Hitachi Cable, Ltd. has decided to subscribe to a portion of a capital increase through third-party allocation of shares planned by Nexion Corporation ("Nexion"). As a result, the two companies will strengthen their relationship in areas such as system design and supply of products in the fiber-optic network integration business of Nexion, which is involved in video transmission services and other businesses.

1. Reasons for this capital tie-up

In recent years, the introduction of terrestrial digital broadcasting and IP broadcasting via the Internet has led to increased demand for video transmission services provided by Internet service providers (ISPs) and other firms, using fiber-optic networks.

Founded in 2000, Nexion provides video transmission services, video hub services, and video solution platforms. Specifically, it connects stadiums, studios, and other event locations to fiber-optic networks such as international submarine cables and the domestic fiber-optic backbone to provide high-quality video data, including high-definition images, to customers including broadcasters and ISPs.

Centered on data transmission networking, Hitachi Cable sells and provides system integrations services for network devices such as its Apresia*1 series of Ethernet*2 switches and Ethernet long-distance transmission equipment. In the past, it has integrated backbones of wide-area Ethernet network for telecommunications carriers, networks onnecting the data centers of ISPs and other customers, and internal networks for corporations, universities, and other organizations. However, it does not yet have sufficient experience in the field of video transmission services.

By subscribing to a portion of this capital increase through third-party allocation of shares planned by Nexion, Hitachi Cable plans to strengthen the relationship between the two companies in areas such as system design and supply of products in Nexion's fiber-optic network integration business.

In the future, Hitachi Cable and Nexion will fuse the former's high-speed, large-capacity, high-quality data transmission equipment and network integration technologies with the fiber-optic network of the latter, which has a wealth of experience in the field of video transmission, seeking to achieve further development in fiber-optic video transmission services, which promise growing demand in the future, as well as expanding sales of Hitachi Cable's networking devices in the IP broadcasting field, a new market for the company.

2. Details of this capital tie-up

Hitachi Cable will subscribe to a portion of the capital increase through third-party allocation of shares planned by Nexion as outlined below:

(1) Date of issue of new shares May-06 (2) Number of shares subscribed to by Hitachi Cable 50,000 (3) Issue price 2,000 yen/share (4) Subscription amount 100 million yen (5) Number of shares after this increase in capital 1,045,340; percentage of shares held by Hitachi Cable after this increase in capital: 4.78%

3. Overview of Nexion Corporation

(1) Name Nexion Corporation (2) Main lines of business Provides video transmission services, video hub services, and video solution platforms (3) Established November 2000 (4) Address 3-12-2 Nihombashi, Chuo-ku, Tokyo (5) Representative Fumio Uehara, President (6) Capital (as of March 31, 2006) 310 million yen (7) Number of employees 50 (8) Major shareholders (as of March 31, 2006) STB Investment Corp 29.50% New Frontier Partners Co., Ltd. 17.36% New Business Investment Co., Ltd 8.68% Nissin Co., Ltd 8.68% ORIX Capital Corporation 8.68% Marubeni Corporation 8.37% Employees, directors 8.83% (9) Relationship with Hitachi Cable Prior to this tie-up, Hitachi Cable had no capital or personnel relationship to Nexion.

*1	Apresia is a registered trademark of Hitachi Cable, Ltd. in Japan.
*2	Ethernet is a registered trademark of Xerox Corporation.