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Hitachi Transport System

October 4, 2007

Basic Agreement on Investment in a Logistics Company in the Czech Republic, Eastern Europe

- To enhance the infrastructure and operations for logistics business in Europe -

Hitachi Transport System, Ltd. (President & Chief Executive Officer: Takao Suzuki) has reached a basic agreement with ESA s.r.o (Representative: Roman Pekrt / hereinafter referred to as "ESA") to acquire the capital, as part of the global system logistics (3PL) strategy to receive a package order of corporate logistics operations. The company will hold about 51% of ESA's shares and launch the operation of a joint venture.
ESA owns logistics networks centering on the Czech and Slovak republics and has deployed business such as 3PL for a wide variety of customers. Hitachi Transport System will strengthen the infrastructure of the logistics business, focusing on the Eastern European region, where further market growth can be expected by having ESA on the Hitachi Transport System group. Under this agreement, the company aims to further improve the logistics service level and increase Europe-wide competitiveness in cooperation with the Hitachi Transport Systeem (Nederland) B.V., a company to control the Europe market.
Hitachi Transport System took over the logistics department of Clarion Co., Ltd. in June 2005 and a subsidiary logistics company of Shiseido Co., Ltd. in April 2007 to enhance its domestic 3PL business. Taking this agreement as a good opportunity, the company will globally strengthen and extend the system logistics business, including the forwarding business.
Hitachi Transport System will officially sign the agreement in November and plans to launch the operation of the new system in December.

(Reference) Company Profile of ESA

(1) Company name ESA s.r.o (Limited company)
(2) Established March 1992
(3) Headquarters Czech Kladno
(4) Representative Roman Pekrt
(5) Description of business 3PL business, Land transportation, Warehousing, etc.
(6) Capital 73 million CZK (Approx. 400 million yen)
(7) Sales amount 2,318 million CZK (Approx. 13 billion yen)*
(8) Operating income 48 million CZK (Approx. 270 million yen)*
(9) Number of employees Approx. 1,200
(10) Number of vehicles Approx. 700
(11) Number of business sites 22 sites for transportation and 5 for storage

*Performance as of December 2006 (Consolidated)