption-type corporate split where Hitachi is the transferring company andHitachi Industrial Equipment Systems is the successor company.
(3) OtherDetails will be disclosed as soon as they are determined.

- more --3-

2. Profile of the Parties of the Corporate Split
NameHitachi, Ltd

Hitachi Industrial Equipment Systems Co., Ltd.

BusinessDevelopment, Manufacture and sale ofinformation systems, electronic devices,
power and industrial systems, consumerproducts

Manufacture, sales and servicing ofindustrial components and equipment

Establishied

February 1, 1920

April 1, 2002

Head Office

6-6, Marunouchi 1-chome, Chiyoda-ku,Tokyo

3, Kanda Neribei-cho, Chiyoda-ku, Tokyo

President

Kazuo Furukawa

Kiyohiko Shiiki

CapitalJPY 282.0 billion

JPY 9.0 billion

Shares outstanding

3,368,126,056

4,325,500

Stockholder’s equity

JPY 2,170.6 billion (consolidated base)

JPY 35.0 billion

Total assets

JPY 10,530.8 billion (consolidated base)

JPY 79.7 billion

Fiscal year end

March 31

March 31

Number of employees

389,752 (consolidated base)

2,611

Main shareholders

NATS CUMCO 9.20%

Hitachi, Ltd. 100%and their holdings

State Street Bank and Trust Company
7.77%
The Master Trust Bank of Japan, Ltd. 6.20%(March 31, 2008)

3. Business Operation to be Transferred to Hitachi Industrial Equipment Systems Co., Ltd.
- Business: Small air compressors design and manufacture- Sales: JPY 8.3 billion- Number of employees : 193 (March 31, 2008)- Asset and liabilities to be transferred to Hitachi Industrial Equipment Systems Co., Ltd.
(March 31, 2008)
ItemBook valueAsset

JPY 4.3 billionLiabilities

JPY 2.3 billion

4. Status of Hitachi Following Corporate Split(1) There will be no change in the name, business activities, head office or President ofHitachi.
(2) The corporate split will have negligible impact on Hitachi’s consolidated operating result.

- more --4-

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global
electronics company with approximately 390,000 employees worldwide. Fiscal 2007 (endedMarch 31, 2008) consolidated revenues totaled 11,226 billion yen ($112.3 billion). The
company offers a wide range of systems, products and services in market sectors including
information systems, electronic devices, power and industrial systems, consumer products,
materials, logistics and financial services. For more information on Hitachi, please visit thecompany'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.
-------------------------------------------------------------------------------------------------------------------