Features - Storage Innovations:

HITACHI SHOWS HARD DRIVE PROWESS W/O MORE STORAGE CAPACITY

In its next-generation disk-based storage technology for notebooks, Hitachi Global Storage Technologies is looking beyond capacity to advance the art of hard disk drives. With storage-capacity leadership securely under its belt, Hitachi GST is introducing the new Travelstar 4K40 -- not bigger, just better.

As a leader in both 2.5-inch technology and segment share, Hitachi GST is making a bold move in the mainstream notebook hard drive space by putting capacity aside for the moment to boost all aspects of reliability. Hitachi's new 40GB, 4200 RPM hard drive is a reliability-focused product, achieved through the following key technical enhancements:

• New single-disk and reduced chip-set (4 to 2) design decreases number of components used.
• Industry's highest operating (300 G/2 ms) and non-operating shock (1000 G/1ms) in 4200 RPM category to withstand rougher handling.
• Doubling of industry standard specification for load/unload cycles -- the number of times the read/write head can move on and off the media without failure -- to 600,000 times.
• Redesign of the actuator arm -- the arm that carries the read/write element to significantly reduce the chance for data loss from arm/disk contact.

Hitachi customers agree that for the majority of notebook users, 40GB remains a popular capacity point. What customers want, in addition, is a more rugged hard drive in high volume. The Travelstar 4K40 is in direct response to that customer request.

"We've painstakingly manipulated every possible feature on the new Travelstar to boost reliability while maintaining the sweet spot at 40GB," said Bob Holleran, general manager of 2.5-inch and 1.8-inch HDDs for Hitachi Global Storage Technologies. "We are in the enviable position of having a stable and proven design, which allows us to invest time fine-tuning the product to customer specification."

Improving internal hard drive reliability is a strong indicator of the drives' ruggedness and performance in the field. With the Travelstar 4K40, Hitachi is meeting customer demand for both reliability and strong supply.

As growing number of consumer and corporate users are choosing laptops over desktops for wireless and mobility reasons, the ability to provide a more stable supply of notebook hard drives becomes critical.

In a January 2004 report on the worldwide PC market, IDC notes that portable PCs grew by 27.4 percent year-over-year in 2003 while desktop PCs grew by just 6.7 percent. IDC also projected in a January 2004 hard drive industry report that the demand for 2.5-inch hard drives would increase from 47 million in 2003 to more than 58 million in 2004, noting "wireless connectivity and the desire for mobility trump any cost advantage the desktop PC might offer."

The Travelstar 4K40, shipping today, is available in 20, 30 and 40GB capacities. The 4K40 product line is a companion line to the Hitachi Travelstar 80GN and 4K80 family of 4200 RPM 2.5-inch hard drives. Customers needing higher capacities can continue to select from the 80GN or 4K80 lines, offering up to 80GB of capacity.

About Hitachi Global Storage Technologies

Hitachi Global Storage Technologies was founded in 2003 as a result of the strategic combination of Hitachi's and IBM's storage technology businesses. The company's goal is to enable users to fully engage in the digital lifestyle by providing access to large amounts of storage capacity in formats suitable for the office, on the road and in the home.

The company offers customers worldwide a comprehensive range of storage products for desktop computers, high-performance servers and mobile devices. For more information on Hitachi Global Storage Technologies, please visit the company's Web site at www.hitachigst.com.

About Hitachi Ltd

Hitachi Ltd, headquartered in Tokyo, is a leading global electronics company, with approximately 340,000 employees worldwide. Fiscal 2002 (ended March 31, 2003) consolidated sales totaled 8,191.7 billion yen ($68.3 billion). The company offers a wide range of systems, products and services in market sectors, including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's Web site at www.hitachi.com.