Hitachi Heats Up the High-Performance Computing Market Forging Worldwide OEM Agreement with BlueArc.

Hitachi Makes Private Equity Investment in BlueArc Corp; BlueArc to Also Resell Hitachi's Industry-Leading Storage Solutions Portfolio on a Global Basis

SANTA CLARA, Calif. -- Hitachi Data Systems Corporation, a wholly owned subsidiary of Hitachi, Ltd. (NYSE:HIT), today announced major moves that will enable its rapid expansion into the global high-performance computing (HPC) storage market. These moves, backed by an investment in BlueArc[R] Corporation, the leader in network storage innovation, include a five-year worldwide OEM agreement and the immediate availability of the Hitachi High-performance NAS Platform -- which shatters through the barriers of existing file-based network storage offerings on the market today.

"Today's announcement signifies a strategic expansion of our addressable market, enabling us, together with our channel partners across the globe, to bring powerful, reliable, and proven file-intensive storage technology to customers in the high- performance computing market and beyond," said Dave Roberson, president and CEO, Hitachi Data Systems. "Channel partners can use our new HPC storage offerings as the foundation to which they can add vertical market expertise, to provide custom solutions for their clients. Today's announcement is another impressive result of Hitachi Data Systems' increased investment and focus on emerging markets."

Commenting on today's announcement, Tony Asaro, senior analyst, Enterprise Strategy Group, said, "This is another step in what I refer to as the 'new' Hitachi Data Systems. Less than two years ago, I used to say they were a great SAN storage company. But now it is clear that they are focused on being a great storage networking company with a more comprehensive portfolio of products that range from SAN, storage management software, digital archiving, VTL and NAS. It is really important for customers to have other leading vendors provide NAS solutions so that they have more options open to them."

"BlueArc's leading file-based virtualization technology is a perfect complement to Hitachi's industry-leading block-based virtualization solutions," said Mike Gustafson, president and CEO, BlueArc. "This partnership will help expand BlueArc's presence on a global basis and will extend Titan's reach beyond the key vertical markets we serve today to major enterprises and horizontal applications across the world, giving customers the better alternative for high performance network storage they have been seeking."

The Hitachi High-performance NAS Platform, Powered by BlueArc

Most network attached storage solutions today are designed to store and archive data that is rarely or never accessed. For Internet services applications, electronic discovery applications, life sciences, oil and gas exploration, and entertainment applications, conventional NAS storage systems simply do not have the performance and scalability needed to manage the intensive file processing requirements that are critical to these vertical industries. With today's announcement, Hitachi is targeting the high-performance computing market -- a burgeoning market requiring intensive file processing, not merely simple file storage.

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"As a design and manufacturing company, it is critical to have high-performance solutions that can scale as our business grows," said Curt Brown, Storage Technology Director, Cummins Inc. "We were reaching our limit with our current NAS solution. The Hitachi High-performance NAS Platform provides the necessary scalability and performance we require. The Hitachi platform exceeds our requirements today and offers capacity and connectivity to scale as we grow."

"With this announcement, we are introducing the most advanced file and block virtualization system today," said John Mansfield, vice president, Product Management, Hitachi Data Systems. "There is tremendous opportunity for the Hitachi High-performance NAS Platform with our installed base. Our customers have been anxious for us to do for their file storage systems what we have successfully done for their block storage systems with our Universal Storage Platform. We can now help them consolidate and virtualize a tiered storage block AND file-based environment."

The Hitachi High-performance NAS Platform leads the industry in performance and scalability and delivers the most advanced file-based virtualization framework. Further demonstrating Hitachi's continued focus on storage technology leadership; the new High-performance NAS Platform offers more performance, capacity, file system size, and snapshot replicas than any comparative file-based storage offering. Delivering up to 6 times the real-world performance (600K IOPS), over 4 times the capacity (512TB), 16 times the file system size (256TB), 4 times more snapshots per file system (1,024) -- and unique features such as the ability to perform data classification and hierarchical storage management and offer Transparent Data Migration -- the Hitachi High-performance NAS Platform effectively eclipses EMC's Celerra/NSX and NetApp's FAS and V series products.

"There is increasing demand from a growing number of industry-leading, business application users for the delivery of information to decision makers in real or near-real time," said John Webster, Principal IT Advisor of Illuminata, Inc. "Through its partnership with BlueArc, Hitachi is further expanding its leadership in storage virtualization and further establishing a growth position in both traditional and emerging high-performance computing opportunities."

The Hitachi High-performance NAS Platform's massive capacity allows for fewer nodes and lower maintenance costs. The platform's single logical storage pool of up to 512 terabytes eliminates the need to break up large data sets and its advanced file virtualization capabilities enable automatic growth of file systems. When research projects require collaboration, the platform helps avoid costly duplicate efforts by promoting information sharing among researchers via fast, secure access to a central pool of files and databases that can scale up to a massive 4 million files per directory. The Hitachi High-performance NAS Platform also delivers a cluster name space, which provides a single unified name space to users for both CIFS and NFS, concurrently, giving administrators a single mount point for users no matter where they physically reside.

"We believe advanced file virtualization capabilities that permit automatic growth of file systems will gain the most traction," states Carl Greiner, senior vice president and analyst, Ovum. "However, the vendor that can deliver a single unified cluster name space for both CIFS and NFS will provide the most robust and functionally rich implementation. Successful IT organisations will begin to put unified storage infrastructure virtualisation on their short list of things required to insure flexibility and agility to meet today's ever challenging business requirements."

"Certain applications within high-performance computing, entertainment, and life sciences, have unique characteristics requiring uniquely-optimized solutions," said John McArthur, group vice president and general manager, Information Infrastructure and Enabling Technologies at IDC. "BlueArc has been addressing those requirements with the Titan product line. The partnership with BlueArc expands HDS' portfolio of storage solutions and gives the company improved access to these higher-growth market opportunities."

The Hitachi High-performance NAS Platform supports Hitachi Data Systems' powerful portfolio of storage systems including its intelligent virtual storage controllers, the Universal Storage Platform and Network Storage Controller; and its advanced midrange storage systems, Adaptable Modular Storage models WMS100, AMS200, AMS500 and AMS1000. The Hitachi High-performance NAS Platform will be fully integrated with Hitachi's storage management software, the HiCommand[R] suite, and will also be fully integrated into Hitachi's data protection and replication suite, including TrueCopy, ensuring complete integration -- not just interoperability -- into Hitachi's entire product line of SAN and NAS solutions.

For additional information about Hitachi Data Systems' HPC storage solutions, visit www.hds.com.

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.

About BlueArc Corporation

BlueArc is the world leader in network storage innovation. BlueArc's Titan storage system family delivers unparalleled performance, scalability and simplicity, enabling customers to accelerate their digital world. Utilizing a unique patented architecture, Titan customers can achieve tasks impossible with alternative systems, implementing tomorrow's solutions today. The company's headquarters are in San Jose, California with European operations based in Bracknell, England. More information on BlueArc is available on the Internet at http://www.bluearc.com.

e 2006, 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. Application Optimized Storage is a trademark of Hitachi Data Systems Corporation. All other trade names, trademarks, and service marks used herein are the rightful property of their respective owners.