News Release

Establishment of Overseas Subsidiary in Indonesia to Expand Business

Targeting Infrastructure Development Business and Middle-Income Earners

Hitachi High-Technologies Corporation (TOKYO:8036, Hitachi High-Tech) established PT. Hitachi High-Technologies Indonesia (Hitachi High-Technologies Indonesia) on October 1, 2011 in Jakarta, Indonesia.

With the world's fourth largest population, Indonesia boasts the largest nominal GDP of all the ASEAN member states and has enjoyed strong expansion in domestic demand. Against this backdrop, the Indonesian economy is projected to achieve continued positive growth going forward. The energy, electronics and automobile markets offer strong growth prospects based on the Indonesian government's promotion of polices to expand power supply capabilities and develop infrastructure, as well as an increase in middle-income earners and other factors.

In 1995, Hitachi High-Tech opened a Jakarta Office through its subsidiary Hitachi High-Technologies (Singapore) Pte. Ltd. Ever since, Hitachi High-Tech has taken various measures to develop the Indonesian market in view of the country's growth potential. For example, Hitachi High-Tech, together with Hitachi Research Institute, has promoted since August 2010 a practical demonstration project targeting a BOP^* rural community in Indonesia that lacks electricity with a combined solar power generation and water purification system. The project is part of a larger trial effort led by the Association for Overseas Technical Scholarship (AOTS) to facilitate and support trade and investment, taking place under the auspices of Japan's Ministry of Economy, Trade and Industry.

Through the establishment of Hitachi High-Technologies Indonesia, Hitachi High-Tech aims to further expand business through measures including developing local sales and engineering systems, and promoting the development of export businesses from Indonesia. Hitachi High-Tech is targeting net sales of ¥6.0 billion in Indonesia in fiscal 2015.

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BOP (Base of the Pyramid): Refers to low income earners in developing countries. This income group has the potential to spawn a promising new market of purchasers as it emerges from poverty and income levels rise. Accordingly, businesses targeting the BOP sector are attracting attention.

Outline of PT. Hitachi High-Technologies Indonesia

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Reiko Takeuchi
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