Company Name:	Hitachi Cable, Ltd.
Representative:	Seiji Hara, President
Head Office:	Otemachi Building, 6-1 Otemachi 1-chome, Chiyoda-Ku, Tokyo
Code Number:	5812 (First Section Listing on Tokyo Stock Exchange and Osaka Securities Exchange)
Accounting Period:	March
Contact:	Shinichiro Suzumura, General Manager, Administration Dept. Tel: +81-3-5252-3261

This is to announce the decision at today's Board of Directors meeting to concentrate, as of October 2001, the production of Cross-linked polyethylene insulated power cables with Vinyl sheath (hereinafter "low-voltage CV cables") at our subsidiary Tonichi Kyosan Cable, Ltd. (President: Hiroshi Amino). Until now, low-voltage CV cables have been manufactured at both Hitachi Cable and Tonichi Kyosan Cable. However, changes in the business environment have necessitated a restructuring, which concentrates production at a single company. A description of the production consolidation follows.

1. Reasons for Consolidating Production

Presently, both Hitachi Cable and Tonichi Kyosan Cable are manufacturing low-voltage CV cables, but sluggish private capital investment has made for shrinking demand for this product. In addition, the market downturn means it is more difficult to turn a profit.

In response to these conditions, we have decided to consolidate production of low-voltage CV cables at Tonichi Kyosan Cable. This will allow us to take advantage of scale, improve productivity, make distribution more efficient, and strengthen our cost competitiveness

2. Details of Production Consolidation

(1) Subject Products
600V Cross-linked polyethylene insulated power cables with Vinyl sheath (low-voltage CV cables)

(2) Production Volume (copper volume)

	Present	Post-concentration
Hitachi Cable	Approx. 1,500 tons per month	n/a
Tonichi Kyosan Cable	Approx. 1,300 tons per month	Approx. 2,800 tons per month

(3) Sales Methods
Present: We purchase low-voltage CV cables manufactured at Tonichi Kyosan Cable, combine them with those produced at our company, and sell them under our brand name.
Post-consolidation: We purchase low-voltage CV cables manufactured at Tonichi Kyosan Cable and sell them under our brand name.

(4) Product Sales
We do not feel that consolidation will positively or negatively affect sales of low-voltage CV cables. We forecast sales of approximately 13 billion yen per year.
We also expect Tonichi Kyosan Cable to see an increase in sales of approximately 7.4 billion yen a year.

(5) Production Facilities
We will transfer some of our existing low-voltage CV cable production facilities to Tonichi Kyosan Cable. Tonichi Kyosan Cable also plans approximately 1.1 billion yen in improvements and new facilities.

(6) Employees
At present, there are just over 60 employees involved in the production of this product at the two companies. We plan a reduction of approximately 25% under the consolidation.

3. Effects of Consolidating Production

We aim to increase profits 5% through improved productivity, a reduction in the number of employees, and rationalization of product distribution.

4. Effective Date of Production Consolidation

October 2001

Reference

1. Description of Tonichi Kyosan Cable

(1) Name:	Tonichi Kyosan Cable, Ltd. (Via the April 1, 2000 merger of Tonichi Cable, Ltd. and Kyosan Cable, Ltd.)
(2) Head Office:	1-1 Arakane, Ishioka City, Ibaraki Prefecture
(3) Representative:	Hiroshi Amino, President
(4) Main Business:	a. Manufacture, assembly, and sales of power and fiber optic cables b. Electrical installation design and contracting
(5) Capital:	3,561,940,000 yen
(6) Employees:	502 (as of January 31, 2001)
(7) Major Shareholders (as of September 30, 2000)	Hitachi Cable, Ltd.:11,831 thousand shares (59.6%) Dowa Mining Co., Ltd.: 2,932 thousand shares (12.0%) Joyo Bank, Ltd.:473 thousand shares (2.4%) Industrial Bank of Japan, Ltd.:473 thousand shares (2.4%) Tonichi Kyosan Cable Employees Stockholders Association:426 thousand shares (2.2%)
(8) Business Offices	Head Office and Main Plant: Ishioka City, Ibaraki Prefecture Plant: Kitasomagun Fujishiro-machi, Ibaraki Prefecture Head Sales Office: Chiyoda-ku, Tokyo  Branch Offices: Osaka, Nagoya, Fukuoka, Sendai, Sapporo, Ibaraki
(9) Performance	(Unit: millions yen) Sales Ordinary Profit Net Income March 2001 23,812 423 47 March 2001 (forecast) 25,000 400 -6002 *1 Combined figures for the former Tonichi Cable and Kyosan Cable *2 This will be posted as an extraordinary loss because of a one-time payment of retirement benefits

2. CV Cables (Cross-linked polyethylene insulated power cables with Vinyl sheaths)

Using braided cross-linked polyethylene to insulate cables largely mitigates polyethylene's usual problem of heat softening. These cables can be used for voltages between 600V to 500 kV and are widely used in wiring and power lines for buildings and plants, as well as for city and regional underground power lines. We call the 600V type "low-voltage CV cables."

3. Affiliation with Sumitomo Electric Industries, Ltd., in the High-Voltage Cable Business

On January 30, 2001, we received a judgement from the Japan Fair Trade Commission regarding our plan to affiliate with Sumitomo Electric Industries. This affiliation is expected to begin in October of this year. We will cooperate on development, planning, manufacturing, and application of high-voltage cables and related products (but not domestic sales), as well as cable-laying constraction and all exports. Our affiliation with Sumitomo Electric Industries and the merger of our production capabilities is expected to result in increased rationalization. Our companies are presently in the final stages of drafting a contract for this affiliation and expect to finalize this contract by the end of March. We will announce specifics (name, extent of merger, head office address, capital) after this contract has been finalized.