Notice Regarding the Issuance of Stock Options as Stock-Based Compensation

Tokyo, June 29, 2016 --- Hitachi, Ltd. today announced that, pursuant to the decision made by President in accordance with the authority delegated by the resolution of the Board of Directors, Hitachi decided to issue stock acquisition rights to Executive Officers and Corporate Officers as stock options as stock-based compensation. On May 13, 2016, Hitachi already announced its policy to grant stock options as stock-based compensation with share price conditions to Executive Officers and Corporate Officers. With the stock options, Hitachi intend to propel management from the medium- and long-term perspective and motivate them to make more contributions to the sustainable increase in enterprise value by having them share the benefits and risks of stock price fluctuation with shareholders.