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TOKYO -- Hitachi, Ltd. (NYSE:HIT) (TOKYO:6501), Hitachi Air Conditioning Systems Co., Ltd. (HACS) and Hitachi Home & Life Solutions, Inc. (Hitachi H&L) today announced the agreement to reorganize their operating frameworks with the aim of developing and reinforcing their "lifestyle zone solutions business." Underpinned by existing consumer-focused businesses, the new organization will extend sophisticated support for lifestyle infrastructures in the home, office, stores and other locations with a particular focus on comprehensive air conditioning, all-electric homes and digital home electronics.

Highlights of the reorganization are as follows.

1. HACS and Hitachi H&L will merge on April 1, 2006.

2. Hitachi's Consumer Business Group will assume responsibility for overseeing all marketing and sales activities involving comprehensive air conditioning systems, all-electric home products, digital home electronics and related products. It will be responsible for sales activities in these business sectors on a global scale.

3. The Consumer Business Group will establish a specialist division devoted exclusively to comprehensive sales activities, which will primarily target large customers such as high-volume retailers and companies operating large chains of stores. This division will offer comprehensive solutions that make use of digital home electronics, comprehensive air conditioning systems, products for all-electric homes and other products.

Work is underway on setting up an organization and business strategy to prepare for the start of operations under this new framework. Although details have not been finalized, the new framework will concentrate on the following initiatives.

1. Use the merger of HACS and Hitachi H&L to reinforce the comprehensive air conditioning and all-electric homes businesses

The new company to be formed through the integration of HACS and Hitachi H&L intends to grow by conducting a comprehensive air conditioning business extending from home air conditioning systems to large freezing systems. In addition to the washing machines, vacuum cleaners, refrigerators and other products in the home appliance business, an all-electric home business will include hot water supply systems, kitchen appliances and other future core products.

# posted by Medical Information : 4:53 AM