Hitachi Cable News vol.369
71st semiannual business report   From April 1, to September 30, 2007

Message from the President and CEO

Driven by economic expansion in East Asia centering on China, the economy during this interim consolidated fiscal period (the interim period of the 2008 fiscal year) maintained an overall boom trend in the face of growing financial uncertainties stemming from subprime loan issues in the U.S. The Japanese economy also grew steadily, supported by growth in private-sector capital investment and steady personal consumption.

This consolidated fiscal year marks the second year of Plan "BEGIN", the Hitachi Cable Group's medium-term management plan covering the three-year period starting with the 2007 fiscal year. To speed the establishment of foundations for building a new growth phase, in addition to continuing efforts launched the previous fiscal year (e.g., strengthened capabilities in research and development and production engineering), the Group has restructured its information network integration operations and strengthened its functions for coordination of overseas operations.

As a result, Hitachi Cable Group business performance in this interim consolidated fiscal period surpassed the levels of performance projected at the beginning of the fiscal year, with sales totaling 277,468 million yen (an increase of 10% over the same period the previous fiscal year), ordinary income 11,366 million yen (an increase of 18% over the same period the previous fiscal year), and interim net income 6,840 million yen (an increase of 53% over the same period the previous fiscal year). A look at performance by business segment indicates stable performance in the wires and cables segment. Sparked by the start of large-scale projects, performance in the area of optical submarine cables grew dramatically.

In the second half of the fiscal year, based on Plan "BEGIN"" the Group intends to continue establishing and strengthening a corporate structure and business foundations that will enable performance consistently surpassing 20 billion yen in ordinary income in the 2009 fiscal year (the final year of Plan "BEGIN") and beyond.

In the previous consolidated fiscal year (the 2007 fiscal year), the Company paid 8.5 yen per share in dividends, including 1.5 yen per share in commemorative dividends, marking the 50th anniversary of the spin-off of the Company from Hitachi, Ltd.. In this consolidated fiscal year, the Company intends to continue paying ordinary dividends of 8.5 yen per share to reward shareholders for their support. Midyear dividends for this period will be 4.25 yen per share.

We thank you for your continued support of the Hitachi Cable Group.

December 2007

President and Chief Executive Officer,
Norio Sato