HOPKINTON, Mass. and TOKYO, Japan — March 4, 2003 — EMC Corporation (NYSE: EMC) and Hitachi, Ltd. (NYSE: HIT, TSE: 6501), today announced the settlement of all pending patent infringement litigation, including five-year agreements which include patent cross-licenses and mutual releases, between EMC and Hitachi, Ltd. and its subsidiaries, Hitachi Data Systems Corporation (HDS) and Hitachi Computer Products (America) Inc. Along with this settlement, EMC and Hitachi also agreed to a framework for exchanging technology in the form of storage related application programming interfaces (APIs), which will result in benefits for many of EMC's and Hitachi's customers.
Under terms of the agreements, Hitachi has agreed to make balancing payments to EMC. The remaining terms of the cross-license agreement are confidential.
EMC filed patent infringement complaints against Hitachi, Ltd., and Hitachi Data Systems on April 11, 2002, with the United States International Trade Commission (ITC) and U.S. District Court in Massachusetts. The ITC proceeding was scheduled to go to an evidentiary hearing on March 10, 2003. Also pending were patent infringement claims against EMC filed by Hitachi, Ltd., and Hitachi Computer Products (America) Inc. in U.S. District Court in Massachusetts on April 17, 2002. All subject patents are included in the patent cross-license.
EMC and Hitachi also have agreed to a framework for exchanging storage related application programming interfaces (APIs). This technology exchange, which is expected to be finalized in the coming weeks, will further facilitate each company's development of storage management applications capable of enabling customers to manage the other company's storage systems.
Joe Tucci, EMC President and CEO, said, "We are extremely pleased to be able to resolve these issues in a way that upholds our principles and encourages future innovation. The customers of both EMC and Hitachi, who rely on our respective information storage technologies, are the real winners."
Isao Ono, Senior Vice President and Director, President & CEO, Information & Telecommunications Systems, Hitachi, Ltd., said, "We are happy to conclude this matter in a way that allows us to go about our business of competing in the marketplace. These agreements show how concern for customers' needs and a desire to explore business relationships that provide benefits for each company are the principal factors in each company's decision-making."
EMC Corporation is the world leader in information storage systems, software, networks and services, providing automated networked storage solutions for organizations across the globe. Information about EMC's products and services can be found at www.EMC.com.
Hitachi, Ltd., headquartered in Tokyo, Japan, is a leading global electronics company, with approximately 320,000 employees worldwide. Fiscal 2001 (ended March 31, 2002) consolidated sales totaled 7,994 billion yen ($60.1 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 Web site at http://www.hitachi.com.
Hitachi Data Systems enables organizations worldwide to exploit the full potential of information. Its offerings include centralized and distributed storage solutions complemented by best-of-breed products from channel partners and industry alliances. For more information, please visit the company's Web site at www.hds.com.
Contacts:
Mark Fredrickson, EMC, (508) 293-7137, fredrickson_mark@emc.com
Jodi Reinman, Hitachi Data Systems, (408) 970-1050, jodi.reinman@hds.com
Matt Takahashi, Hitachi America, Ltd., (650) 244-7902, masahiro.takahashi@hal.hitachi.com
This release contains "forward-looking statements" as defined under the Federal Securities Laws. Actual results could differ materially from those projected in the forward-looking statements as a result of certain risk factors, including but not limited to: (i) adverse changes in general economic or market conditions; (ii) delays or reductions in information technology spending; (iii) the transition to new products, the uncertainty of customer acceptance of new product offerings, and rapid technological and market change; (iv) insufficient, excess or obsolete inventory; (v) competitive factors, including but not limited to pricing pressures; (vi) component quality and availability; (vii) the relative and varying rates of product price and component cost declines; (viii) the ability to attract and retain highly qualified employees; (ix) fluctuating currency exchange rates; (x) risks associated with strategic investments and acquisitions; and (xi) other one-time events and other important factors disclosed previously.
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