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                                          News Release

                                          December 4, 1997

                                          Hitachi to Release Flora Net Terminal Set

                                          - Set consisting of network PC and management software will provide major reduction in total cost of ownership -

                                          Hitachi, Ltd. on December 5 will release the FLORA Net Terminal Set based on NetPC* specifications. Each set consists of client PC management software for installation on a server, and space-saving NetPCs based on Hitachi's FLORA 310 and 330 PC.

                                          * Specifications proposed by Microsoft Corporation and Intel Corporation with the aim of reducing the total cost of ownership (TCO).

                                          In recent years companies have been following a policy of providing each employee with a computer. While this has contributed to improving productivity, it has also had some less desirable side effects, including the growing cost of running systems of network-linked PCs, and the increasing complexity of managing such systems.

                                          Installing and upgrading operating systems and application software on NetPCs as well as turning them on and off can be done from the host server. This results in cutting setup time to just five minutes, which translates into major savings in terms of TCO. When conventional client PCs are added to a network, it usually takes about 30 minutes to set up each machine.

                                          Hitachi will continue to expand its network computing business by bundling Intel's hardware management software, LANDesk(R) Client Manager ver. 3.1, as standard on its desktop PCs, and by providing NetPCs as well as by supporting the new, integrated system management software, "System Manager," all of which will help to reduce the TCO for business users.

                                          Pricing and Availability
                                          1
                                          Product:FLORA Network Terminal Management Software
                                          Description:"Client Management Kit V1.5" software for managing NetPCs (for installation under Windows NT(R) Server 4.0 or higher)
                                          Price: 220,000 yen/server
                                          Availability:December 5

                                          2-1
                                          Product: FLORA 310 NetPC (set)
                                          Description:FLORA 310-based NetPC (Pentium(R)/133 MHz), 32 MB memory, 12.1-inch Hi-Addressing STN (800- by-600) Configuration Service Windows(R)95 license "Client Management Software Kit V1.5" client license
                                          Price:326,000 yen/unit
                                          Availability:December 5

                                          2-2
                                          Product:FLORA 330 NetPC (set)
                                          Description:FLORA 330-based PC (Pentium(R)/133 MHz), 32 MB memory, without a display) Windows(R)95 license "Client Management Software Kit V1.5" client license
                                          Price:222,000 yen/unit
                                          Availability:December 5

                                          Notes:

                                          • The option is either 2-1 or 2-2. Using the management software of Item No. 1 makes it possible to utilize the FLORA NetPC of either 2-1 and 2-2. When a FLORA NetPC is added, it is possible to add just 2-1 or 2-2 alone.
                                          • The configuration service referred to is a service that covers setting up the client hardware to enable utilization of a virtual hard disk drive on the server.
                                          • For system configuration, a server PC (a FLORA SA2 or SC1 running Windows NT(R) Server 4.0, for example) and LAN related products are required in addition to the above.
                                          • Individual estimates can be provided for evaluating performance and confirming operation with respect to system configuration, application installation and user environment.

                                          Trademarks
                                          Flora is a registered trademark of Hitachi, Ltd. in Japan.
                                          Pentium and LANDesk are registered trademarks of Intel Corporation.
                                          Microsoft, Windows, and Windows NT are registered trademarks of Microsoft Corporation.
                                          Other company and product names are trademarks or registered trademarks of their respective owners.

                                          Abbreviations
                                          The full name of Windows(R)95 is Microsoft(R) Windows(R) Operating System 95. The full name of Windows NT(R) Server 4.0 is Microsoft(R) Windows NT(R) Operating System Version 4.0.

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