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                      | HITACHI HOME | UP | SEARCH | HITACHI
                      News Releases Corporate Profiles

                      December 28, 1999
                      Hitachi merges systems/services companies Hitachi Systems & Services to be established in April 2000
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                      Hitachi, Ltd. announces that, in order to expand its solutions business on 
                      a consolidated basis, on April 1, 2000, it will establish a new company, 
                      provisionally called Hitachi Systems & Services, Ltd., by merging the three 
                      subsidiaries Hitachi System, Ltd., Hitachi Seibu Software, Ltd. and Hitachi 
                      Chubu Software, Ltd.
                      
                      Utilizing the merits of scale created by the consolidation, the new company 
                      will develop and provide, on a nation-wide scale, systems integration 
                      services tailored to individual industry requirements as well as Application 
                      Service Provider (ASP) services, network outsourcing and other such business 
                      solutions, and will also expand regional community type services based on 
                      open systems, thereby assuming important role for the best solutions partner 
                      objective cited in the medium-term "i.e. Hitachi Plan."
                      
                      Corporate management is increasingly aware of the critical role that 
                      information technology plays as a strategic resource in the competitive 
                      struggle for survival.  This realization is generating a growing demand for 
                      solutions services that include development, operation and maintenance of 
                      information systems.  Along with this, enterprise information systems are 
                      becoming larger, as networks expand into inter-corporate systems linking 
                      affiliated companies and business customers as well as divisional and intra-
                      company systems.  For vendors, this is creating a need for a range of new 
                      services that include the provision of high-level systems integration 
                      capabilities able to ensure the efficient building of reliable information 
                      systems, outsourcing and Application Service Provider (ASP) services.
                      
                      Hitachi has established and used to expand its systems integration 
                      business include Hitachi Computer Consultant, the forerunner of Hitachi 
                      System Engineering, established in 1978, Hitachi Seibu Software, established 
                      in 1982, and Hitachi Chubu Software, established in 1984.
                      
                      Through the merger, the customer support experience, technology 
                      and expertise built up by the three companies will be consolidated in 
                      the new company, giving it the ability to provide more valuable 
                      solutions on a timely basis.  The merits of scale made possible by the 
                      merger will be utilized to develop a nationwide solutions business in 
                      such areas as segment-based consulting and systems-integration services, 
                      ASP services, including Web applications hosting, network services and 
                      other outsourcing business operations and the design and development of 
                      basic software and middleware.  Along with this, the new company will 
                      expand regionally-based support services to improve the competitiveness 
                      of the business operations of the new entity as the principal systems 
                      and services company of the Hitachi Group.
                      
                      The new company will start off with a capital of one billion yen, 
                      around 4,200 employees and a sales target of 78 billion yen for the 
                      first fiscal year.  The company is expected to have some 5,000 
                      employees and annual sales of at least 100 billion yen in 2002.
                      
                      Outline of new company
                      1.  Company name: Hitachi Systems & Services, Ltd. 
                      2.  President:	Taizo Nauchi
                      3.  Location:	Ota-ku, Tokyo
                      4.  Capital:	1 billion yen (wholly owned by Hitachi, Ltd.)
                      5.  Sales:	Approximately 78 billion yen (Estimate for fiscal 2000)
                      6.  Number of employees: Approximately 4,200 (Estimate as of the 
                      		end of fiscal 2000)
                      
                      Outline of merger companies
                      
                      Hitachi System Engineering, Ltd.
                      1.  President:	Taizo Nauchi
                      2.  Location:	Ota-ku, Tokyo
                      3.  Establishment: September 1978
                      4.  Capital:	500 million yen (wholly owned by Hitachi, Ltd.)
                      5.  Sales:	Approximately 32 billion yen (Estimate for fiscal 1999)
                      6.  Number of employees: Approximately 700 (Estimate as of the end 
                      		of fiscal 1999)
                      
                      Hitachi Seibu Software, Ltd.
                      1.  President:	Hiromasa Wada
                      2.  Location:	Chuo-ku Osaka
                      3.  Establishment: April 1982
                      4.  Capital:	200 million yen (wholly owned by Hitachi, Ltd.)
                      5.  Sales:	Approximately 22 billion yen (Estimate for fiscal 1999)
                      6.  Number of employees: Approximately 1,200 (Estimate as of the 
                      		end of fiscal 1999)
                      
                      Hitachi Chubu Software, Ltd.
                      1.  President:	Ichiro Tsutsuyama
                      2.  Location:	Naka-ku, Nagoya
                      3.  Establishment: April 1984
                      4.  Capital:	200 million yen (wholly owned by Hitachi, Ltd.)
                      5.  Sales:	Approximately 17 billion yen (Estimate for fiscal 1999)
                      6.  Number of employees: Approximately 1,100 (Estimate as of the 
                      		end of fiscal 1999)




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                      (C) Hitachi, Ltd. 2000. All rights reserved.

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