Hitachi Celebrates First Anniversary of Shenzhen "Mega-manufacturing Center"
Tues 13 March, 2007

Produces 1 Million Units per Month
Shenzhen to Become the Largest Manufacturing Hub for Hitachi's 3.5-inch Hard Disk Drives

SHENZHEN, China, March 13, 2007 – Hitachi Global Storage Technologies ( Hitachi GST) today celebrates the first anniversary of its newest manufacturing plant, part of a "mega-manufacturing" center in Shenzhen. In addition, the company announced that the facility, Hitachi Global Storage Products (Shenzhen) Co. Ltd. (Hitachi GSP) has achieved production capacity of 1 million units per month within just one year after opening. Including production from ExcelStor, a subsidiary company of Great Wall Technologies that produces hard disk drives under the Hitachi brand, the output in China contributes 75 percent¹ of the company's worldwide 3.5-inch hard disk drive shipments.

This Shenzhen-based mega-manufacturing complex will continue to ramp up its production to support the growing demand for digital video, IT and consumer electronics devices, which the company believes are driving the growth of storage needs and will continue to be major opportunities for the hard disk drive industry. By the end of 2008, Hitachi aims to double its 3.5-inch hard disk drive output from 2006 levels.

"The milestone today underscores Hitachi's commitment to China as well as the company's dedication to the growing IT and CE segments," said Dirk Thomas, president, Greater China, Hitachi GST. "The mega-manufacturing center in Shenzhen has state-of-the-art manufacturing processes and equipment as well as the talent to support the growth of production while maintaining the performance and quality of our hard disk drives."

Mega-manufacturing center

Hitachi GST announced in November 2004 it would invest up to US$500 million to build a mega-manufacturing center in Shenzhen, making Hitachi GST the largest hard disk drive industry investor in the region. T he mega-manufacturing concept places the entire supply chain of hard disk drives in a central location, whereby component manufacturing, supplier network, product assembly and finally delivery are coalesced around a 60 kilometer radius of Shenzhen, providing greater efficiencies, faster time to market, and tighter controls over product quality and delivery.

The mega-manufacturing center concept has been applauded by Hitachi's customers and partners. Today, more than 6 7 percent of Hitachi GST's part s suppliers are located within the mega-manufacturing center zone.

¹According to December 2006 output figure.

Employment & Training

The establishment of the mega-manufacturing center has brought significant workforce enhancements to the Shenzhen economy. Today, over 3, 8 00 people work at Hitachi GSP, and more than 2 1 0,000 man hours of technical and overseas training have been completed, bringing new technical capabilities to Shenzhen.

About Hitachi Global Storage Technologies

Hitachi Global Storage Technologies is a storage technology leader, founded in 2003 through the combination of Hitachi's and IBM's hard disk drive businesses. Hitachi GST enables users to fully engage in the digital lifestyle by providing high-value hard disk storage in formats suitable for the office, on the road and in the home.

With its legacy in hard drive invention, Hitachi GST led the industry in celebrating the storage technology's golden anniversary in 2006. The hard drive has had a profound effect on the computing and consumer electronics industries after five decades of innovation. That heritage lives on at Hitachi GST today through products that define the standard for hard drive miniaturization, capacity, performance and reliability.

With approximately 33,000 employees worldwide, Hitachi GST offers a comprehensive range of hard drive products for desktop computers, high-performance servers, notebooks and consumer devices. For more information, please visit the company's Web site at www.hitachigst.com.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 356,000 employees worldwide. Fiscal 2005 (ended March 31, 2006 ) consolidated sales totaled 9,464 billion yen ($80.9 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.