Covers co-development of new ATMs and cross-supply of ATMs and components

November 11, 1999, - Tokyo, Hitachi, Ltd. (TSE:6501) and OMRON Corporation (TSE:6645) today announced that they have entered into an agreement relating to a business collaboration in the area of ATMs. The agreement covers the co-development of next-generation ATMs and the cross-supply of ATMs and components.

By utilizing the strengths of each company, the agreement will serve to strengthen both companies´ ATM business operations. Today marks the start of collaborative operations launching the joint project.

In the financial sector, Japan´s "Big Bang" is driving a diversification and sophistication of financial services. In addition of the use of ATMs inside banking facilities, ATMs are being used and installed even outside banking facilities such as in convenience stores, in-store branches and other non-financial-sector outlets, signaling a major change in financial services.

The severer physical installation conditions and the necessity of being able to handle a more comprehensive range of financial transactions have led to a need to improve the security systems of ATMs and to enhance their capabilities in the area of network transactions and multimedia services.

In 1969 OMRON released the world´s first automated cash dispenser, which used magnetic card technology, and in 30 years since has made a major contribution to the development and progress of ATMs. To meet the needs of the current era of deregulation-driven convergence between bank and non-bank sectors, and major changes in management style brought about by advances in information technology, OMRON is focusing on the development of automated products and systems. One result is the "Cyber Gate", the first multimedia terminal for the non-bank sectors.

Hitachi entered the ATMs business in earnest in 1979, starting with a machine equipped to recycle bills, an important function. Since then the company has produced a number of series of high-reliability ATM systems that help financial institutions to provide fully-automated services. Hitachi technology has resulted in a number of innovative industry firsts, such as ATMs that disinfect bills, multimedia ATMs with Internet capabilities and ATMs with WindowsTM Open Services Architecture.

Under the agreement, Hitachi and OMRON will collaborate in the areas of technology and the development of new products based on a cross-supply of components, and will set the requirement to meet their customers´ needs.

The next generation machines will focus on automated voucher data recognition systems using image reader and total systems solution for banks´ backroom operations. The resulting products are expected to play a major role in lowering costs for banks and implementing Internet-centric solutions. Both companies will promote sales with the goal of establishing a leading position in the financial and retail ATM market.

WindowsTM is a trademark of Microsoft Corp. in the U.S. and other countries.

For inquiries, please contact:

Osamu Harasawa
OMRON Corporation
Social Systems Business Company
Group Business Planning & Administration Department
Osaka Center Building, Kyutaro-machi 4-1-3
Chuo-ku, Osaka 541-0056
Japan
Tel: (06)6282-2732
osamu_harasawa@omuron.co.jp

Atsushi Konno
Hitachi, Ltd.
Corporate Communications Headquarters
Surugadai 4-6, Kanda
Chiyoda-ku, Tokyo 101-8010
Japan
Tel: (03)3258-2056
atskonno@cm.head.hitachi.co.jp