FOR IMMEDIATE RELEASE

Hitachi Announces Progress of“2012 Mid-term Management Plan”
Tokyo, May 10, 2012 --- Hitachi, Ltd. (TSE:6501) today announced a progress of
its management plan “2012 Mid-term Management Plan” to promote "Growth
Driven by Social Innovation Business" & "Solid Financial Base". Summary ofprogress are below.
Key Message of Today’s Announcement(1) In FY2012, which is the final year of the Mid-term Management Plan, thecompany expects to meet goals; such as operating income (ratio), net
earnings attributable to Hitachi, Ltd., the D/E ratio, and the shareholders’equity ratio.
(Revenues are expected to fall below original targets due in part to thesmall-to medium-sized display business, etc.)(2) The company will continue to promote management measures aimed atachieving growth in the global market with a focus on the Social Innovation
Business.
(3) Through the continued execution of growth strategies, cost structure reforms,
and business model innovations, Hitachi will strive to become a global major
player that responds to global needs through the Social Innovation Business.

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1. Progress Overview(1) FY2011 Results, FY2012 Forecasts and Targets
FY2012 Forecast (*1) FY2012 Target (*2)

FY2011 Results
Revenues
Operating income(ratio)Net income
attributable
to Hitachi, Ltd.

D/E ratio (*3)

Total Hitachi, Ltd.
Stockholders’equity ratio

9,665.8billion yen

9,100.0
billion yen

10,000billion yen

412.2 billion yen(4.3%)(5.3%)(Over 5%)347.1 billion yen

200.0 billion yen

Consistently
generate at least
200 billion yen

0.86 times

0.80 times(Manufacturing,(Manufacturing,Services and Others :Services and Others:

0.56 times)

0.50 times)

18.8%

20.0%

(Manufacturing,(Manufacturing,Services and Others:

Services and Others:20.5%)

22.0%)

0.8 times orbelow

20%*1 As of June 9 , 2011 (includes impact of HDD business transfer).
Exchange ratio: 80 yen to the U.S. dollar and 110 yen to the euro.
*2 Exchange ratio: 75 yen to the U.S. dollar and 100 yen to the euro.
*3 Including non-controlling interests, and also including liabilities associatedwith the consolidation of securitized entities.

2. Outlook of the overseas sales ratio(1) Overseas sales ratio：
FY2010 results: 41%(*4) → FY2012 forecast: 43%(2) Staff composition
FY2010 Results(*4)

FY2012 Forecast

Head count in Japan

212k

212k

Head count overseas(overseas ratio)

100k (32%)

125k (37%)

312k

337k

Total Head count*4 Includes impacts of transfer of small- to medium-sized display business and HDD business3. Global Expansion for the Social Innovation Business(1) Establish 5-Group Structure1) Reform management structures using market needs as the starting point- Create new businesses and technologies from a customer perspective- Anticipate changes in the market and the competition-more--3-2) Create new businesses through the fusion of IT and social infrastructures- Business proposals for growth regions and industries- Create new businesses, including new services(2) Expand the Social Innovation Business
1) Global expansion for the smart city business with demonstration models
2) Global growth in response to market needs in Infrastructure Systems Field
3) Global business expansion through the usage of Big Data technologies
in Information & Telecommunication Systems Field
4) Accelerate global expansion of business in Power Systems Field
4. Strengthening the Management Base and Global Growth Strategies(1) Strengthening the management base1) Implement cost structure reforms- Execute “the Hitachi Smart Transformation Project”
2) Strengthen the financial position- Improve profitability and strengthen the financial position- Focus management resources(2) Global Growth Strategies
1) Expand investments targeting key regions- Globalize corporate functions and implement the“China Business Strategy 2015”- Expand business in the ASEAN region, which is a new key target regionfor Hitachi, and start up business in Myanmar2) Optimum and borderless use for human resources to increase efficiency- Develop Global Human Resources Strategies- Start Global Management Development Program, staffing / training /job rotation in FY2012
3) Strengthening global governance- Responding to globalized management and strengthening supervisory
functions
4) Value Creation and CSR- Promote contributions to the environment and regional social contribution
activities- Emphasize respect for human rights and promote dialogues withstakeholders-more-

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5. As a Global Major Player(1) Execute growth strategies: Focus on key businesses and regions(2) Cost structure reforms: Execute the Hitachi Smart Transformation Project(3) Business model innovations: Organize structure to compete
in the global arena(4) Human Resources strategies: Optimum and global use for human resources(5) A company that grows with the region: Make social contributions
and demonstrate respect for diversity-more-

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Cautionary Statement
Certain statements found in this document may constitute “forward-looking statements” asdefined in the U.S. Private Securities Litigation Reform Act of 1995. Such “forward-lookingstatements” reflect management’s current views with respect to certain future events andfinancial 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 eventsand 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-lookingstatements” are based upon current assumptions of future events which may not prove tobe accurate. Undue reliance should not be placed on “forward-looking statements,” as suchstatements speak only as of the date of this document.
Factors that could cause actual results to differ materially from those projected or implied inany “forward-looking statement” and from historical trends include, but are not limited to:•economic conditions, including consumer spending and plant and equipment
investment in Hitachi’s major markets, particularly Japan, Asia, the United States andEurope, as well as levels of demand in the major industrial sectors Hitachi serves,
including, without limitation, the information, electronics, automotive, construction andfinancial sectors;•

exchange rate fluctuations of the yen against 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, 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 DigitalMedia & Consumer Products segments;•uncertainty as to Hitachi’s ability to continue to develop and market products thatincorporate new technologies on a timely and cost-effective basis and to achievemarket 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 andother materials, such as copper, steel, aluminum, synthetic resins, rare metals andrare-earth minerals, or shortages of materials, parts and components;•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 or shortages of materials, parts and components;•uncertainty as to Hitachi’s ability to achieve the anticipated benefits of its strategy tostrengthen 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;-more--6•

general socioeconomic and political conditions and the regulatory and tradeenvironment of countries where Hitachi conducts business, particularly Japan, Asia, theUnited States and Europe, including, without limitation, direct or indirect restrictions byother nations on imports and 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 ofcertain 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 havebecome or may become parties;•

the possibility of incurring expenses resulting from any defects in products or servicesof Hitachi;•

the possibility of disruption of Hitachi’s operations by earthquakes, tsunamis or othernatural disasters;•uncertainty as to Hitachi’s ability to maintain the integrity of its information systems, aswell as Hitachi’s ability to protect its confidential information or that of its customers;•uncertainty as to the accuracy of key assumptions Hitachi uses to evaluate 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 inother materials published by Hitachi.

ABOUT HITACHIHitachi, Ltd., (TSE: 6501), headquartered in Tokyo, Japan, is a leading global
electronics company with approximately 320,000 employees worldwide. Fiscal
2011 (ended March 31, 2012) consolidated revenues totaled 9,665 billion yen($117.8 billion). Hitachi will focus more than ever on the Social Innovation
Business, which includes information and telecommunication systems, powersystems, environmental, industrial and transportation systems, and social andurban systems, as well as the sophisticated materials and key devices thatsupport them. For more information on Hitachi, please visit the company's
website at http://www.hitachi.com.
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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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