Hitachi Cable, Ltd. concluded a basic agreement on a strategic and comprehensive partnership with ZHONGTIAN TECHNOLOGY GROUP CO., LTD. (headquarters: Rudong, Jiangsu Province, hereinafter referred to as "ZTT") for the purpose of strengthening their business and technology alliance mainly in the wire and cable business in the Chinese market.

1. Background and purpose of the business partnership

At over 10 trillion in annual sales, the Chinese wire and cable market is the largest in the world, accounting for roughly 40% of the global market, and exhibits great potential for further growth.

Hitachi Cable, in line with the Medium-term Management Plan, Renewed Plan "BRIDGE" (which covers fiscal years 2010-2012), is reinforcing its management foundations and implementing business structure reforms while promoting global growth strategies by concentrating its management resources in the social infrastructure segment and reinforcing overseas operations. Hitachi Cable has been highly evaluated for its capability in developing advanced technologies and offering a high-value added product lineup to the Chinese market, which is one of the top priority markets defined in the Medium-term Management Plan.

Hitachi Cable and ZTT have already established two joint ventures in China: one for composite fiber optical overhead ground wire(OPGW) in 2000 and another for high frequency coaxial cables for mobile phone base stations in 2004. The collaboration, which has extended over 10 years, has produced steady, mutually beneficial business results that have culminated in a relationship of trust. By expanding the scope of the partnership and promoting a strategic and comprehensive business alliance, the two companies are hoping to achieve further business expansion. We will pursue the benefits of synergy based on the strengths of our respective companies and ensure that we seize business opportunities when they come.

2. Outline of the business partnership

The two companies will examine possible tie-ups in various forms mainly in the wire and cable segment in the Chinese market, including: product research and development, market cultivation, licensing of technology, and joint ventures.

3. Future course

We will establish a working group to negotiate the details of the alliance. Upon reaching agreements on specific tie-ups, we will set out to implement them.

4. Overview of ZTT

Establishment:	May 2003
Business:	ZTT serves as headquarters of the ZTT Group, to which a number of group companies belong. Its business domain extends from fiber optic cables; wire products, materials and accessories; electronic devices; and telecommunication facilities.
Capital:	100 million yuan
Sales:	24 million yuan