Tokyo, January 23, 2001 --- Hitachi, Ltd. (NYSE:HIT), Fuji Electric Co., Ltd. (TSE:6504) and Meidensha Corporation (TSE:6508) today announced an agreement to strengthen cooperation in the field of Transmission and Distribution (T&D) of electric power. The companies say the tie-up covers all areas of the substation business, from R&D and design to production and services, as well as the establishment of a joint-venture company in July to handle production.

  The tie-up is aimed at exploiting the complementary strengths of the three companies in the T&D sector. Hitachi is a market leader in turnkey projects utilizing system engineering technology, both in Japan and overseas, while both Fuji Electric and Meidensha have extensive experience in systems using medium voltage rang equipment and system.
  The alliance calls for the companies to integrate R&D, production and services of T&D equipment operations. They will share existing technologies and facilities, engage in joint procurement of materials, and cooperate in extending the breadth and depth of their product lineup toward building a strong position as solutions providers responsive to diversifying customer requirements.
  The manufacturing joint-venture company being set up in July 2001 is expected to boost product competitiveness and provide a platform for combining the best technologies of the three partners to speed up new product development.
  A top priority of the tie-up is to develop and maintain the engineering capability and cost competitiveness the companies need to stay ahead of international competitors, so as to capture a leading position in world markets. Their formula for achieving this goal centers on the sharing of overseas production bases and the launching of joint international marketing initiatives.

  Deregulation are steadily revolutionizing the power distribution system market.
  In Japan, while power sector deregulation has led the major power companies to hold back on investment in new plant and equipment, it has encouraged independent power producers (IPPs) to expand operations and triggered adoption of variety of power generation systems such as micro gas turbines and fuel cells. This diversification, plus widespread moves to replace equipment installed during Japan's economic heyday with more energy-efficient systems, has produced new market realities that require an immediate response from power equipment manufacturers.

  Overseas, the outlook is for an expanding T&D system market driven both by the escalating power needs of the rebounding Southeast Asian and Chinese economies and also by a marked shift from investment in power plants to investment in substation equipment in North America, where demand for power is already strong.
  The three companies have many years experience and considerable expertise and know-how in the T&D sector. By enabling them to focus their collective technologies and corporate resources to build on this base, the tie-up will allow them to respond to the new challenges of domestic and international markets with environment-friendly, energy-efficient T&D systems. The manufacturing joint venture company will permit them to concentrate their world-class technologies and personnel to offer top-quality, high-performance T&D equipment at competitive prices.
  Hitachi, Fuji Electric and Meidensha say they are intent on moving to the forefront of substation and power conversion sector as the best way of ensuring their ability to continue supplying customers with top-quality systems they can rely on.

New company profile
1. Name	:	Undecided
2. Location	:	Undecided
3. Capital	:	Undecided
4. Estimated sales	:	About 150 billion yen
5. Date of establishment	:	July 2001 (target)
6. CEO	:	Undecided
7. Personnel	:	About 2,000
8. Main businesses	:	Development, design and production of equipment and components for T&D facilities