Hitachi Cable, Ltd., has established a sales and distribution company, Shanghai Hitachi Cable Trading Co., Ltd., in the Shanghai WaiGaoQiao Free Trade Zone near the city of Shanghai in eastern China. Business commenced April 1, 2002.

Shanghai is becoming a major production center for mobile telecommunications devices. In addition, the production of notebook computers has shifted from the Taiwan region to Shanghai, and manufacturers of medical equipment from Japan, the United States, and Europe have been increasing their presence in the area. As a result, the demand for electronic equipment wires and for magnet wires used in the internal and external wiring of electronic and information home appliances has increased in both eastern and southern China.

In China, Hitachi Cable has already established Shanghai Hitachi Cable Co., Ltd., Hitachi Shin Din Cable, Ltd., and Huanan Wire & Cable Services Co., Ltd. These companies conduct the manufacturing and marketing of magnet wires and electronic equipment wires. Shanghai Hitachi Cable Trading Co., Ltd. was established to respond to the rapid increase in demand and provide better service to customers.

In addition to the selling in China of import products from the Hitachi Cable Group's other plants, including those of Japan, products manufactured by the Group's plants in China are sold both within the country and as exports.

China's inclusion in the WTO is expected to further accelerate growth. In response, Shanghai Hitachi Cable Trading Co., Ltd. will step up the selling of Group products in fields such as telecommunications, optical-related, and semiconductor-related businesses. The Company will also conduct procurement of Chinese products for the Hitachi Cable Group as well as nation wide marketing activities in China.

Shanghai Hitachi Cable Trading Co., Ltd. was established by Hitachi Cable and its distribution companies to establish a foothold in the Chinese market, thereby allowing the Hitachi Cable Group to establish a flexible distribution service that seamlessly integrates both overseas and domestic operations. While the main stock kept in the warehouses of Hitachi Cable remains electronic wires, the Company is currently constructing a system to speedily meet the increasingly diversified needs of its customers.
In addition, in response to rising demand, the aforementioned Shanghai Hitachi Cable Co., Ltd. has plans to rapidly increase production capacity, mainly with regard to electronic wires such as heat-resistant wires, ecological wires, wires for medical equipment, and computer wires.

In the future, the Hitachi Cable Group will seek to leverage its improved selling power gained by the establishment of Shanghai Hitachi Cable Trading Co., Ltd. and take advantage of rapidly growing production in China to even more aggressively expand business activities.

Summary of Shanghai Hitachi Cable Trading Co., Ltd.

Company Name:	Shanghai Hitachi Cable Trading Co., Ltd.
Established:	27-Feb-02
Commencement of Business:	1-Apr-02
Main Business Activities:	Import sales of Group products in China and export sales from China
Net Sales:	2.5 billion yen (fiscal 2004, ending Mar. 31, 2004 estimate)
Capitalization:	US$500,000
Major Shareholders:	Hitachi Cable, Ltd.: 80%; Kansai Hielec Co., Ltd. 4%; Hitachi Densenshoji Co., Ltd 4%; Tatara Denki Kougyou, Ltd. 4%; Matsumotodengyo Co., Ltd. 4%; and Fujinaga Electric Co., Ltd. 4%
Headquarters:	No. 258 Xin Lin Rd., WaiGaoQiao Free Trade Zone, Shanghai
Representative Director:	Chairman & President Fumio Nakamura(Seconded from Hitachi Cable, Ltd.)
Employees:	10 (As of April 1, 2002)