FOR IMMEDIATE RELEASE

Hitachi, Fuji Electric and Meiden Reach Basic Agreement
on Dissolving T&D Joint Venture(Progress Report)
Tokyo, September 29, 2011 --- As announced on July 29, 2011, Hitachi, Ltd. (“Hitachi”,NYSE:HIT / TSE:6501), Fuji Electric Co., Ltd. (“Fuji Electric”, TSE:6504) and Meidensha
Corporation (“Meiden”, TSE:6508) agreed to begin concrete discussions toward theprogressive dissolution of their joint venture in the power transmission and distribution(“T&D”) field. The four companies, including the joint venture Japan AE Power Systems
Corporation (“AE Power”) have discussed the successor, succession method and so on. Today,
the parties reached the following basic agreement (“Basic Agreement”).
I. Reason for Joint Venture Dissolution
AE Power, the joint venture by joint contribution of Hitachi, Fuji Electric and Meiden(“co-parent companies”), was established on July 1, 2001 by the consolidation of the threecompanies’ T&D businesses and has been developing its business globally. In recent years,
the market for these T&D systems has seen growing demand, particularly from emerging
markets. Going forward, higher growth rate is expected by the progress of the smart energy insocial infrastructure and the industrial field, such as the use of the renewable energy resources
and the smart grid.
Under such circumstance, the parties had the discussions on the AE Power growth strategy
taking into accounts of the various factors and they came to reach a same conclusion that
there is a need to fundamentally review its growth strategy. The parties recently reached abasic framework agreement that the parties will dissolve AE Power for a better organizationand they will rebuild and explore the growth of T&D business in each company level.

II. Overview of Joint Venture Dissolution
1. Overview of Business Succession Following Joint Venture Dissolution(1) Basic Stance
The assets and others (“Assets”) assumed from the co-parent companies when AE Power was
established shall be returned to each of the companies, and the businesses attached to thedomestic works of AE Power shall be transferred as follows:
1) Business, excluding switchgear business, of the Kokubu Works (Hitachi-shi, Ibaraki- more --2-Prefecture): Hitachi
2) Switchgear business of the Kokubu Works: Hitachi and Fuji Electric
3) Business of the Chiba Works (Ichihara-shi, Chiba Prefecture): Fuji Electric
4) Business of the Numazu Works (Numazu-shi, Shizuoka Prefecture): Meiden(2) Succession Method for Joint Venture Business
The co-parent companies shall take over the business of AE Power via the following methods:
1) Hitachi: Hitachi or a subsidiary of Hitachi shall take over part of the business run by AE
Power by absorption-type corporate split *1, 22) Fuji Electric: Fuji Electric or a subsidiary of Fuji Electric shall take over part of thebusiness run by AE Power by absorption-type corporate split *1, 23) Meiden: A subsidiary of Meiden shall take over part of the business run by AE Power byabsorption-type corporate split *1, 2*1 Details of the abovementioned corporate split, including consideration, shall be discussed among theconcerned parties, taking into consideration the results of due diligence (corporate value appraisal) and otherfactors. A further announcement will be made immediately as soon as it is clear that timely disclosure isnecessary.
*2 AE Power has not issued any stock acquisition rights or corporate bonds with stock acquisition rights

2. Overview of the Joint Venture Dissolution Schedule
Execution of Basic Agreement

September 29, 2011

Execution of final agreement based onBasic Agreement

December 2011 (planned)

Joint venture dissolution (Corporatesplit date)

April 1, 2012 (planned)

III. Overview of the Splitting Company
1.Company NameJapan AE Power Systems Corporation

2.Headquarters
3.Representative

9-1, Shibaura 3-chome, Minato-ku, Tokyo, Japan
Junichi Oishi, President and Director

4.Business fieldResearch, development, design, manufacture, engineering,sales, installation and after-sales servicing of products andsystems for power transmission and distribution
System engineering, sales, installation and after-sales servicing
of products and systems for renewable energy

5.Capital(As of March 31, 2011)

20 billion yen- more --3-

6.Established7.No. of Shares Issued(As of March 31, 2011)

July 1, 2001

8.Fiscal Term

March 31st620,000

9.No. of employees(As of March 31, 2011)

1,349 (Unconsolidated)

10.Main trading partners

Hitachi, Ltd.
Fuji Electric Co., Ltd.
Meidensha Corporation

11.Main trading banks

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Sumitomo Trust and Banking Co., Ltd.
Mizuho Corporate Bank, Ltd.

12.Major shareholders andshareholdings(As of March 31, 2011)
13.Relationships with co-parent companies

Hitachi: 50%
Fuji Electric: 30%
Meiden: 20%

Co-parent companies

Hitachi, Ltd.

Fuji Electric Co.,Ltd.

Meidensha
Corporation

Capital relationshipOwns 50% of thesplitting company.

Owns 30% of thesplitting company.

Owns 20% of thesplitting company

1 non-executive
2 non-executive
1 non-executive
director and 1
directors, and 1
director comes from
Personnel relationship part-time corporate part-time corporate Meiden
auditor come from auditor come fromHitachi
Fuji Electric
Trading relationshipTrading of products and components related to the T&D
business with the abovementioned co-parent companies, aswell as related services

The abovementioned co-parent companies are all major
Related party status
shareholders of the splitting company, making them relatedparties
14.Operating results for three most recent years and financial condition(Unit: Billions of yen unless otherwise noted)
Fiscal term
Net asset

March 2009
23.4

March 2010
25.2

March 2011
24.6

Total asset

101.1

74.4

75.2

- more --4-

Net asset per share(Yen)37,867.57

40,723.55

39,833.50

Total revenues

98.7

93.7

71.6

Operating income

1.8

2.2

1.6

Ordinary income

0.6

1.9

0.9

Net income

0.7

1.6-0.5

Net income per share(Yen)

1,140.64

2,657.08-882.97

Dividend per share
(Yen)

---

Note: Overviews of the succeeding companies shall be announced as soon as it is clear that timely disclosure isrequired.

IV. Overview of Business Divisions to Be Split and Transferred Due to the Joint Venture
Dissolution
Details of the business divisions to be split and/or transferred; operating results of thebusiness divisions to be split and/or transferred; assets and liabilities and monetary amounts
to be split and transferred, shall be discussed and/or determined by the concerned parties
based on the above stance regarding business succession, and a further announcement shall bemade as soon as it is clear that timely disclosure is required.
V. Status after Corporate Split
The corporate name, headquarters address, names and positions of representatives, scope ofbusiness, paid-in capital and fiscal year-end of the co-parent companies will not change as aresult of the abovementioned corporate split.
VI. Overview of Accounting Treatment
Each of the succeeding company plans to apply the Purchase Method for accounting for theabovementioned corporate split.
VII. Outlook
The impact of the joint venture dissolution on the operating results of the co-parent companies
has not been determined. Further announcements will be made immediately if it is clear that
there will be a material impact on business result of each of the companies.

- more --5-VIII. Overview of the co-parent companies(Unit: Billions of yen unless otherwise noted)
Company name

Hitachi, Ltd.

Fuji Electric Co., Ltd.

Meidensha Corporation

Representative

Hiroaki Nakanishi,
Representative Executive
Officer and President

Michihiro Kitazawa
President andRepresentative Director

Junzo Inamura
President

Headquarters

6-6, Marunouchi 1-chome,
Chiyoda-ku, Tokyo
100-8280

11-2, Osaki 1-Chome,
Shinagawa-ku, Tokyo
141-0032

1-1,Osaki 2-chome,
Shinagawa-ku,Tokyo
141-6029

EstablishedFebruary 1st, 1920

August 29th, 1923

June 1st, 1917

Business field

No. of employees(As of March 31, 2011)
Capital(As of March 31, 2011)

Net asset

Total asset

Net asset per
share (Yen)*1

Development, manufacture Development,
and sales of products and Manufacture, sales andprovision of services across services of various
11 segments: Information equipment and systems& Telecommunication
related to social
Systems, Power Systems, infrastructure in theSocial Infrastructure &industrial, public, energy
Industrial Systems,and transportation sectors,
Electronic Systems &as well as semiconductor
Equipment, Construction devices, photoconductive
Machinery, Highdrums and peripheral
Functional Materials &imaging devices
Components, Automotive
Systems, Components &Devices, Digital Media &Consumer Products,
Financial Services, Others(Consolidated) 361,745(Unconsolidated) 32,926(Consolidated) 24,562(Unconsolidated) 819

Development, manufactureand sales of products andprovision of services ofSocial Infrastructure
Systems(power apparatus for power
generation and T&D, water
processing system, etc.)
and Industrial Systems(products for industrial
systems, vehicle testingsystems, logistics supports
systems and motor drive
systems) and Services(product maintenance andfacility management)(Consolidated)
6,994(Unconsolidated) 3,674

409.1

47.5

17.0

2008

2,179.3

146.1

52.7

2009

2,267.8

196.1

54.1

2010

2,441.3

174.9

52.7

2008

9,403.7

908.9

214.1

2009

8,964.4

908.9

206.6

2010

9,185.6

805.7

206.8

2008

315.86182.37223.35

2009

287.13250.28229.002010

318.73217.40222.56- more -

-6-

Total
revenues

Operating
IncomeOrdinary
income*2

Net income*3

Net income
per share(Yen)*4
Dividend pershare (Yen)2008

10,000.3

766.6

198.7

2009

8,968.5

691.2

173.0

2010

9,315.8

689.0

167.7

2008

127.1

-18.8

4.0

2009

202.1

0.9

3.3

2010

444.5

11.9

5.7

2008

-289.8

-20.7

2009

63.5

-0.5

1.4
1.8

2010

432.2

7.2

4.6

2008

-787.3

-73.3

-1.0

2009

-106.9

6.7

0.9

2010

238.8

15.1

1.1

2008

-236.86-102.57

-4.77

2009

-29.20

9.46

4.28

2010

52.89

21.14

5.27

2008

3.0

4.0

4.0

2009

-

1.5

4.0

2010

8.0

4.0

4.0

*1 Because Hitachi adopts U.S. accounting standards, its stockholders’ equity per share figure is shown.
*2 Because Hitachi adopts U.S. accounting standards, its income (loss) before income taxes figure is shown.
*3 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. figure isshown.
*4 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. stockholders
per share figure is shown.

- more --7-[Reference]Earnings forecast of the co-parent companies(Unit: Billions of yen)
(The figure in parenthesis is the result of the previous fiscal period)
Company name(Fiscal term)
Announcement date

Hitachi, Ltd.
Fuji Electric Co., Ltd.
Meidensha Corporation(Year ending March 2012) (Year ending March 2012) (Year ending March 2012)
Announced on June 9th,
Announced on July 28th, Announced on May 13rd,2011
2011
2011

Total revenues(Consolidated)

9,500(9,315.8)730(689.0)

185(167.7)

Operating income(Consolidated)

400(444.5)

22(11.9)7(5.7)

Ordinary income*1(Consolidated)

410(432.2)

20(7.2)5.5(4.6)

Net income*2(Consolidated)

200(238.8)

12(15.1)

2.5(1.1)*1 Because Hitachi adopts U.S. accounting standards, its income (loss) before income taxes figure is shown.
*2 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. figure isshown.

###- 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.
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