News Releases

5/11/1999

Hitachi Launches Mondex Transaction Processing Services

System Advances Business Case for Smart Card Issuers

CHICAGO, IL

BUSINESS WIRE

May 11, 1999 00:00 AM

Hitachi, Ltd. (NYSE:HIT) (TSE:6501) today announced that it will be the first independent processor to provide Mondex electronic cash transaction processing services. The newly created Mondex Service Bureau ("MSB") from Hitachi will be based in San Francisco, and offer a "Mondex in a Box" clearinghouse that provides an easy-entry processing solution for customer organizations issuing smart cards with the Mondex electronic purse application.

The Mondex Service Bureau from Hitachi offers the first stand-alone processing technology that can support any level of Mondex electronic purse implementation, from test pilots to full scale rollouts. As a result, Mondex and MULTOS deployments through MSB from Hitachi will be the most economical and flexible programs to date.

Comerica Incorporated, a multi-state financial services provider headquartered in Detroit, Michigan, is expected to be the first customer of MSB from Hitachi. Comerica's first Mondex campus pilot is scheduled to occur in the third quarter with approximately 250 of the company's Auburn Hills employees receiving a smart card that will provide purchasing capabilities. The card's capabilities will be expanded later to include building access, data security and other services. All processing and management functions will be handled by MSB from Hitachi.

According to Daniel McCarty, first vice president of Treasury Management, the campus pilot will provide a working example that Comerica can use in marketing a multi-application card to its corporate customers. "The second phase of the pilot will be to allow our employees to transfer money from their accounts directly to the smart card through PCS and ATM-like devices that will be installed in our Auburn Hills campus," explained Richard G. Lyons Jr., Comerica's senior vice president of Electronic Banking and Marketplace Technology.

"Hitachi is pleased to demonstrate its ongoing commitment to Mondex and MULTOS," stated Mr. Kunihiko Misaki, general manager, New Financial Systems, Services and Products Division of Hitachi, Ltd. "The North American market is of primary importance in allowing the world to realize the benefits of smart cards. We are proud to play a role in making Mondex and MULTOS an effective and feasible choice for a wide range of organizations."

The Mondex Service Bureau from Hitachi is designed to allow the deployment of Mondex electronic cash quickly, comprehensively and at a lower cost, regardless of implementation scale. The bureau will offer a full range of services to issuers, including management and processing support for entry systems, campus projects, and major mass-market deployment. In addition, Hitachi personnel will provide issuers with smart card education, consulting, and application development support. Hitachi will also focus on enabling issuers to migrate seamlessly to multi-application solutions through MULTOS.

"MasterCard International sees the Mondex Service Bureau from Hitachi as an important step forward for the industry, and particularly for Mondex electronic purse in the United States," said Michael Tempora, vice president for U.S Chip Product Management of MasterCard International.

A live demonstration of the Mondex Service Bureau from Hitachi solution will take place at the Hitachi booth at CardTech/SecurTech '99 in Chicago, from May 11 - 14, 1999. The demonstration will give conference attendees the opportunity to experience live Mondex value transfers via cashless ATMs and telephony devices.

Hitachi has invested significantly in semiconductor chips, terminals and systems that support Mondex and MULTOS. The company is also one of the founding members of MAOSCO, the MULTOS consortium formed by leading international corporations to provide for the development and commercial application of MULTOS as the standard operating system for smart cards worldwide. For more information on Hitachi's Mondex and MULTOS related business.

Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417 billion yen ($63.8 billion (Note a)). 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.

Note* At an exchange rate of 121 yen to the dollar.

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

Terry Kubo
Tel: (650) 244-7902
tatsuya.kubo@hal.hitachi.com

Kantaro Tanii
Tel: 011+81-3-3258-2055
kan@cm.head.hitachi.co.jp

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