| HITACHI HOME | UP | SEARCH |

---

4 June 1996

Hitachi, Ltd. will be working in alliance with FutureTel, Inc. of the U.S. on the development of basic software for new MPEG- based video input, editing and processing applications. The alliance is part of a move by Hitachi to offer an MPEG-based digital video system for personal computers.

Hitachi has already succeeded in developing the world's first single-chip MPEG1 codec Large Scale Integrated circuit (LSI) chip capable of compressing video images in real time.

Hitachi and FutureTel plan to develop a software environment which leverages Hitachi's breakthrough MPEG1 technology for the PC and enables broad use of video input and editing applications by mainstream business and home computer users. The ultimate aim is to achieve wide acceptance of an MPEG-based digital video system for the desktop providing a range of new applications.

The advent of popular Internet and CD-based multimedia applications for business and home use is producing strong demand for PCs with expanded video capabilities.

With many PCs already equipped with still-picture input, editing, and processing functions, the next natural step is easy-to-use digital video systems for full motion video. Demand for such systems will continue to accelerate rapidly with increased PC processing speed and performance, wider utilization of the Internet, and the adoption of CD/DVDs and other mass storage media as standard equipment.