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June 23, 1999

NEC & HITACHI AGREE TO EXTENSIVE DRAM COOPERATION

								Hitachi, Ltd.
								NEC Corporation

	NEC Corporation (NEC) (NASDAQ: NIPNY) and Hitachi, Ltd. (Hitachi) 
(NYSE: HIT) today announced that the companies have agreed to establish wide-
ranging cooperation in their DRAM businesses. The companies are to consider 
establishing a joint-venture company responsible for DRAM development and design, 
and unification of their DRAM products under a single brand manufactured using the 
production resources at both companies.

	Preparations are underway with a view to establishing the joint-venture 
development and design company at the end of this year, while a unification of product 
brands and other items is expected upon reaching a basic, concrete agreement.

	There are an increasing number of large-scale tie-ups between semiconductor 
companies, particularly between those in the DRAM area. There is a rapid rise in the 
number of strategic alliances and mergers as the expenses for development of leading-
edge technologies and products present a series of issues for companies facing 
extremely stiff worldwide competition. 

	Through the joint-venture DRAM development and design company, NEC and 
Hitachi believe their top-class technology will guarantee them a leading position in the 
industry, that will provide significant improvements in profitability for the 
semiconductor businesses at both companies thanks to economies of scale and shared 
expenses.

	NEC is making every effort to improve profitability through a business strategy 
that levers its advanced high density, high-speed memory technologies such as its 
Virtual Channel Memory architecture that the company is proposing as a new standard 
to the industry because of its superior performance for graphics-intensive applications.

The memory market, however, is seeing an increasing concentration of North 
American, European and Asian manufacturers, making it vital to achieve economies of 
scale and enhanced technological development, while strengthening cost 
competitiveness, in order to thrive in the DRAM business. 

NEC believes that through its alliance with Hitachi and its considerable 
leading-edge technology, the concentration of resources in the DRAM field will result 
in world-class technological capabilities and a strengthened presence in global markets 
backed by enhanced cost competitiveness.

	Hitachi offers a 0.18-micron process capability ahead of its competitors, 
together with leading-edge DRAM and proprietary packaging technology. Moreover, 
the company offers top-level design technology for high-speed, low power 
consumption DRAMs, providing a range of value-added products that considerably 
enhances Hitachi's competitive advantage. 

	Hitachi's Semiconductor Group has established a slimmer management 
structure through business restructuring and management innovations. The Group is 
now working at creating a more responsive management by using strategic alliances 
and external production resources. Through its alliance with NEC, Hitachi plans to 
further improve the speed of its response to market needs. 

	By levering the competitive strengths of both companies, NEC and Hitachi aim 
to make every effort to be the world's foremost supplier of DRAM devices. 


About Hitachi, Ltd.
Hitachi, Ltd., headquartered in Tokyo, Japan, is one of the world's leading 
global electronics companies, with fiscal 1998 (ended March 31, 1999) consolidated 
sales of 7,977 billion yen ($65.9 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 121 yen to the dollar

About NEC Corporation 
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.l) pioneered the 
concept of C&C, the integration of Computers and Communications, and is the only 
company in the world to be counted among top ranking corporations spanning the 
wide range of fields essential for this vision of multimedia: computers, communications 
and electron devices. Employing in excess of 150,000 people around the world, NEC 
saw net sales in fiscal year 1998-99 amount to 4,759 billion yen (approx. US$40 
billion). For further information, visit the NEC home page at: http://www.nec-
global.com



For further details, please contact:

Hitachi, Ltd.					NEC Corporation
Yukiaki Ina					Aston Bridgman
Public Relations, Corporate Communications	Public Relations Division
Tel:	81-(0)3-3258-2055			Tel:	81-(0)3-3798-6511
E-mail: yina@cm.head.hitachi.co.jp		E-mail: Aston_Bridgman@HO-PRD.ccgw.nec.co.jp


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