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Strengthening Structure for Nuclear Power Plant Construction Projects in Viet Nam

New organization to be launched January 1, 2011 to strengthen support for projects in Vietnam

Tokyo, December 21, 2010 - - - - - Hitachi, Ltd. (NYSE:HIT / TSE:6501) today announced that it has decided to establish a “Viet Nam Nuclear Project Division,” a new project support organization, effective January 1, 2011, to strengthen its structure for supporting nuclear power plant construction projects in the Socialist Republic of Viet Nam (“Viet Nam”). Akira Maru, Vice President and Executive Officer, CEO of Nuclear Power Systems, Power Systems Company, will serve as general manager of the new division.

Viet Nam's rapid economic growth in recent years has been accompanied by increasingly severe electricity shortages. The Vietnamese government plans to resolve this situation by building 14 nuclear power plants at eight sites, and commencing operations by 2030. As an initial project, plans are currently proceeding for the construction of the first and second nuclear power plant sites, in Ninh Thuan Province, with these operations targeted for commencement in 2020-2021. At a meeting between the prime ministers of Viet Nam and Japan on October 31, 2010, it was announced that Japan had been selected as the cooperation partner for building two reactors at the second nuclear power plant site.

The “Viet Nam Nuclear Project Division” being established will have a staff of approximately 25 persons, and will be responsible for the planning, marketing, project management, design, and public relations, as well as acting as the Hitachi Group contact point for affiliated companies, for the acquisition of orders for the second nuclear power plant project in Viet Nam. Of the six conditions*1 set out by Viet Nam, “human resource training programs” were listed as one of the key conditions. Going forward, Hitachi intends to cooperate in long-term human resource training in the field of nuclear power by launching human resource training programs with Vietnamese universities, in cooperation with a university in Japan.

Through this new organization, Hitachi will strengthen its activities for acquiring orders, while at the same time the Hitachi Group will continue to work with International Nuclear Energy Development of Japan Co., Ltd.*2 to give support to the Viet Nam's plan to build nuclear power plants.

*1
In the Joint Statement of October 31, 2010, the Vietnamese government has set out that the Japanese government assist with the plan for the second nuclear power plant site by “conducting feasibility studies,” “providing low-interest and preferential loans,” “using the most advanced technologies with the highest safety standards,” “providing technology transfers and training of human resources,” “cooperating in the waste treatment for the whole life of the project,” and “providing a stable supply of materials.”
*2
Established on October 22, 2010, with capital investments by Hokkaido Electric Power Co., Inc., Tohoku Electric Power Co., Inc., The Tokyo Electric Power Co., Inc., Chubu Electric Power Co., Inc., Hokuriku Electric Power Company, The Kansai Electric Power Co., Inc., The Chugoku Electric Power Co., Inc., Shikoku Electric Power Co., Inc., Kyushu Electric Power Co., Inc., Toshiba Corporation, Hitachi, Ltd., Mitsubishi Heavy Industries, Ltd., and Innovation Network Corporation of Japan, to do proposals and research activities for nuclear power plant project orders in emerging countries.

About Hitachi's nuclear power business

Hitachi is a world-top-class comprehensive plant manufacturer with a structure for the development, planning, design, manufacturing, inspection, installation, test runs, preventive maintenance, and total project management encompassing these services, for reactors and related equipment. To date, Hitachi has a track record of 22 nuclear power plants in Japan, including plants currently under construction. In particular, Hitachi has participated in all of domestic ABWR plant projects (four in operation, two under construction), which use the most recent Advanced Boiling Water Reactors (ABWR). Overseas, Hitachi supplied key ABWR components to the Lungmen Nuclear Power Plant in Taiwan. In China, Hitachi supplied turbine-generator sets to the Qinshan III Nuclear Power Station.

About Hitachi's cooperative relationship with General Electric Company (“GE”) of the United States in the nuclear power filed

Hitachi and GE established joint venture companies in 2007 to construct, maintain, and provide related services for nuclear power plants in Japan and the United States, and are proactively pursuing international business activities. The Japanese joint venture, Hitachi-GE Nuclear Energy, Ltd., is roughly 80% owned by Hitachi and 20% owned by GE, and in the United States, GE-Hitachi Nuclear Energy is 40% owned by Hitachi and 60% owned by GE. Both companies are utilizing their accumulated know-how and experience to further expand their nuclear power businesses in global markets.

About Hitachi, Ltd.

Hitachi, Ltd. (NYSE: HIT / TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 360,000 employees worldwide. Fiscal 2009 (ended March 31, 2010) consolidated revenues totaled 8,968 billion yen ($96.4 billion). Hitachi will focus more than ever on the “Social Innovation Business,” which includes information & telecommunication systems, power systems, environmental, industrial and transportation systems, and social and urban systems, as well as the sophisticated materials and key devices that support them. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.