News Releases

11/15/1999

Hitachi Data Systems

Nov 15, 1999 09:21 AM

Corporate Fact Sheet

November 1999

COMPANY

Hitachi Data Systems’ mission is to transform information technology into business agility. The company offers clients a comprehensive array of business solutions through its high-performance, multi-platform enterprise servers, enterprise storage subsystems, software applications, strategic alliances, and consulting services on a worldwide basis.

Hitachi Data Systems’ customer base consists primarily of Global 2000 companies who depend on enterprise-class integrated business solutions for their S/390®, Windows NT, and UNIX®-based mission-critical applications. The company sells its products and services to a wide range of businesses in all vertical markets – including telecommunications, aerospace, energy, finance, insurance, manufacturing, transportation, retail sales, services, education, and government.

MARKET OVERVIEW

Large enterprises continue to rely on powerful e-commerce servers and high-end storage subsystems to address a broad spectrum of business needs including electronic transaction processing, online stock trading, data warehousing, data mining, and customer relationship management (CRM) applications.

Hitachi Data Systems’ product categories – central processors, storage subsystems, software and hardware for UNIX and Windows NT environments, consulting services, and integrated business solutions are some of the faster growing segments of the IT industry.

With Forrester Research predicting that Internet sales will generate between $1.4 to $3.3 trillion by the year 2003, and Bloor Research highlighting the fact that e-commerce transactions are steadily increasing by as much as 8 percent per month, vendors and users alike will have to respond to the need for larger, faster, and more reliable e-transaction processing systems, Enterprise Resource Planning (ERP) applications, Storage Area Networks (SANs), CRM and Business Intelligence tools, communications networks, and ever-increasing performance and productivity requirements.

Hitachi Data Systems is committed to meeting those challenges and expanding market requirements, and, in partnership with its customers and strategic alliance partners, developing and providing integrated business solutions that best meet the needs of customers in various industry segments.

SERVICES

Hitachi Data Systems offers services to address a myriad of critical business problems.

In the area of systems integration, Hitachi Data Systems offers services for ERP, data warehousing, data mining, CRM, and Comprehensive Justice Information Systems (CJIS).

For the world of e-business, Hitachi Data Systems offers a suite of five services known collectively as the Hitachi iSuite™, which is targeted at companies striving to reach 100 percent continuous availability throughout the enterprise. The iSuite is designed to help companies reduce the complexity of deploying tightly integrated Web-enabled applications, and the high costs and difficulty of operating and managing many small servers.

Hitachi Data Systems also offers services for applications, and the high costs and difficulty of operating and managing many small servers.

Hitachi Data Systems also offers services for e-commerce planning, application building, component assembly, and application consolidation, as well high availability server solutions and the industry’s broadest line of services for planning, implementing, and managing SANs.

Services and custom business solutions are also available in the areas of storage management, resource management, and enterprise process renewal.

PRODUCTS

Hitachi Data Systems offers the broadest line of the highest performance enterprise servers in the world. These include the Hitachi Skyline Trinium™, the Hitachi Pilot Series™, and the Hitachi Skyline Series™. The Skyline Trinium and Skyline processors are based on Hitachi’s proprietary ACE technology, a combination of ECL and CMOS, producing the highest processor performance in the market. The Pilot processors are based on CMOS technology licensed from IBM and enhanced by Hitachi architecture and high-performance I/O to produce industry-leading performance, reliability, and flexibility.

Hitachi Data Systems storage is based on the "No Limits" concept of providing information access from any computer, anywhere in the world, at any time. Accordingly, the company’s storage systems offer multiplatform support, are available as centralized, distributed, or clustered systems, and are designed to never fail. The Hitachi Data Systems Freedom Storage family includes the 7700E disk array, and the 5800 and 5840 for heterogeneous open computing environments.

MANUFACTURING

Hitachi Data Systems’ processors are designed and manufactured by Hitachi, Ltd. at Kanagawa and Ebina Works in Japan. Hitachi, Ltd. manufactures its high-end disk drives in Norman, Oklahoma; in Orleans, France; and at Odawara Works in Japan. In addition to Hitachi, various third parties, including Sequent Computer Systems, ALR, and Groupe Bull, manufacture processors for UNIX and Windows NT environments. Other strategic alliances assist in the deployment of total solutions packages as well. Some semiconductor components are manufactured in Dallas, Texas.

Currently, Hitachi, Ltd. spends approximately $4 billion annually on research and development – more than 60 percent ($12 million every business day) of which is applied to such major strategic areas as information systems and electronics. Hitachi Data Systems is backed by 18,000 researchers in 38 laboratories worldwide, including R&D alliances with other leading companies.

DISTRIBUTION

Hitachi Data Systems markets its products through a worldwide direct sales force and distributor channels consisting of joint ventures and distribution partnerships. The company’s sales force is comprised of approximately 1,800 people in 19 countries, and includes both sales and service representatives.

Hitachi Data Systems’ third-party channel in the U.S. consists of over 40 enterprise-oriented value-added resellers.

With its distribution center located in the Netherlands, European sales are administered from Sefton Park, England, under the direction of General Manager John Taffinder. Mr. Taffinder reports to Yoshihiro Koshimizu, Chairman of the Executive Committee.

COMPANY SIZE

Hitachi Data Systems is headquartered in Santa Clara, California. The company employs approximately 2,300 people and operates in 30 countries worldwide. Revenues for the fiscal year ending March 31, 1999 were $1.6 billion.

HISTORY

Hitachi Data Systems was formed on May 1, 1989, as a joint venture between Hitachi, Ltd. and Electronic Data Systems (EDS) in which Hitachi acquired 100 percent of the shares of National Advanced Systems, Inc. (NAS) from National Semiconductor Corporation.

On October 23, 1989, the company name was officially changed to Hitachi Data Systems.

NAS had been formed in 1979, when National Semiconductor took over Itel’s Computer Products Group. From 1976 through 1979, National Semiconductor manufactured its own industry-standard mainframes and marketed them through Itel. Itel had been in the large-systems computer business since 1973, selling hardware from several manufacturers. In 1983, NAS closed its manufacturing operations but continued marketing In 1999, Hitachi, Ltd. purchased the 16 percent share of Hitachi Data Systems previously held by EDS, making the company a privately held, wholly-owned subsidiary of Hitachi, Ltd

MANAGEMENT

The Hitachi Data Systems management structure works through an executive committee that reports to a Board of Directors.

Members of the Hitachi Data Systems Board of Directors are:

Shigemichi Matsuka — Chairman

Masaaki Hayashi

Yoshihiro Koshimizu

Kaichi Murata

Toshihiko Odaka

Members of the Hitachi Data Systems Executive Committee are:

Yoshihiro Koshimizu — President & Chief Executive Officer

David Coombs — Executive Vice President, Operations

Jim Glueck — Executive Vice President, Services

Dave Roberson — Executive Vice President, Enterprise Resources & CFO

Shinjiro Iwata — Senior Vice President, Business Development

Clark Straw — Executive Vice President, Worldwide Sales

Alastair Short — Senior Vice President, General Counsel, and Secretary

David Rader — Senior Vice President, Corporate Strategy

Clint Tripodi — Vice President, Human Resource

Hitachi Data Systems is registered with the U.S. Patent and Trademark Office as a trademark and service mark of Hitachi, Ltd. Skyline Trinium, Hitachi Pilot Series, Hitachi Skyline Series, Freedom Storage, and iSuite are trademarks of Hitachi Data Systems

Corporation. System/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.

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

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