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                      | HITACHI HOME | UP | SEARCH | HITACHI

                      News Release

                      October 22, 1998

                      HITACHI LAUNCHES H8/3112 MULTOS CHIP

                      Hitachi, Ltd. today announced the launch of the H8/3112 MULTOS(multi-application 
                      operating system) chip - a new, high security chip enabled with MULTOS, a high 
                      security operating system for smart cards that enables card issuers to create a customer 
                      specific card, combining a number of applications on a single card.  
                      
                      Mr. Kunihiko Misaki, General Manager, New Financial Systems, Services and Products 
                      Division of Hitachi said, "We anticipate that MULTOS will become the de facto 
                      standard for multi-application smartcards and, as the only viable platform available 
                      today, is set to drive growth in the rapidly growing smartcard market."
                      
                      Hitachi already has orders for the chip from a number of potential issuers, including the 
                      MYCAL CARD INC. of Japan which plans to migrate its approximately 5 million credit 
                      cards to chip cards, starting in early 1999.  The MYCAL system will be the world's first 
                      large-scale system in operation utilising MULTOS.
                      
                      The new chip has been jointly developed by Mondex International, Dai Nippon Printing 
                      Co. Ltd (DNP) and Hitachi, combining the companies' collective expertise in 
                      semiconductors and smartcard platform development. The three companies are founding 
                      members of MAOSCO which is an industry-wide consortium formed in May 1997 to 
                      drive the adoption of MULTOS as an industry standard and to manage its on-going 
                      development.
                      
                      Mr. Hidenori Nokubo, Director, General Manager, Business Forms & Securities 
                      Printing Operations of DNP, said "Today's announcement is further evidence of our 
                      continued support for MULTOS and a by-product of the strong working relationship we 
                      have with Hitachi."
                      
                      Mr. Nick Habgood, Chief Executive of MAOSCO, said "Hitachi's and DNP's 
                      considerable commitment to MULTOS, providing the first silicon implementation, has 
                      played a major role in establishing MULTOS as an industry standard."
                      
                       The implementation of MULTOS makes the H8/3112 chip  the only high security 
                      multi-application chip platform available today. As well as featuring an on-board crypto 
                      co-processor, the H8/3112 chip offers 8kbytes of EEPROM and 24kbytes of ROM.   
                      The chip utilises public key cryptography and benefits from Hitachi's extensive 
                      experience in smartcard security, notably for Mondex system. In addition, it incorporates 
                      a range of new countermeasures specifically designed to provide greater chip tamper 
                      resistance.
                      
                      About Hitachi, Ltd.:
                      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*).  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.   * At an exchange rate of 132 yen to the dollar.
                      
                      For Mondex,  Hitachi developed the high security smartcard IC at the very heart of the 
                      system together with a range of products suitable for use at the personal,  retail or 
                      banking infrastructure level.  Hitachi is a "Total Mondex System" supplier.  For more 
                      details, see Hitachi's Mondex Products Web Site at 
                      http://www.hitachi.co.jp/Div/nfs/index.html.
                      
                      About Dai Nippon Printing Co. Ltd.:
                      Dai Nippon Printing Co., Ltd. is one of the world's leading printing companies with a 
                      worldwide turnover of US dollar around 10 billion fiscal 1997 as the end of March l998.  
                      It has been involved in the development of Operating Systems of Mondex smartcards 
                      and has supplied over 850,000 smartcards as the end of September l998 for the Mondex 
                      Scheme around the world since 1991; the first Public Implementation in Swindon, UK,  
                      Hong Kong, Guelph, Canada, San Francisco, Jacksonville, USA, University of Exeter, 
                      York University, Nottingham University in UK, Sydney, Australia, Wellington and 
                      Christchurch, New Zealand and San Jose, Costa Rica. 
                      As a Card Bureau, DNP has been working and shipped out Mondex Card since June 
                      l996. The volume of shipped out card which DNP performed application loaded are over 
                      250,000 cards worldwide. For more information on DNP, please visit DNP's Web Site 
                      at http://www.dnp.co.jp
                      
                      About MAOSCO:
                      MAOSCO is an industry wide consortium which was formed in May 1997 to drive the 
                      adoption of MULTOS as an industry standard and to manage its on-going 
                      development.  The current members of the consortium include:
                      
                      American Express
                      DNP
                      Fujitsu
                      Hitachi
                      Keycorp
                      MasterCard International and Mondex International
                      Motorola
                      Siemens
                                             
                      The consortium members are the "guardians" of the MULTOS specification which is 
                      openly licensed as a global platform for multi-application smart cards. Mondex 
                      International and MasterCard International are committed to MULTOS and collectively 
                      represent over 400,000,000 cardholders worldwide. MULTOS is a multi-application 
                      operating system for smartcards. It will be available on a non-proprietary 'open systems' 
                      basis to ensure that it becomes standard for smartcards in all sectors including finance, 
                      retail, travel, media and telecommunications.
                      


                      WRITTEN BY Secretary's Office
                      All Rights Reserved, Copyright (C) 1998, Hitachi, Ltd.

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