Hitachi Reports Q1

TOKYO -- Hitachi, Ltd. (NYSE:HIT / TOKYO:6501) today announced its consolidated financial results for the first quarter of fiscal 2007, ended June 30, 2007.

Notes:

1. All figures, except for the outlook for the first half of
   fiscal 2007, were converted at the rate of 123 yen to the
   U.S. dollar, the approximate exchange rate on the Tokyo
   Foreign Exchange Market as of June 29, 2007.
2. Segment information and operating income (loss) are
   presented in accordance with financial reporting
   principles and practices generally accepted in Japan.

1. Business Results

(1) Business Environment

During the first quarter, the global economy remained strong, driven by high growth in countries like China. In the U.S. economy, in addition to an adjustment in housing investment, higher gasoline prices and other factors caused a slight slowdown in consumer spending. Exports and capital investment, however, remained healthy. European economies continued to grow robustly, mainly in terms of capital investment and consumer spending. The Chinese economy, meanwhile, maintained a high growth rate on the back of continued investment in social infrastructure and corporate property and equipment, Asian economies were generally strong.

The Japanese economy also performed well despite inventory cutbacks of electronic components and other factors. Backed by healthy corporate earnings, capital investment remained at a high level, and an improving job market underpinned higher consumer spending.