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News Release

November 26, 1998

Hitachi Reorganizes Manufacturing Operations in Consumer Products Group

Hitachi, Ltd. (NYSE:HIT) today announced that it has reorganized the manufacturing 
operations of its Home Appliances Division and its Heating & Lighting Division's Ome 
Manufacturing Operations. The move is aimed at raising cost-competitiveness and building 
a speedier manufacturing system in the Consumer Products Group. Effective April 1, 1999, 
the two divisions will be set up as independent companies called Hitachi Taga Electronics 
Co., Ltd. and Hitachi Lighting Equipment Co., Ltd. (both provisional names), respectively. 
In addition, the ongoing transfer of the manufacturing operations of the Refrigeration & Air 
Conditioning Division to Hitachi Tochigi Technology Co., Ltd., a new company 
established in July 1998, will be continued and expanded. The manufacturing operations of 
the AV Consumer Products Division and the Image & Information Media Systems Division 
of the Information Media Systems Group will be transferred to Hitachi Joei Tech Co., Ltd. 
and TOKAI TEC Co., Ltd., respectively, by the end of April 1999. 

The Consumer Products Group has endeavored to cut fixed costs by streamlining its sales 
and manufacturing divisions. The reorganization of all manufacturing divisions in the group 
to independent companies has been achieved ahead of initial plans. The changes will 
involve the reassignment of 3,300 employees, but some are involved in operations related 
to the Information Media Systems Group. The number from the Consumer Products Group 
alone will be 2,300. As a result, the number of employees in the Consumer Products Group 
in Japan will be 1,100 at Hitachi, Ltd., 7,400 at manufacturing companies, and 3,000 at 
sales companies. 

In tandem with the reorganization of the manufacturing divisions, the corporate planning,  
product planning and sales planning functions remaining at Hitachi, Ltd. will be 
strengthened. Hitachi intends to boost profitability by focusing on digital and environment-
friendly products and moving into higher-value-added businesses targeting strategic user 
segments. 

The reorganization plan will be implemented following consultation with Hitachi, Ltd.'s 
labor union.

<Overview of New Companies>

Hitachi Taga Electronics Co., Ltd. (provisional name)
Capital:		450 million yen (100% owned by Hitachi, Ltd.)
Establishment:		April 1, 1999 (operations to begin on April 21, 1999)
Business:		Design and manufacture of washing machines, vacuum cleaners, and 
                        other products; manufacture of handheld PCs, color printers, etc. 
                        (related to the Information Media Systems Group); 
                        design and manufacture of hoist ink jet printers and others (related to 
                        the Industrial Components & Equipment Division).
General Manager:	Pending decision
Address:		1-1, Higashitaga-cho 1-chome, Hitachi-shi, Ibaraki Prefecture
Number of Employees:    1,400 (planned)
Sales:			The sales target for the fiscal year ending March 31, 2001, is 
                        96 billion yen.

Hitachi Lighting Equipment Co., Ltd. (provisional name)
Capital: 		300 million yen (100% owned by Hitachi, Ltd.)
Establishment:		April 1, 1999 (operations to begin on April 21, 1999)
Business:		Design and manufacture of fluorescent lamps, light bulbs, and 
                        various industrial-use lighting, etc.
General Manager:	Pending decision
Address:		16-2, Shinmachi 6-chome, Ome-shi, Tokyo
Number of Employees:    250 (planned)
Sales: 			The sales target for the fiscal year ending March 31, 2001, is 
                        13 billion yen.


(For reference: Outline of existing manufacturing subsidiaries)

Hitachi Tochigi Technology Co., Ltd.
Capital:		450 million yen (100% owned by Hitachi, Ltd.)
Establishment:		July 1, 1998 (operations began on July 21, 1998)
Business: 		Design and manufacture of refrigerators, room air conditioners, etc. 
General Manager: 	Mitsuru Murata
Address: 		800 Tomita, Ohira-machi, Shimotsuga-gun, Tochigi Prefecture
Number of Employees:    Currently 1,600 (to increase by 900 after reassignment)
Sales: 			The sales target for the fiscal year ending March 31, 2001, is 
                        84 billion yen.

Hitachi Joei Tech Co., Ltd.
Capital:		32 million yen (100% owned by Chuo Shoji Ltd.)
Establishment:		June 28, 1975
Business: 		Design and manufacture of color TVs; manufacture of displays, 
                        imaging systems, and other image & information media systems 
                        products (related to the Information Media Systems Group)
General Manager: 	Shigemasa Ito
Address: 		292, Yoshida-cho, Totsuka-ku, Yokohama City, Kanagawa 
                        Prefecture (Offices: Yokohama, Gifu, Takayama)
Number of Employees:    Currently 1,000 (to increase by 300 after reassignment)
Sales:			17 billion yen in fiscal 1997; the sales target for the fiscal year 
                        ending March 31, 2001, is 87 billion yen.

TOKAI TEC Co., Ltd.
Capital:		80 million yen (100% owned by Hitachi, Ltd.)
Establishment: 	        May 1, 1979
Business: 		Manufacture of VCRs and video-related products; manufacture of 
                        CD-ROMs, DVDs, and other optical products, etc. (related to the 
                        Information Media Systems Group)
General Manager: 	Isao Fukushima
Address: 		1410, Inada, Hitachinaka City, Ibaraki Prefecture (Offices: Tokai, 
                        Yamagata)
Number of Employees:    Currently 650 (to increase by 500 after reassignment)
Sales: 			17 billion yen in fiscal 1997; the sales target for the fiscal year 
                        ending March 31, 2001, is 27 billion yen.



Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading global 
electronics companies, with fiscal 1997 (ended March 31, 1998) consolidated sales of 8,417 
billion yen ($63.8 billion*).  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 132 yen to the U.S. dollar.



WRITTEN BY Secretary's Office
All Rights Reserved, Copyright (C) 1998, Hitachi, Ltd.