Hitachi, Mitsubishi Electric and Mitsubishi Heavy Industries Agree
On Consolidation of Hydroelectric Power Generation System Business

Outline of the Company Split

1. Split Method
Hitachi, Mitsubishi Electric and MHI will transfer their respective operations to the Preparatory Company by way of simplified company split.
2. Operations to be Transferred

Hitachi
1. Marketing, installation and after-sale services pertaining to the water turbines, generators, and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
2. Hydroelectric power generation systems engineering
3. Development and design of core components (water turbines, generators and auxiliary controllers, etc.) of hydroelectric power generation systems

Mitsubishi Electric
1. Marketing, installation and after-sale services pertaining to the water turbines, generators and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
2. Hydroelectric power generation systems engineering
3. Development and design of core components (generators and auxiliary controllers, etc.) of hydroelectric power generation systems

MHI
1. Marketing, installation and after-sale services pertaining to the water turbines and auxiliary controllers and other equipment and devices that comprise hydroelectric power generation facilities and equipment
2. Hydroelectric power generation systems engineering
3. Development and design of core components (water turbines, etc.) of hydroelectric power generation systems

Outline of Splitting Companies

Hitachi, Ltd.
1. Scope of business: Development, manufacture and sales of products and provision of services across 11 segments: Information & Telecommunication Systems, Power Systems, Social Infrastructure & Industrial Systems, Electronic Systems & Equipment, Construction Machinery, High Functional Materials & Components, Automotive Systems, Components & Devices, Digital Media & Consumer Products, Financial Services, Others (consolidated)
2. Establishment: February 1, 1920
3. Headquarters: 6-6, Marunouchi 1-chome, Chiyoda-ku, Tokyo
4. President: Hiroaki Nakanishi
5. Capital (as of March 31, 2010): 408,810 million yen
6. Shares (as of March 31, 2010): 4,518,132,365
7. Stockholders' equity (as of March 31, 2010): 1,284,658 million yen (consolidated)
8. Total assets (as of March 31, 2010): 8,951,762 million yen (consolidated)
9. Close of fiscal year: March 31
10. Principal shareholders and their holdings (as of March 31, 2010):
            The Master Trust Bank of Japan, Ltd. (Trust Account): 7.0%
            Japan Trustee Services Bank, Ltd. (Trust Account): 5.8%
            NATS CUMCO: 3.2%

Mitsubishi Electric Corporation
1. Scope of business (consolidated):
            Development, production, marketing and servicing of energy and electric systems,
            industrial automation systems, information & communication systems, electronic devices,
            home appliances, etc.
2. Establishment: January 15, 1921
3. Headquarters: 2-7-3, Marunouchi, Chiyoda - ku, Tokyo
4. President & CEO: Kenichiro Yamanishi
5. Capital (as of March 31, 2010): 175,820 million yen
6. Shares (as of March 31, 2010): 2,147,201,551
7. Stockholders' equity (as of March 31, 2010): 1,021,194 million yen (consolidated)
8. Total assets (as of March 31, 2010): 3,215,094 million yen (consolidated)
9. Close of fiscal year: March 31
10. Principal shareholders and their holdings (as of March 31, 2010):
            The Master Trust Bank of Japan, Ltd. (Trust Account): 8.9%
            Japan Trustee Services Bank, Ltd. (Trust Account): 5.4%
            State Street Bank and Trust Company: 4.9%

Mitsubishi Heavy Industries, Ltd.
1. Scope of business: Manufacture, etc. in the fields of shipbuilding & ocean development, power systems, machinery & steel structures, aerospace, medium-lot manufactured machinery, etc.
2. Establishment: January 11, 1950
3. Headquarters: 16-5, Konan 2-chome, Minato-ku, Tokyo
4. President: Hideaki Omiya
5. Capital (as of March 31, 2010): 265,608 million yen
6. Shares (as of March 31, 2010): 3,373,647,813
7. Stockholders' equity (as of March 31, 2010): 1,328,772 million yen (consolidated)
8. Total assets (as of March 31, 2010): 4,262,859 million yen (consolidated)
9. Close of fiscal year: March 31
10. Principal shareholders and their holdings (as of March 31, 2010):
            Japan Trustee Services Bank, Ltd. (Trust Account): 4.6%
            The Master Trust Bank of Japan, Ltd. (Trust Account): 3.9%
            The Nomura Trust and Banking Co., Ltd. (holder in retirement benefit trust for
            The Bank of Tokyo-Mitsubishi UFJ, Ltd.): 3.7%

Outline of the Preparatory Company

Name: HM Hydro, Ltd. (subject to change)
Headquarters: Tokyo
Establishment: May 2011
Representative: To be announced
Scope of business: Marketing, plant engineering, installation and after-sale servicing of hydropower generation systems; development and design of core components (water turbines, generators, etc.) of hydropower generation systems
Capital: 200 million yen
Equity distribution: Hitachi 98%, Mitsubishi Electric 1%, MHI 1%
Note: The capital and equity distribution data presented above refer to the planned status at the time of company establishment in May 2011. Changes are planned to take effect from October 1, 2011.

Schedule of the Company Split

Date of approval of company split agreement: July 2011
Date of signing of company split agreement: July 2011
Effective date: October 1, 2011
Note: The Company Split is deemed to be a simplified company split pursuant to Article 784, Paragraph 3 of the Companies Act of Japan. Therefore, Hitachi, Mitsubishi Electric and MHI do not plan to convene shareholders' meetings to seek approval for the company split agreement.

Further details concerning the Company Split will be announced once they have been determined. The impact of the Company Split on the business results of Hitachi, Mitsubishi Electric and MHI is expected to be negligible.