FOR IMMEDIATE RELEASE

Hitachi Announces Strategy to Strengthen Social Innovation BusinessPlans to Wholly Own Five Publicly Listed Companies
Tokyo, July 28, 2009 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that
the Company’s Board of Directors has decided to make a public tender offers topurchase the common stock of five publicly listed companies, converting them into
wholly owned subsidiaries. The five associated companies include: Hitachi Information
Systems, Ltd. (TSE:9741), Hitachi Software Engineering Co., Ltd. (TSE:9694), Hitachi
Systems & Services, Ltd. (TSE:3735), Hitachi Plant Technologies, Ltd. (TSE:1970) andHitachi Maxell, Ltd. (TSE:6810).
Hitachi is concentrating to build a more stable earnings structure with a focus on theSocial Innovation Business, which comprises social infrastructure supported by highly
reliable and highly efficient information and telecommunications technology. Thus far,
Hitachi has implemented various measures to rebuild its business portfolio by either
exiting or integrating a number of businesses, including system LSI, DRAM, mobilephone, LCD panel, printer, and consumer PC businesses. Hitachi recently convertedHitachi Koki Co., Ltd. and Hitachi Kokusai Electric Inc. into consolidated subsidiaries;
merged Hitachi Communication Technologies, Ltd.; split off the consumer andautomotive systems businesses; initiated the merger of Hitachi Electronics Services Co.,
Ltd. and Hitachi HBM Co., Ltd. and continues to take additional steps in strengthening
the Social Innovation Business through the optimal allocation of the Hitachi Group’sresources.
Today’s announcement to transform the aforementioned five companies into wholly
owned subsidiaries accelerates these efforts. These companies play a central role inSocial Innovation Business fields, including information and telecommunication
systems business, social infrastructure systems business, and also lithium-ion batteriesbusiness, which support the Social Innovation Business along with motors, inverters,and power semiconductors. Conversion of the five companies into wholly owned
subsidiaries will foster closer ties, and facilitate the integration of business strategy and- more --2-structures, leading to improved competitiveness and a stable earnings base.
1. Information and Telecommunication Systems Business
Systems integration, particularly construction, operation and maintenance of
information systems, has driven expansion within the information services market.
Against a backdrop of intense competition and a difficult economic environment, higher
returns on investment in IT are in more demand. The interest of users is also shiftingfrom ownership of systems to information services that enable efficient system use andoperation, such as outsourcing and SaaS*. In order to establish a resilient IT
infrastructure business that can respond to this rapidly and dynamically changing
business environment and business model, Hitachi plans to convert Hitachi Information
Systems, Hitachi Software Engineering and Hitachi Systems & Services into wholly
owned subsidiaries. This transformation will positively facilitate the integration of theHitachi Group’s information and telecommunication systems business, enabling
valuable, integrated services across the entire lifecycle of IT systems. In particular,
Hitachi will provide the Hitachi Group’s strengths in the following fields.
a. Data Center Business
Hitachi will develop its eco-friendly data center business, ultimately reducing TCO*
and offering high reliability, by leveraging robust state-of-the-art “green” IT.
b. Cloud Computing-Related BusinessIn cloud computing environments that utilize Internet-based platforms, Hitachi will
provide highly dependable usage environments that can meet the demands of social
infrastructure systems, delivering reliability and security with the same quality ofcompany-owned IT systems. Hitachi will rely on its sophisticated security andnetworking technology in this area.
c. Global Business
Hitachi plans to expand globally by promoting local operations, mainly in its overseas
consulting business and data center business. This plan coupled with a cooperation
with local partners and the employment of foreign nationals familiar with localoperations.
d. Systems Integration Business in Japan
Hitachi plans to further strengthen the management of large accounts, such as- more --3-

mission-critical systems for mega-banks and other financial institutions, as well as
optimization systems in the public sector. The Company also plans to reinforce
proposal capabilities through the integration of its businesses, providing information
systems for SMBs*, especially in the industrial and logistics fields.
e. Hitachi will expand structural development for middleware and embedded
software for products.
f. Hitachi will strengthen and expand its network services and outsourcing
businesses.
In regard to the business management structure, Hitachi will form in-house company
that will facilitate business execution based on an integrated strategy centered on fivemain “companies”: Hitachi’s Information & Telecommunication Systems Group,
Hitachi Information Systems, Hitachi Software Engineering, Hitachi Systems &Services, and Hitachi Electronics Services Co., Ltd., which is already a wholly owned
Hitachi subsidiary.
*SaaS (Software as a Service): A business model involving the provision of applications needed by users
as services.
*TCO (Total Cost of Ownership): The total cost of installing, maintaining and managing a computersystem*SMB: Small and medium-sized businesses

2. Social Infrastructure Systems Business
The social and industrial infrastructure systems field, including power, transportation,road, water and other public systems, as well as production facilities in manufacturingindustries, is expected to grow as a market particularly in emerging countries.
Developed countries and regions that currently have an established social and industrial
infrastructure will still experience an increased demand for renovation, supported byadvanced information and telecommunications technologies. Ideally, social
infrastructure should have a smaller impact on the global environment going forward.
Hitachi’s decision to convert Hitachi Plant Technologies into a wholly owned subsidiary
provides an integrated response to these social infrastructures needs on a global basis.
Through integrated management with the Hitachi Group, Hitachi plans to strengthen its
integration capabilities within the Hitachi Group’s core functional component andsubsystem businesses and also to strengthen its total solutions that organically and- more --4-

cohesively combines these businesses, in fields ranging from water circulation systems
and air-conditioning systems to transportation systems and power systems. Hitachiplans to bring greater Group synergies globally in the following areas:a. Water Circulation Systems
Hitachi will deliver total solutions, ranging from the supply of equipment and systems
to the management and operation of facilities, in order to address significant water
issues around the world. (the Middle and Near East, Southeast Asia, etc.)
b. Air-Conditioning Systems
Hitachi will propose energy-saving solutions for data centers in which air-conditioning
systems will be key. These systems will incorporate monitoring and control
technologies for IT equipment such as servers and cooling units for directly coolingservers to address the problem of a rapid increase in electricity consumption due toincreased heat emissions and higher integration of servers. Hitachi will also provide
various environmental control technologies, including clean rooms. (Europe, China,etc.)
c. Transportation Systems
Full turn-key services will be offered overseas, from the delivery of railway vehicles
to the laying of tracks and the building of assembly, inspection and repair facilities.
(Europe, U.S., Southeast Asia, etc.)
d. Power Systems
Hitachi will efficiently deploy and utilize resources in local construction work,
promote utilization of expertise such as modular construction for greater efficiency,
and build large-scale, comprehensive infrastructures for emerging economies, etc. indeveloping its global power plant business. (Europe, U.S., Southeast Asia, West Asia,etc.)
e. Industrial Systems
Hitachi will build large-scale, comprehensive infrastructure for emerging economies
and other nations, as well as increase efficiency in the design, engineering andconstruction of industrial plants.

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3. Lithium-ion Batteries Business
Lithium-ion and other types of rechargeable batteries will be essential for powering
drive systems and making the renewable energy that replaces fossil fuels viable for theimplementation of future measures to lower environmental impact around the world. InApril, Hitachi established the Battery Systems Division to lead Group efforts instrengthening the lithium-ion business. In addition, Hitachi aims to foster a strong
collaboration among its Battery Systems Division, Hitachi Maxell, Shin-Kobe ElectricMachinery Co., Ltd. and Hitachi Vehicle Energy, Ltd. and other Group Companies tostrengthen the lithium-ion battery-related business. This business boasts high quality
products and a proven reputation. To date, the Hitachi Group has shipped about 600
million consumer-use lithium-ion battery cells and there has not been any productrecalls. In addition, next generation automotive-use lithium-ion batteries are being
developed. This time, Hitachi will make Hitachi Maxell a wholly owned subsidiary andwill further strengthen the collaboration between Hitachi Group and Hitachi Maxell byestablishing more stable capital relationship. Hitachi intends to apply Hitachi Maxell’sdevelopment capabilities and mass-production technologies in the consumer field toautomotive, industrial and railway vehicles applications, as well as to increase efforts instrengthening development capabilities and applications. Also, Hitachi will continue toreduce the investment burden through the shared use of production lines and bycontinuing to strengthen the Hitachi Group’s cost competitiveness. Hitachi Group will
expand lithium-ion batteries as a key device in the Social Innovation Business inparallel to motors, inverters and power semiconductors and will propose integrated
solutions for social and industrial systems. Plans include strengthening Hitachi Maxell’sstrong computer tape, optical components, functional materials and other businesses.
This effort will be achieved by utilizing Group sales channels and collaboration in thedevelopment stage.
4. Bolster Group Management
In addition to converting the five listed subsidiaries into the wholly owned companies,
Hitachi Group will thoroughly reexamine the in-house company system to further
reinforce its operating base through the strengthening of the Social Innovation Business.
This fiscal year, Hitachi intends to consider each of its in-house business divisions withthe same independence and mobility as Group companies, further clarifying
responsibility and authority, as well as accountability for earnings. In addition, Hitachiseeks to accelerate Group structural reforms and global development, optimize therelated allocation of resources, and fundamentally strengthen cost competitiveness for- more --6-

global competition. The five new supervisory offices, which are headed by executive
vice presidents, will lead reform efforts in their respective fields of responsibility —management reforms, sales and promotion, overseas plant construction, business
infrastructure, and business coordination to accomplish these challenges. This will
ensure greater focus on the Social Innovation Business and the continued pursuit ofresource optimization of all in-house companies and Group companies collaboratively,
with the maximization of Group synergies.
About Hitachi, Ltd.
Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading
global electronics company with approximately 400,000 employees worldwide. Fiscal
2008 (ended March 31, 2009) consolidated revenues totaled 10,000 billion yen ($102.0billion). 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 the company's website at http://www.hitachi.com.
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 orcurrent 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 andare subject to various risks and uncertainties that could cause actual results to differ materiallyfrom 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-lookingstatements,” 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;•fluctuations in product demand and industry capacity, particularly in the Information & Telecommunication
Systems segment, Electronic Devices segment and Digital Media & Consumer Products segment;- more --7-•

increased commoditization of information technology products and digital media related products
and intensifying price competition for such products, particularly in the Information &Telecommunication Systems segment, Electronic Devices segment and Digital Media & Consumer
Products segment;•

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, particularly in the Information & Telecommunication Systemssegment, Electronic Devices segment and Digital Media & Consumer Products segment;•exchange rate fluctuation 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 andthe euro;•fluctuations in the price of raw materials including, without limitation, petroleum and othermaterials, such as copper, steel, aluminum and synthetic resins;•

uncertainty as to Hitachi’s ability to implement measures to reduce the potential negative impact offluctuations in product demand, exchange rate and/or the price of raw materials;•general socio-economic and political conditions and the regulatory and trade environment ofHitachi’s major markets, particularly Japan, Asia, the United States and Europe, including, withoutlimitation, 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 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 becomeparties;•

the possibility of incurring expenses resulting from any defects in products or services of Hitachi;•uncertainty as to the success of restructuring efforts to improve management efficiency and tostrengthen competitiveness;•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 ability to access, or access on favorable terms, liquidity or long-term
financing; and•

uncertainty as to general market price levels for equity securities in Japan, declines in which may
require Hitachi to write down equity securities it holds.

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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.

Other Cautionary Matters----In accordance with the provisions of Article 167, Paragraph 3 of the Financial Instruments andExchange Law and Article 30 of its Enforcement Regulations, anyone having read this news releaseis considered a primary recipient of information from the viewpoint of insider trading regulations.
Hitachi accordingly urges you to exercise due care as you may be prohibited from purchasing theshares of Hitachi Information Systems, Hitachi Software Engineering, Hitachi Systems & Services,
Hitachi Plant Technology and Hitachi Maxell (hereinafter collectively referred to as the “targetcompanies”) before 12 hours have passed from the time of this announcement. If you are held liable
under criminal, civil, or administrative laws for making such a prohibited purchase, Hitachi notes that
it will assume no responsibility whatsoever.
This news release is to announce the tender offer for shares of the target companies (hereinafterreferred to as the “Tender Offer”) and has not been prepared for the purpose of soliciting an offer tosell shares. If shareholders wish to make an offer to sell their shares, they should first read theExplanatory Document for the Tender Offer and make their own decision. This news release does notconstitute, nor form part of, any offer or invitation to buy, sell, exchange or otherwise dispose of, orissue, or any solicitation of any offer to sell or issue, exchange or otherwise dispose of, buy orsubscribe for, any securities. In addition, this news release does not constitute, or form part of, any
offer or invitation to sell, or any solicitation of any offer to purchase any securities in any jurisdiction,
nor shall it (or any part of it) or the fact of its distribution form the basis of or be relied on inconnection with any agreement thereof.
The Tender Offer is targeted at the common stock of the target companies, all of which areincorporated in Japan. The Tender Offer is to be conducted in compliance with the procedures andinformation disclosure standards prescribed in the Financial Instruments and Exchange Law of Japan.
These procedures and standards are not necessarily the same as the procedures and information
disclosure standards in the United States. In particular, Section 13(e) and Section 14(d) of the U.S.
Securities and Exchange Act of 1934 and the regulations stipulated thereunder are not applicable tothe Tender Offer and the Tender Offer does not conform to those procedures and standards. Further,as the Hitachi is a company incorporated outside the U.S. and most officers of the Hitachi areresidents outside the U.S., it may be impossible to exercise rights and claims that may be asserted
under the securities-related laws of the U.S. There is also a chance that it may be difficult to instituteproceedings in a court outside the U.S. against a company outside the U.S. or its officers based on aviolation of the securities-related laws of the U.S. Additionally, there is no guarantee that it would bepossible to make a company outside the U.S. and its subsidiary or affiliate subject to the jurisdictionof a U.S. court.
Some countries or regions may impose restrictions on the announcement, issue or distribution of thisnews release. In such cases, please take note of such restrictions and comply with them. In countries
or regions where the implementation of the Tender Offer is illegal, even upon receiving this news
release, such receipt shall not constitute a solicitation of an offer to sell or an offer to buy shares
relating to the Tender Offer and shall be deemed a distribution of materials for informative purposes
only.

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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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