Hitachi Plans Transfer of its Semiconductor and Integrated Circuits Group's Opto-Device Division to OpNext, Inc.

June 11, 2002--Global electronics company Hitachi, Ltd. (Tokyo) and its optical networking component spin off OpNext, Inc. (Eatontown, NJ), today announced that they have entered into detailed discussions to transfer Hitachi's opto-device division of semiconductor and integrated circuits (SIC) to OpNext. The transfer is anticipated to be effective October 1, 2002.

The transaction will cover the opto-device division of SIC as well as the opto-electrical device development and manufacturing team and fabrication facilities from Hitachi Tohbu Semiconductors, Ltd.

SIC designs, manufactures and sells devices and modules for the access communication, fiber-optic backbone and metro markets, in addition to the information and industry markets. The Hitachi division has developed technologies in lasers, receivers, and packaging, including high-power lasers, and maintains low-cost mass production capabilities.

As a result of this transfer, OpNext will provide a higher level of service to its device users, while strengthening its market position and enhancing its current product portfolio consisting of transceivers, transmitters, receivers and laser diode modules. All of SIC's existing customers will be fully supported by OpNext after the merger.

"The transfer of the opto-device division and its technology offerings brings our customers proven, advanced IC technology that will be a perfect complement to our existing optical components business," said Harry Bosco, president and chief executive officer of OpNext. "Along with our new division comes world-class expertise in system LSI as well as demonstrated competence in mass producing high quality optical devices. This merger is in line with Hitachi's strategic vision for OpNext to maximize the value of its technology assets and create a world-class customer focused organization."