Hitachi teams with Wave7 Optics for FTTx market

ATLANTA, Ga., October 7, 2003 - Hitachi, Ltd. (NYSE: HIT) and Hitachi Telecom (USA), Inc. today announced a joint relationship with Wave7 Optics for the FTTx market. The recently announced Hitachi triple play (data*, voice, video) B-PON product was the first benefactor of this partnership. Hitachi has a long history in standards (A-PON, ATM, IEEE) since 1994 and has a reputation of quality and reliable manufacturing. Wave7 offers an innovative spirit and holds patents in both the video and Ethernet areas.

Hitachi and Wave7 developed the triple play B-PON in response to the interest in FTTx generated by the RBOCs. Hitachi and Wave7 formed a working relationship to combine core competencies and create a unique and affordable solution to offer the market.

Hitachi and Wave7 Optics will exhibit the triple play B-PON solution at the FTTH Conference (Oct 7-9, 2003) in New Orleans, Telecom'O3 (Oct 11-15) in Las Vegas, as well as at the APPA Show (Oct 11-15) in Kansas City.

"By combining Hitachi and Wave7's expertise, we expect to repeat the ongoing success experienced by Hitachi with our optical access products in Asia." says Frank Banks, VP Sales, Hitachi Telecom. "Our joint development efforts have produced an industry leading triple play B-PON solution that will compliment the rest of our optical access product family consisting of Ethernet B-PON, Point-to-Point and GbE-PON from Hitachi."

"We are very pleased to be working with Hitachi Telecom," says Emmanuel Vella, Chief Marketing Officer of Wave7 Optics. "Hitachi's rich legacy of industry leading telecommunications products and Wave7's innovations in optical access will result in a series of revolutionary access products for our customers."

*Based on a technical license from NTT Access Network Service Systems Lab.

About Hitachi Telecom (USA), Inc.

Hitachi Telecom (USA), Inc., a subsidiary of Hitachi America, Ltd., develops, manufactures and markets telecommunications equipment for the U.S. market. The company offers Access systems such as Ethernet B-PON, Point-to-Point, GE-PON, ITU-compliant 'triple play' B-PON for FTTh/FTTB, ultra high-speed optical networking equipment such as DWDM and SONET systems as well as customer premises products such as PBXs. For more information on Hitachi Telecom (USA), Inc., visit http://www.hitel.com.

Hitachi America, Ltd., a subsidiary of Hitachi, Ltd., markets and manufactures a broad range of electronics and semiconductors, and provides industrial equipment and services throughout North America. For more information on Hitachi America, visit http://www.hitachi.us .

Hitachi, Ltd., (NYSE: HIT), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 340,000 employees worldwide. Fiscal 2002 (ended March 31, 2003) consolidated sales totaled 8,191.7 billion yen ($68.3 billion). The company offers a wide range of systems, products and services in market sectors, including information systems, electronic devices, power and industrial systems, consumer products, materials and financial services. For more information on Hitachi, please visit the company's Website at http://www.hitachi.com .

About Wave7 Optics

Wave7 Optics, Inc., is a market leader in the fiber-to-the-home and business (FTTX) optical access market. The company's Last Mile Link "active PON" optical access system effectively overcomes the cost and implementation barriers that have to date stymied the development of FTTX systems.

Wave7 Optics has pioneered the first intelligent PON (passive optical network) system, which is effectively a generation ahead of comparable PON technologies in both cost and capability. The IP- (Internet Protocol) and Ethernet-standards based Last Mile Link product suite provides a "triple play" of voice, video and very high-speed data services to residential, business and multi-tenant or multi-dwelling building customers. The Last Mile Link offer service providers a particular advantage with regards to video in that it is the only platform that supports upstream and downstream RF broadcast signals and readily accommodates HDTV.

The company has been named a "Hot Start Up" company for 2003 by two of the world's leading trade journals- America's Network and Telecommunications. Additional information about Wave7 Optics is available at www.wave7optics.com or by contacting Emmanuel Vella at emmanuel.vella@w7optics.com .