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This is to announce that Hitachi Cable, Ltd., is bringing to market several "first mile" (access network) products. Sales of these products will commence within January.

The continuing development of broadband networks leads the Company to expect that product demand will increase in the access network consumer market, which targets individuals and families, as well as in the access network business market, which targets corporations. Hitachi Cable is aiming to increase sales through the timely introduction of products which meet customer needs.

1. The OSW series Optical Ethernet*1 Media Converter targeting the Access Network Consumer Market

Consumers in the access network market can choose among such broadband network connection methods as xDSL, CATV, wireless, and FTTH. The introduction of services like ADSL last summer continued the trends toward increasingly speed and lower cost. Because of this, more and more telecommunications carriers are participating in this rapidly growing market. It is expected that FTTH will be a key service.

Space-saving, low-cost technology and equipment are necessary for FTTH services because they must be able to handle a large number of customers.

Hitachi Cable is the first in the world to bring to market the OSW series of optical Ethernet media converters. These media converters are installed in telecommunications carrier base stations, and have an internal L2 switch capability, making them optimal for long-distance transmission use.

Because OSW series media converters contain this internal switch, they can handle three times the number of users as a system where the media converter and switch are separate. In addition, overall wiring operations management is quite simple as there is no wiring between the media converter and switch. Moreover, the cost of OSW series devices is approximately half that of the cost of buying media converters and switches separately.

Because these products allow for bi-directional transmission using one optical fiber, they are perfect for telecommunications carriers who want to economize on optical fiber, for example by leasing dark fibers.

2. GMC Series Gigabit Ethernet Media Converters for the Access Network Business Market

In the past year, the business application network market has seen a rapid switch from high-cost exclusive lines, such as ATMs, to lower cost 10 Mbit/s or 100 Mbit/s Ethernet services. We expect demand to be high for 10 Mbit/s and 100 Mbit/s Ethernet services, as well as for the even faster 1 Gbit/s service.

In light of this demand, Hitachi Cable is bringing to market its GMC series of Gigabit Ethernet-compliant media converters, which support bi-directional long-distance transmission using one optical fiber. Installing GMC series products in both a corporate LAN and a carrier base station allows for the creation of a high-speed access network.

The Company also expects that these products will be in high demand in public networks as devices useful for connecting access networks to metro networks.

The introduction of Hitachi Cable's GMX series Gigabit Multiplexers allowed telecommunications carriers to adopt Ethernet in their metro networks. Leveraging the wealth of Ethernet-related technology and the cooperative relationship with telecommunications carriers cultivated in the construction of metro networks, Hitachi Cable is able to ensure the timely introduction of products which meet telecommunications carrier needs.

In addition to the OSW and GMC series introduced above, Hitachi Cable offers the GMX series and built-in media converters (BMCs). Total sales of access network-related devices are expected to reach 6.0 billion yen in fiscal 2003.
*1Ethernet is a registered trademark of Fuji Xerox Corp.

Reference

There are four major types of networks. These are:
1) the LAN (Local Area Network), a network of computers in such relatively small areas as offices or schools;
2) the first mile network called an "Access Network," which connects a LAN or household to a telecommunications carrier receiving base stations;
3) the MAN (Metropolitan Area Network), which connects base stations within a city;
4) the WAN (Wide Area Network), or long-haul network, which is a long-distance telecommunications line that connects cities that has been influenced by the development of wavelength division multiplexing (WDM). Usually, telecommunications carriers are responsible for constructing access networks, MANs, and WANs.

These products are produced at:

Takasago Works
880 Isagosawa-cho, Hitachi City, Ibaraki
319-1418