News Releases

(1)

Number and Type of Shares to Be Offered

A total of 1,090,000,000 shares of Hitachi’s common stock, as shown in 1 through 3 below.

1) 400,000,000 shares of Hitachi’s common stock to be purchased and underwritten by Japanese Underwriters in a public offering conducted in Japan.

2) 600,000,000 shares of Hitachi’s common stock to be purchased and underwritten by International Managers in an offering conducted overseas.

3) Up to an additional 90,000,000 shares of Hitachi’s common stock pursuant to an option to purchase granted by Hitachi to the International Managers

(2)

Offer Price Per Share(1)

¥230

(3)

Total Offer Price(2)

¥250,700,000,000

(4)

Issue Price Per Share(1)

¥220.48

(5)

Total Issue Price(2)

¥240,323,200,000

(6)

Amount by Which Stated Capital and Capital Reserve Are to Be Increased(2)

Amount by Which Stated Capital Is to Be Increased

¥120,161,600,000

Amount by Which Capital Reserve Is to Be Increased

¥120,161,600,000

(7)

Subscription Period (Domestic)

December 8, 2009 (Tue.) to December 9, 2009 (Wed.)

(8)

Payment Date

December 14, 2009 (Mon.)

Notes
1．The underwriters will purchase the shares at the Issue Price and offer them at the Offer Price.
2．These figures assume that the International Managers exercise in full the options described in Section (1)3 above.

(1)

Number of Shares to Be Offered

60,000,000 shares

(2)

Selling Price Per Share

¥230

(3)

Total Selling Price

¥13,800,000,000

(4)

Subscription Period

December 8, 2009 (Tue.) to December 9, 2009 (Wed.)

(5)

Delivery Date

December 15, 2009 (Tue.)

(1)

Issue Price Per Share

¥220.48

(2)

Total Issue Price

(Up to) ¥13,228,800,000

(3)

Amount by Which Stated Capital and Capital Reserve Are to Be Increased

Amount by Which Stated Capital Is to Be Increased

(Up to) ¥6,614,400,000

Amount by Which Capital Reserve Is to Be Increased

(Up to) ¥6,614,400,000

(4)

Subscription Period (Subscription Date)

December 24, 2009 (Thu.)

(5)

Payment Date

December 25, 2009 (Fri.)

Conversion Price

\317

Conversion Pricing Date

December 7, 2009 (Mon.)

・Closing Price of Hitachi’s Common Stock in Regular Transactions on the Tokyo Stock Exchange on the Conversion Pricing Date

\238

・Conversion Premium [(Conversion Price/Closing Price of Common Stock - 1)×100]

33.19%

2．Subscription Period

December 8, 2009 (Tue.) to December 9, 2009 (Wed.)

3．Payment Date (Allotment Date of the Stock Acquisition Rights)

December 14, 2009 (Mon.)

＜Reference＞

1．Issuance and Sale of New Shares and Secondary Offering of Shares

(1)

Determination of Offer Price and Selling Price

Calculation Reference Date and Price

December 7, 2009 (Mon.)

\238

Discount Rate

3.36%

(2)

Syndicate Cover Transaction Period

From December 10, 2009 (Thu.) to December 17, 2009 (Thu.)

(1)

Aggregate Amount of the Convertible Bonds

\100 billion

(2)

Interest Rate of the Convertible Bonds

0.10% per annum

(3)

Exercise Period

From January 4, 2010 to December 10, 2014

(4)

Redemption Date

December 12, 2014

3．Use of Proceeds

Hitachi intends to use the net proceeds from the Japanese Offering, International Offering, the issuance of new shares by way of third-party allotment and the issuance of the Bonds with Stock Acquisition Rights, estimated to be, in total, no greater than \349,292 million, to fund capital expenditures of \220.0 billion to strengthen its Social Innovation Business, to make investments of \40.0 billion to strengthen its Social Innovation Business and to use the remainder to repay Hitachi’s debt.
Please refer to “Issuance and Sale of New Shares and Issuance of Call Option Attached Unsecured Bonds with Stock Acquisition Rights (Convertible Bonds)” announced on November 16, 2009 for more details of Hitachi’s plan for use of proceeds.