Hitachi Announces Revisions of Consolidated Business Forecasts for Fiscal 2008 and Extraordinary Items on Unconsolidated Basis

Hitachi, Ltd. (NYSE:HIT)(TOKYO:6501) today announced revisions to the Company’s consolidated business forecasts for fiscal 2008, the year ended March 31, 2009, which were announced on February 3, 2009, due to recent business performance. The Company also announced plans to record extraordinary items on an unconsolidated basis. Details are as follows.

Rationales

Fiscal 2008 operating income is expected to be better than the forecast issued on February 3, 2009 (hereinafter "previous forecast”) by 87.0 billion yen, due to improved performances, mainly in High Functional Materials & Components and Power & Industrial Systems segments. As a result, Hitachi expects income before income taxes and minority interests to be better than previously forecasted by 90.0 billion yen.

However, the Company anticipates that the global economic downturn will continue in 2009 and don’t expect a full recovery until 2010. For this reason, Hitachi has decided to completely write off deferred tax assets at companies subject to consolidated taxation, including the Company, corresponding to the increasing tax cost for fiscal 2009 and subsequent fiscal years. Accordingly, the Company anticipates that income taxes will be more than the previous forecast by 175.0 billion yen. And as a result, net loss is expected to be lower than the previous forecast by 88.0 billion yen.

3. Extraordinary Items on Unconsolidated Basis

Hitachi plans to post extraordinary losses for structural reform of 186,828 million yen. This primarily includes charges for supporting and realigning affiliated companies in connection with business restructuring, realignment and integration of bases, and workforce downsizing designed to structurally improve consumer and automotive systems businesses. Hitachi also plans to post impairment losses in connection with this restructuring.

Moreover, the Company expects 185,232 million Yen of extraordinary losses as write-downs of subsidiaries shares relating to shares of subsidiaries that have experienced a sharp drop in market price or actual price. Hitachi also anticipates write-downs of investment securities of 7,013 million yen relating to investment securities that have experienced a sharp decline in market price, as well as impairment losses of 6,138 million yen relating to fixed assets and other assets that have resulted in decreased profitability.

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:

The factors listed above are not all-inclusive and are in addition to other factors contained in Hitachi’s periodic filings with the U.S. Securities and Exchange Commission and in other materials published by Hitachi.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE:HIT)(TOKYO:6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 390,000 employees worldwide. Fiscal 2007 (ended March 31, 2008) consolidated revenues totaled 11,226 billion yen ($112.3 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, logistics and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.