As the global business environment continues to experience massive changes, Hitachi Cable has continued to shift the focus of its management resources from "T Business" products, historically key products, to "E Business" products consisting of information systems and electronic components-related products. In fiscal 2001, this policy was effective in helping the Company to post its highest ever level of ordinary income. Regrettably, however, Hitachi Cable posted a loss in fiscal 2002, mainly as a result of the burst of the IT bubble. As a means to achieve a recovery of business results in fiscal 2003, a variety of cost-cutting measures and measures to secure orders were implemented, however, markets showed more instability than expected and, unfortunately, Hitachi Cable posted a loss for the second fiscal year in a row.

Against this background, as a means to achieve a speedy recovery of business results and rapidly construct a robust management base, Hitachi Cable took up "selectivity and concentration of business resources" as its central management theme and the Hitachi Cable Group is now transforming itself into an organization that thrives in a business environment characterized by vigorous global competition. I ask all associates to understand and act upon the following important points necessary to effectively implement these measures.

The first point is enhancing the management quality. This requires improvements in such elements as human resources, strategies, and information. Companies with excellent management are able to provide products and services demanded by customers at a reasonable price with good timing. If we can construct a system whereby it provides customer satisfaction more rapidly than its competitors and effectively leverage that system to increase competitiveness in a changing business environment, customers would naturally choose to work with us.

Hitachi Cable is committed to transforming itself into a excellent "e-Company" that provides total customer satisfaction, earns the trust of society, and creates innovating value. I ask all of you to always keep this commitment in mind and work toward its fulfillment.

The second I would like to make is that Hitachi Cable needs associates who take responsibility for improving their skills. Enhancing the quality of management requires the amelioration of human resources. The key to outperforming Hitachi Cable's rivals in the current intensely competitive business environment is the securing and retaining of a large number of productive human resources that add to the Company's corporate value.
Today, I assumed the office of president of Hitachi Cable, Ltd. I feel a special fondness for this group of new associates who today are taking their first steps into the world as I take my first steps as president. I look forward to working with you to make Hitachi Cable the best possible company.

The induction ceremony for new Hitachi Cable associates was held in Hitaka Works located in Hitachi City, Ibaraki Prefecture.

Number of New University Graduates Hired in the Past Three Years

Induction	4-year University Graduates			Completed Graduate Program (Number of inductees having completed doctoral work shown in parenthesis)			Total
Date	Clerical Staff	Engineer	Total	Clerical Staff	Engineer	Total	Clerical Staff	Engineer	Total
April, 2001	13	6	19	4	42(2)	46(2)	7	48	65
April, 2002	13	15	28	2	36(5)	38(5)	15	51	66
April, 2003	9	11	20	4	21(0)	25(0)	13	32	45

Note:

The number of new university graduates hired in 2004 is expected to decrease compared to 2003.