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

This recurring feature introduces in sequence the products and services in the three target areas of Plan "BEGIN". This issue - the third installment - introduces the field of wireless, broadcasting, and information networks.

Overview of Plan “BEGIN”

The basic goals of the Plan "BEGIN" medium-term management plan involve sustained business structural reforms based on market conditions, profit generation in core businesses and aggressive business expansion in three target areas where we anticipate high growth. Efforts being advanced in accordance with these basic goals include strengthening research and development efforts, enhancing manufacturing capabilities, promoting personnel training, and strengthening overseas businesses. Through these efforts, we seek to build a strong management foundation capable of consistently achieving ordinary income exceeding 20 billion yen in the 2009 fiscal year (the final year of Plan "BEGIN") and beyond.

* Figures are rounded to the nearest hundred million yen.
* The projections of business performance shown above assume an average copper price quotation of 700 thousand yen per ton. (The average copper price quotation during the 2007 fiscal year was 867 thousand yen per ton.)