News Releases

2/04/1999

Hitachi to Strengthen Information Technology Operations in North America

TOKYO, JAPAN AND SANTA CLARA, CA

Feb 4, 1999 17:19 PM

Hitachi Data Systems to become Focal Point for North American Corporate Information Solutions Business

Adding substantial strength to its North American information systems business, Hitachi, Ltd. (NYSE: HIT) today announced it has selected Hitachi Data Systems Corporation, Santa Clara, California, as the focal point for the comprehensive array of information solutions products and services it offers to corporate customers in North America. As part of the new full solutions direction, the operations, products, and channels of Hitachi PC Corporation (USA), Inc. will be phased into Hitachi Data Systems with emphasis on PC servers. Accordingly, over time, the Hitachi PC name will be superceded by the Hitachi Data Systems designation.

In making the announcement, Toshihiko Odaka, board director and group executive, Computer Products Group of Hitachi, Ltd., said, "The fusing of our information technology business in North America reflects the evolving nature of the marketplace and our desire to build greater critical mass in a broad range of information solutions for our customers in North America. Looking to the future, Hitachi regards North America as an absolutely critical IT market, and as such, will focus on achieving a steady expansion of solution business there."

Commenting on the reorganization, Yoshihiro Koshimizu, managing director and chairman of the executive committee of Hitachi Data Systems, said, "The direction announced today is a key milestone in Hitachi Data Systems' transition from a primarily high-end platform supplier, to a full-service, multi-platform corporate solutions provider. Because of the common parentage and existing cooperative marketing programs, this corporate integration not only promises further synergies, but also enhances and extends our reach into both the front office and back office of virtually any customer."

Yasuo Sekijima, president and CEO of Hitachi PC, noted, "Hitachi PC's vision of end-to-end computing began last year with the server launch and a closer marketing relationship with Hitachi Data Systems. This final step fulfills our vision, and allows our customers to leverage the strengths of both companies - the high-end systems and support expertise of Hitachi Data Systems and the products and established channels of Hitachi PC. The resulting company will be better positioned to deliver critical computing systems to the corporate market."

About Hitachi PC Corporation(USA)

Hitachi PC Corporation (USA) is a leading developer of Mobilized Computing tools for businesses that provide global reach and universal access to information and resources any time, any place. Hitachi PC designs, manufactures and markets personal computers, servers and other products and services that connect workers anywhere in the world to mission-critical information on private and public networks. Backed by Hitachi quality, Hitachi PC is committed to customer satisfaction and provides outstanding, 24-by-7 customer support and industry leading product warranties. Headquartered in Milpitas, California, Hitachi PC employs about 90 people and is a subsidiary of Hitachi, Ltd. and Hitachi America, Ltd. Visit http://www.hitachipc.com for more information.

About Hitachi Data Systems Corporation

Hitachi Data Systems markets high-performance enterprise servers, storage systems, and professional services worldwide. Hitachi Data Systems meets its customers' computing needs with the broadest line of the highest performance S/390(R)-compatible servers in the world, including the HDS Skyline Series[tm] and the HDS Pilot Series,[tm] as well as the Hitachi Freedom Storage[tm] subsystems which provide multiplatform support across S/390, UNIX, and Windows NT environments. Hitachi Data Systems is headquartered in Santa Clara, California, employs 2,300 people and operates in 30 countries worldwide. For on-line information about Hitachi Data Systems products and services, access http://www.hds.com on the World Wide Web.

About Hitachi, Ltd.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1997 (ending March 31, 1998) consolidated sales of 8,417 billion yen ($63.8 billion*). The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products, and power and industrial equipment. For more information on Hitachi, Ltd., please visit Hitachi's Web site at http://www.hitachi.co.jp.

*At an exchange rate of 132 yen to the dollar.

HDS Skyline Series, HDS Pilot Series, and Freedom Storage are trademarks of Hitachi Data Systems Corporation. S/390 is a registered trademark of International Business Machines Corporation UNIX is a registered trademark in the United States and other countries, licensed exclusively through X/Open Company Limited. Windows NT is a registered trademark of Microsoft Corporation in the United States and other countries. All other brand or product names are or may be trademarks of, and are used to identify, products or services of their owners.

Outline of Hitachi Data Systems Corporation

Location:
Santa Clara, California
Founded:
May 1, 1989

Employees:
Approximately 2300

Capital:
240 million U.S. dollars
Hitachi, Ltd.: 83.8%
Electronic Data Systems Corporation (EDS): 16.2%
* EDS share will be acquired by Hitachi, Ltd. by April 21, 1999 v
Managing director and chairman of the executive committee:
Yoshihiro Koshimizu

Outline of Hitachi PC Corporation (USA)

Location:
Milpitas, California Founded:v July 26, 1995

Employees:
Approximately 90

Capital:
100 million U.S. dollars

President/CEO:
Yasuo Sekijima

For Media/Investor Inquiries, please contact:

Gerard F. Corbett
Hitachi America, Ltd.
Vice President
Corp. Communications Group
Tel:(650) 244-7900
Fax: (650) 244-7920
gerard.corbett@hal.hitachi.com

Emi Takase
Hitachi, Ltd.
Tel: +81-3-3258-2055 (Tokyo)
emi@cm.head.hitachi.co.jp

Mark Lewis
Hitachi Data Systems Corporation
Tel: (408) 970-4356
mark.lewis@hds.com

Terry Kubo
Hitachi America, Ltd.
(650) 244-7902
tatsuya.kubo@hal.hitachi.com

Susan Zephir
Hitachi PC Corporation
Tel: (408) 546-8223
susan.zephir@hitachipc.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