Hitachi Announces Changes to Top Management

Business Wire, Dec 24, 1998

TOKYO--(BUSINESS WIRE)--Dec. 24, 1998--Hitachi, Ltd. (NYSE:HIT) today announced the appointment of a new chairman and president, effective April 1, 1999. The company will also establish a new position of vice-chairman after an amendment to the Articles of Incorporation to be proposed at the Ordinary General Meeting of Shareholders in June 1999. -0-

(Current position in parentheses)
Effective April 1, 1999

--   New Chairman and Representative Director Tsutomu Kanai (President
     and Representative Director)

--   New President and Representative Director Etsuhiko Shoyama
     (Executive Vice-President and Representative Director)

--   New Chairman Emeritus Katsushige Mita (Chairman and
     Representative Director)

Effective June 1999

--   New Vice-Chairman and Representative Director Hiroshi Kuwahara
     (Executive Vice-President and Representative Director)

Dr. Tsutomu Kanai, 69, has been President and Representative Director of Hitachi, Ltd. since June 1991. He joined Hitachi in 1958 and served in the Central Research Laboratory, developing nuclear reactors. In 1985, Dr. Kanai was elected Executive Managing Director and Group Executive of the Power Group. He assumed the position of Senior Executive Managing Director in 1987 and the positions of Executive Vice-President and Director in 1989. Dr. Kanai received his B.S., M.S. and Ph. D. in Mechanical Engineering from the University of Tokyo.

During his tenure as president, Dr. Kanai accelerated the implementation of market-oriented management by emphasizing customer satisfaction. He has expanded Hitachi's international operations by significantly increasing overseas sales, off-shore production and international procurement. Most recently, Dr. Kanai has been taking a strong leadership role to implement drastic management reforms and reduce costs.

Mr. Etsuhiko Shoyama, 62, has been Executive Vice-President and Representative Director of Hitachi, Ltd. since 1997. His current responsibilities cover the Consumer Products Group, multimedia products operations, investment planning, production engineering, quality assurance, environmental issues and procurement. He joined Hitachi in 1959 and started his career at the Hitachi Works as a power plant engineer. He was elected Board Director and General Manager of the Consumer Electronics Division in 1991. He assumed the position of Executive Managing Director in 1993 and Senior Executive Managing Director in 1995. He graduated from the Tokyo Institute of Technology, Department of Electrical & Electric Engineering, in 1959.

Since his assignment to the consumer products business, he has been restructuring operations aggressively, which has included a realignment of audiovisual product operations and a merger between Hitachi Sales Corporation and Hitachi, Ltd. in April 1995. Through the restructuring effort and launches of various new competitive products, he moved the consumer products business back into profitability in 1997. Mr. Shoyama has also expanded the fast-growing multimedia business, such as by the introduction of DVD products. Most recently, he has been pursuing further restructuring of consumer product operations as well as actively participating in overall management reforms.

Mr. Hiroshi Kuwahara, 63, has been Executive Vice-President and Representative Director of Hitachi, Ltd. since 1995. His current responsibilities cover the Information Systems Group, Electronics Components Group, Space Systems Division and Business Development Office. He joined Hitachi in 1960 at the Kokubu Works and contributed to the development of industrial computer systems. He was elected Board Director and Group Executive of the Industrial Processes Group in 1989. He assumed the position of Executive Managing Director in 1991 and Senior Executive Managing Director in 1993. He received his B.S. in Electrical Engineering from the University of Tokyo in 1960.

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(a)). 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.

(a) At an exchange rate of 132 yen to the U.S. dollar.