TOKYO -- Hitachi, Ltd. (NYSE:HIT/TSE:6501) and Mitsubishi Electric Corporation (TSE:6503 - News) today announced the signing of a joint venture agreement and proposed top management for Renesas Technology Corp., a new semiconductor company to be established on April 1, 2003 that will focus on system LSI operations. Today's announcement is the culmination of discussions that began when a basic agreement was signed on October 3 this year regarding the separation of each company's respective semiconductor operations. Hitachi and Mitsubishi Electric plan to seek approval for this reorganization of their system LSI operations at extraordinary shareholder meetings on February 6, 2003. Discussions are currently being held with labor unions and employees regarding the employees who will be transferred to the new company. The terms and conditions of existing employment contracts will be honored in accordance with the applicable legal requirements. Sales activities for Renesas Technology in Japan will be conducted by Renesas Technology Sales Co., Ltd., which will also start operations on April 1 next year. Renesas Technology Sales will be formed from the merger of wholly owned Hitachi subsidiary Hitachi Semiconductor and Devices Sales Co., Ltd. (HSDS) and Mitsubishi Electric's wholly owned subsidiary Mitsubishi Electric Semiconductor Systems Corp. Both companies currently sell semiconductors in Japan for their respective parent company groups. The president & CEO of Renesas Technology Sales will be Katsumi Suizu (currently Group Vice President, Semiconductor, Director, Mitsubishi Electric), and Saburo Tajima (currently Senior Vice President & Director, HSDS) will be appointed executive Vice President & COO. Renesas Technology Sales will sell RENESAS-brand products in Japan from 19 bases as well as provide services and support. In a related development, HSDS subsidiary Hitachi Electronic Devices Sales Co., Ltd. (Chuo-ku, Tokyo)* will become a subsidiary of the new sales company. Regarding overseas sales, plans call for the integration of Hitachi and Mitsubishi Electric system LSI sales activities in Europe, the U.S. and elsewhere in Asia in the first half of fiscal 2003. The integration of Japanese and overseas sales companies will facilitate end-to-end management of operations at Renesas Technology, from development, design and manufacture through sales, service and support. This company will be renamed Renesas Device Sales Co., Ltd. on April 1, 2003. Hitachi Ltd. Mitsubishi Electric & Electronics USA Inc.