Hitachi Data Systems to Acquire Content Archiving Leader Archivas, Inc.

Acquisition Extends Hitachi's Capabilities in Managing, Searching, Tiering and Protecting Unstructured Data Environments

SANTA CLARA, Calif. -- In a strategic move designed to bolster the company's content services initiative, Hitachi Data Systems, a wholly owned subsidiary of Hitachi, Ltd. (NYSE:HIT), today announced it has signed a definitive agreement to acquire privately-held Archivas, Inc., a rapidly-growing provider of industry-leading digital archiving solutions based in Waltham, Massachusetts.

Today's news further builds on the existing strategic global product development and distribution agreement forged with Archivas last year. The financial terms of the acquisition were not disclosed.

Commenting on today's announcement, Dave Roberson, president and CEO of Hitachi Data Systems said, "Hitachi Data Systems' acquisition of Archivas is a strategic move that drives the evolution of the delivery of sophisticated content management services. Today's announcement is another result of the increased investment and focus on emerging markets by our Global Solutions Strategy & Development organization led by Jack Domme."

"Archivas joining forces with Hitachi Data Systems represents a formidable attack on the content management space," said Gary Voight, CEO of Archivas. "The Hitachi Data Systems management team has a depth of storage experience that provides an excellent synergy with our core archival business. Leveraging our solid execution and growing customer traction in the active archive market, we are confident that the combined companies will accelerate growth, and better capitalize on new sales opportunities."

With regulatory compliance pressuring organizations of all sizes to significantly invest in their storage infrastructure, the combination of Hitachi Data Systems' market-leading storage solutions and the content archive technology from Archivas, addresses the rapidly growing market demand for a digital archiving solution that easily and efficiently delivers enterprise-class levels of scalability, data protection, and common management. Just as Hitachi redefined storage virtualization with the introduction of the Hitachi Universal Storage Platform, Hitachi Data Systems is bolstering its commitment to further drive innovation in the digital data archive market and elevate the playing field amongst the competition.

The acquisition further broadens the reach of Hitachi Data Systems' 21st century digital archiving solution built on Archivas' technology, the Hitachi Content Archive Platform, which provides customers with an active archive solution that ensures secure archival-quality retention, preservation and verifiable destruction of content under common and unified archive services, such as centralized search, policy-based retention, authentication and protection.

"Archivas brings the technology expertise and product development talent that logically complement the long-standing vision of the Hitachi Data Systems software team," said Jack Domme, executive vice president, Global Solutions Strategy & Development, Hitachi Data Systems. "We are leveraging the maturity of data management in database environments to unstructured data through a common storage platform with best-in-class content capabilities. We have enabled our customers to search, manage and archive unstructured data across heterogeneous content management systems using the same infrastructure and processes that govern their data centers today."

About Archivas

Based in Waltham, MA, Archivas, Inc. software lets customers store, protect, and manage fixed-content data, such as document, email, database, image, and audio files, in the most open and operationally efficient online environment available on the market today in order to meet corporate governance, legal discovery, and compliance regulations. Archivas Cluster (ArC) simultaneously addresses the needs for immediate access to archive data and a lower total cost of ownership. For further information on Archivas, a proud sponsor of the CAS Community (www.cascommunity.org), please visit www.archivas.com, email [e-mail], or telephone [phone].

About Hitachi Data Systems

Hitachi Data Systems leverages global R&D resources to develop storage solutions built on industry-leading technology with the performance, availability and scalability to maximize customers' ROI and minimize their risk. By focusing on the customer's perspective as we apply the best hardware, software, and services from Hitachi and our partners, we uniquely satisfy our customers' business needs. With approximately 3,200 employees, Hitachi Data Systems conducts business through direct and indirect channels in the public, government and private sectors in over 170 countries and regions. Its customers include more than 50 percent of Fortune 100 companies. For more information, please visit our Web site at http://www.hds.com.

About Hitachi, Ltd.

Hitachi, Ltd., (NYSE:HIT) (TOKYO:6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 356,000 employees worldwide. Fiscal 2005 (ended March 31, 2006) consolidated sales totaled 9,464 billion yen ($80.9 billion). The company offers a wide range of systems, products and services in market sectors including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

[c] 2007, Hitachi Data Systems Corporation. Hitachi Data Systems is registered with the U.S. Patent and Trademark Office as a trademark and service mark of Hitachi, Ltd. All other trade names, trademarks, and service marks used herein are the rightful property of their respective owners.