News Releases

02/12/2007

HITACHI POWER SYSTEMS AMERICA AWARDED RETROFIT CONTRACT BY MINNESOTA POWER

-- Hitachi Environmental Technology Will Help Reduce Power Plant Emissions --

BASKING RIDGE, N.J. and DULUTH, Minn. February 12, 2007 - Hitachi Power Systems America, Ltd., a wholly owned subsidiary of Hitachi America, Ltd., today announced that it has been awarded a contract to design and supply a retrofit Air Quality Control System (AQCS) for Minnesota Power, a division of ALLETE, Inc. (NYSE: ALE), at its Boswell Energy Center - Unit 3. Financial terms were not disclosed.

Hitachi Power Systems America will provide a wet flue gas desulfurization (FGD) system for sulfur dioxide (SO2) removal and a selective catalytic reduction (SCR) system for nitrogen oxides (NOx) removal. The scope also includes all interconnecting flue gas ducting and structural support steel.

The 350 MW Boswell Unit 3, located in Cohasset, Minn., is fueled by Powder River Basin coal. The Hitachi supplied AQCS is expected to reduce SO2 by 98% and NOx emissions down to 0.05 lbs/MMBTU. Execution of this project is on a fast track basis, with the system scheduled to commence operation by the 4th quarter of 2009.

Hitachi is working closely with Minnesota Power’s engineer, Burns and McDonnell, to ensure a well coordinated design and delivery scheme for construction. Burns & McDonnell is providing the entire balance of plant design.

Commenting on the agreement, Tom Coughlin Minnesota Power project manager said, “Minnesota Power is pleased to be partnering with an innovative company such as Hitachi. From the start we were impressed with Hitachi’s integrative, multi-pollutant equipment design and from a business perspective, Hitachi was able to work with MP to meet its financial, technical and schedule requirements which will benefit our customers.”

In announcing the agreement, Henry Bartoli, President and CEO of Hitachi Power Systems America, Ltd. said, “We look forward to working with Minnesota Power in addressing this unique opportunity to combine Hitachi’s SCR and WFGD technologies for a complete Air Quality Control Systems solution. We thank Minnesota Power for selecting our company to execute this important contract. We are very proud of our world wide track record in the successful design and operation of our Air Quality Control Systems and we look forward to a long term relationship with Minnesota Power.”

Hitachi Power Systems America, Ltd., a wholly owned subsidiary of Hitachi America, Ltd. is a leading supplier of equipment and services for the Power Generation Market including Thermal, Nuclear, and Hydro facilities. Products include advanced Pulverized Coal Boilers, HRSG’s, Turbines, Substation Equipment, Wind Generation, and Air Quality Control Systems for new plants and retrofit applications. Hitachi Power Systems America is Hitachi’s Global Center of Excellence for the emissions market including Wet Flue Gas Desulfurization (WFGD) and Selective Catalytic Reduction (SCR) technology. For more information, visit http://www.hitachi.us.

Hitachi America, Ltd., a subsidiary of Hitachi, Ltd., markets and manufactures a broad range of electronics, computer systems and products, and consumer electronics, and provides industrial equipment and services throughout North America. For more information, visit http://www.hitachi.us.

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.