CORRECTING and REPLACING Hitachi Announces Consolidated Financial Resu

    Business Editors/High-Tech Editors
    CORRECTION...by Hitachi, Ltd.

    TOKYO--(BUSINESS WIRE)--Feb. 10, 2005--In BW6035 issued Feb. 2, 2005: First graph, second sentence after the table titled, "Digital Media & Consumer Products" of release dated February 2, 2005, should begin: Although the shipments of plasma TVs and LCD projectors increased (sted Although the segment recorded higher sales of plasma TVs and LCD projectors).

    The corrected release reads:

    HITACHI ANNOUNCES CONSOLIDATED FINANCIAL RESULTS FOR THE THIRD QUARTER OF FISCAL 2004

    Hitachi, Ltd. (NYSE:HIT)(TOKYO:6501) today announced its consolidated financial results for the third quarter of fiscal 2004, ended December 31, 2004.

    1. Business Results and Financial Position

    Note: All figures were converted at the rate of 104 Yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2004.

    Business Results

    (1) Summary of Fiscal 2004 Third-Quarter Consolidated Business Results

Notes: 1. All figures, except for the outlook for fiscal 2004, were converted at the rate of 104 yen to the U.S. dollar, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2004.

2. Segment information and operating income (loss) are presented in accordance with accounting principles generally accepted in Japan.

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 2,123.7 4% 20,421 Operating income 34.3 (46%) 330 Income before income taxes and minority interests 70.9 54% 682 Income before minority interests 35.9 416% 345 Net income 26.6 - 256 ----------------------------------------------------------------------

    During the third quarter, the world economy, while still in a recovery mode, grew at a slower pace due to weakening demand for digital-related equipment and the effects of surging prices for crude oil and other raw materials around the world.
    In the Japanese economy, too, there was a heightened sense of a slowdown. In addition to a downturn in exports and a peaking of investment in plant and equipment, the slowdown was caused by a slower rate of growth in consumer spending, including softening sales of digital consumer electronics.
    Against this backdrop, Hitachi's consolidated revenues increased 4% year on year, to 2,123.7 billion yen, despite year-on-year decreases in the Information & Telecommunication Systems segment and Electronic Devices segment, particularly in respect of LCDs. Segments recording year-on-year increases in revenues included Power & Industrial Systems and High Functional Materials & Components.
    Operating income dropped 46%, to 34.3 billion yen due to sharp year-on-year decreases in operating income in the Information & Telecommunication Systems segment, where prices fell for servers, HDDs and other products, and the Electronic Devices segment, where earnings on LCDs worsened due to a sudden market drop-off. Furthermore, the Digital Media & Consumer Products segment recorded an operating loss.
    Other income climbed 169% year on year, to 49.1 billion yen due to a marked improvement in earnings from equity-method affiliates resulting from such factors as income from a change in equity accompanying the public listing of Elpida Memory, Inc. Other deductions declined 64%, to 12.6 billion yen, due in part to a year-on-year decrease in restructuring charges.
    As a result, Hitachi recorded income before income taxes and minority interests of 70.9 billion yen, up 54% year on year. After income taxes of 34.9 billion yen, Hitachi posted income before minority interests of 35.9 billion yen. Net income was 26.6 billion yen, sharply higher than in the corresponding period a year earlier.

(2) Revenues and Operating Income (Loss) by Segment

Results by segment were as follows.

(Information & Telecommunication Systems)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 482.4 (6%) 4,639 Operating income 2.1 (84%) 21 ----------------------------------------------------------------------

    Information & Telecommunication Systems revenues decreased 6%, to 482.4 billion yen. Software and services revenues increased year on year as a whole, with solid performances by the outsourcing business and other businesses in services countering lower software sales. Hardware sales declined year on year due to factors such as lower prices for servers, PCs, HDDs and other products.
    The segment posted operating income of 2.1 billion yen, 84% down year on year, due to lower prices in hardware on the whole.

    Note: HDD operations are conducted by Hitachi Global Storage
    Technologies (Hitachi GST), which has a December 31 fiscal
    year-end, different from Hitachi's March 31 year-end.
    Hitachi's results for the third quarter ended December 31,
    2004, include operating results of Hitachi GST for the
    three-month period from July through September 2004.

(Electronic Devices)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 300.2 (10%) 2,887 Operating income 2.2 (81%) 22 ----------------------------------------------------------------------

    Electronic Devices revenues decreased 10%, to 300.2 billion yen, despite healthy growth in sales of semiconductor and LCD manufacturing equipment at Hitachi High-Technologies Corporation. The decline was attributed to sharply lower sales of displays due to a sudden market downturn for LCDs.
    The segment posted an 81% year-on-year decline in operating income, to 2.2 billion yen, again despite an increase in earnings at Hitachi High-Technologies, particularly from semiconductor and LCD manufacturing equipment. The segment result reflected sharply lower earnings from the display business, due to factors such as a fall in sales prices.

(Power & Industrial Systems)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 560.0 16% 5,385 Operating income 5.9 96% 58 ----------------------------------------------------------------------

    Power & Industrial Systems revenues increased 16%, to 560.0 billion yen. In addition to the effects of consolidating an equity-method affiliate that manufactures and sells elevators and escalators in China in the first half of fiscal 2004 and of Hitachi, Ltd. merging with TOKICO LTD. in the third quarter, this performance reflected higher sales at Hitachi Construction Machinery Co., Ltd.
    The segment posted a 96% increase in operating income, to 5.9 billion yen, on higher earnings at Hitachi Construction Machinery and improved earnings in air-conditioning systems, industrial machinery and other products.

(Digital Media & Consumer Products)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 325.3 (1%) 3,129 Operating loss (1.7) - (17) ----------------------------------------------------------------------

    In Digital Media & Consumer Products, revenues were 325.3 billion yen, largely the same as the previous year. Although the shipments of plasma TVs and LCD projectors increased, sales of home appliances were affected by lower sales prices and Hitachi Maxell, Ltd. recorded lower revenues.
    The segment recorded an operating loss of 1.7 billion yen, compared with operating income of 11.3 billion yen in the third quarter of the previous fiscal year. This was the result of falling sales prices in the segment as a whole.

    Note: The optical disk drive business is conducted by Hitachi-LG
    Data Storage, Inc. (HLDS), which has a December 31 fiscal
    year-end. Hitachi's results for the third quarter ended
    December 31, 2004 include operating results of HLDS for the
    three-month period from July through September 2004.

(High Functional Materials & Components)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 379.5 15% 3,649 Operating income 22.0 48% 212 ----------------------------------------------------------------------

    In High Functional Materials & Components, revenues rose 15%, to 379.5 billion yen. Hitachi Metals, Ltd. posted a sharp increase in sales due to strong sales to automotive- and electronics-related fields as well as the effect of consolidating NEOMAX Co., Ltd., formerly Sumitomo Special Metals Co., Ltd., from the first half of fiscal 2004. Hitachi Chemical Co., Ltd. and Hitachi Cable, Ltd. also recorded sharply higher sales, with growth at the former reflecting strong sales, particularly to the automotive-related field, and growth at the latter reflecting higher copper prices, which forced up sales prices of wires and cables and other products.
    The segment operating income climbed 48%, to 22.0 billion yen due to factors such as the robust performances of Hitachi Chemical Co., Ltd., Hitachi Metals, Ltd. and Hitachi Cable, Ltd.

(Logistics, Services & Others)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 312.1 1% 3,002 Operating income 2.4 (29%) 23 ----------------------------------------------------------------------

    In Logistics, Services & Others, revenues were on a par with a year earlier at 312.1 billion yen. Hitachi Transport System, Ltd. and Hitachi Mobile Co., Ltd. both posted healthy sales.
    The segment posted operating income of 2.4 billion yen, down 29% year on year, due to lower prices of products and services, particularly at overseas sales companies.

(Financial Services)

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 130.3 (5%) 1,254 Operating income 8.0 9% 77 ----------------------------------------------------------------------

    In Financial Services, revenues declined 5%, to 130.3 billion yen.
    Operating income increased 9%, to 8.0 billion yen.

(3) Revenues by Market

Three months ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Japan 1,307.9 2% 12,577 ---------------------------------------------------------------------- Overseas 815.8 6% 7,844 Asia 339.5 9% 3,264 North America 238.3 4% 2,292 Europe 178.3 4% 1,715 Other Areas 59.5 4% 573 ----------------------------------------------------------------------

    Revenues in Japan and overseas both surpassed the same period in the previous fiscal year on strong growth in the Power & Industrial Systems and High Functional Materials & Components segments.
    Revenues in Japan rose 2%, to 1,307.9 billion yen.
    Overseas revenues rose 6%, to 815.8 billion yen due to growth in sales of materials for electronics-related products and in sales at Hitachi Construction Machinery, in addition to such other factors as the effect of consolidating an equity-method affiliate that manufactures and sells elevators and escalators in China in the first half of fiscal 2004.

(4) Financial Position

As of December 31, 2004 ---------------------------------------------------------------------- Billions of Change from Millions of yen September 30, 2004 U.S. dollars ---------------------------------------------------------------------- Total assets 9,844.3 207.4 94,657 Total liabilities 6,686.5 144.1 64,293 Debts 2,606.4 140.5 25,061 Minority interests 884.8 10.4 8,508 Stockholders' equity 2,273.0 52.9 21,856 ---------------------------------------------------------------------- Stockholders' equity ratio 23.1% 0.1 point increase - D/E ratio (including minority interests) 0.83 times 0.03 point increase - ----------------------------------------------------------------------

    Total assets increased 207.4 billion yen, to 9,844.3 billion yen, compared with September 30, 2004, due to factors such as the merger with TOKICO LTD. in the third quarter of fiscal 2004. Debts increased 140.5 billion yen, to 2,606.4 billion yen, compared with September 30, 2004. Stockholders' equity increased 52.9 billion yen, to 2,273.0 billion yen due to factors such as the increase in net income, and the increase in the capital surplus and the decrease in treasury stock accompanying the merger with TOKICO. As a consequence, the stockholders' equity ratio improved by 0.1 of a percentage point to 23.1%. The debt-to-equity ratio (including minority interests) was 0.83 times due to the increase in debts.

(5) Cash Flows

Three months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen Change U.S. dollars ---------------------------------------------------------------------- Cash flows from operating activities (36.6) 20.3 (352) Cash flows from investing activities (169.8) (37.3) (1,633) ---------------------------------------------------------------------- Free cash flows (206.4) (17.0) (1,985) ---------------------------------------------------------------------- Cash flows from financing activities 124.0 20.7 1,193 ----------------------------------------------------------------------

    Operating activities used net cash of 36.6 billion yen, 20.3 billion yen less than in the previous fiscal year, reflecting the large increase in net income.
    Investing activities used net cash of 169.8 billion yen, 37.3 billion yen increase over the previous fiscal year. This was the result of an increase in capital investments, mainly for Hitachi's key businesses, and other factors.
    Free cash flows, the sum of cash flows from operating and investing activities, were an outflow of 206.4 billion yen, 17.0 billion yen more than a year earlier.
    Financing activities provided net cash of 124.0 billion yen, 20.7 billion yen more than in the previous fiscal year due to the issue of euro-yen zero coupon convertible bonds and other factors.
    Cash and cash equivalents as of December 31, 2004 amounted to 531.1 billion yen, a decrease of 87.9 billion yen during the third quarter.

2. Business Results for the Nine Months Ended December 31, 2004

(1) Summary, Revenues by Segment and Operating Income by Segment

Summary

Nine Months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 6,453.7 6% 62,055 Operating income 161.7 94% 1,555 Income before income taxes and minority interests 206.9 51% 1,990 Income before minority interests 103.8 388% 999 Net income 67.8 758% 652 ----------------------------------------------------------------------

Revenues by Segment

Nine Months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Revenues 6,453.7 6% 62,055 ---------------------------------------------------------------------- Information & Telecommunication Systems 1,554.2 (1%) 14,945 ---------------------------------------------------------------------- Electronic Devices 992.3 5% 9,542 ---------------------------------------------------------------------- Power & Industrial Systems 1,680.9 8% 16,163 ---------------------------------------------------------------------- Digital Media & Consumer Products 971.5 6% 9,341 ---------------------------------------------------------------------- High Functional Materials & Components 1,119.9 18% 10,769 ---------------------------------------------------------------------- Logistics, Services & Others 922.4 0% 8,870 ---------------------------------------------------------------------- Financial Services 401.1 (1%) 3,857 ---------------------------------------------------------------------- Subtotal 7,642.6 5% 73,487 ---------------------------------------------------------------------- Eliminations & Corporate Items (1,188.8) - (11,432) ----------------------------------------------------------------------

Operating income by Segment

Nine Months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Operating income 161.7 94% 1,555 ---------------------------------------------------------------------- Information & Telecommunication Systems 31.1 66% 300 ---------------------------------------------------------------------- Electronic Devices 32.3 108% 311 ---------------------------------------------------------------------- Power & Industrial Systems 16.0 46% 155 ---------------------------------------------------------------------- Digital Media & Consumer Products 8.8 (27%) 85 ---------------------------------------------------------------------- High Functional Materials & Components 62.4 159% 600 ---------------------------------------------------------------------- Logistics, Services & Others 9.9 228% 96 ---------------------------------------------------------------------- Financial Services 18.0 16% 173 ---------------------------------------------------------------------- Subtotal 178.8 78% 1,720 ---------------------------------------------------------------------- Eliminations & Corporate Items (17.1) - (165) ----------------------------------------------------------------------

    The world economy in the nine months to December 31, 2004, a period including the third quarter of fiscal 2004, remained on a recovery footing as a whole. Demand rose for IT-related equipment, particularly in the U.S., and domestic demand rose in China. Corporate earnings declined, however, in the second half of the period, due to factors such as surging raw materials prices, particularly in Asia.
    The Japanese economy also continued to grow steadily, led by exports and plant and equipment investments. However, in the latter half of the period, electronic device inventories increased and growth in sales of electronics-related products was lackluster.
    Against this backdrop, Hitachi's consolidated revenues for the nine months to December 31, 2004 increased 6% year on year, to 6,453.7 billion yen, with most of the business segments posting year-on-year increases. The Electronic Devices segment saw strong growth in sales of semiconductor and LCD manufacturing equipment and other products, Digital Media & Consumer Products recorded strong growth in sales of plasma TVs and other products, and High Functional Materials & Components recorded higher revenues, particularly for components and materials for electronics-related products. These performances reflected buoyant conditions in the digital consumer electronics market in the first half of the period.
    Operating income climbed 94%, to 161.7 billion yen, as almost all segments, including High Functional Materials & Components, Electronic Devices and Information & Telecommunication Systems, posted year-on-year increases.
    Other income was 80.4 billion yen, down 36% on the same period a year ago. This decrease was due to a decline in gains on the sale of investment securities and to other factors, despite a switch from a loss to income from equity-method affiliates due to substantial improvements at Renesas Technology Corp. and Elpida Memory. Other deductions declined 51%, to 35.2 billion yen compared with the previous fiscal year, when there was a loss from equity-method affiliates and exchange losses.
    As a result, Hitachi recorded income before income taxes and minority interests of 206.9 billion yen, up 51% year on year. After income taxes of 103.0 billion yen, Hitachi posted income before minority interests of 103.8 billion yen. Net income climbed 758% year on year, to 67.8 billion yen.

(2) Revenues by Market

Nine Months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen % change U.S. dollars ---------------------------------------------------------------------- Japan 4,017.2 3% 38,628 ---------------------------------------------------------------------- Overseas 2,436.4 12% 23,427 Asia 1,033.8 20% 9,940 North America 680.8 3% 6,547 Europe 524.6 10% 5,045 Other Areas 197.1 12% 1,895 ----------------------------------------------------------------------

    Revenues for the nine months ended December 31, 2004 were up year on year.
    Revenues in Japan rose 3%, to 4,017.2 billion yen. Digital Media & Consumer Products recorded strong growth in sales of plasma TVs and other products, and High Functional Materials & Components recorded higher revenues, particularly for components and materials for electronics-related products.
    Overseas revenues increased 12%, to 2,436.4 billion yen due to growth in sales of construction machinery at Hitachi Construction Machinery, particularly to European and U.S. markets, higher sales in social infrastructure, digital media and electronics-related materials, particularly in the Chinese market, and other factors.

(3) Cash Flows

Nine Months Ended December 31, 2004 ---------------------------------------------------------------------- Billions Year-over-year Millions of of yen Change U.S. dollars ---------------------------------------------------------------------- Cash flows from operating activities 121.0 (46.5) 1,164 Cash flows from investing activities (370.6) (81.0) (3,563) ---------------------------------------------------------------------- Free cash flows (249.5) (127.5) (2,399) ---------------------------------------------------------------------- Cash flows from financing activities 12.7 83.2 123 ----------------------------------------------------------------------

    Operating activities provided net cash of 121.0 billion yen, 46.5 billion yen less than in the previous fiscal year, reflecting factors such as a increasing of payment in payables.
    Investing activities used net cash of 370.6 billion yen, an increase of 81.0 billion yen. This was the result of an increase in capital investments, mainly for Hitachi's key businesses, absence of large sales of shares and other factors.
    Free cash flows, the sum of cash flows from operating and investing activities, were an outflow of 249.5 billion yen, 127.5 billion yen more year on year.
    Financing activities provided net cash of 12.7 billion yen, 83.2 billion yen more than the cash used a year earlier. This reflected such factors as the issue of euro-yen zero coupon convertible bonds.
    Cash and cash equivalents as of December 31, 2004, amounted to 531.1 billion yen, a decrease of 233.2 billion yen during the nine-month period, which includes the third quarter.

Outlook for Fiscal 2004

Consolidated

Fiscal 2004, ending March 31, 2005 ---------------------------------------------------------------------- Billions Change from Year-over-year of Yen outlook on % change Oct. 29, 2004 ---------------------------------------------------------------------- Revenues 8,840.0 (60.0) 2% ---------------------------------------------------------------------- Operating income 260.0 (40.0) 41% ---------------------------------------------------------------------- Income before income taxes and minority interests 235.0 (65.0) (1%) ---------------------------------------------------------------------- Income before minority interests 95.0 (55.0) 147% ---------------------------------------------------------------------- Net income 50.0 (50.0) 215% ----------------------------------------------------------------------

Unconsolidated

Fiscal 2004, ending March 31, 2005 ---------------------------------------------------------------------- Billions Change from Year-over-year of Yen outlook on % change Oct. 29, 2004 ---------------------------------------------------------------------- Revenues 2,570.0 0.0 3% ---------------------------------------------------------------------- Ordinary income 20.0 (5.0) (1%) ---------------------------------------------------------------------- Net income 10.0 (30.0) (75%) ----------------------------------------------------------------------

    In terms of trends in the world economy, Hitachi expects Asian economies to remain healthy, supported by domestic demand in China, and European economies are expected to continue their modest recovery. However, the U.S. economy is expected to slow slightly as the benefits of tax cuts, low interest rates and other government policies fade. Due to these factors, as well as surging crude oil and other raw materials prices, a downturn in market conditions for electronic-related products and other influences, the pace of growth in the world economy is expected to slow.
    The Japanese economy is expected to slow further as demand for digital consumer electronics softens and the drop in plant and equipment investment, such as in the electronics components industry, begins to have an impact.
    Under these circumstances, and based on the large impact on results of falling sales prices, deteriorating profitability in some projects in the Information & Telecommunication Systems segment and other factors, Hitachi expects to book restructuring charges. Due to this and other factors, as outlined above, Hitachi has lowered its fiscal 2004 forecasts issued with first-half results on October 29, 2004, on both a consolidated basis and unconsolidated basis. The projections assume a fourth-quarter exchange rate of 103 yen to the U.S. dollar.
    Looking ahead, Hitachi will push ahead with active investments in key businesses and ongoing business structural reforms in a drive to further strengthen actions designed to bolster competitiveness on a groupwide basis.
    In particular, with respect to deteriorating earnings in the Information & Telecommunication Systems segment, Hitachi plans to expedite initiatives groupwide, including nurturing project managers, enhancing productivity in systems construction such as by developing common technology, and broadening upstream consulting and the outsourcing business. These efforts target the establishment of a resilient business base and the prevention of unprofitable projects in the future.

    Cautionary Statement

    Certain statements found in this document may constitute "forward-looking statements" as defined in the U.S. Private Securities Litigation Reform Act of 1995. Such "forward-looking statements" reflect management's current views with respect to certain future events and financial performance and include any statement that does not directly relate to any historical or current fact. Words such as "anticipate," "believe," "expect," "estimate," "forecast," "intend," "plan," "project" and similar expressions which indicate future events and trends may identify "forward-looking statements." Such statements are based on currently available information and are subject to various risks and uncertainties that could cause actual results to differ materially from those projected or implied in the "forward-looking statements" and from historical trends. Certain "forward-looking statements" are based upon current assumptions of future events which may not prove to be accurate. Undue reliance should not be placed on "forward-looking statements," as such statements speak only as of the date of this document.
    Factors that could cause actual results to differ materially from those projected or implied in any "forward-looking statement" and from historical trends include, but are not limited to:

HITACHI, LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS FOR THE THIRD QUARTER ENDED DECEMBER 31, 2004

The consolidated financial statements presented herein are expressed in yen and, solely for the convenience of the reader, have been translated into United States dollars at the rate of 104 yen = U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market as of December 30, 2004.

SUMMARY

In millions of yen and U.S. dollars, except Net income per share (6) and Net income per American Depositary Share (7).

---------------------------------------------------------------------- Three months ended December 31 ----------------------------------------- Yen (A)/(B)X U.S. $ (millions) 100 (%) (millions) --------------------- ---------- 2004 (A) 2003 (B) 2004 --------------------------------------- ---------- -------- ---------- 1. Revenues 2,123,788 2,046,964 104 20,421 --------------------------------------- ---------- -------- ---------- 2. Operating income 34,369 63,274 54 330 --------------------------------------- ---------- -------- ---------- 3. Income before income taxes and minority interests 70,911 46,186 154 682 --------------------------------------- ---------- -------- ---------- 4. Income before minority interests 35,913 6,955 516 345 --------------------------------------- ---------- -------- ---------- 5. Net income 26,644 2,519 - 256 --------------------------------------- ---------- -------- ---------- 6. Net income per share Basic 7.99 0.76 - 0.08 Diluted 7.55 0.73 - 0.07 --------------------------------------- ---------- -------- ---------- 7. Net income per ADS (representing 10 shares) Basic 80 8 - 0.77 Diluted 76 7 - 0.73 --------------------------------------- ---------- -------- ----------

Nine months ended December 31 ------------------------------------------- Yen (C)/(D)X U.S. $ (millions) 100 (%) (millions) ---------------------- ----------- 2004 (C) 2003 (D) 2004 ---------------------------------------------------------------------- 1. Revenues 6,453,723 6,088,371 106 62,055 -------------------------- ----------- ---------- -------- ----------- 2. Operating income 161,701 83,513 194 1,555 -------------------------- ----------- ---------- -------- ----------- 3. Income before income taxes and minority interests 206,912 136,689 151 1,990 -------------------------- ----------- ---------- -------- ----------- 4. Income before minority interests 103,844 21,279 488 999 -------------------------- ----------- ---------- -------- ----------- 5. Net income 67,802 7,903 858 652 -------------------------- ----------- ---------- -------- ----------- 6. Net income per share Basic 20.47 2.39 856 0.20 Diluted 19.98 2.32 861 0.19 -------------------------- ----------- ---------- -------- ----------- 7. Net income per ADS (representing 10 shares) Basic 205 24 854 1.97 Diluted 200 23 870 1.92 ----------------------------------------------------------------------

Notes: 1. The Company's consolidated financial statements are prepared based on U.S. GAAPs and are unaudited.

2. Segment Information and operating income (loss) are presented in accordance with accounting principles generally accepted in Japan.

3. The figures are for 990 consolidated subsidiaries, including Variable Interest Entities, and 167 equity-method affiliates.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

---------------------------------------------------------------------- Three months ended December 31 ----------------------------------------- Yen U.S. (millions) (A)/(B) Dollars X100 (millions) ---------------------- (%) ---------- 2004 (A) 2003 (B) 2004 ---------------------------------------------------------------------- Revenues 2,123,788 2,046,964 104 20,421 ---------------------------------------- ---------- ------- ---------- Cost of sales 1,642,910 1,560,963 105 15,797 ---------------------------------------- ---------- ------- ---------- Selling, general and administrative expenses 446,509 422,727 106 4,294 Operating income 34,369 63,274 54 330 ---------------------------------------- ---------- ------- ---------- Other income 49,162 18,265 269 473 (Interest and dividends) 3,942 4,398 90 38 (Other) 45,220 13,867 326 435 ---------------------------------------- ---------- ------- ---------- Other deductions 12,620 35,353 36 121 (Interest charges) 7,103 7,519 94 68 (Other) 5,517 27,834 20 53 ---------------------------------------- ---------- ------- ---------- Income before income taxes and minority interests 70,911 46,186 154 682 ---------------------------------------- ---------- ------- ---------- Income taxes 34,998 39,231 89 337 ---------------------------------------- ---------- ------- ---------- Income before minority interests 35,913 6,955 516 345 ---------------------------------------- ---------- ------- ---------- Minority interests 9,269 4,436 209 89 ---------------------------------------- ---------- ------- ---------- Net income 26,644 2,519 - 256 ----------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

---------------------------------------------------------------------- Nine months ended December 31 ---------------------------------------- Yen U.S. (millions) (C)/(D) Dollars X100 (millions) --------------------- (%) ---------- 2004 (C) 2003 (D) 2004 ---------------------------------------- ---------- ------- ---------- Revenues 6,453,723 6,088,371 106 62,055 ---------------------------------------- ---------- ------- ---------- Cost of sales 4,966,988 4,718,939 105 47,759 ---------------------------------------- ---------- ------- ---------- Selling, general and administrative expenses 1,325,034 1,285,919 103 12,741 ---------------------------------------- ---------- ------- ---------- Operating income 161,701 83,513 194 1,555 ---------------------------------------- ---------- ------- ---------- Other income 80,483 125,781 64 774 (Interest and dividends) 14,077 14,932 94 135 (Other) 66,406 110,849 60 639 ---------------------------------------- ---------- ------- ---------- Other deductions 35,272 72,605 49 339 (Interest charges) 21,338 23,837 90 205 (Other) 13,934 48,768 29 134 ---------------------------------------- ---------- ------- ---------- Income before income taxes and minority interests 206,912 136,689 151 1,990 ---------------------------------------- ---------- ------- ---------- Income taxes 103,068 115,410 89 991 ---------------------------------------- ---------- ------- ---------- Income before minority interests 103,844 21,279 488 999 ---------------------------------------- ---------- ------- ---------- Minority interests 36,042 13,376 269 347 ---------------------------------------- ---------- ------- ---------- Net income 67,802 7,903 858 652 ----------------------------------------------------------------------

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

---------------------------------------------------------------------- Yen Yen U.S. (millions) (millions) Dollars ---------- (A)/(B) ---------- (millions) X100 ---------- As of As of (%) As of As of December September March 31, December 31, 30, 2004 31, 2004 (A) 2004(B) 2004 ---------------------------------------------------------------------- Assets 9,844,379 9,636,896 102 9,590,322 94,657 ----------------- ---------- ---------- ------- ---------- ----------- Current assets 5,419,517 5,230,513 104 5,219,942 52,111 Cash and cash equivalents 531,109 619,049 86 764,396 5,107 Short-term investments 193,491 152,321 127 177,949 1,860 Trade receivables (Notes and Accounts) 2,101,973 2,110,400 100 2,186,529 20,211 Investment in leases 517,778 476,313 109 451,753 4,979 Inventories 1,473,662 1,328,587 111 1,123,406 14,170 Other current assets 601,504 543,843 111 515,909 5,784 ----------------- ---------- ---------- ------- ---------- ----------- Investments and advances 883,509 880,888 100 908,962 8,495 ----------------- ---------- ---------- ------- ---------- ----------- Property, plant and equipment 2,348,695 2,318,042 101 2,232,862 22,583 ----------------- ---------- ---------- ------- ---------- ----------- Other assets 1,192,658 1,207,453 99 1,228,556 11,468 ----------------------------------------------------------------------

---------------------------------------------------------------------- Liabilities and Stockholders' equity 9,844,379 9,636,896 102 9,590,322 94,657 ----------------- ---------- ---------- ------- ---------- ----------- Current liabilities 3,830,976 3,738,087 102 3,911,054 36,836 Short-term debt and current installments of long-term debt 1,121,553 1,044,432 107 1,183,463 10,784 Trade payables (Notes and Accounts) 1,265,805 1,245,846 102 1,287,614 12,171 Other current liabilities 1,443,618 1,447,809 100 1,439,977 13,881 ----------------- ---------- ---------- ------- ---------- ----------- Noncurrent liabilities 2,855,564 2,804,351 102 2,712,321 27,457 Long-term debt 1,484,866 1,421,409 104 1,314,102 14,277 Other liabilities 1,370,698 1,382,942 99 1,398,219 13,180 ----------------- ---------- ---------- ------- ---------- ----------- Minority interests 884,824 874,376 101 798,816 8,508 ----------------- ---------- ---------- ------- ---------- ----------- Stockholders' equity 2,273,015 2,220,082 102 2,168,131 21,856 Common stock 282,033 282,033 100 282,032 2,712 Capital surplus 566,864 552,404 103 551,690 5,450 Legal reserve and retained earnings 1,796,886 1,784,664 101 1,760,435 17,278 Accumulated other comprehensive loss (355,714) (366,694) - (393,864) (3,420) (Foreign currency translation adjustments) (79,995) (78,338) - (95,786) (769) (Minimum pension liability adjustments) (303,653) (314,060) - (329,536) (2,920) (Net unrealized holding gain on available- for-sale securities) 29,141 26,536 110 31,499 280 (Cash flow hedges) (1,207) (832) - (41) (11) Treasury stock (17,054) (32,325) - (32,162) (164) ----------------------------------------------------------------------

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

---------------------------------------------------------------------- Three months ended December 31 ------------------------------- Yen U.S. (millions) Dollars (millions) ------------------------------- 2004 2003 2004 ------------------------------------------------ --------- ----------- Cash flows from operating activities Net income 26,644 2,519 256

Adjustments to reconcile net income to net cash used in operating activities Depreciation 111,154 113,909 1,069 Increase in receivables and inventories (98,665) (255,328) (949) Increase (decrease) in payables (11,696) 69,053 (112) Other (64,037) 12,903 (616) ----------------------------------------------- --------- ----------- Net cash used in operating activities (36,600) (56,944) (352)

Cash flows from investing activities Increase in short-term investments (36,957) (21,737) (355)

Purchase of rental assets and other properties, net (203,091) (178,783) (1,953)

Sale of investments and subsidiaries' common stock, net 40,189 20,927 386

Collection of investment in leases 74,315 78,733 715

Other (44,271) (31,560) (426) ----------------------------------------------- --------- ----------- Net cash used in investing activities (169,815) (132,420) (1,633)

Cash flows from financing activities Increase in interest-bearing debt 157,164 116,726 1,511 Dividends paid to stockholders (16,957) (9,077) (163) Dividends paid to minority stockholders of subsidiaries (7,530) (5,497) (72) Other (8,649) 1,163 (83) ----------------------------------------------- --------- ----------- Net cash provided by financing activities 124,028 103,315 1,193

Effect of exchange rate changes on cash and cash equivalents (5,553) (8,442) (53) --------- --------- ----------- Net decrease in cash and cash equivalents (87,940) (94,491) (845)

Cash and cash equivalents at beginning of the period 619,049 709,084 5,952 --------- --------- ----------- Cash and cash equivalents at end of the period 531,109 614,593 5,107 ========= ========= ===========

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

---------------------------------------------------------------------- Nine months ended December 31 ------------------------------- Yen U.S. (millions) Dollars (millions) ------------------------------- 2004 2003 2004 ------------------------------------------------ --------- ----------- Cash flows from operating activities Net income 67,802 7,903 652

Adjustments to reconcile net income to net cash provided by operating activities Depreciation 317,425 327,825 3,052 Increase in receivables and inventories (105,906) (282,662) (1,018) Increase (decrease) in payables (95,668) 31,232 (920) Other (62,574) 83,351 (602) ----------------------------------------------- --------- ----------- Net cash provided by operating activities 121,079 167,649 1,164

Cash flows from investing activities Increase in short-term investments (6,816) (90,351) (65)

Purchase of rental assets and other properties, net (626,151) (508,559) (6,021)

Sale of investments and subsidiaries' common stock, net 65,411 138,327 629

Collection of investment in leases 288,725 276,218 2,776

Other (91,774) (105,234) (882) ----------------------------------------------- --------- ----------- Net cash used in investing activities (370,605) (289,599) (3,563)

Cash flows from financing activities Increase (decrease) in interest- bearing debt 63,038 (10,687) 606 Dividends paid to stockholders (33,363) (19,188) (321) Dividends paid to minority stockholders of subsidiaries (15,665) (12,288) (150) Other (1,220) (28,272) (12) ----------------------------------------------- --------- ----------- Net cash provided by (used in) financing activities 12,790 (70,435) 123

Effect of exchange rate changes on cash and cash equivalents 3,449 (21,193) 33 --------- --------- ----------- Net decrease in cash and cash equivalents (233,287) (213,578) (2,243)

Cash and cash equivalents at beginning of the period 764,396 828,171 7,350 --------- --------- ----------- Cash and cash equivalents at end of the period 531,109 614,593 5,107 ========= ========= ===========

SEGMENT INFORMATION (UNAUDITED)

INDUSTRY SEGMENTS ---------------------------------------------------------------------- Three months ended December 31 ----------------------------------------- Yen U.S. (millions) (A)/(B) Dollars X100 (millions) ---------------------- (%) ------------ 2004 (A) 2003 (B) 2004 ---------------------------------------------------------------------- Information & Telecommunication 482,487 514,599 Systems 19% 21% 94 4,639 ------------------------------------------------------------ Electronic Devices 300,238 334,899 12% 14% 90 2,887 ------------------------------------------------------------ Power & Industrial 560,067 482,057 Systems 23% 20% 116 5,385 ------------------------------------------------------------ Digital Media & 325,389 328,396 Consumer Products 13% 13% 99 3,129 ------------------------------------------------------------ Revenues High Functional Materials & 379,518 329,844 Components 15% 13% 115 3,649 ------------------------------------------------------------ Logistics, 312,179 307,685 Services & Others 13% 13% 101 3,002 ------------------------------------------------------------ Financial Services 130,386 137,942 5% 6% 95 1,254 ------------------------------------------------------------ Subtotal 2,490,264 2,435,422 100% 100% 102 23,945 ------------------------------------------------------------ Eliminations & Corporate items (366,476) (388,458) - (3,524)

------------------------------------------------------------ Total 2,123,788 2,046,964 104 20,421 ====================================================================== Information & Telecommunication 2,188 13,408 Systems 5% 21% 16 21 ------------------------------------------------------------ Electronic Devices 2,278 11,871 6% 18% 19 22 ------------------------------------------------------------ Power & Industrial 5,978 3,045 Systems 14% 5% 196 58 ------------------------------------------------------------ Digital Media & (1,790) 11,360 Consumer Products (4%) 17% - (17) ------------------------------------------------------------ Operating High Functional income Materials & 22,090 14,909 (loss) Components 54% 23% 148 212 ------------------ ---------- ------------------ ----------- Logistics, 2,455 3,437 Services & Others 6% 5% 71 23 ------------------------------------------------------------ Financial Services 8,049 7,383 19% 11% 109 77 ------------------------------------------------------------ Subtotal 41,248 65,413 100% 100% 63 396 ------------------------------------------------------------ Eliminations & Corporate items (6,879) (2,139) - (66)

------------------------------------------------------------ Total 4,369 63,274 54 330 ----------------------------------------------------------------------

Note: Revenues by industry segment include intersegment transactions.

SEGMENT INFORMATION (UNAUDITED)

INDUSTRY SEGMENTS

---------------------------------------------------------------------- Nine months ended December 31 ------------------------------------------- Yen U.S. (millions) (C)/(D) Dollars X100 (millions) ------------------- (%) ---------- 2004 (C) 2003 (D) 2004 ---------------------------------------------------------------------- Information & Telecom- munication 1,554,223 1,567,878 Systems 20% 22% 99 14,945 ------------------------------------------------------------ Electronic Devices 992,316 942,428 105 9,542 13% 13% ------------------------------------------------------------ Power & Industrial 1,680,962 1,555,496 Systems 22% 21% 108 16,163 ------------------------------------------------------------ Digital Media & Consumer 971,501 913,807 Products 13% 12% 106 9,341 ------------------------------------------------------------ Revenues High Functional Materials & 1,119,941 952,050 Components 15% 13% 118 10,769 ------------------------------------------------------------ Logistics, Services & 922,496 920,654 Others 12% 13% 100 8,870 ------------------------------------------------------------ Financial 401,164 405,865 Services 5% 6% 99 3,857 ------------------------------------------------------------ Subtotal 7,642,603 7,258,178 100% 100% 105 73,487 ------------------------------------------------------------ Eliminations & Corporate items (1,188,880) (1,169,807) - (11,432) ------------------------------------------------------------ Total 6,453,723 6,088,371 106 62,055 ====================================================================== Information & Telecom- munication 31,149 18,807 Systems 17% 19% 166 300 ---------------------------------------- ------------------- Electronic 32,334 15,546 Devices 18% 15% 208 311 ------------------------------------------------------------ Power & Industrial 16,066 10,980 Systems 9% 11% 146 155 ------------------------------------------------------------ Digital Media & Consumer 8,828 12,088 Products 5% 12% 73 85 ------------------------------------------------------------ Operating High Functional income Materials & 62,418 24,142 Components 35% 24% 259 600 ---------------- ------------------------------------------- Logistics, Services & 9,983 3,040 Others 6% 3% 328 96 ------------------------------------------------------------ Financial 18,037 15,578 Services 10% 16% 116 173 ------------------------------------------------------------ Subtotal 178,815 100,181 178 1,720 100% 100% ------------------------------------------------------------ Eliminations & Corporate items (17,114) (16,668) - (165)

------------------------------------------------------------ Total 161,701 83,513 194 1,555 ----------------------------------------------------------------------

Note: Revenues by industry segment include intersegment transactions.

SEGMENT INFORMATION (UNAUDITED)

REVENUES BY MARKET

---------------------------------------------------------------------- Three months ended December 31 ----------------------------------------- Yen U.S. (millions) (A)/(B) Dollars X100 (millions) ------------------ (%) ---------- 2004 (A) 2003 (B) 2004 ---------------------------------------------------------------------- Japan 1,307,976 1,277,820 102 12,577 62% 62% ---------------------------------------------------------------------- Asia 339,510 310,118 109 3,264 16% 15% -------------------------------------------------------------------- North America 238,318 230,161 104 2,292 11% 11% -------------------------------------------------------------------- Europe 178,394 171,689 104 1,715 8% 9% -------------------------------------------------------------------- Other Areas 59,590 57,176 104 573 3% 3% -------------------------------------------------------------------- Outside Japan 815,812 769,144 106 7,844 38% 38% ---------------------------------------------------------------------- Total 2,123,788 2,046,964 104 20,421 100% 100% ----------------------------------------------------------------------

---------------------------------------------------------------------- Nine months ended December 31 ----------------------------------------- Yen U.S. (millions) (C)/(D) Dollars X100 (millions) ------------------ (%) ---------- 2004 (C) 2003 (D) 2004 ---------------------------------------------------------------------- Japan 4,017,271 3,914,182 103 38,628 62% 64% ---------------------------------------------------------------------- Asia 1,033,814 863,901 120 9,940 16% 14% -------------------------------------------------------------------- North America 680,849 658,379 103 6,547 11% 11% -------------------------------------------------------------------- Europe 524,681 475,147 110 5,045 8% 8% -------------------------------------------------------------------- Other Areas 197,108 176,762 112 1,895 3% 3% -------------------------------------------------------------------- Outside Japan 2,436,452 2,174,189 112 23,427 38% 36% ---------------------------------------------------------------------- Total 6,453,723 6,088,371 106 62,055 100% 100% ----------------------------------------------------------------------

SUPPLEMENTARY INFORMATION for the Third Quarter Ended December 31, 2004 (Consolidated basis)

1. Summary (Billions of yen) ----------------------------------------------------------------------

Three months ended Nine months ended December 31 December 31 ------------------------------------------ 2003 2004 2003 2004 ------ ------------- ------ ------------ (B)/(A) (D)/(C) (A) (B) X100(%) (C) (D) X100(%) ---------------------------------------------------------------------- Average exchange rate (Yen / U.S.$) 108 105 - 115 108 - ---------------------------------------------------------------------- Capital investment (Completion basis) 213.5 228.9 107 594.4 701.0 118 ---------------------------------------------------------------------- Leasing assets 143.3 140.8 98 379.9 441.2 116 --------------------------------------------------------------------- Other 70.1 88.0 125 214.5 259.7 121 ---------------------------------------------------------------------- Depreciation 113.9 111.1 98 327.8 317.4 97 ---------------------------------------------------------------------- Leasing assets 26.9 28.1 104 80.2 82.0 102 --------------------------------------------------------------------- Other 86.9 83.0 96 247.6 235.3 95 ---------------------------------------------------------------------- R&D expenditure 86.6 91.9 106 271.1 281.1 104 ---------------------------------------------------------------------- Percentage of revenues 4.2% 4.3% - 4.5% 4.4% - ----------------------------------------------------------------------

As of March As of September As of December 31, 2004 30, 2004 31, 2004 ---------------------------------------------------------------------- Stockholders' equity per share (Yen) 657.42 673.20 682.30 ---------------------------------------------------------------------- Cash & cash equivalents, Short-term investments (Billions of yen) 942.3 771.3 724.6 ---------------------------------------------------------------------- Interest-bearing debt (Billions of yen) 2,497.5 2,465.8 2,606.4 ---------------------------------------------------------------------- Number of employees 326,344 343,793 348,831 ---------------------------------------------------------------------- Japan 237,880 242,458 245,303 --------------------------------------------------------------------- Overseas 88,464 101,335 103,528 ---------------------------------------------------------------------- Number of consolidated subsidiaries (Including Variable Interest Entities) 956 988 990 ---------------------------------------------------------------------- Japan 545 545 547 --------------------------------------------------------------------- Overseas 411 443 443 ----------------------------------------------------------------------

2. Overseas sales by industry segment (Billions of yen) ----------------------------------------------------------------------

Three months ended Nine months ended December 31 December 31 ------------------------------------------------ 2003 2004 2003 2004 ------ -------------- ------ -------------- (B)/(A) (D)/(C) (A) (B) X100(%) (C) (D) X100(%) ---------------------------------------------------------------------- Information & Telecommunication Systems 186.1 175.4 94 492.9 500.7 102 ---------------------------------------------------------------------- Electronic Devices 132.6 113.6 86 364.2 384.3 106 ---------------------------------------------------------------------- Power & Industrial Systems 120.7 168.8 140 356.3 494.5 139 ---------------------------------------------------------------------- Digital Media & Consumer Products 126.2 127.0 101 363.8 381.9 105 ---------------------------------------------------------------------- High Functional Materials & Components 85.1 113.4 133 245.6 335.0 136 ---------------------------------------------------------------------- Logistics, Services & Others 108.9 107.0 98 322.5 309.2 96 ---------------------------------------------------------------------- Financial Services 9.2 103.0 112 28.5 30.6 107 ---------------------------------------------------------------------- Eliminations & Corporate items 0 0 - 0 0 - ---------------------------------------------------------------------- Total 769.1 815.8 106 2,174.1 2,436.4 112 ----------------------------------------------------------------------

3. Forecast for fiscal 2004 ending March 31, 2005

3-1. Summary (Billions of yen) ---------------------------------------------------------------------- FY2003 FY2004 (forecast) (A) ------------------------------------------ (C)/(A) Previous(B) Revised(C) (C) - (B) X100(%) ---------------------------------------------------------------------- Revenues 8,632.4 8,900.0 8,840.0 (60.0) 102 ---------------------------------------------------------------------- Operating income 184.8 300.0 260.0 (40.0) 141 ---------------------------------------------------------------------- Income before income taxes and minority interests 237.1 300.0 235.0 (65.0) 99 ---------------------------------------------------------------------- Income before minority interests 38.4 150.0 95.0 (55.0) 247 ---------------------------------------------------------------------- Net income 15.8 100.0 50.0 (50.0) 315 ----------------------------------------------------------------------

3-2. Revenues by industry segment (Billions of yen) ---------------------------------------------------------------------- FY2003 FY2004 (forecast) (A) ----------------------------------------- (C)/(A) Previous(B) Revised(C) (C) - (B) X100(%) ---------------------------------------------------------------------- Information & Telecommunication Systems 2,314.5 2,305.0 2,250.0 (55.0) 97 ---------------------------------------------------------------------- Electronic Devices 1,312.3 1,350.0 1,290.0 (60.0) 98 ---------------------------------------------------------------------- Power & Industrial Systems 2,297.9 2,390.0 2,420.0 30.0 105 ---------------------------------------------------------------------- Digital Media & Consumer Products 1,226.9 1,300.0 1,280.0 (20.0) 104 ---------------------------------------------------------------------- High Functional Materials & Components 1,297.0 1,445.0 1,490.0 45.0 115 ---------------------------------------------------------------------- Logistics, Services & Others 1,256.2 1,215.0 1,220.0 5.0 97 ---------------------------------------------------------------------- Financial Services 550.9 535.0 540.0 5.0 98 ---------------------------------------------------------------------- Eliminations & Corporate items (1,623.6) (1,640.0) (1,650.0) (10.0) - ---------------------------------------------------------------------- Total 8,632.4 8,900.0 8,840.0 (60.0) 102 ----------------------------------------------------------------------

3-3. Operating income by industry segment (Billions of yen) ---------------------------------------------------------------------- FY2003 FY2004 (forecast) (A) ----------------------------------------- (C)/(A) Previous(B) Revised(C) (C) - (B) X100(%) ---------------------------------------------------------------------- Information & Telecommunication Systems 69.9 99.0 63.0 (36.0) 90 ---------------------------------------------------------------------- Electronic Devices 30.4 35.0 35.0 0 115 ---------------------------------------------------------------------- Power & Industrial Systems 33.9 72.0 72.0 0 212 ---------------------------------------------------------------------- Digital Media & Consumer Products 6.9 21.0 12.0 (9.0) 173 ---------------------------------------------------------------------- High Functional Materials & Components 46.7 68.0 75.0 7.0 160 ---------------------------------------------------------------------- Logistics, Services & Others 0.5 16.0 14.0 (2.0) - ---------------------------------------------------------------------- Financial Services 22.3 24.0 24.0 0 107 ---------------------------------------------------------------------- Eliminations & Corporate items (26.0) (35.0) (35.0) 0 - ---------------------------------------------------------------------- Total 184.8 300.0 260.0 (40.0) 141 ----------------------------------------------------------------------

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CONTACT: Hitachi America, Ltd. Matt Takahashi, 650-244-7902 (U.S.) masahiro.takahashi@hal.hitachi.com or Hitachi, Ltd. Machiko Ikenoya, +81-3-5208-9324 (Japan) machiko.ikenoya.rv@hitachi.com or Hitachi (China), Ltd. Tatsuya Kubo, +86-10-6590-8141 (China) tkubo@hitachi.cn or Hitachi Europe Ltd. Masanao Sato, +44-1628-585379 (U.K.) masanao.sato@hitachi-eu.com

KEYWORD: CALIFORNIA JAPAN INTERNATIONAL ASIA PACIFIC INDUSTRY KEYWORD: HARDWARE COMPUTERS/ELECTRONICS SOFTWARE EARNINGS SOURCE: Hitachi America, Ltd.

Copyright Business Wire 2005