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                      | HITACHI HOME | UP | SEARCH | HITACHI

                      News Release

                      June 17, 1997

                      Japan's First Business Media Services for Intercorporate EC transactions

                      - Supporting global business in the cyberspace age -

                      Hitachi, Ltd. today announced that it will start providing a comprehensive business media service for intercorporate electronic commerce (EC) transactions in September 1997. The new service will include a secure network infrastructure, business platforms that feature high scalability and business applications required for various intercorporate and business transactions.

                      Implemented via a secure extranet, this will be the first service in Japan to provide business applications as well as a network infrastructure and business platforms.

                      "The rapid spread of information communications technology into all areas of society, led by the Internet, intranets and extranets, the ongoing development of borderless, global activities by enterprises are producing major changes in the paradigm of a dynamic network society in which large numbers of companies compete while at the same time working together," said Shigemichi Matsuka, executive managing director and Group Executive of Hitachi's Information Systems Group, adding, "To enable the companies to respond to the management needs imposed by the paradigms of a new age, companies require high-level services that include business applications and intercorporate networks that allow them to manage their operations while facilitating the development of new and existing partnerships."

                      Hitachi is one of the world's largest electronics companies. For over ten years its value-added network (VAN), implemented with related companies that include Hitachi Information Systems and Hitachi Information Network, has been linking the purchasing and other activities of some 2,100 companies around the world. Hitachi therefore has extensive experience and expertise in the building, operation and utilization of business systems. The reliability and sophistication of the technology concerned has been further demonstrated by the configuration and operation of Hitachi group company networks, which link around 100,000 users at some 4,000 locations throughout the world. Moreover, last October Hitachi released a line of software products and support services for developing electronic commerce applications between enterprises and individual consumers, and were applied in pilot projects.

                      The new service includes a membership-based premium service designed to help firms create new business by providing a total support structure and environment for intercorporate business relationships.

                      Companies are already utilizing business platform services such as network infrastructure services and VAN services. However, for Japan this will be the first extranet-based high-level service that includes business applications. Services that become available in September include support for estimates, exchange of plans and specifications, support for order transactions, and netting. The menu of services will be gradually expanded to include distribution transactions, electronic transaction market, general remittances, intercorporate work flows, and more.

                      The network and business application platforms on which the service is based will utilize Hitachi's own proven network technology and advanced information technology, including distributed object technology such as CORBA(*1) and Java(*2).

                      Initially, service membership will comprise some 2,100 companies including Hitachi subsidiaries and affiliates, a number that Hitachi intends to expand to 4,000 in two years as part of a plan to establish this as the global standard for intercorporate business media services.

                      *1 CORBA (Common Object Broker Architecture) is a specification for distributed application development established by the non-profit international corporation, The Object Management Group.
                      *2 Java is a trademark of Sun Microsystems, Inc.

                      Service details, pricing and availability

                      1. Business Application Service
                      Service charges comprise an entry fee, a fixed monthly charge and incremental charges, listed below. All services become available from September 1997.

                      Service Charge item Charge (yen)
                      Materials purchasing support service Entry fee 500,000
                      Business Environment utilization charge from 200,000/month
                      Estimation registration fee 150 per registration
                      Transmission of drawing data fee 100/MByte
                      Sales support service Entry fee No charge
                      Business Environment utilization charge No charge
                      Estimation registration fee 150 per registration
                      Transmission of drawing data fee 100/MByte
                      Settlement support service Entry fee
                      Lead enterprise(*1) 500,000
                      Participating enterprise(*2) No charge
                      Business environment utilization
                      Lead enterprise from 100,000/month
                      Participating enterprise charge from \50,000/month
                      Netting service 300 per time

                      *1 Each netting group requires a lead company that administers the rules.
                      *2 Netting group participants other than lead companies.

                      2. Business platform service
                      Hitachi will provide users with business platform service to enable them to configure their own business applications on the platform. Hitachi can assign a systems engineer to support their system configuration. Services become available from September 1997, with pricing based on individual estimates.


                      WRITTEN BY Secretary's Office
                      All Rights Reserved, Copyright (C) 1997, Hitachi, Ltd.

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