Hitachi to Show Streaming Video on First CE-ATA Hard Drive; First Demo of CE-ATA-based Microdrive Foreshadows Readiness of Interface and CE Device Implementation.

LAS VEGAS -- At StorageVisions 2006, Hitachi Global Storage Technologies will demonstrate the first working CE-ATA hard drive running on an Intel platform. The live demo will show streaming video from a Hitachi Microdrive(TM) 3K8 one-inch hard drive over the CE-ATA interface, connected to an Intel XScale(R) application processor. Hitachi's CE-ATA demo can be viewed in room N246 at the Las Vegas Convention Center on January 7, from 10:30 AM to 1 PM.

The demo validates integrity of the interface specifications and signals the imminent commercialization of Hitachi's CE-ATA-based Microdrive. With video representing the next killer application for CE devices due to its need for high storage capacity, Hitachi has been in discussion with leading manufacturers of personal media centers, smart phones and other multi-media devices on adoption of the CE-ATA interface. Hitachi plans to ship the Microdrive 3K8 with CE-ATA support this quarter.

CE-ATA was developed to facilitate the unique communication between small-form-factor hard drives and consumer electronic devices that increasingly require low-cost, high-capacity storage. The CE-ATA Consortium intends to accelerate the adoption of hard drives into portable CE devices by addressing CE-specific requirements such as low pin-count, low voltage, power efficiency, cost effectiveness and integration efficiency. The Hitachi Microdrive 3K8 is the first hard drive to realize this goal.

"Hitachi has always been on the forefront of advancing small-form-factor hard drives and their use in consumer electronics," said Bill Healy, senior vice president, marketing & HDD business planning and strategy, Hitachi Global Storage Technologies. "Our leadership in implementing the CE-ATA interface is in line with our effort to bring the value of low cost and high storage capacity to consumers, which, with the onset of video, is needed now more than ever. The CE-ATA interface will help make the task of integrating the hard drive that much easier for device manufacturers."

Hitachi's world-renowned Microdrive has methodically defined the landscape for innovations in miniature hard drives since its 1999 introduction. The revolutionary matchbook-sized Microdrive went unchallenged until 2004, when the demand for higher and higher capacity in even tinier packages led Hitachi to re-cast the one-inch disk into a 20-percent smaller package. The resulting product, affectionately called "Mikey," was introduced at CES 2005. Today, Mikey continues the Microdrive heritage of innovation by becoming the first hard drive to integrate the next-generation CE-ATA interface.

"Public demonstration of the first fully functional CE-ATA one-inch disk drive just three quarters after completion of the new industry interface specification is an incredible accomplishment that marks a significant milestone in the CE-ATA initiative and implies CE-ATA products are around the corner," said Knut Grimsrud, CE-ATA steering committee chairman and Intel Fellow. "Innovative new CE-ATA disk drives connected to Intel XScale(R) application processors provide the core building blocks for the next generation of exciting new portable consumer electronics applications."

About Hitachi Global Storage Technologies

Hitachi Global Storage Technologies was founded in 2003 as a result of the strategic combination of Hitachi's and IBM's storage technology businesses. By the end of 2003, Hitachi GST became the industry's second largest hard disk drive manufacturer with $4.2 billion in revenue.

The company's goal is to enable users to fully engage in the digital lifestyle by providing access to large amounts of storage capacity in formats suitable for the office, on the road and in the home. The company offers customers worldwide a comprehensive range of storage products for desktop computers, high-performance servers and mobile devices. For more information on Hitachi Global Storage Technologies, please visit the company's Web site at http://www.hitachigst.com.

About Hitachi, Ltd.

Hitachi, Ltd. (NYSE:HIT), headquartered in Tokyo, Japan, is a leading global electronics company, with approximately 326,000 employees worldwide. Fiscal 2003 (ended March 31, 2004) consolidated sales totaled 8,632.4 billion yen ($81.4 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 Web site at http://www.hitachi.com.