News Releases

Tokyo, September 29, 2011 --- As announced on July 29, 2011, Hitachi, Ltd. (“Hitachi”, NYSE:HIT / TSE:6501), Fuji Electric Co., Ltd. (“Fuji Electric”, TSE:6504) and Meidensha Corporation (“Meiden”, TSE:6508) agreed to begin concrete discussions toward the progressive dissolution of their joint venture in the power transmission and distribution (“T&D”) field. The four companies, including the joint venture Japan AE Power Systems Corporation (“AE Power”) have discussed the successor, succession method and so on. Today, the parties reached the following basic agreement (“Basic Agreement”).

I. Reason for Joint Venture Dissolution AE Power, the joint venture by joint contribution of Hitachi, Fuji Electric and Meiden (“co-parent companies”), was established on July 1, 2001 by the consolidation of the three companies’ T&D businesses and has been developing its business globally. In recent years, the market for these T&D systems has seen growing demand, particularly from emerging markets. Going forward, higher growth rate is expected by the progress of the smart energy in social infrastructure and the industrial field, such as the use of the renewable energy resources and the smart grid.

Under such circumstance, the parties had the discussions on the AE Power growth strategy taking into accounts of the various factors and they came to reach a same conclusion that there is a need to fundamentally review its growth strategy. The parties recently reached a basic framework agreement that the parties will dissolve AE Power for a better organization and they will rebuild and explore the growth of T&D business in each company level.

II. Overview of Joint Venture Dissolution

1. Overview of Business Succession Following Joint Venture Dissolution

(1) Basic Stance The assets and others (“Assets”) assumed from the co-parent companies when AE Power was established shall be returned to each of the companies, and the businesses attached to the domestic works of AE Power shall be transferred as follows: 1) Business, excluding switchgear business, of the Kokubu Works (Hitachi-shi, Ibaraki Prefecture): Hitachi

2) Switchgear business of the Kokubu Works: Hitachi and Fuji Electric

3) Business of the Chiba Works (Ichihara-shi, Chiba Prefecture): Fuji Electric

4) Business of the Numazu Works (Numazu-shi, Shizuoka Prefecture): Meiden

(2) Succession Method for Joint Venture Business The co-parent companies shall take over the business of AE Power via the following methods: 1) Hitachi: Hitachi or a subsidiary of Hitachi shall take over part of the business run by AE

Power by absorption-type corporate split ^{*1, 2} 2) Fuji Electric: Fuji Electric or a subsidiary of Fuji Electric shall take over part of the business run by AE Power by absorption-type corporate split ^{*1, 2} 3) Meiden: A subsidiary of Meiden shall take over part of the business run by AE Power by absorption-type corporate split ^{*1, 2}

*1 Details of the abovementioned corporate split, including consideration, shall be discussed among the concerned parties, taking into consideration the results of due diligence (corporate value appraisal) and other factors. A further announcement will be made immediately as soon as it is clear that timely disclosure is necessary.

*2 AE Power has not issued any stock acquisition rights or corporate bonds with stock acquisition rights

2. Overview of the Joint Venture Dissolution Schedule

III. Overview of the Splitting Company

13. Relationships with co-parent companies

14. Operating results for three most recent years and financial condition
(Unit: Billions of yen unless otherwise noted)

Note: Overviews of the succeeding companies shall be announced as soon as it is clear that timely disclosure is required.

IV. Overview of Business Divisions to Be Split and Transferred Due to the Joint Venture Dissolution Details of the business divisions to be split and/or transferred; operating results of the business divisions to be split and/or transferred; assets and liabilities and monetary amounts to be split and transferred, shall be discussed and/or determined by the concerned parties based on the above stance regarding business succession, and a further announcement shall be made as soon as it is clear that timely disclosure is required.

V. Status after Corporate Split The corporate name, headquarters address, names and positions of representatives, scope of business, paid-in capital and fiscal year-end of the co-parent companies will not change as a result of the abovementioned corporate split.

VI. Overview of Accounting Treatment Each of the succeeding company plans to apply the Purchase Method for accounting for the abovementioned corporate split.

VII. Outlook The impact of the joint venture dissolution on the operating results of the co-parent companies has not been determined. Further announcements will be made immediately if it is clear that there will be a material impact on business result of each of the companies.

VIII. Overview of the co-parent companies
(Unit: Billions of yen unless otherwise noted)

*1 Because Hitachi adopts U.S. accounting standards, its stockholders’ equity per share figure is shown.

*2 Because Hitachi adopts U.S. accounting standards, its income (loss) before income taxes figure is shown.

*3 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. figure is shown.

*4 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. stockholders per share figure is shown.

[Reference]Earnings forecast of the co-parent companies
(Unit: Billions of yen)
(The figure in parenthesis is the result of the previous fiscal period)

*1 Because Hitachi adopts U.S. accounting standards, its income (loss) before income taxes figure is shown.

*2 Because Hitachi adopts U.S. accounting standards, its net income attributable to Hitachi, Ltd. figure is shown.