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Hitachi Software Engineering and Hitachi Systems & Services to Merge To Strengthen Systems Solutions Business as Hitachi Solutions, Ltd.

Tokyo, February 24, 2010 --- Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that two group companies that are part of the Information & Telecommunication Systems Company—Hitachi Software Engineering Co., Ltd. and Hitachi Systems & Services, Ltd.—have agreed to merge on October 1, 2010 to form Hitachi Solutions, Ltd. The primary goal for this merger is to strengthen marketplace competitiveness by enhancing systems solutions-providing capabilities through the harnessing of both companies’ management resources.

In recent years, the IT market has seemingly undergone change on a daily basis in an effort to provide diversified customer information system needs. This is highlighted by more customers opting to accessing online rather than owning their own systems. Business globalization is another dynamic shaping the marketplace. As a result, it is now increasingly important to provide one-stop services ranging from new service platforms, such as cloud computing, and systems consulting, to system building, operation and maintenance.

Against this backdrop, Hitachi introduced an in-house company system on October 1, 2009 and launched the Information & Telecommunication Systems Company under which it placed four companies, namely Hitachi Software Engineering, Hitachi Systems & Services, Hitachi Information Systems, Ltd. and Hitachi Electronics Services Co., Ltd., as well as their respective consolidated companies. This in-house company has been strengthening its business framework so as to provide valuable one-stop services throughout the entire lifecycle of IT systems, extending from system proposals to system construction, operation and maintenance, in order to cater flexibly to the needs of clients, including those with global business operations.

Hitachi Software Engineering has garnered or received recognition from customers for its ability to develop large-scale systems as well as packaged products based on platform technologies. Hitachi Systems & Services, meanwhile, boasts a storehouse of experience and expertise in the proposal, design and construction of administrative systems for customers.

The merger announced today will combine both companies’ strengths, giving the new company a wider range of business know-how and experience in all business sectors. This should enable the ability to provide more powerful systems solutions than before as it seeks to raise its standing in the marketplace.

Moving forward, Hitachi, Ltd. and the new company will work as one to develop large-scale systems, mainly in the financial-sector and public-sector, and provide highly reliable services spanning the entire lifecycle of systems. The new company also aims to offer system integration services that provide a detailed response to address customer needs for mid-sized systems, particularly in the manufacturing and services sectors. This will be achieved by leveraging Hitachi Software Engineering’s and Hitachi Systems & Services’ systems integration capabilities, project management capabilities, including expertise in utilizing overseas developers, and knowledge of various types of businesses and administrative processes.

Moreover, both companies’ various project and services platforms will be effectively utilized in the Social Innovation Business, which is a key focus of the Hitachi Group. Leveraging the highly skilled developers of both companies is expected to also accelerate development of new products and systems as well as contribute to expansion of these businesses.

The Information & Telecommunication Systems Company will step up activities in terms of global business and the Social Innovation Business through a more efficient business structure resulting from this merger.