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FIVE-YEAR SUMMARY

Hitachi, Ltd. and Subsidiaries

Millions of yen 1998 1997 1996 1995 1994 For the year: Net sales ...... ¥ 8,416,834 ¥8,523,100 ¥8,123,810 ¥7,592,266 ¥7,400,205 Operating income ...... 209,007 297,166 332,582 304,590 213,389 Net income ...... 3,477 88,331 141,770 113,912 65,279 Cash dividends declared ...... 36,715 36,625 36,388 36,128 36,038 Capital investment (Property, plant and equipment) ...... 712,672 740,135 723,477 655,410 662,248 Depreciation (Property, plant and equipment)...... 550,393 543,560 556,671 521,435 496,132 Research and development expenditures ...... 510,878 503,508 493,788 491,481 484,237

At year-end: Total assets ...... 10,113,012 9,964,709 9,803,438 9,141,618 8,931,091 Net property, plant and equipment ...... 2,646,132 2,559,497 2,421,785 2,310,981 2,292,869 Stockholders’ equity ...... 3,240,770 3,283,890 3,200,072 3,033,377 2,959,165

Per share data: Yen Net income: Basic...... ¥ 1.04 ¥ 26.51 ¥ 42.59 ¥ 34.66 ¥ 19.92 Diluted ...... 1.00 25.55 40.09 33.02 19.27 Net income per ADS (representing 10 shares): Basic...... 10 265 426 347 199 Diluted ...... 10 256 401 330 193 Cash dividends declared ...... 11 11 11 11 11 Cash dividends declared per ADS (representing 10 shares)...... 110 110 110 110 110 Stockholders’ equity ...... 970.90 983.85 961.23 922.73 901.71

Number of employees...... 331,494 330,152 331,852 331,673 330,637

Note: The Company has not implemented Statement of Financial Accounting Standards No. 115 in accounting for certain investments in debt and equity securities. See note 3 of the accompanying notes to consolidated financial statements. If implemented, the balance of stockholders’ equity and stockholders’ equity per share would have been as follows:

Millions of yen 1998 1997 1996 1995 1994 Stockholders’ equity...... ¥3,384,381 ¥3,513,437 ¥3,549,946 ¥3,317,155 ¥—

Yen Stockholders’ equity per share ...... ¥1,013.93 ¥1,052.62 ¥1,066.33 ¥1,009.05 ¥—

Net Sales Net Income Capital Investment (billions of yen) (billions of yen) (billions of yen)

’94 7,400 ’94 65 ’94 662 ’95 7,592 ’95 114 ’95 655

’96 8,124 ’96 142 ’96 723 ’97 8,523 ’97 88 ’97 740

’98 8,417 ’98 3 ’98 713

Total Assets Net Income per Share–Diluted Stockholders’ Equity per Share (billions of yen) (yen) (yen)

’94 8,931 ’94 19 ’94 902 ’95 9,142 ’95 33 ’95 923

’96 9,803 ’96 40 ’96 961 ’97 9,965 ’97 26 ’97 984

’98 10,113 ’98 1 ’98 971

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MAJOR CONSOLIDATED SUBSIDIARIES

(As of March 31, 1998)

JAPAN Life Corporation Hitachi Plant Engineering & Construction Co., Ltd. MANUFACTURING Hitachi Printing Co., Ltd. Babcock-Hitachi K.K. Hitachi Semiconductor and Devices Sales Co., Ltd. , Ltd. Hitachi Service & Engineering (East), Ltd. Hitachi Chemical Co., Ltd. Hitachi Service & Engineering (West), Ltd. Hitachi Construction Machinery Co., Ltd. Hitachi Software Engineering Co., Ltd. Hitachi Denshi, Ltd. Hitachi Techno Engineering Co., Ltd. Hitachi Electronics Engineering Co., Ltd. Hitachi Transport System, Ltd. Hitachi Hokkai Semiconductor, Ltd. Nissei Sangyo Co., Ltd. Hitachi Hometec, Ltd. Hitachi Kiden Kogyo, Ltd. Hitachi Lighting, Ltd. ABROAD Hitachi , Ltd. Hitachi Media Electronics Co., Ltd. MANUFACTURING Hitachi Medical Corporation Hitachi Automotive Products (USA), Inc. Hitachi Metals, Ltd. Hitachi Computer Products (America), Inc. Hitachi Seiko, Ltd. Hitachi Computer Products (Asia) Corp. Hitachi Setsubi Engineering Co., Ltd. Hitachi Computer Products (Europe) S.A. Hitachi Telecom Technologies, Ltd. Hitachi Consumer Products (S) Pte. Ltd. Hitachi Tohbu Semiconductor, Ltd. Hitachi Electronic Devices (Singapore) Pte. Ltd. Hitachi Tokyo Electronics Co., Ltd. Hitachi Electronic Devices (USA), Inc. Japan Servo Co., Ltd. Hitachi Electronic Products (Malaysia) Sdn. Bhd. Hitachi Home Electronics (America), Inc. ENGINEERING, SALES, AND SERVICE Hitachi Home Electronics (Europe) Ltd. Chuo Shoji, Ltd. Hitachi Semiconductor (America) Inc. Hitachi Air Conditioning & Refrigeration Co., Ltd. Hitachi Semiconductor (Europe) GmbH Hitachi Auto Systems Co., Ltd. Hitachi Semiconductor (Malaysia) Sdn. Bhd. Hitachi Building Systems Co., Ltd. Shanghai Hitachi Household Appliances Co., Ltd. Hitachi Credit Corporation Taiwan Hitachi Co., Ltd. Hitachi Electronics Services Co., Ltd. Hitachi Engineering & Services Co., Ltd. ENGINEERING, SALES, AND SERVICE Hitachi Engineering Co., Ltd. Hitachi America, Ltd. Hitachi Information Systems, Ltd. Hitachi Asia Pte. Ltd. Hitachi Keisho, Ltd. Hitachi Australia Ltd. Hitachi (China), Ltd. Hitachi Data Systems Holding Corp. Hitachi Europe Ltd.

Note: Hitachi Asia Pte. Ltd. was renamed Hitachi Asia Ltd. as of April 1, 1998.

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INTERNATIONAL NETWORK

(As of March 31, 1998)

OFFICES ABROAD Hitachi Telecom (USA), Inc. Hitachi Elevator (Guangzhou) Co., Ltd. OF HITACHI, LTD. Mast Immunosystems, Inc. Hitachi Escalator (Guangzhou) Co., Ltd. Maxcess Technologies Inc. (USA) Hitachi Instrument (Suzhou) Ltd. NORTH AMERICA Maxell Corporation of America Hitachi Semiconductor (Suzhou) Co., Ltd. Los Angeles, Washington, D.C. Newport Precision, Inc. Hitachi Technology (Taiwan) Ltd. Sintering Technologies, Inc. Kaohsiung Hitachi Electronics Co., Ltd. LATIN AMERICA Tri-continent Scientific, Inc. Shanghai Hitachi Cable Co., Ltd. Buenos Aires, Caracas, Mexico City, Ward Manufacturing Inc. Shanghai Hitachi Household Appliances São Paulo Co., Ltd. LATIN AMERICA Shanghai Hitachi Metals Techno Ltd. Shanghai Hitachi Shangling Appliances EUROPE Brazil Brussels, Moscow Co., Ltd. Industrias Hitachi S.A. Taiwan Hitachi Co., Ltd. MIDDLE EAST AND AFRICA Costa Rica Wuxi Hitachi Maxell Co., Ltd. Cairo, Dubai Hitachi Electronica Centroamericana S.A. Xinyi Rihong Plastic Chemical, Ltd. Mexico India ASIA Hitachi Consumer Products de Mexico S.A. Hitachi CG Motor Engineering Ltd. Seoul de C.V. Indonesia Maxell de Mexico S.A. de C.V. Bukaka Forging Industries P.T. Hitachi Chemical Electronic Products MANUFACTURING COMPANIES EUROPE Indonesia NORTH AMERICA France P.T. Hitachi Construction Machinery Hitachi Computer Products (Europe) S.A. Indonesia Canada P.T. Hitachi Consumer Products Indonesia Hitachi Canadian Industries Ltd. Germany P.T. Hitachi Power Systems Indonesia Maxcess Technologies Inc. (Canada) Hitachi Semiconductor (Europe) GmbH P.T. Japan Servo Batam U.S.A. Netherlands P.T. Sliontec Ekadharma Indonesia Hitachi Construction Machinery AAP St. Marys Corporation Korea Advanced Gene Computing Technologies, (Europe) B.V. Hitachi Chemical Electronic Materials (Korea) Inc. Spain Co., Ltd. Boston AIC Inc. Hitachi Air Conditioning Products Central Coating & Assembly Inc. (Europe) S.A. Malaysia Conex Cable, Inc. HED (Johor) Sdn. Bhd. EMI Company U.K. Hitachi Air Conditioning Products (M) GE-HITACHI HVB, Inc. Hitachi Automotive Products Europe, Ltd. Sdn. Bhd. Hitachi Automotive Products (USA), Inc. Hitachi Home Electronics (Europe) Ltd. Hitachi Cable (Johor) Sdn. Bhd. Hitachi Cable Indiana Inc. Maxell Europe Ltd. Hitachi Chemical (Johor) Sdn. Bhd. Hitachi Cable Manchester Inc. Hitachi Chemical (Malaysia) Sdn. Bhd. Hitachi Chemical Co., America, Ltd. ASIA Hitachi Consumer Products (Malaysia) Hitachi Computer Products (America), Inc. China Sdn. Bhd. Hitachi Digital Graphics (USA), Inc. Changsha Hitachi Automotive Products, Ltd. Hitachi Electronic Devices (Malaysia) Sdn. Bhd. Hitachi Electronic Devices (USA), Inc. Changzhou Servo Motor Co., Ltd. Hitachi Electronic Display Devices (M) Sdn. Bhd. Hitachi Home Electronics (America), Inc. Dalian Hitachi Baoyuan Machinery Hitachi Electronic Products (Malaysia) Sdn. Bhd. Hitachi Instruments, Inc. & Equipment Co., Ltd. Hitachi Electronics Engineering (Malaysia) Hitachi Magnetics Corporation Hefei Hitachi Excavators Co., Ltd. Sdn. Bhd. Hitachi Metals America, Ltd. Hitachi Airconditioning & Refrigerating Hitachi Metals Electronics (Malaysia) Sdn. Bhd. Hitachi Metals North Carolina, Ltd. Products (Guangzhou) Co., Ltd. Hitachi Semiconductor (Kedah) Sdn. Bhd. Hitachi PC Corporation (USA) Hitachi Chemical Co. (Taiwan) Ltd. Hitachi Semiconductor (Malaysia) Sdn. Bhd. Hitachi Semiconductor (America) Inc. Hitachi Chemical (Shanghai) Co., Ltd. Hitachi Semiconductor (Penang) Sdn. Bhd.

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Hitachi Semiconductor Technology (Malaysia) Hitachi Credit America Corp. Denmark Sdn. Bhd. Hitachi Data Systems Corp. Hitachi Data Systems A/S Maxell Electronics (Malaysia) Sdn. Bhd. Hitachi Data Systems Credit Corp. Hitachi Data Systems Holding A/S Tohshin Precision (Malaysia) Sdn. Bhd. Hitachi Data Systems Holding Corp. France Hitachi Denshi America, Ltd. Philippines HDS Distribution S.A. Hitachi Electronics Engineering (America) Inc. Babcock-Hitachi (Philippines) Inc. Hitachi Data Systems S.A. Hitachi Maxco, Ltd. Hitachi Computer Products (Asia) Corp. Hitachi Europe (France) S.A. Hitachi Medical Corporation of America Hitachi Industrial Machinery Philippines Corp. Hitachi France (Radio-TV Electro-Menager) S.A. Hitachi Medical Systems America Inc. Luzon Electronics Technology, Inc. Hitachi Software Engineering Europe, S.A. Hitachi Micro Systems Inc. Luzon Magnetics, Inc. Hitachi Systeme de Transport (France) S.A.R.L. Hitachi Sales Corp. of Hawaii, Inc. Taiwan Hitachi Air Conditioning Products Maxell (France) S.A. Hitachi Software Engineering America, Ltd. (Philippines) Corp. Nissei Sangyo France S.A.R.L. Hitachi Transport System (America), Ltd. Singapore Neuron Electronics, Inc. Germany Hitachi Cable (Singapore) Pte. Ltd. Nissei Sangyo America, Ltd. Hitachi Chemical Europe GmbH Hitachi Chemical Asia-Pacific Pte. Ltd. Sunrise Air Service, Inc. Hitachi Data Systems GmbH Hitachi Consumer Products (S) Pte. Ltd. Hitachi Data Systems Leasing GmbH Hitachi Electronic Devices (Singapore) Pte. Ltd. LATIN AMERICA Hitachi Denshi (Europa) GmbH Hitachi Elevator Engineering (Singapore) Pte. Ltd. Hitachi Europe GmbH Argentina Hitachi Powdered Metals (Singapore) Pte. Ltd. Hitachi “KADEN” Service (Europe) GmbH HDS Systems S.A. Japan Servo Motors (S) Pte. Ltd. Hitachi Medical Systems Europe GmbH Hitachi Data Systems S.A. Maxell Asia (Singapore) Pte. Ltd. Hitachi Metals Europe GmbH Singapore Foundry & Machinery Co. Pte. Ltd. Brazil Hitachi Sales Europa GmbH Hitachi Data Systems Computadores Thailand Hitachi Tool Engineering Europe GmbH de Brazil, Ltda. Hitachi Transport System (Europe) GmbH Hitachi Compressor (Thailand), Ltd. Nissei Sangyo do Brasil, Ltda. Maxell Europe GmbH Hitachi Ferrite (Thailand), Ltd. Nissei Sangyo GmbH (Deutschland) Hitachi Industrial Technology (Thailand), Ltd. Chile Hitachi Data Systems (Chile) Limitada Greece Costa Rica Hitachi Home Electronics Hellas S.A. ENGINEERING, SALES, AND Hitachi Sales Centroamericana, S.A. Ireland SERVICE COMPANIES Mexico Hitachi Credit Insurance Co., Ltd. NORTH AMERICA Hitachi Data Systems S.A. de C.V. Italy Hitachi Home Electronics de Mexico S.A. Hitachi Data Systems S.P.A. Bermuda de C.V. Hitachi Sales Italiana S.P.A. Concord Enterprise Insurance Co., Ltd. Hitachi Systema De Transporte (Mexico) Maxell Italia S.P.A. Canada S.A. De C.V. Luxembourg Hitachi (Canadian) Ltd. Panama Hitachi Data Systems S.A. Hitachi Credit Canada Inc. Hitachi Sales Corp. de Panama, S.A. Hitachi Data Systems Inc. Netherlands Productos Hitachi, S.A. Hitachi Denshi, Ltd. (Canada) Hitachi Data Systems B.V. Hitachi (HSC) Canada Inc. Venezuela Hitachi Data Systems Europe B.V. Nissei Sangyo Canada Inc. HDS Sistemas C.A. Hitachi Data Systems Europe Holdings B.V. Hitachi Sales De Venezuela, C.A. Hitachi International (Holland) B.V. U.S.A. HPC Venezuela C.A. Hitachi Transport Systeem (Nederland) B.V. Battery Engineering Inc. Maxell (Netherlands) B.V. HDS Corp. EUROPE Hitachi America, Ltd. Hitachi Cable America Inc. Belgium Hitachi Chemical Research Center Inc. Hitachi Data Systems S.A.

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Norway China Maxell Asia, Ltd. Hitachi Data Systems A/S Beijing Hitachi Guangri Elevator Nikko Development Co., Ltd. Selung Service Co., Ltd. Nissei Sangyo Hong Kong Ltd. Spain Beijing Hitachi Huasun Information Hitachi Data Systems S.A. India Systems Co., Ltd. Hitachi Sales Iberica, S.A. Hitachi India Pvt. Ltd. Chengdu Hitachi Elevator Sales Hitachi India Trading Pvt. Ltd. Sweden and Engineering Co., Ltd. Hitachi Data Systems A.B. Hainan Hitachi Elevator Co., Ltd. Indonesia Hitachi Home Electronics (Nordic) A.B. Hitachi Asia (Shanghai) Trading Co., Ltd. P.T. Modern Hitachi Sales Indonesia Maxell (Sweden) A.B. Hitachi Asia (Taiwan) Co., Ltd. Korea Switzerland Hitachi (China), Ltd. Korea Hisco Ltd. Hitachi Data Systems AG Hitachi Construction Machinery (Shanghai) Co., Ltd. Malaysia U.K. Hitachi Elevator Engineering (Shenzhen) Co., Ltd. Hitachi Asia (Malaysia) Sdn. Bhd. Fleet Lease (U.K.) Ltd. Hitachi Sales Corp. of Taiwan Kituda (M) Sdn. Bhd. Hitachi Credit (U.K.) Plc. Maxell (Shanghai) Trading Co., Ltd. MEM Trading & Consultancy Sdn. Bhd. Hitachi Data Systems (Europe) Corp. Nissei Sangyo (Shanghai) Co., Ltd. Nissei Sangyo IPC (Malaysia) Sdn. Bhd. Hitachi Data Systems Ltd. Shanghai Hitachi Elevator Sales Nissei Sangyo (Malaysia) Sdn. Bhd. Hitachi Denshi (U.K.) Ltd. and Engineering Co., Ltd. Sunrise Integrated Services (Malaysia) Hitachi Europe Ltd. Shanghai Lesterian Ltd. Sdn. Bhd. Hitachi Finance (UK) Plc. Shengyang Northeast Electrical- New Zealand Hitachi Micro Systems Europe Ltd. Hitachi Power Systems Ltd. Cable Price (NZ) Ltd. Hitachi Sales (MEA) Ltd. Sousin Sales Corp. H.D.S. Ltd. Hitachi Transport System (UK) Ltd. Wuxi Hitachi Keisho Food Service Co., Ltd. Hitachi Data Systems New Zealand Ltd. Micon U.K. Ltd. Xian Hitachi Northwest Power Generation Techsure (U.K.) Ltd. Advanced Technology Development Co., Ltd. Singapore Hitachi Asia Pte. Ltd. AFRICA Hong Kong Hitachi Automobile Appliances Sales HI-IMPEX (Hong Kong) Ltd. (South-East) Singapore Pte. Ltd. Morocco Hitachi Asia (Hong Kong) Ltd. Hitachi Construction Machinery Hitachi Productions Maroc Electroniques Hitachi Automobile Appliances Sales Co. (Singapore) Pte. Ltd. Domestiques, S.A. (South-East) Ltd. Hitachi Credit Singapore Pte. Ltd. Hitachi Chemical Co. (Hong Kong) Ltd. Hitachi Data Systems Pte. Ltd. ASIA AND OCEANIA Hitachi Construction Machinery (Hong Kong) Hitachi Home Electronics Asia (S) Pte. Ltd. Australia Co., Ltd. Hitachi Medical Systems (Singapore) Pte. Ltd. Bioclone Australia Pty. Ltd. Hitachi Credit (Hong Kong) Ltd. Hitachi Metals Singapore Pte. Ltd. Clyde Babcock-Hitachi (Australia) Pty. Ltd. Hitachi Data Systems Ltd. Hitachi Micro Systems Asia Pte. Ltd. HDS Asia Pacific Professional Services Pty. Ltd. Hitachi Electric Service Co. (Hong Kong) Ltd. Hitachi Seiko Asia Pte. Ltd. HDS Australia R&D Pty. Ltd. Hitachi Elevator Engineering Co., Hitachi Semiconductor & Devices Asia Pte. Ltd. Hitachi Australia Ltd. (Hong Kong) Ltd. Hitachi (Singapore) Pte. Ltd. Hitachi Data Systems Australia Pty. Ltd. Hitachi Elevator Engineering Co., (Macau) Hitachi Transport System (Asia) Pte. Ltd. Hitachi Data Systems Credit Corp. Ltd. Nissei Sangyo (Singapore) Pte. Ltd. Australia Pty. Ltd. Hitachi Ferrite (Hong Kong) Ltd. Singapore AIC Pte. Ltd. Hitachi (Hong Kong) Ltd. Hitachi Data Systems Custodians Pty. Ltd. Thailand Hitachi Data Systems Pty. Ltd. Hitachi Insurance Service (Hong Kong) Ltd. Hitachi Sales (Thailand), Ltd. Hitachi Metals Australia Pty. Ltd. Hitachi Metals Hong Kong Ltd. Microelectronic Technologies Pty. Ltd. Hitachi Sales (Macau) Ltd. Hiyoshi Hong Kong Ltd. Hong Kong AIC Ltd.

Note: Hitachi Asia Pte. Ltd. was renamed Hitachi Asia Ltd. as of April 1, 1998.

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CORPORATE DATA

(As of March 31, 1998)

Hitachi, Ltd. (Kabushiki Kaisha Hitachi Seisakusho) Principal Office 6, Kanda-Surugadai 4-chome, Chiyoda-ku, Tokyo 101-8010, Japan Founded 1910 (Incorporated in 1920) Common Stock Par Value: ¥50 Authorized: 10,000,000,000 shares Issued: 3,337,894,780 shares Shareholders 357,040 Overseas Stock Exchange Listings Luxembourg, Frankfurt, Amsterdam, Paris and New York stock exchanges Japanese Stock Exchange Listings Tokyo, Osaka, Nagoya, Fukuoka, Kyoto, Hiroshima, Niigata, and Sapporo stock exchanges Independent Auditors KPMG Peat Marwick Internet Address www.hitachi.co.jp

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