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Hitachi Strengthens Global Consulting Business in Japan

(Interviews, 09 Feb 2006 )

Plans to deliver seamless services in Japan, U.S. and Europe with 3,000 consultants by fiscal 2008

Hitachi Limited has announced a number of actions to strengthen its business and IT consulting operations worldwide in Japan, the U.S. and Europe. With 3,000 consultants planned by fiscal 2008, these moves establish a framework for delivering seamless consulting services around the world.

On April 3, 2006, Exsurge Incorporated, a Hitachi Group company in Japan engaged in the consulting business, will be renamed Hitachi Consulting Company Limited (HL). At the same time, Paul Yonamine will be appointed Representative Director, President and CEO. The consulting resources of HL and group companies in Japan and Asia will be consolidated in this company. This consolidation will further strengthen Hitachi's Japan and Asia-based consulting business and make it easier to standardize offerings and methodologies for seamless delivery across Asia.

To provide executive guidance over all Hitachi consulting businesses, the Hitachi Global Consulting Committee will be formed on April 3, 2006, within the Information & Telecommunication Systems Group. This committee will promote the sharing of strategies, solution offerings and tools and methodologies across Japan, the U.S. and Europe as well as the reciprocal use of resources among these three regions.

According to Kazuo Furukawa, Chairman of the Board for Hitachi Consulting Corporation, and Executive Vice President and Executive Officer for Hitachi, Ltd., "In recent years, corporate information systems have become increasingly important in the context of management strategy. Against this backdrop, IT vendors are being required to provide total solutions seamlessly and on a worldwide basis. These solutions must encompass everything from consultation on management strategy and business process re-engineering to the building, operation and maintenance of IT solutions."

Hitachi established the Institute of Advanced Business Systems (now the Business Solution Systems Division) in February 1990 as a consulting division to address these sorts of needs. Subsequently, in November 2000, Hitachi established Hitachi Consulting Corporation to provide these services in the U.S. Later, in July 2002, Exsurge was established in Japan to specialize in the consulting services business, including management consulting. In November 2005, Hitachi formed alliances with Satyam Computer Services and Intelligroup to establish the Hitachi Global Solutions Center in India as the main hub for expanding Hitachi's and the Hitachi Group's global outsourcing capabilities.

Under the leadership of Paul Yonamine, Hitachi Consulting Company, Limited. will draw on and pull together the consulting resources of Hitachi's consulting business units and those of group companies in Japan and Asia. In parallel, the number of consultants for management strategy and other fields will be increased to make the company more competitive as a consulting services firm responsible for Japan and the rest of Asia.

On April 3, 2006, Hitachi will also establish the Hitachi Global Consulting Committee within the Information & Telecommunication Systems Group. Consulting services companies in Japan, the U.S. and Europe will pursue the same strategy as members of the Hitachi Consulting group and these companies will utilize each other's methodologies and other expertise with the goal of making Hitachi's consulting business consistent and seamless, globally. "We will make the Hitachi Consulting brand a global leader in providing IT and Business consulting services," said Mr. Furukawa.

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