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January 5, 1998

Hitachi to Start Information Service Via Satellite Channel

The rapid implementation of digital transmission by digital communications satellite (CS), together with the ongoing easing of communication and broadcasting regulations by the Ministry of Posts and Telecommunications, has brought down line costs. This, in turn, has prompted many companies to enter the business of providing information as a service, using the store of information they already possess as the commercial content. Hitachi is in the process of expanding its service operations. As part of this, in September 1997 it started TWX-21, a business media service for intercorporate electronic commerce (EC) transactions. The new CS-based information service is a further move in the same division, marking Hitachi's start as a content service provider. Hitachi has developed a number of digital communications-related technologies, including high-speed transfer technology, and, for MPEG-2 transmissions, the MULTI2 encryption system and the MULTI4 decryption used on the receiver side. MULTI2 has also been adopted as the standard system for CS broadcasts in Japan.

In addition to the development and marketing of systems relating to satellite communications undertaken so far, Hitachi is also involved in providing transmission services for used car auctions conducted via satellite, educational transmissions to schools, and has also been involved with 24-hour services, such as BBC and Star Channel, for national cable TV stations. Thus, the company was ready for the implementation of digital systems in April 1996. Working with Hitachi Credit and other associated companies, Hitachi has built a platform that enables it to provide customers with a total service that encompasses transmission management, customer management and automatic collection of charges from users. For this platform, Hitachi plans to establish an uplink center in Kachidoki in Chuo Ward, Tokyo, and will set up a customer center and a charge collection center in Head Office. Production of content and subscriber campaigns will be conducted via content providers. Since video and data are both handled by the same transponder, data can be received and recorded without any break in video reception. The data can include audio and moving pictures as well as still pictures, making it suitable for educational applications. Moreover, Hitachi's encryption technology makes it possible to ensure that individual information can only be accessed by the intended recipient, enabling home-based "cyber-students" to be given lessons closely tailored to their individual needs. By providing access to whatever information is desired, at the desired time, the service functions much like an Internet- based home server. Hitachi has developed a Multi-RDR (Multi- Receiver Decoder Recorder) for the system that adds recording and browsing to the existing CS receiver. A system is being established to provide subscribers with the Multi-RDR via content providers. Cram schools, prep schools, pharmaceutical companies, companies involved in medical treatment and welfare, publishers and other major corporations are planning to participate as content providers. Hitachi will continue to focus on extending and expanding the system infrastructure and promoting the content side. Depending on demand, these efforts may include extending the service overseas, expanding it into an integrated platform with land-based Internet links. A further priority will be to expand the service in the areas of consumer information electronics and electronic commerce.

Hitachi, Ltd. headquartered in Tokyo, Japan, is one of the world's leading global electronics companies, with fiscal 1996 (ending March 31, 1997) consolidated sales of JY 8,523 billion (68.7 billion dollars*). 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 124 yen to the dollar.

- This information is a summary of a Press Release issued in Tokyo, Japan.
- Except when specifically noted otherwise, all product announcements relate to products for the domestic market. Export products may differ from their domestic counterparts in terms of product type, specifications, price and date of market release.
- Please contact Osamu Naito, Public Relations, Secretary's Office of Hitachi, Ltd. concerning questions or comments.
(cc:Mail address: Osamu-HQ, Naito)

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