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

                      June 20, 2000
                      Hitachi and IBM agree to negotiate a strategic relationship
                      #
                      Hitachi and IBM announced today that they have signed a memorandum of 
                      understanding with the intent to negotiate a strategic relationship that broadens a 
                      long-standing set of  relationships between the companies.  Included will be 
                      cooperative development, manufacturing by both companies, mutual OEM purchases of 
                      certain future IT systems and a supplier relationship for key systems components based 
                      on both companies" high performance, highly reliable technologies. The two companies 
                      will benefit from improved efficiencies in manufacturing and development, resulting in 
                      faster time-to-market, along with access to key technologies.
                      
                      "This relationship with Hitachi will help us bring IBM technology leadership to a wider 
                      range of solutions for our customers', said Anthony Befi, Vice President of Enterprise 
                      Server Technology, Enterprise Systems Group of IBM.  "With competition driving businesses 
                      of all sizes to the Internet, customers need servers that are open, available, scalable, 
                      reliable and secure - and they need them fast.  Working with Hitachi, we're in a better 
                      position to get a broader range of products and technology to customers quickly, and 
                      with the same quality and technology leadership they've come to expect."
                      
                      "The agreements we are negotiating will assist the two companies, both leaders in 
                      developing advanced IT technologies, in establishing a strategic relationship, and by 
                      this means," Toshihiko Odaka, Senior Vice President, Board and Director,. Senior 
                      Group Executive, Information and Telecommunications Group, said, continuing "I 
                      expect that Hitachi can greatly expand its services and technology offerings to 
                      customers. On the basis of this relationship, Hitachi will develop world-class platform 
                      products and strengthen its infrastructure for providing global solutions, and promote 
                      'i.e. Hitachi Plan' to be the 'Best Solution Partner', based on Hitachi new strategy."
                      




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                      WRITTEN BY Secretary's Office
                      (C) Hitachi, Ltd. 2000. All rights reserved.

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