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Copyright © Hitachi,Ltd.2003 All rights reserved 1

Nex t MADE IN JAPAN.Nex t MADE IN JAPAN.’’

Isao OnoSenior Corporate OfficerSenior Group Executive, Information Business GroupPresident & Chief Executive OfficerInformation & Telecommunication Systems

Hitachi, Ltd.

June 12, 2003

“i.e.HITACHI Plan II”Medium-Term Management PlanInformation &Telecommunication Systems Strategy

ContentsBusiness Plan for Information & Telecommunication Systems1Basic Strategy for Information & Telecommunication Systems2Expanding Global BusinessIncorporating Advanced Technologies3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening Consolidated Group Management6Conclusion7

ContentsBusiness Plan for Information & Telecommunication Systems1

Basic Strategy for Information & Telecommunication Systems2Expanding Global Business Incorporating Advanced Technologies3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening Consolidated Group Management6Conclusion7


1-1Reasons for the Improved Results

Strong sales of storage products　(Disk Array Subsystems, HDD), particularly overseas

Up 15% year on year

0

¥1 trillion

¥2 trillion

:Hardware:Software and Services

Net Sales (Consolidated)

FY01 　　Result

¥1,829.6 billion

¥868.8 billion

47%

¥960.8 billion

53%

:Composition ratio

　¥886.8 　billion

¥978.2 billion

FY02Forecast

¥1,865.0 billion¥1,899.6 billion



FY02Result

(Mar. 2003)(Oct. 2002)

48%

52%

48%

52%

Strong sales of servers, including OEM contracts

Firm sales in SI services, centered on e-local government projects

Up 13% year on year

Up 4% year on year

Fiscal 2002 Net Sales


Fiscal 2002 Operating Income1-2Strong performance in SAN/NAS storage solutions business

Raised productivity in software and services, and expanded project management services

　　　　　　　Higher operating margin　　　　　　　　　　4.7% (Fiscal 2001)　　　　　　　　　　　　　　　　6.2% (Fiscal 2002)

0

¥50 billion

¥100 billion

:Hardware　:Software and Services

Operating Income (Consolidated)

　　FY01 　　Result

　　¥35.7 billion

-¥9.3 billion

¥45.0billion

:Composition ratio

¥23.2 billion


FY02Forecast

　　　　¥88.0 billion

¥110.5 billion

¥49.9billion

　¥60.6 　　billion

FY02Result

(Mar. 2003)(Oct. 2002)

Reasons for the Improved Results

26%

74%

45%

55%

Benefits of structural reforms in telecommunications businessReturned to profitability in fiscal 2002

Higher operating margin　　　5% (Fiscal 2001)　　　　　　　　　　6% (Fiscal 2002)


Fiscal 2003 Net Sales and Operating Income Forecasts

¥1trillion

¥2trillion


:Composition ratio

Net Sales (Consolidated)

¥50 billion

¥100 billion

　Operating Income (Consolidated)


:Composition ratio

00

　¥2,200.0 billion

　　FY03　Forecast

　¥1,219.0 　billion

55%

　　¥981.0 　　billion

45%

　　FY03　Forecast

-¥5.0 billion

¥67.0billion

　¥62.0 billion

　　FY02　　Result

　¥110.5 billion


¥60.6 billion

55%

45%

　¥1,899.6 billion


48%


52%

FY02Result

1-3


　　※Market share：　　At least 15%, 　　　　5-15% (FY02)　Source: Hitachi, Ltd. estimates

Market Positions

Market Share and Strategy for expanding Main Businesses

1-4

Market Market share Strategy

Financial informationsystems

Publicand socialsystems

Develop new financial products and expand outsourcing business

Expand package solutionsand business targeting medium-sized andregional customers

Delivering solutions for localgovernment consolidations and e-local government

Solutions BusinessProduct Market share Strategy

Servers

Network

Storage

Establish strategy for servers for next term

Strengthen mid-range diskarray subsystems and management software

Expand overseas business focused on network products for IPv6

Hardware and Software Business

Industrial and

distribution systems


Review of “i.e.HITACHI Plan” for Information & Telecommunication Systems

　　　(FY 1999-FY 2002)

・Expand total solutions business leveraging Group’s collective strengthsCapture synergies between

information and control systems ・Cultivating “e-Japan II” related business

・Expand sales of mid-range disk array subsystems

・Develop new middleware following JP1

Develop solutions based on strong hardware and middleware

・Make HDD business profitable quickly・Make server business more competitive

Selection and concentration of management resources to generate stable earnings in hardware

・Expand new high-profit services businesses

・Raise productivity of solutions includingSE and software

Rebuild a profit structure (software and services)

1-5Ongoing ThemesEvaluation　　　Business Policy

ContentsBusiness Plan for Information & Telecommunication Systems1Basic Strategy for Information & Telecommunication Systems2Expanding Global Business Incorporating Advanced Technologies3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening Consolidated Group Management6Conclusion7


Targeted Domains Fiscal 2005 Targets: Positive FIV*

“i.e.HITACHI Plan II” (Fiscal 2003-Fiscal 2005)

Fiscal 2005 Net Sales and Earnings

(*) ＦＩＶ： Hitachi’s economic value-added evaluation index in which the cost of capital is deducted from after-tax operating profit. After-tax operating profit must exceed the cost of capital to achieve positive FIV.

（**) ： Fiscal 2002 net sales: ¥8,191.7 billion

New Era Lifeline Support Solutions

2-1

Global Products Incorporating Advanced Technology

“Best Solutions Partner”

　　　Net sales: Current level **

　　　Operating margin: at least 5%

　　 ROE: at least 8%


HITACHI:Information Lifelines

The best solution partner:supporting the ubiquitous society most with its diversity,integration,responsibility and activity for making lifeline

Home

Individuals Companies

2-2

Services and solutions

Comfortable

Anytime, anywhere, anybody

Ubiquitous access

Service platform

Safe and secureInformation Lifelines

Public institutions


SI services 　Fee-based businesses

Creating New Businesses and New Technologies

Hardware

Components and modules

Application software and middleware

Expanding E

arnings in Core B

usinesses

高度技術製品・部品・モジュール

Strengthening Consolidated Group Management

Basic　Plan　for　Information&Telecommunication Systems to achieve the Goals of “i.e.HITACHI Plan II”2-3

Expanding G

lobal business IncorporatingA

dvanced Technologies B

usiness


% of sales from overseas businesses: at least 40%

新事業売上高比率：３０％

Targets　and Key Strategies for Information & Telecommunication Systems

*excludes HDD operations

2-4Target:Fiscal 2005

Key StrategiesBusiness Policy・Make HDD business profitable rapidly･Expand SAN/NAS storage solutions business

Expanding global business incorporating advanced technologies business

・Enhance sophistication of service platforms based on the Harmonious Computing concept

Expand earnings in core businesses

Make hardware and open middleware more competitive

・Raise productivity and strengthen sales operationsPromote solutions businesses by market

・Quickly create cross-market solutions･Cultivate new businesses related to “e-Japan II”

Create new businesses and new technologies

・New corporate government structure・Eliminate of redundant investment and reorganize business

fieldsStrengthening consolidated group management

Operating margin: 　　　at least 7%

Overseas businesses :at least 40% of net sales

　　　　

　New businesses :

30%* of net sales 　

ContentsBusiness Plan for Information & Telecommunication Systems1Basic Strategy for Information & Telecommunication Systems2Expanding Global BusinessIncorporating Advanced Technologies Business3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening Consolidated Group Management6Conclusion7


　　Targets and Structure for Global Storage Business

Direct sales

Indirect sales

OEM

Hitachi: SAN/NAS storage solutions businessHitachi GST: HDD business

SAN/NAS Storage Solutions Business

Development, manufacturing and domestic sales

Hitachi, IBM, EMC, DELL, HP,

Hitachi, IBM, EMC, DELL, HP,

OEM

Indirect sales

HP customersHP customers

HDS customersFortune500 companies data center providers

HDS customersFortune500 companies data center providers

Business partnersBusiness partners

End usersCustomersEnd usersCustomers

3-1

Hitachi

HDD Business Business

　Hitachi GST　Development, manufacturing

and sales

　Hitachi GST　Development, manufacturing

and sales Distributors worldwideDistributors worldwide

Capture the top share in the worldwide market and promote higher earnings

HDSSales and support

HDSSales and support

Expand global storage business


SAN/NAS Storage Solutions Business Strategy

Strategies for Achieving Targets

3-2

Sales

FY04Target

FY03Forecast

75%

10%

15%

FY05Target

15%

15%

70%

20%

20%

60%200.0

Hardw

areSoftw

areServices

Sales: ¥400.0 billion / Operating margin: 8%

400.0

350.0

300.0

SoftwareExpand sales of storage management software (JP1/HiCommand + program product)Fiscal 2005 target: 8% worldwide market share

HardwareHigh-end disk array subsystems: Maintain top shareFiscal 2005 target: 29% worldwide market share

Mid-range disk array subsystems: Bolster lineupand strengthen system for indirect sales overseas

Increase software and services workforce(By 1,500 by fiscal 2005)　　　

Targets

250.0

150.0

300.0

350.0

400.0

ServicesStrengthen global solutions services-deepen strategic alliances with ISV/IHV

(¥ billion)


HDD Business Strategy (1)Hitachi Global Storage Technologies

Basic Strategy

　　 Expand an industry-leading worldwide market share by capturing new customers globally

Hitachi Global Storage Technologies

　Implement structural reforms　 Seize the initiative in non-IT

market by capturing synergies across the Hitachi Group

3-3Targets

Sales

FY03 FY04 FY05 FY06

Turn to profitability in fiscal 2004Achieve pre-tax profit margin of 6% in fiscal 2006

3.0

4.0

5.0

3.5

4.5

5.5

4.1

4.7

5.1

5.5

(1 billion $)

Average annual growth rate of 10%

The No.1 HDD supplier in the worldThe No.1 HDD supplier in the world


　　HDD Business Strategy (2)Ubiquitous HDD Project

Gro

wth

in m

arke

t siz

e (F

Y05

fore

cast

/FY

02 a

ctua

l)

Source: Hitachi Research InstituteMarket size (HDD-equipped, 2002, logarithmic scale)

1 10 100 1,000 10,000 100,00010 thousand

units

10

1

Times

Desktop PCs

Notebook PCs

Servers

5

Video recorders

Mobile music players

Automotive applications(in-vehicle terminals)

Game players

3-4A project to expand sales of HDD in non-IT industry

StrategyExpected HDD Market Landscape by Application

　　

　　

Promote as one of the most important projects of Hitachi group that draws on the collective strengths of the Group

Fiscal 2005 target: Capture more than 10% of the market share for high-growth and non-IT HDD applications

ContentsBusiness Plan for Information & Telecommunication Systems1Basic Strategy for Information & Telecommunication Systems2Expanding Global Business Incorporating Advanced Technologies Business3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening Consolidated Group Management6Conclusion7


Harmonious Computing　

A new service platform concept Harmonious Computing; which provides a business-oriented autonomous computer system using a resource-independent virtual platform.

ServersNetwork equipment Storage equipmentMainframes PCs/terminals

System integration

HardwareHardware

ApplicationsApplications

Service provision

JP1/HiCommandVOS3,UNIX,Linux,Windows

Partners’software/hardware

Web services / E-business foundation

Open middlewareOperating

systems

Open middlewareOperating

systems

Partners’software

Customer’s business processes

4-1

JP1Cosminexus HiRDB

Policy-based autonomous operationGrid computing




　Introducing the Harmonious Competence Center

Opened on June 9, 2003 in the Shinagawa East One Tower 　

The largest floor area　as a system verifying center　in Japan -Approx. 1,500㎡ per floor

　　　　Features and Advantages of the Center

　・The necessary multi-platform environment for constructing, 　　　testing and verifying systems, including main products of other 　　companies　・Provides systems environment and technologies through new 　　　 products based on the Harmonious Computing service platform 　 concept

・Can be used to give optimal presentations, demonstrations and 　　　seminars for customers

・The center has a system technology support function for center 　　　users

　


Strategy for Making Open Middleware Business More Competitive4-2

Key strategies for open middleware supportingHarmonious Computing

Strategic ProductField

Integrated management

system

Japan, China, South Korea, and Southeast

Asia

JP1

Database HiRDBJapan (Aim

overseas markets)

Storage management

JP1/HiCommand World Wide

ApplicationServer

Cosminexus

Key Markets Market Position

No.1 market sharein Japan

26％（2001）

Cumulative shipments (2003/2)

Cumulative shipments (2003/3)

Becoming the de facto world standard　with storage system in high share

Enhancement of Functions to Improve

Competitiveness・Policy-based system management・Strengthen linkage with heterogeneous computing environments

・Storage-linked provisioning・Tuning advisor

・Web service integration

・Policy-based transactioncontrol

・Policy-based autonomousstorage management

・Storage pool managementusing virtual technology

・ Over 10,000 serversTarget: 9,000 servers

in 2003

・ Over 10,000 servers・ Over 1,400 users

Japan (Aim overseas markets)


Making the Hardware Products Business More Competitive4-3

Implement selection and concentration of management resources based on market needs and leveraging Hitachi’s strengths

Storage

Servers

Network

Terminals

PCs

Field

・High-end disk array subsystems・Mid-range disk array subsystems

・HDD

・POWER servers

・IA servers

・Mainframes・1x　EV-DO・PHS・IPv6 routers/switches・ATM/Retail shops・Cache modules

・Broadband/mobile

Key Markets

Japan

Overseas(OEM)Japan

・Develop only competitive Products・Otherwise procure standard products

Develop by Hitachi

Full line

Focus onproducts

Focus on competitive

products

Development and ProductionLineup

Measures to Improve Competitiveness

Provide products

matched to customers’

system needs

・Integrate development and manufacturing and develop competitive products・Source by forming alliances with others

Strategic Products

World

Wide

JapanChinaEuropeNorthAmerica


Basic Policy:Making Software and Services Business More Competitive4-4

Introduce frontline-driven system・Integrate sales and systems engineers・Ordering, sales, profit and cash flow responsibility

Target more medium-sized customers・Expand package business・Stimulate indirect sales

Trial in financial information systems division

Expand across the board

20%13%

Nurture effective project managers・Training courses・Three-tier certification system(Platinum, gold and silver)

Thoroughly reuse contents(proposals, designs, code, etc.)

400 staff

1,000 staff

25% increase in productivity

Steadily strengthen competitive by continuing restructure business

Software and Services Business

Operating Margin Target

Key Measures Fiscal 2002 Results

Fiscal 2005 Target

5

FY01Result

FY02Result

Basic Policy

Strengthening solutions sales

Raise solutions productivity

Customer coverage ratioFY03Forecast

2002 2003～10

FY05Target

Expand software development in China and India

800 staff

2,700 staff

Increase Top-level IT consultants・Management, business processes, IT

300 staff

1,000 staff

(%)



Creating New Businesses and New Technologies

Target (Fiscal 2005) New businesses:30%* of net sales

10 Key New Businesses

Commercialization of new technology Cross-market new businesses

Business model transformation

“e-Japan II” RelatedNew Business

Vibrant, reassuring, exciting and convenient 7 pioneering applications

Implement Hitachi’s strong technologies

5-1





Recent Main ImplementsBusiness・Get large orders, become business divisions１．Strategic outsourcing

・Upgrade functions to integrate the Hitachi Group２．Cyber security

・Bulk purchasing, establish a organization of support and service

３．MSP

４．Open platform support and service

・ Upgrade functions to integrate the Hitachi Group ５．e-learning solutions・Integrate organizations related to IC cards, memory cards and electronic tags６．ID solutions

・Increase workforce and enhance qualification certification system７．Top-level consulting

・Upgrade functions to integrate the Hitachi Group ８．ITS

・Step up formation of alliances with professional companies ９．Ubiquitous information services１０． Application of existing information technologies

・Stimulate by capturing synergies with other business divisions

5-2


Strategic Outsourcing

29

Achievements

Strategies for Achieving Targets　 Increase the number of consultants

(Fiscal 2003)　 Present proposals that leverage the

collective strengths (finance, logistics, etc.) of the Hitachi Group

　 Develop outsourcing business overseas(focus on North America)

　 Start examining next-generation data center models(various fee-based services)

　 Established business division that consolidated all outsourcing businesses (April 2003)

　 Get major orders　　：UFJ Bank Limited

(UFJ & Hitachi Systems Co., Ltd.)： Nichirei Corporation

(Hitachi Foods & Logistics Inc.)： Marubeni Corporation

(Marubeni Information Systems Co., Ltd.)

FY05 Target

Average annual growth rate

of 48%

¥130.0 billion

5-3Sales

¥40.0 billion

¥120.0 billion

(June 2003)(June 2002)FY02 Result


Sales Achievements


Cyber Security

Established Security Solution Promoting Divisionas the central body in the Hitachi Group for security technologies & businessIntegrated information and solutions menus with Secureplaza (April 2002)

Differentiate Hitachi with proprietary leading-edge technologies (Encryption, digital watermarking, hysteresis signature)

Pioneer de facto standard technologies(PKI: Public Key Infrastructure, SSL: Secure Socket Layer)

Integration of cyber security and physical security(Information vault)Provide one-stop services

Total security-related systems

FY02 Result FY05 Target

¥24.0 billion

5-4

Consulting Authentication

Information leak prevention

Confidentialinformation safekeeping

Total outsourcing

¥150.0 billion

(June 2003)(June 2002)

¥150.0 billion


of 84%

Security systems Information services


Achievements


Open Platform Support and Service

Established Hitachi Open Platform Solutions, Ltd. as a specialist company to provide platform support and services for open products (November 2002)

Upgrade platform solutions suite to offer everything from IT consulting and design through systems construction, operation and maintenanceProvide one-stop solutions over entire life cycle (Integrate MSP)Improve ability to construct systems and efficiency through specialist platform solutions organization

FY05 TargetFY02 Result


of 22%¥150.0 billion

¥83.0 billion

5-5Sales

(June 2003)(June 2002)


IT Thermal Solutions5-6

Shift to a new business model Expand range of applications

Servers

Office equipment

Information appliances

Game players

Automotive terminals

Muster collective strengths of Hitachi

Quiet, Quiet, highhigh--performanceperformance

Generate cash from core lab technologies

One-stop service for intellectual property, components and

consulting

Become global de facto standard

Integration of IT hardware technologies and liquid and air-cooling technologies gained through experience in mainframe and power & industrial systems

Hitachi silent water-cooling system


Hitachi’s Approach to “e-Japan II”Related New Business

FieldMedical

FoodLifestyle

Small and Medium-sized Enterprises

KnowledgeEmployment and

WorkGovernment Administrative Services

Raise level of service by sharing treatment information

Details

Improve safety and peace of mind through traceabilityBuild safe, secure and convenient living environments through greater use of electronics in the home

New financial services by deregulation

Distance learning and content value creationMake it easier to start businesses and facilitate various ways of workingRaise efficiency and quality through deregulation and outsourcing

Establish nextEstablish next--generation information generation information and communications infrastructureand communications infrastructureCreate environment that is secure and safe Create environment that is secure and safe to useto useResearch and development that creates Research and development that creates nextnext--generation intellectual propertygeneration intellectual propertyTrain and educate people knowledgeable Train and educate people knowledgeable in IT for the new erain IT for the new eraDevelop new international relations Develop new international relations centered on ITcentered on IT

Pioneering Application Fields

Outline of “e-Japan II” Plan

Hitachi’s Approach

Estimated market size: ¥2-3 trillion in investment

by 2005 Collective strengthsSecurity

Differentiate and pioneer new businesses drawing on Hitachi’s strengths

New IT Social Infrastructure

5-7


5-8

Warehouse

Consumer

μ-Chip

Facilitate the provision of delicious, safe and reliable food thFacilitate the provision of delicious, safe and reliable food through tracing rough tracing the movement of food products from the farm to the dinner tablethe movement of food products from the farm to the dinner table

Target Businesses for Hitachi

　　SCM solutions for the recording and management of information during production and distribution processes

　　Electronic tag solutions (μ-Chip) that make possible individual identification

　　Total logistics solutions, including hardware and distribution services

Farm- -米

μ-Chip

Supermarket

FactoryTesting institution

Designated purchasingDesignated purchasing Information searchInformation search

Distribution

Farm

Food: Traceability Business


5-9

Dramatic cost savings in storage, postage and printingSafe, long-term storage and quick searching

Facilitate the safe storage and quick searching of large volumesFacilitate the safe storage and quick searching of large volumes of electronic of electronic data created by legislative amendmentsdata created by legislative amendments

TargetBusinesses for Hitachi

SAN/NAS storage solutionsOutsourcing using iDC 　

Total security solutions based on disaster recovery functions

Deregulation JapanPermit electronic storage of paper-based information that must be retained by the private sector

Requirement to keep e-mails and business records for an extended period of time in the wake of the Enron scandal

Tougher regulations

U.S.

Electronic storage

Law Changes Advantages of Electronic Storage of Documents

Government Administrative Services: Data Lifecycle Management


5-10

ShopsWorkplace Local government

Lights

SensorTV

Community

Facilitate safe, comfortable lifestyles even for elderly people Facilitate safe, comfortable lifestyles even for elderly people living aloneliving alone

Service provider

Home server

PCWater and gas

OK TOPOK TOPOK TOP

Home

Lifestyle: Net Life

TargetBusinesses for Hitachi

Energy service solutions (Joint inspection & monitoring)Home healthcare service solutions (Care for the elderly)Home entertainment solutions (Home server & Information appliances)Security service solutions (Disaster and crime prevention monitoring, communication and warning)

●　Power, Gas and Waterworks companies

●　Hospitals, Care centers●　Retail stores, Home delivery

service companies●　Police, Fire stations


Medical: Electronic Patient Records and Online Reception

Testing centers

Online receptionInformation disclosure

5-11Realize reliable, safe and lowRealize reliable, safe and low--cost patientcost patient--centric medical treatment by linking centric medical treatment by linking medicalmedical--related institutions. related institutions.

日立の強み

Eliminate redundant testingEnhance emergency responsePromote use of IT at small and medium-sized institutions

Eliminate redundant testingEnhance emergency responsePromote use of IT at small and medium-sized institutions

Hospitals

Clinics

Pharmacies

ＩＣカード

Security

Medical condition and condition dataTreatment and prescription dataMedical institution data

Medical condition and condition dataTreatment and prescription dataMedical institution data

Target Businesses for Hitachi

Home healthcare service solutions (Care for the elderly)Security service solutions (Electronic patient records, personal identification, personal information protection)ID system solutions (IC cards, memory cards, μ-Chip)

Electronic patient record

IC cardsHealth

insurance

Pharmaceutical history management



Strengthening Consolidated Group Management

Share strategy and goals with Hitachi group companies to improve consolidated results

Strengthen consolidated management in each business category 　　　

Clarify missions　　　Restructuring and

amalgamation of businesses

Introduced new corporate government structure

Separation of roles of management oversight and business executionExternal directors from Hitachi ensure that strategies are consistent with those of the entire group

6

Hitachi Information Systems, Ltd.Hitachi Software Engineering Co., Ltd.

Publicly listed companies

Unlisted companies

Hitachi Systems & Services, Ltd.Hitachi Electronics Services Co., Ltd.

Hitachi HBM Co., Ltd.Hitachi Data Systems Co. 　

ContentsBusiness Plan for Information & Telecommunication Systems1Basic Strategy for Information & Telecommunication Systems2Expanding Global Business Incorporating Advanced Technologies Business3Expanding Earnings in Core Businesses4Creating New Businesses and New Technologies5Strengthening for Consolidated Group Management6Conclusion7


Conclusion

Strengthening for consolidated Group management

10 key new businesses “e-Japan II” related new business

　　Storage solutions business(SAN/NAS, HDDs)

　　　　　　Server business 　　　　　　　　Global and specialist

businesses

Harmonious　Computing　Hardware, software and

services businesses　　 Solutions business by

market type

Ubiquitous Information Society

Create new businesses& market

promoting “e-Japan II”

Create new businesses& market

promoting “e-Japan II”Best Solutions PartnerBest Solutions Partner

7Create new businesses and new technologies

Expand global Business incorporatingadvanced technologies business

Expand earnings in core businesses

　Fiscal 2005 Targets 　　

Operating margin: at least 7%New Business:30% of net sales*

　Overseas business:at least 40% of net sales

　Fiscal 2005 Targets 　　

Operating margin: at least 7%New Business:30% of net sales*

　Overseas business:at least 40% of net sales


Cautionary StatementThis document contains forward-looking statements which reflect management’s current views with respect to certain future events and financial performance. Words such as “anticipate,” “believe,” “expect,” “estimate,” “intend,” “plan,” “project” and similar expressions which indicate future events and trends identify forward-looking statements. Actual results may differ materially from those projected or implied in the forward-looking statements and from historical trends. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate.

Factors that could cause actual results to differ materially from those projected or implied in any forward-looking statements include, but are not limited to, rapid technological change, particularly in the Information & Telecommunication Systems segment and Electronic Devices segment; uncertainty as to Hitachi’s ability to continue to develop products and to market products that incorporate new technology on a timely and cost-effective basis and achieve market acceptance; fluctuations in product demand and industry capacity, particularly in the Information & Telecommunication Systems segment, Electronic Devices segment and Digital Media & Consumer Products segment; increasing commoditization of information technology products, and intensifying price competition in the market for such products; fluctuations in rates of exchange for the yen and other currencies in which Hitachi makes significant sales or in which Hitachi’s assets and liabilities are denominated, particularly between the yen and the U.S. dollar; uncertainty as to Hitachi’s access to liquidity or long-term financing, particularly in the context of restrictions on availability of credit prevailing in Japan; uncertainty as to Hitachi’s ability to implement measures to reduce the potential negativeimpact of fluctuations in product demand and/or exchange rates; general economic conditions and the regulatory and trade environment of Hitachi’s major markets, particularly, the United States, Japan and elsewhere in Asia, including, without limitation, continued stagnation or deterioration of the Japanese or other East Asian economies, or direct or indirect restriction by other nations of imports; uncertainty as to Hitachi’s access to, or protection for, certain intellectual property rights, particularly those related to electronics and data processing technologies; Hitachi’s dependence on alliances with other corporations in designing or developing certain products; and the market prices of equity securities in Japan, declines in which may result in write-downs of equity securities Hitachi holds.

These factors listed above are not exclusive and are in addition to other factors that are stated or indicated elsewhere in this document, or in other materials published by the Company.


Nex t MADE IN JAPAN.Nex t MADE IN JAPAN.’’

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