FOR IMMEDIATE RELEASE

Hitachi and Matsushita Sign Memorandum of Understanding on Enhancing
Cooperation in Flat-Panel TV and Display Panel for TV Businesses

Tokyo, September 18, 2008 --- Hitachi, Ltd. (NYSE: HIT / TSE: 6501, “Hitachi”) andMatsushita Electric Industrial Co., Ltd. (NYSE: MC / TSE: 6752, “Matsushita”) today
signed the memorandum of understanding to enhance cooperation with the goal offurther promoting and strengthening the flat-panel TV and display panel for TVbusinesses.
Since February 2005, Hitachi and Matsushita have been working together in various
areas such as development, manufacturing, and marketing of plasma displays under acomprehensive collaboration. With today’s announcement, the two companies havesigned the memorandum of understanding to strengthen cooperation in flat-panel TV
business and display panel (PDP and LCD) business. The goal is to further increase
their competitiveness in the global flat-panel TV market. Hitachi and Matsushita expect
to sign the definitive agreement by the end of October 2008.
Regarding the PDP business, Hitachi will procure glass panel components, which have
until now been manufactured at Hitachi Plasma Display Limited, from Matsushita. Inaddition, in order to further develop this flat-panel TV business, the two companies will
accelerate cooperation on the development of high-end PDPs that are thinner, moreenergy-efficient, and featuring distinctive characteristics. Plans call for Matsushita tobegin supplying glass panel components to Hitachi for models to be launched byHitachi in the fiscal year ending March 31, 2010.
The two companies will continue to work together on marketing strategies for plasmaTVs. Regarding LCD TVs, Hitachi and Matsushita are joint investors in IPS Alpha
Technology, Ltd., an LCD panel manufacturing company, and the two companies intend
to strengthen their relationship onward. Furthermore, Hitachi and Matsushita willcontinue to discuss the collaboration for flat-panel TV assembly at overseas production
bases. In addition, both companies will also pursue lighter, thinner, more energy
efficient flat-panel TVs with higher picture quality for flat-panel TVs.

- more --2-With digitization of broadcasting advancing worldwide, the flat-panel TV market is
expected to grow significantly in the future. This trend is also expected to drive demand
for larger screens and higher resolution, where PDPs excel.
Under these conditions, PDPs, which were developed with Japan’s cutting-edge
technologies, are expected to grow and evolve further, given their relatively shorthistory on the market as TV display. Through the further pursuit and improvement ofself-illuminating devices’ characteristics, it is possible to dramatically increase picture
quality and performance along with luminous efficiency. PDPs are thus a quintessential
key device for the digital consumer product field, achieving both picture quality
performance and environmental performance including energy saving. Above all, theiroutstanding features, which include wide viewing angle, fast moving picture responsetime and color rendering, have won high marks as displays that fulfill professional
requirements in various business situations such as medical, education and the publicsector.
Both companies have mutually benefited from joint product development andproduction stemming from a broad alliance focused on consumer products. Today’s
agreement will strengthen and advance this cooperative relationship and should lead toeven more appealing plasma TVs for customers, helping to create a richer society.

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 (ended March 31, 2008) consolidated revenues totaled 11,226 billion yen ($112.3billion). 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 onHitachi, please visit the company's website at http://www.hitachi.com.

About PanasonicBest known for its Panasonic brand name, Matsushita Electric Industrial Co., Ltd. is aworldwide leader in the development and manufacturing of electronic products for awide range of consumer, business, and industrial needs. Based in Osaka, Japan, thecompany recorded consolidated net sales of 9.07 trillion yen (approx. US$90.52 billion)
for the year ended March 31, 2008. The company's shares are listed on the Tokyo,Osaka, Nagoya and New York (NYSE:MC) stock exchanges. For more information on
the company and the Panasonic brand, visit the company's website at
http://panasonic.net/.
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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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