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                      | HITACHI HOME | UP | SEARCH | HITACHI

                      News Release ^
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                      June 23, 1999

                      NEC & HITACHI AGREE TO EXTENSIVE DRAM COOPERATION

                      								Hitachi, Ltd.
                      								NEC Corporation
                      
                      	NEC Corporation (NEC) (NASDAQ: NIPNY) and Hitachi, Ltd. (Hitachi) 
                      (NYSE: HIT) today announced that the companies have agreed to establish wide-
                      ranging cooperation in their DRAM businesses. The companies are to consider 
                      establishing a joint-venture company responsible for DRAM development and design, 
                      and unification of their DRAM products under a single brand manufactured using the 
                      production resources at both companies.
                      
                      	Preparations are underway with a view to establishing the joint-venture 
                      development and design company at the end of this year, while a unification of product 
                      brands and other items is expected upon reaching a basic, concrete agreement.
                      
                      	There are an increasing number of large-scale tie-ups between semiconductor 
                      companies, particularly between those in the DRAM area. There is a rapid rise in the 
                      number of strategic alliances and mergers as the expenses for development of leading-
                      edge technologies and products present a series of issues for companies facing 
                      extremely stiff worldwide competition. 
                      
                      	Through the joint-venture DRAM development and design company, NEC and 
                      Hitachi believe their top-class technology will guarantee them a leading position in the 
                      industry, that will provide significant improvements in profitability for the 
                      semiconductor businesses at both companies thanks to economies of scale and shared 
                      expenses.
                      
                      	NEC is making every effort to improve profitability through a business strategy 
                      that levers its advanced high density, high-speed memory technologies such as its 
                      Virtual Channel Memory architecture that the company is proposing as a new standard 
                      to the industry because of its superior performance for graphics-intensive applications.
                      
                      The memory market, however, is seeing an increasing concentration of North 
                      American, European and Asian manufacturers, making it vital to achieve economies of 
                      scale and enhanced technological development, while strengthening cost 
                      competitiveness, in order to thrive in the DRAM business. 
                      
                      NEC believes that through its alliance with Hitachi and its considerable 
                      leading-edge technology, the concentration of resources in the DRAM field will result 
                      in world-class technological capabilities and a strengthened presence in global markets 
                      backed by enhanced cost competitiveness.
                      
                      	Hitachi offers a 0.18-micron process capability ahead of its competitors, 
                      together with leading-edge DRAM and proprietary packaging technology. Moreover, 
                      the company offers top-level design technology for high-speed, low power 
                      consumption DRAMs, providing a range of value-added products that considerably 
                      enhances Hitachi's competitive advantage. 
                      
                      	Hitachi's Semiconductor Group has established a slimmer management 
                      structure through business restructuring and management innovations. The Group is 
                      now working at creating a more responsive management by using strategic alliances 
                      and external production resources. Through its alliance with NEC, Hitachi plans to 
                      further improve the speed of its response to market needs. 
                      
                      	By levering the competitive strengths of both companies, NEC and Hitachi aim 
                      to make every effort to be the world's foremost supplier of DRAM devices. 
                      
                      
                      About Hitachi, Ltd.
                      Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading 
                      global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated 
                      sales of 7,977 billion yen ($65.9 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 121 yen to the dollar
                      
                      About NEC Corporation 
                      NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) pioneered the 
                      concept of C&C, the integration of Computers and Communications, and is the only 
                      company in the world to be counted among top ranking corporations spanning the 
                      wide range of fields essential for this vision of multimedia: computers, communications 
                      and electron devices. Employing in excess of 150,000 people around the world, NEC 
                      saw net sales in fiscal year 1998-99 amount to 4,759 billion yen (approx. US$40 
                      billion). For further information, visit the NEC home page at: http://www.nec-
                      global.com
                      
                      
                      
                      For further details, please contact:
                      
                      Hitachi, Ltd.					NEC Corporation
                      Yukiaki Ina					Aston Bridgman
                      Public Relations, Corporate Communications	Public Relations Division
                      Tel:	81-(0)3-3258-2055			Tel:	81-(0)3-3798-6511
                      E-mail: yina@cm.head.hitachi.co.jp		E-mail: Aston_Bridgman@HO-PRD.ccgw.nec.co.jp
                      
                      


                      WRITTEN BY Secretary's Office
                      All Rights Reserved, Copyright (C) 1999, Hitachi, Ltd.

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