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Hitachi Launches Fiber Optic Unit

Partners with Clarity Group, which will invest up to $450 million in the new venture, OpNext

September 19, 2000

1 Min Read

TOKYO -- Hitachi, Ltd. (NYSE:HIT - news) today announced the transfer of itsFiber Optic Components Business Unit, part of the HitachiTelecommunications & InformationInfrastructure Systems Group, into OpNext Japan, Inc. as a subsidiary ofa newly formed U.S. company, OpNext, Inc.OpNext's goal is to become a world leader in the fiber optic componentsmarket for data and telecommunications applications.As part of the transaction, Clarity Group, an equal partnership betweenClarity Partners, a Los Angeles-based private equity firm, and MarubeniGroup, a majorJapanese-based trading house, will invest up to $450 million in OpNext.

"To create this new company and to partner with the expertise andresources of Clarity Group allows us to expand globally and to enhanceour position as a worldleader in the fiber optic business," said Mr. Etsuhiko Shoyama,President of Hitachi, Ltd. "We are implementing our Medium-termBusiness Plan, the `i.e.HitachiPlan,' that we established last autumn. We are prioritizing managementresources to achieve a high-profit structure and the fiber opticcomponent business is one ofour most important and core businesses. This partnership is the rightstep in the best direction."

http://www.hitachi.co.jp

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