To Our Shareholders and Investors

Although we have left the worst of the recession behind us and are starting to see signs of light, in the fiscal year ended March 31, 2010 Hitachi High-Technologies posted an operating loss for the first time since the company was founded. In 2010, however, a global paradigm shift is underway, and we are devoting our full effort to understanding the changes in the operating environment and engineering a V-shaped recovery.

In the fiscal year ended March 31, 2010 we took a number of specific steps to achieve this goal. Through business structure reforms, including cutting fixed costs, we worked to ensure lean management centered around proprietary products, and we conducted strategic review of our portfolio. As a primary business strategy in the Electronic Device Systems Division, we will continue to make investments in new products for scaling, and cultivate back-end processes and surface mounting systems as a source of revenue. In Fine Technology Systems, we will fundamentally reduce costs, and strengthen new businesses such as manufacturing and inspection equipment for organic EL. In Science & Medical Systems, we will generate synergies between electron microscopes and analyzers, while continuing and deepening efforts in the SCB (System Collaboration Business) in order to boost earnings and expand our business in growth markets such as genetics.

We have formulated four strategies from a medium-term perspective. These are: to develop the new business creation initiative; transform into a truly global company; strengthen cash flow management; and promote consolidated management and strengthen trading functions. We will steadily implement these in the fiscal year ending March 31, 2011 and beyond.

In the trading division that handle industrial and IT systems and advanced industrial materials, we are pursuing furthers synergies with proprietary products, while at the same time focusing management resources in fields such as environment and energy and bolstering strategies for creating new, high-value-added businesses, and work actively to strengthen the trading functions. I believe that our network of trading divisions, which does business in many regions overseas, will play an important part not only in making Hitachi High-Technologies a global company, but also in helping the Hitachi Group make progress overseas. In addition to our activities in Europe and the United States, we will also look to aggressively expand business in China, India, Brazil and other emerging markets, as well as the Middle East and Africa. Human resources will be a key to these efforts. We will promote the internationalization of our workforce, including by cultivating staff who can work at global companies, and actively recruiting local overseas staff. We will not limit such initiatives to the trading divisions, but strengthen and establish new design and manufacturing functions overseas in order to solidify our global response capabilities. In order to achieve our corporate vision of becoming a global leader in high-tech solutions, we will aim to transform into a truly global company.

Our sustained growth as a global company will derive from our interactions with shareholders and investors, as well as with business partners, employees and our many other stakeholders. Through legal and regulatory compliance, awareness of the environment and human rights, continuous improvement of internal control systems such as risk management, thorough information management and appropriate disclosure, we will strive to manage our operations with a strong emphasis on CSR (Corporate Social Responsibility) in order to further improve our corporate governance.

2010 marks the 100th anniversary of the founding of Hitachi, Ltd., and in 2011 we will celebrate 10 years since Hitachi High-Technologies came to be. As we approach these milestones, all employees will take pride in being members of the Hitachi Group and approach work with a new vigor.

I and all the staff at the Hitachi High-Technologies Group will continue to spare no effort to fulfill the expectations of our shareholders and other stakeholders as we devote ourselves to achieving a V-shaped recovery. We thank you for your continuous support.