| HITACHI HOME | UP | SEARCH | HITACHI

News Release

February 15, 1999

Hitachi Announces H8/3114 Microcontroller with MULTOS version 4.0 Targeting Smart Card Applications

Tokyo, Japan and Maidenhead, U.K. --  Hitachi, Ltd. today announced the launch of the 
H8/3114 microcontroller chip with the latest version of MULTOS (multi-application 
operating system), an operating system for IC smart cards.

Hitachi, DNP and Mondex International pooled their technology and expertise in a 
joint-development undertaking that resulted last September in the H8/3112 based on 
MULTOS version 3.0.  Since then, the three companies have been working together on 
the development of the next generation of the chip while using the H8/3112 to maintain 
their leading position in the IC card market

This new product further expands the Hitachi MULTOS chipproduct line.The Hitachi 
H8/3112 has been available in volume since 4Q98 and was the first MULTOS 
implementation on the market. By offering the option of 8K(H8/3112) and 
16K(H8/3114) EEPROM chips, Hitachi is ensuring it can meet the existing and future 
requirements of the market and give issuers maximum platform flexibility. Orders from 
a wide variety of end customers is further testimony to the security and price 
performance of this chip.

Initial chip orders for H8/3114 will become available to major users in the second 
quarter of 1999 and volume production is scheduled to begin in the third quarter.  
Hitachi has already received many enquiries from customers and potential customers 
around the world, and is now accepting orders for the H8/3114.  Hitachi will be 
aggressively promoting the chip with the aim of establishing it as a de facto standard in 
the rapidly growing smartcard market.

Kunihiko Misaki, General Manager of New Financial Systems, Services and Products 
Division of Hitachi said, "We strongly believe that MULTOS will become the de 
factostandard for multi-application smart cards. We will further strengthen the 
MULTOS position in the market by launching the H8/3114 which  incorporates the 
state-of-the-art implementation of the MULTOS operating system co-developed with 
Mondex  International and Dai Nippon Printing Co., Ltd. (DNP)."

Chris Potts, Deputy CEO of Mondex  International, said: "This is the next product in a 
dedicated family of globally interoperable, high security MULTOS chips, available at 
competitive price levels. This announcement further underlines the widespread 
industry support for the MULTOS platform and the growing demand for multi-
application cards from a range of industry sectors."


Mr. Hidenori Nokubo, Director, General Manager, Business Forms & Securities 
Printing Operations of DNP, said "We are very happy to release this latest MULTOS 
version 4.0 chip developed in the cooperation with Hitachi. We are sure this MULTOS 
version 4.0 chip will become the major chip in the multi-application chip market. Now, 
DNP will be able to expand the MULTOS card market with this MULTOS version 4.0 
chip."

The H8/3114 incorporates MULTOS version 4.0, the latest result of cooperation among  
Hitachi, DNP and Mondex International.  The chip is fabricated using  0.5-micron 
processing.  With its on-board crypto processor, 16 kilobytes of EEPROM and 32 
kilobytes of ROM, the H8/3114 features a higher level of security, larger capacity and 
faster processing performance than the H8/3112.  It uses the latest hardware and 
software encryption technology, a result of the expertise Hitachi has gained in 
designing and manufacturing chips for Mondex electronic cash systems.  Moreover, 
since application programs developed for MULTOS version 3.0 are upward-
compatible, they are guaranteed to run under MULTOS version 4.0.  The chip design is 
in compliance with the EMV 3.1.1 specification.

At the same time, Hitachi is readying a lineup of development tools which enable 
customers to develop  MULTOS application programs on PCs running the Microsoft(R) 
Windows(R) operating system,  debug the developed program, store it on a card and 
verify the operation of the stored programs.  These tools will be available from  
February of 1999.

Credit cards, bank cash cards, shopping cards issued by retailers and other such cards in 
everyday use are nearly all of the type in which information is stored in a magnetic 
stripe.  Recently, however, there has been a rapid increase in the numbers of users 
switching to smart cards that use an embedded semiconductor IC chip, in response to a 
growing need for higher security and multi-application capabilities. 


MULTOS is a high security operating system that enables multiple applications to be 
loaded on a single smart  card and enables card issuers to create customer-specific 
cards.  Companies advancing the use of smart cards view MULTOS as the potential 
standard operating system.  Around the world, MULTOS is being adopted in a broad 
range of sectors including finance, distribution, communications and traffic control 
engineering, as well as by academic institutions and government agencies.  

Hitachi and DNP are founding members of MAOSCO, a consortium founded in May 
1997 to drive the adoption of MULTOS as an industry standard and to manage its on-
going development.  

Hitachi, DNP and Mondex International pooled their technology and expertise in a 
joint-development undertaking that resulted last September in the H8/3112 based on 
MULTOS version 3.0.  Since then, the three companies have been working together on 
the development of the next generation of the chip while using the H8/3112 to maintain 
their leading position in the IC card market.

About MAOSCO

The current members of the consortium include American Express, DNP, Discover 
Financial Services, Europay  International, Fujitsu, Giesecke and  Devrient, Hitachi, 
Keycorp, MasterCard International, Mondex International, Motorola, and Siemens.

About Hitachi

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 www.hitachi.co.jp.
* At an exchange rate of 132 yen to the dollar.

About Dai Nippon Printing Co. Ltd
Dai Nippon Printing Co., Ltd. is one of the world's leading printing companies with a 
worldwide turnover of US dollar around 10 billion fiscal 1997 as the end of March 
l998.  It has been involved in the development of Operating Systems of Mondex smart 
cards and has supplied over 850,000 smart cards as the end of September l998 for the 
Mondex Scheme around the world since 1991; the first Public Implementation in 
Swindon, UK,  Hong Kong, Guelph, Canada, San Francisco, Jacksonville, USA, 
University of Exeter, York University, Nottingham University in UK, Sydney, 
Australia, Wellington and Christchurch, New Zealand and San Jose, Costa Rica. 
As a Card Bureau, DNP has been working and shipped out Mondex Card since June 
l996. The volume of shipped out card which DNP performed application loaded are 
over 250,000 cards worldwide. For more information on DNP, please visit DNP's Web 
Site at www.dnp.co.jp


About Mondex International

Based in London, Mondex International Limited (MXI) is a world leader in the 
provision of smart card based products and services, meeting the needs of a wide range 
of commercial sectors.

The company is a subsidiary of MasterCard International Incorporated and employs 
over 180 people at its London headquarters and at technology centres around the world.  
These skilled individuals form a truly international, market-led team, ensuring the 
continued success of MXI products and services. 

This unparalleled expertise has been applied to a range of new products being 
developed by MXI including the loyalty application, Interactive Loyalty(TM). 

MXI is best known for pioneering the Mondex Electronic Cash system, one of the 
world's leading smart card-based electronic purses. Its unique security architecture 
allows for person-to-person payments using a personal wallet device, telephone line or 
Internet service, without the need for authorisation. This is one of the features which 
makes Mondex the most advanced and cash-like of all available electronic cash 
products.  Mondex is globally interoperable and is under development in over 50 
countries.

MXI is also responsible for the development of MULTOS, the open, industry standard, 
multi-application operating system for smartcards managed by MAOSCO.  

Further information regarding Mondex is available on their web sites at:
www.mondex.com / www.mondexinternational.com


Microsoft and Windows are registered trademarks of Microsoft Corporation in the U.S. 
and other countries.
Other company and product names are trademarks or registered trademarks of their 
respective owners.



Contact:

Emi Takase                        Rob Woods
Hitachi, Ltd.                     Hitachi Europe Ltd.
+81-3-3258-2055                   +44-1628-585103
emi@cm.head.hitachi.co.jp         Rob.Woods@Hitachi-eu.com

Gerry Hopkinson
Mondex International
+44 (0) 171 557 5016
Gerry.Hopkinson@Mondex.com


WRITTEN BY Secretary's Office
All Rights Reserved, Copyright (C) 1999, Hitachi, Ltd.