Re: Creating a Factoring Company Subsidiary

　We are pleased to inform you that Hitachi Capital Corporation has purchased additional stock in Financial Bridge Corporation, one of our affiliate companies (equity method affiliate), and made this company into a subsidiary, as follows.

— Description —

1. Purpose of creating the subsidiary

　This action is intended to expand our “Commission Services”E one of the focus-placed businesses in our group.
　Financial Bridge Corporation works to provide outsourcing services for factoring system service to customers.
　By making this company a subsidiary, we can respond to diversified customer needs to reinforce the infrastructure of our factoring system service.

2. Outline of Financial Bridge Corporation

• · Principal business: Provision of outsourcing services for collective factoring service
• · Date of foundation: August, 2002
• · Headquarters: Shinagawa-ku, Tokyo
• · Representative: Hiroshi Honda
• · Capital: 50 million yen
• · Number of employees: 8

3. Amount and status of acquired stock after acquisition

• (1) Shares of stock acquired: 410
• (2) Status of stock after acquisition: 600 shares of Hitachi Capital Corporation (Ownership percentage: 60%)

4. Future prospects

　The effect of making this company into a subsidiary on our consolidated business performance will be slight.