Hitachi, Ltd. (TSE:6501) today announced that Industrial Components & Equipment will spin off 
it's manufacturing divisions to establish Hitachi Narashino Industrial Equipment Co., Ltd. and 
Hitachi Nakajo Industrial Equipment Co., Ltd. as independent companies, effective April 1, 2000. 
The realignment is aimed at enhancing the Group's competitiveness and operating the business in 
a way that responds swiftly to market changes, thus building even stronger management systems. 

In recent years, the industrial equipment market has been exceptionally competitive and 
demands fast decision making as well as rapid action to deliver products of higher quality at low 
prices with very short lead times. 

In response to such trends, Hitachi's Industrial Components & Equipment has been 
operating as a virtually independent company since Hitachi's new organizational structure was 
introduced in April 1999. The Industrial Components & Equipment has implemented reforms to 
strengthen its operating structure, including the integration of the management of manufacturing, 
sales, and after-sales service functions; prioritizing its product mix; improving R&D systems; and 
restructuring its manufacturing processes. In addition, the Group has built strong market 
competitiveness by channelling its resources to such products as aluminium alloy frame motors 
and amorphous transforms that incorporate Hitachi's comprehensive technological strengths.

However, in anticipation of even fiercer competition in the future, Hitachi will further 
strengthen its core products and become more productive and responsive to market requirements. 
This was the impetus for creating independent manufacturing companies with product 
development, design, and manufacturing capabilities.  In the future, we will aim to further 
concentrate our diverse strengths to create mainstay products that command the leading shares of 
their markets. At the same time, we will consider OEM sourcing arrangements and alliances for 
certain products and work to enhance our operational efficiency.

In line with the spin-off of our manufacturing division, Hitachi's Industrial Components 
& Equipment will specialize in such strategic functions as business planning, product planning, as 
well as sales and sales planning. In the future, the Industrial Components & Equipment will strive 
to establish its core products as the leaders in their respective segments and expand its consulting 
business to assist companies in creating energy-saving production lines through the use of highly 
energy-efficient industrial components and equipment. 

After the reorganization, the Industrial Components & Equipment will have 
approximately 300 employees, Hitachi Narashino Industrial Equipment Co., Ltd. will have 
approximately 650 employees, and Hitachi Nakajo Industrial Equipment Co., Ltd. will have 
approximately 500 employees.



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.