Hitachi Cable News vol.368
70th annual business report   From April 1, 2006, to March 31, 2007

Message from the President

Economic conditions remained generally stable during this consolidated fiscal year (fiscal 2007). The East Asian economy continued to expand, particularly in China, and the Japanese economy also demonstrated robust growth, with increased private capital investment and steady growth in consumer spending. Based on these conditions, the Hitachi Cable Group set an ordinary income target of 20 billion yen for the Plan "BEGIN" Midterm Management Plan, which covers the three-year period beginning this consolidated fiscal year. We've implemented various measures to establish a management foundation that will produce consistent performance exceeding this target value.

For this consolidated fiscal year, the Hitachi Cable Group achieved growth in sales and profits with respect to the previous consolidated fiscal year. Sales were 544,244 million yen (a 28% gain from the previous consolidated fiscal year); ordinary income were 20,449 million yen (a 70% increase from the previous consolidated fiscal year); and net income was 8,662 million yen (a 75% increase from the previous consolidated fiscal year).

This year marks the 50th anniversary since the Hitachi Cable spin-off from Hitachi, Ltd. Given the company's relatively robust performance (primarily in wire and cables) and to acknowledge the invaluable support of our stockholders, we will pay an additional commemorative dividend of 1.5 yen per share for the year-end dividend. Combined with the ordinary dividend of 3.5 yen, the year-end dividend will be 5 yen per share.*

During the next consolidated fiscal year, we plan to proceed with the Plan "BEGIN" Midterm Management Plan and further strengthen management foundations by aggressively investing business resources in expanding fields while promoting reforms in the business structure. We ask for your continuing support for the Hitachi Cable Group.

June 2007

*The annual dividend per share is 8.5 yen (Interim dividend of 3.5 yen and year-end dividend of 5 yen)

President and Chief Executive Officer,
Norio Sato