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Information contained in this news release is current as of the date of the press announcement, but may be subject to change without prior notice.

October 1, 2020

Hitachi Rail's $798m Digital Train Control Upgrade for BART to Increase Capacity between San Francisco and Oakland by 30%

Hitachi's New CBTC Solution Key to District's $3.5b Transbay Corridor Core Capacity Project

San Francisco, October 1, 2020 - Hitachi Rail STS USA, Inc. ("Hitachi Rail") was Awarded the $798m contract with San Francisco Bay Area Rapid Transit District (BART) to design, build and install the latest generation of technology for digitally controlling trains -- called Communications-Based Train Control (CBTC) -- that will result in increased capacity and improved service.

BART's ridership, which averages 405,000 trips on a weekday, connects the San Francisco Peninsula with Berkeley, Oakland and other cities in the East Bay area of Northern California.

Replacing the current train control system, which is more than 48 years old, with Hitachi's new CBTC system allows BART to safely operate the trains on tighter schedules and at more closely spaced intervals, significantly increasing the Transbay throughput and passenger capacity. Hitachi's CBTC System will enable BART to meet the projected demand of over 30,000 Transbay passengers per hour at peak and includes options that could extend the system to Silicon Valley via the Berryessa extension and the Santa Clara extension. Overall, BART anticipates that the project will create some 500 new jobs, with nearly 8,800 potential direct and indirect jobs resulting from these infrastructure investments.

"Replacing and modernizing BART's 50-year-old train control system will be a generational project that will benefit our riders for decades to come," said Carl Holmes, BART's Assistant General Manager for Planning, Development, and Construction. "CBTC will allow us to deliver world class service and meet the future needs of the San Francisco Bay Area."

"Hitachi's solution will help BART increase train frequency, adding capacity to the most heavily traveled sections of the rail system, which accounted for nearly 60% of all trips last year," said Jason White, Executive Officer for the Americas, Hitachi Rail Group. "This infrastructure investment will improve the system's overall reliability and maintainability, reduce costs and increase the frequency of BART trains. We value the trust BART has placed in Hitachi to deliver this critical project and look forward to creating a strong partnership with them."

Hitachi's extensive global experience in CBTC technology includes projects from Ankara to Paris to China. The company's scope for BART includes design, manufacture, supply, installation, testing, and commissioning of its CBTC solution, as well as the supply and commissioning support of vehicle-related car-borne equipment for BART's rail cars. The Contract also includes Wayside Signaling, Communications, and the Automated Train Supervision systems.

BART also awarded Hitachi an $8.6 million contract for Train Control Performance Support Services for up to twenty years, representing an investment in the long-term training and expert support for BART's maintenance personnel.

Given its size, scope and complexity, Hitachi's CBTC project for BART will be one of the most extensive signaling projects in the United States and a key pillar of BART's comprehensive USD $3.5b Transbay Corridor Core Capacity Project. When completed in 2029, BART will have the increased capacity to operate 30 ten-car trains per hour on the Core Corridor. The new CBTC System is designed provide the highest level of safety in addition to increasing the frequency of trains and passenger capacity in the most heavily traveled rail sections of the BART System.

About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is focused on its Social Innovation Business that combines information technology (IT), operational technology (OT) and products. The company's consolidated revenues for fiscal year 2019 (ended March 31, 2020) totaled 8,767.2 billion yen ($80.4 billion), and it employed approximately 301,000 people worldwide. Hitachi drives digital innovation across five sectors - Mobility, Smart Life, Industry, Energy and IT - through Lumada, Hitachi's advanced digital solutions, services, and technologies for turning data into insights to drive digital innovation. Its purpose is to deliver solutions that increase social, environmental and economic value for its customers. For more information on Hitachi, please visit the company's website at https://www.hitachi.com.

About Hitachi Rail

Hitachi Rail is a fully integrated, global provider of rail solutions across rolling stock, signalling, service & maintenance, digital technology and turnkey solutions. With a presence in 38 countries across six continents and over 12,000 employees, our mission is to contribute to society through the continuous development of superior rail transport solutions. We are proud of our global achievements, from our world -famous 'bullet trains', to our signalling solutions and turnkey projects, state--of-the-art traffic management and digital solutions. Drawing on the wider Hitachi Group's market-leading technology and research-and-development capabilities, we strive for industry leading innovations and solutions that can deliver value for customers and sustainable railway systems that benefit wider society. For information about Hitachi Rail, visit www.hitachirail.com.

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