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

                      February 14, 2000
                      Kokusai Electric, Hitachi Denshi and Yagi Antenna agree to merge
                      --Will allow concentration of resources in the wireless communications sector and the provision of total solutions--
                      #
                      Kokusai Electric Co., Ltd.(TSE: 6756), Hitachi Denshi, Ltd.(TSE: 6780), Yagi 
                      Antenna Co., Ltd.(TSE: 6805) and Hitachi, Ltd.(TSE: 6501) today announced that 
                      Kokusai Electric, Hitachi Denshi and Yagi Antenna have signed a memorandum of 
                      merger under which the three companies agree to be equal parties in the merger to 
                      take place on October 1 this year.  The new company thus formed, provisionally 
                      named Hitachi Kokusai Electric Inc., will provide complete continuity with respect to 
                      the existing business operations of the three companies, providing all customers with 
                      full support.  At the same time, the consolidation of operations and the concentration 
                      of the companies' extensive wireless communications technologies will be used to 
                      develop business and customers in new sectors.
                      
                      In the information and communications industry sectors, the rapid pace of 
                      advances in mobile communications technology together with the high pace of IP 
                      network growth, the start of digital broadcasting, the convergence of communications 
                      and broadcasting and the trend toward deregulation are all helping to generate the 
                      rapid expansion of new markets.
                      
                      In November 1999, Hitachi announced its i.e. HITACHI medium-term business 
                      plan, which sets out how the Company is focusing on the strategic use of Hitachi 
                      Group resources as it restructures itself as a best solutions partner.  Moreover, as part 
                      of a basic policy of increasing the market capitalization of the Company, Hitachi is 
                      promoting consolidated management by reorganizing, reviewing and strengthening 
                      liaison and coordination among  Hitachi Group companies.
                      
                      Hitachi is currently  reviewing its communications systems business on a 
                      consolidated basis.  As part of this, in contrast to the former focus on telephone 
                      exchanges transmission equipment, the Company is now considering strengthening its 
                      business operations in the areas of IP network systems, wireless communications, 
                      optical products and network solutions and services to meet the increasing demand in 
                      data communications.
                      
                      The wireless communications business is a market sector that is undergoing 
                      rapid change.  The three companies agreed to the merger as a way of meeting the 
                      challenge of such change by consolidating their operations, thereby helping to enhance 
                      their management structure and strengthen their development system.
                      
                      Hitachi Kokusai Electric Inc. will take over and continue the individual 
                      business operations in which the three merger partners are engaged in the areas of 
                      communications, broadcasting and semiconductors, and will use the consolidation and 
                      improvement of sales bases to expand sales networks in Japan and abroad and 
                      strengthen product service capabilities to thereby increase the scale of the business. 
                      Hitachi Kokusai Electric Inc. will use its extensive strengths in wireless technology 
                      combined with data and video technologies to provide a broad spectrum of wireless 
                      communications solutions in the sectors of mobile communications systems, digital 
                      broadcasting systems and customized communications systems and will also develop 
                      new areas of business such as Intelligent Transport Systems (ITS) and the next 
                      generation of information terminals.
                      
                      
                      To meet the challenges posed by the rapid pace of progress in digital 
                      technology in the areas of communications and broadcasting, Hitachi Kokusai Electric 
                      Inc. will focus on expanding its business with the emphasis on the following strategic 
                      sectors.
                      1.	Mobile communications systems: Base stations and other infrastructures, 
                      	systems, and mobile terminals
                      2.	Digital broadcasting systems: Satellite/ground wave and TV/radio total systems
                      3.	Customized communications systems: Customized wireless infrastructures for 
                      	subscriber-system based wireless access, and systems which ensure reliable 
                      	communication for disaster control, airport and public safety, and other such 
                      	applications.
                      4.	New sectors: ITS, next-generation information terminals and other such new 
                      	wireless markets
                      With respect to the exchange ratios for the merger, Kokusai Electric will allot 0.44 
                      new shares to shareholders of Hitachi Denshi, and 0.52 shares to shareholders of Yagi 
                      Antenna, for each share of respective companies.  The new company will be  headed 
                      by Makoto Endo.
                      
                      
                      Outline of the Companies
                      Hitachi Kokusai Electric Inc. (provisional)
                      Head office:		3-14-20 Higashi-Nakano, Nakano-ku, Tokyo, Japan
                      Establishment:		Oct. 1, 2000 (planned)
                      Capital:		10 billion yen at startup
                      President:		Makoto Endo
                      Business:		Manufacture and sale of communications and information 
                      			equipment, electronic devices and electronic parts and 
                      			components, broadcast and video systems, antennas, electrical 
                      			communications construction works 
                      Sales target (unconsolidated basis):              
                      			195 billion yen (for the year ended Mar. 31, 2001)
                      			265 billion yen (for the year ended Mar.31, 2004)
                      No. of employees:	4,100 at startup
                      
                      Kokusai Electric Co., Ltd.
                      Head office:		3-14-20 Higashi-Nakano, Nakano-ku, Tokyo, Japan
                      Establishment:		Nov. 1949
                      Capital:		8,400 million yen (as of Sept. 30, 1999)
                      President:		Makoto Endo
                      Business:		Manufacture and sale of communications and information 
                      			equipment, electronic devices and electronic parts and 
                      			components
                      Net sales:		108,900 million yen (for the year ended Mar. 31, 1999)
                      No. of employees:	2,196 (as of Mar. 31, 1999)
                      
                      Hitachi Denshi, Ltd.
                      Head office:		1 Kanda Izumi-cho, Chiyoda-ku, Tokyo, Japan
                      Establishment:		Feb. 1948
                      Capital:		5,000 million yen (as of Sept. 30, 1999)
                      President:		Masahiro Soga
                      Business:		Manufacture and sale of broadcast and video systems, 
                      			communications systems
                      Net sales:		52,300 million yen (for the year ended Mar. 31, 1999)
                      No. of employees:	1,349 (as of Mar. 31, 1999)
                      
                      Yagi Antenna Co., Ltd.
                      Head office:		1-6-10 Uchi-Kanda, Chiyoda-ku, Tokyo, Japan
                      Establishment:		Jan. 1952
                      Capital:		3,500 million yen (as of Sept. 30, 1999)
                      President:		Kyohei Kasaba
                      Business:		Manufacture and sale of antennas and devices, electrical 
                      			communications construction works
                      Net sales:		16,200 million yen (for the year ended Mar. 31, 1999)
                      No. of employees:	507 (as of Mar. 31, 1999)
                      
                      
                      Cautionary Statement
                      Statements in this news release contain forward-looking statements which reflect management's 
                      current views with respect to certain future events and financial performance.  Words such as 
                      "anticipate," "believe," "expect," "estimate," "intend," "plan," "project" and similar expressions 
                      which indicate future events and trends identify forward-looking statements.  Actual results may 
                      differ materially from those projected or implied in the forward-looking statements and from 
                      historical trends.  Further, certain forward-looking statements are based upon assumptions of 
                      future events which may not prove to be accurate.
                      Factors that could cause actual results to differ materially from those projected or implied in any 
                      forward-looking statements include, but are not limited to, rapid technological change, 
                      particularly in the field of information and communications equipment; uncertainty as to the 
                      ability of the companies concerned to continue to develop products and to market products that 
                      incorporate new technology on a timely and cost-effective basis and achieve market acceptance; 
                      fluctuations in product demand and industry capacity; exchange rates and their fluctuations 
                      between the yen and other currencies in which the companies concerned make significant sales or 
                      in which assets and liabilities of the companies concerned are denominated, particularly between 
                      the yen and the U.S. dollar; uncertainty as to the access of the companies concerned to liquidity 
                      or long-term financing; uncertainty as to the ability of the companies concerned to implement 
                      measures to reduce the potential negative impact of fluctuations in product demand and/or 
                      exchange rates; general economic conditions and the regulatory and trade environment of major 
                      markets for the companies concerned, particularly, the United States, Japan and elsewhere in 
                      Asia, including, without limitation, direct or indirect restriction by other nations of imports; 
                      uncertainty as to the access of the companies concerned to, or protection for, certain intellectual 
                      property rights, particularly those related to information and communications equipment; the 
                      dependence of the companies concerned on alliances with other corporations in designing or 
                      developing certain products; and the market prices of equity securities in Japan, declines in which 
                      may result in write-downs of equity securities the companies concerned hold.
                      




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

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