OpNext to Absorb Hitachi Division

TOKYO and EATONTOWN, N.J. -- Hitachi, Ltd. (NYSE: HIT/TSE:6501) and OpNext, Inc., a global leader in high performance optical networking components, today announced that they have entered into detailed discussions to transfer Hitachi's opto-device division of SIC to OpNext. The transfer is anticipated to be effective October 1, 2002. The transaction will cover the opto-device division of the SIC as well as the opto-electrical device development and manufacturing team and fabrication facilities from Hitachi Tohbu Semiconductors, Ltd. As a result of this transfer, OpNext will provide a higher level of service to its device users, while strengthening its market position and enhancing its current product portfolio consisting of transceivers, transmitters, receivers and laser diode modules. All of SIC's existing customers will be fully supported by OpNext after the merger. "The transfer of the opto-device division and its technology offerings brings our customers proven, advanced IC technology that will be a perfect complement to our existing optical components business," said Harry Bosco, president and chief executive officer of OpNext. "Along with our new division comes world-class expertise in system LSI as well as demonstrated competence in mass producing high quality optical devices. This merger is in line with Hitachi's strategic vision for OpNext to maximize the value of its technology assets and create a world-class customer focused organization." OpNext Inc. Hitachi Ltd.