Hitachi Capital Announces a Merger

　The board of directors of Hitachi Capital Corporation held in a meeting today resolved to acquire through merger and acquisition Iseki Capital Corporation, a wholly owned subsidiary of Hitachi Capital.

- Description -

1. Purpose of the Merger

　Iseki Capital Corporation has so far worked to promote an infrastructure that financially supports the sales of agricultural machinery produced by ISEKI CO., LTD. through credit and leasing services for agricultural machinery. We are pleased to inform you that Hitachi Capital Corporation will merge with Iseki Capital Corporation. This merger will result in sales support and the enrichment of services for agricultural machinery, and furthermore provide value-added services.

2. Outline of the merger

(1) Schedule of the merger

Board meeting to approve merger agreement: December 26, 2008

Signing of the merger agreement: December 26, 2008

Date of merger: April 1, 2009 (planned)

Registration of merger: April 1, 2009 (planned)



(2) Method of merger

Hitachi Capital, as the surviving company, will acquire Iseki Capital Corporation, which will subsequently be dissolved.



(3) Merger ratio

As Iseki Capital Corporation is a wholly owned subsidiary of Hitachi Capital, there shall be no issuance of new shares or cash payment upon this merger.



3. Profile of the Companies Involved in Merger
(As of March 31, 2008)

(1) Company name	Hitachi Capital Corporation (acquiring company)	Iseki Capital Corporation (acquired company)
(2) Business activities	Other financial services	Other financial services
(3) Date established	September 10, 1957	June 1, 2004
(4) Location of head office	15-12 Nishi Shimbashi 2-chome, Minato-ku, Tokyo	3-14 Nishi Nippori 5-chome, Arakawa-ku, Tokyo
(5) Representative	Kazuo Takano, President	Mitsuhiro Watanabe, President
(6) Capital	¥9,983 million	¥50 million
(7) Shares of common stock issued and outstanding	124,826,552 shares	1,000 shares
(8) Shareholders’ equity	¥211,347 million	¥157 million
(9) Total assets	¥1,974,260 million	¥663 million
(10) Fiscal year end	March 31	March 31
(11) Number of employees	1,789	4
(12) Major customers	Corporations and individual consumers	Farmers
(13)Major shareholders and percentage of ownership	Hitachi, Ltd. (60.61%)	Hitachi Capital Corporation (90.00%)
(14) Major banks	Mizuho Corporate Bank, Ltd.	Mizuho Corporate Bank, Ltd.
(15) Relationship between companies	Capital Consolidated subsidiary 90% Personnel Two Hitachi Capital employees concurrently serve as directors of the acquired company Transactions Hitachi Capital extends loans to the acquired company




(16) Three-year summary

	Hitachi Capital Corporation (acquiring company)			Hitachi Card Service, Ltd. (acquired company)
Fiscal year ended March 31	2006	2007	2008	2006	2007	2008
	(Millions of yen)			(Millions of yen)
Operating revenue	62,119	69,503	69,614	418	307	246
Operating income	18,703	18,488	15,968	138	105	69
Ordinary income	18,873	19,344	16,077	11	65	34
Net income	10,778	10,997	8,240	1	44	1
Shareholders’ equity	206,859	211,172	211,347	112	156	157
Total assets	1,966,452	2,038,721	1,974,260	3,433	1,583	663
	(Yen)			(Yen)
Net income per share	92.07	94.08	70.50	1,455.87	44,170.12	1,629.72
Shareholders’ equity per share	1,769.65	1,806.58	1,808.08	3,433.12	1,583.34	663.31
Dividend per share (interim dividend per share)	35.00 (17.00)	36.00 (18.00)	40.00 (22.00)	-	-	-
Dividend propensity	38.0	38.3	56.7	-	-	-



4. Hitachi Capital after Merger

(1) Company name: Unchanged

(2) Business activities: Unchanged

(3) Head office location: Unchanged

(4) Representative: Unchanged

(5) Capital: Unchanged

(6) Total assets: ¥1,974,459 million (Expected increase from merger: ¥198 million)

(7) Fiscal year end: Unchanged

(8) Effect on performance: The merger will have a negligible effect on Hitachi Capital's consolidated operating results.