Hitachi Acquiring Fujitsu Stock

TOKYO, Feb. 2 -- Hitachi announced today it has reached an agreement with Fujitsu to acquire its Fujitsu Hitachi Plasma Display Ltd. (FHP) stock. The move, aimed at strengthening Hitachi's position in the plasma display panel (PDP) business, also involves the transfer to Hitachi of Fujitsu's PDP technology patents at the end of March.

Once Hitachi and Fujitsu have provided financial assistance for eliminating FHP's excessive debt by the end of March, the transfer of stock will move forward quickly from April, and by adding 30.1 percent of FHP's issued shares to Hitachi's holdings, will make FHP a consolidated subsidiary of Hitachi.

The tighter tie between Hitachi and FHP will enable the companies to implement a still more unified business strategy, they said in a statement.

No immediate change will be made in FHP's name or management after the company becomes a Hitachi subsidiary.

Hitachi has launched an initiative to enliven and expand demand for plasma TVs and related products in Europe, North America, China and throughout Asia.

FHP makes the ALIS (alternate lighting of surfaces method) panel driving system; the more advanced e-ALIS system, compatible with large-screen plasma panels; and the TERES (technology of reciprocal sustainer) system.

Etsuhiko Shoyama, Hitachi's president and CEO, said, "The more powerful synergy between the plasma TV and plasma display panels businesses made possible by FHP's joining the Hitachi Group will be used to expand Hitachi's plasma TV business and also to contribute to growth of the overall plasma TV market."

For more information, visit: www.hitachi.com