FOR IMMEDIATE RELEASE

Hitachi and Mitsubishi Heavy Industries Agree in Principle toCooperate in Railway Systems for Overseas Markets
Tokyo, June 22, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) and Mitsubishi
Heavy Industries, Ltd. (MHI) today announced that they have entered into abasic 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 frommarketing 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 freightwith 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 railcarsand systems. The overseas railway systems market is thus continuing to grow.
Today’s agreement seeks to capitalize on these sorts of market trends. Hitachiand 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.
- more --2-Hitachi and MHI each boast advanced product lineups, technologies andknow-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 thetrust of markets, Hitachi for its railway systems hardware and softwaredevelopment capabilities, and system engineering strengths, and MHI for its
technological development capabilities, overseas project record, plantengineering know-how, and wide range of partnerships.
Under this agreement, Hitachi and MHI aim to leverage each other ’s experienceand expertise to actively develop the railway systems business overseas.

About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is aleading 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 thecompany's website at http://www.hitachi.com.

About Mitsubishi Heavy Industries, Ltd.
Mitsubishi Heavy Industries, Ltd. (MHI), headquartered in Tokyo, Japan, is oneof the world’s leading heavy machinery manufacturers, with consolidated salesof 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 andgeneral machinery, aircraft, space rocketry and air-conditioning systems.
For more information, please visit the MHI website(http://www.mhi.co.jp/en/index.html).

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