News Releases

1/06/2003

Hitachi Establishes “Hitachi Global Storage Technologies,” Taking a Bold New Step for Storage Innovation

Jan 6, 2003 09:15 AM

TOKYO and SAN JOSE, Calif.--(BUSINESS WIRE)--Jan. 6, 2003--Hitachi, Ltd. (NYSE: HIT, TSE: 6501) today announced that it has created a new hard disk drive (HDD) storage company with the most advanced technology, the most extensive product line, and the greatest global reach in the industry.

The new company, named Hitachi Global Storage Technologies, which comprises the HDD operations of Hitachi and IBM, is headquartered in San Jose, California. The new company is 70 percent owned by Hitachi, with the remainder of the shares held by IBM. Hitachi, however, will assume full ownership at the end of 2005. IBM will have no involvement in the management of Hitachi Global Storage Technologies.

As an entity specializing in HDDs, Hitachi Global Storage Technologies will bring together the mutually complementary qualities of both its founding companies. Hitachi boasts cutting-edge R&D capabilities, such as in perpendicular magnetic recording technology. Having invented the HDD, IBM has extensive technological expertise backed by an industry-leading number of patents, and top-level product development capabilities. With an expanded product lineup, increased production capacity, and enhanced global development, production and sales networks as a result of this integration, Hitachi Global Storage Technologies is in an extremely competitive position.

"The completion of this deal changes everything in the storage industry -- no one else has the depth of knowledge and the breadth of technology that we have to offer," said Dr. Jun Naruse, chief executive officer, Hitachi Global Storage Technologies. "Customers will see new HDD technologies reach the marketplace more quickly than ever before, helping them meet their growing needs for versatile, robust and economical storage technologies."

The company will provide the most extensive line of HDDs in the industry, covering every major segment from consumer-focused 1-inch to enterprise-level 3.5-inch products. The worldwide sales and support capabilities of Hitachi Global Storage Technologies will provide customers with unequaled access to products and services.

Hitachi Global Storage Technologies aims to use its world-class R&D capabilities and state-of-the-art technologies to be a driving force behind further advances in the HDD format. The new company is determined to be a leader in the HDD industry by developing products and offering support in a timely manner to meet various needs in the IT market. HDDs are expected to be in increasing demand for use in mobile terminals, PCs, servers and other information appliances, as well as emerging consumer electronics market, like car navigation systems, set-top boxes and other products.

Powerful hardware is a vital element of efforts to bolster the Hitachi Group's solutions delivering abilities. Hitachi also sees the opportunity to capture many synergies with Hitachi Global Storage Technologies in the Hitachi Group's consumer electronics operations, including information appliances. In the field of redundant array of independent disks (RAID) storage systems, in particular, Hitachi hopes to develop worldwide storage solutions that take advantage of Hitachi Global Storage Technologies' powerful HDDs.

One of Hitachi's overarching goals is to leverage its competitive edge in HDDs to exercise leadership in the IT industry by building the infrastructure needed to support a ubiquitous information society.

Hitachi Global Storage Technologies commenced operations on January 1, 2003, integrating IBM's HDD production and marketing bases with Hitachi's U.S. HDD sales division. On April 1, plans call for Hitachi, Ltd.'s Data Storage Systems Division, which operates an HDD manufacturing facility in Kanagawa Prefecture, to be integrated with the Japanese subsidiary of Hitachi Global Storage Technologies by taking advantage of Japan's corporate split law. Plans are also in hand for all Hitachi's HDD production and sales locations, including sales operations in Europe and Asia, to join Hitachi Global Storage Technologies.

Profile of the New Company (As of April 1, 2003)

Company name:

Hitachi Global Storage Technologies, Inc. (Headquartered in the U.S.)

Stockholders' Equity: US$2.029 billion (on establishment)

Top management team: Yoshiro Kuwata, (non-resident) Chairman of the Board (Executive Vice President and Director, Hitachi, Ltd.) Jun Naruse, CEO (Managing Officer, Hitachi, Ltd.) Douglas Grose, COO (formerly general manager

For Media/Investor Inquiries, please contact:

Matt Takahashi
Hitachi America, Ltd.
Tel: (650) 244-7902
masahiro.takahashi@hal.hitachi.com

Kim Nguyen
Hitachi Global Storage Technologies, Inc. (U.S.)
Tel: (408) 256-7589
kim.nguyen@hgst.com

Japan:
Yasuo Hirano
Hitachi, Ltd.
Tel: +81-3-3258-2057
yasuo_hirano@hdq.hitachi.co.jp

Singapore:
Yuji Hoshino
Hitachi Asia Ltd.
Tel: +65-6231-2522
yhoshino@has.hitachi.com.sg

U.K.:
Kantaro Tanii
Hitachi Europe Ltd.
Tel: +44-(0)1628-585379
kantaro.tanii@hitachi-eu.com

For all other inquiries please call:
1-800-HITACHI

If you have any questions specifically about Investor Relations in the United States, please contact our Investor Relations Department at investor.info@hal.hitachi.com