Hitachi Cable has established a joint venture company with Jiangsu Zhongtian Technologies Co., Ltd. (hereinafter referred to as ''Zhongtian Technologies''; President: Xue Ji-Ping; Headquarters: Rudong, Nantong City, Jiangsu Province, China), to manufacture and sell our highly foamed polyethylene insulated high frequency coaxial cables.


In China, there has recently been an increase in the number of subscribers to 2G/2.5G mobile-phone services that use GSM or CDMA, along with an expansion of their service areas. Additionally, preparations are underway in parallel for the transition to high-speed, high-capacity third-generation (3G) mobile-phone services. Carriers have already completed field trials of 3G services, and will likely obtain the approval of the Chinese government to provide such services by the end of FY2006. Thus, a sharp rise in the number of mobile base stations newly built for 3G services is expected, creating great demand for the high-quality high frequency coaxial cables and accessories used in these 3G-enabled base stations.



To take advantage of this opportunity, we established ''Zhongtian Hitachi Radio Frequency Cable Co., Ltd.'' in partnership with Zhongtian Technologies, which has a large number of sales offices in China. With the aim of expanding our high frequency coaxial-cable business in China, we will stay current on the rapid growth of the mobile-base-station market, and make full use of Hitachi Cable's technological capabilities to provide high-quality cables at low cost, while utilizing Zhongtian Technologies' strength in sales.


The business activities of Zhongtian Hitachi Radio Frequency Cable will initially center on highly foamed polyethylene insulated high frequency coaxial cables, keeping an eye on the direction of the market and extending its range of products accordingly, adding further types of high frequency coaxial cables and other products.

The following is a profile of Zhongtian Hitachi Radio Frequency Cable:

(1) Company Name	Zhongtian Hitachi Radio Frequency Cable Co., Ltd.
(2) Location	Nantong Eco&Tech Development Zone, Jiangsu Province, People's Republic of China
(3) Capital	US$ 7 million (714 million yen; exchange rate: 102 yen to the US dollar)
(4) Investment ratio	Zhongtian Technologies (67%); Hitachi Cable (25%); Nanjing University of Posts and Telecommunications (8%)
(5) Representative	Xue Ji-Ping, President
(6) Date of founding	December 24, 2004
(7) Date of inauguration	December 24, 2004
(8) Lines of business	Production and sale of highly foamed polyethylene insulated high frequency coaxial cables and their accessories (connectors, fittings)
(9) Number of employees	60 (estimated as of the end of December 2005)
(10) Sales	Approx. 2 billion yen (target for FY 2006)