Notification of Execution of Basic Agreement pertaining to Tender Offer for Shares of Subsidiary

Tokyo, Japan, April 26, 2017 --- Hitachi, Ltd. today announced that it has executed a basic agreement (the "Basic Agreement") with HKE Holdings G.K. (Executor: William Janetschek, "HKE"), which is indirectly held and operated by a related investment fund whose equity interests are wholly owned by Kohlberg Kravis Roberts & Co. L.P. (Co-Chairman and Co-CEO: Henry R. Kravis, George R. Roberts; including affiliate companies and other related business entities, collectively referred to as "KKR") , and with HVJ Holdings Inc. (Representative Director and President: Tatsuo Kimura, "HVJ"), in which is invested by funds which are managed, operated, provided with information and the like by Japan Industrial Partners, Inc. (Representative Director, Hidemi Moue, "JIP") regarding (i) a tender offer scheduled to be conducted by HKE for the common shares of Hitachi Kokusai Electric Inc. (President and Chief Executive Officer: Kaichiro Sakuma, "Hitachi Kokusai," and those shares, the "Hitachi Kokusai Shares"), which is a consolidated subsidiary of Hitachi, (the "Tender Offer") and a share consolidation of Hitachi Kokusai Shares (the "Share Consolidation"), and the acquisition of treasury shares by Hitachi Kokusai (the "Share Repurchase"), through which Hitachi Kokusai becomes a wholly-owned subsidiary of HKE (ii) an absorption-type company split of the thin-film process solutions business of Hitachi Kokusai, whereby HKE will be the company succeeding in absorption-type split, to be conducted by HKE and Hitachi Kokusai after Hitachi Kokusai becomes a wholly-owned subsidiary of HKE (the "Company Split"), and (iii) the transfer by HKE of 20% of the Hitachi Kokusai Shares to Hitachi and 20% of the Hitachi Kokusai Shares to HVJ that is scheduled to take place after the Company Split, and other transactions that are incidental or related to those transactions.