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Hitachi Addresses Planned Maxell Consolidation

Lawn, N.J. – Hitachi released a statement today expanding
on its previous announcement that it would purchase the remaining shares of
Hitachi Maxell, Ltd., making the unit a wholly owned subsidiary.

Hitachi said the tender offer to acquire the
common stock of Hitachi Maxell “will lead to the improvement of the enterprise
value of Hitachi Maxell and the Hitachi Group as a whole.”

The companies’
intention to integrate management of the companies “will help optimize all of
the Hitachi Maxell businesses, enabling larger scale and more effective
investments in resources such as R&D and capital investments. Both
companies expect tighter technological collaborations based on the integrated
management of Hitachi
and Hitachi Maxell, generating greater synergies.”

The acquisition is
also expected to improve the collaborative efforts of Hitachi
and Hitachi Maxell in such areas as lithium-ion batteries, where both companies
have been using Hitachi’s
laboratories in the development of consumer-use lithium-ion rechargeable
batteries. In addition, both groups will benefit from access to Hitachi
Maxell’s newly established electrode manufacturing plant.

All of the Hitachi
Maxell businesses, including computer tape, videotape for broadcasting and
consumer blank recordable media products, are expected to be positively
impacted by the acquisition, Hitachi
said. Maxell-branded storage products “will benefit from faster product
development and the convergence of resources, utilizing each company’s
expertise in order to optimize efficiencies. Hitachi recognizes the strength of the
‘Maxell’ brand name and sales channel experience worldwide and believes that
the acquisition will be significantly beneficial to its consumer sales
capabilities,” the statement read.