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Hitachi and Mitsubishi Heavy Industries agree to transfer X Radiation Therapy Equipment Business

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Tokyo, August 4, 2016 --- Hitachi, Ltd. (TSE: 6501, Hitachi) and Mitsubishi Heavy Industries, Ltd. (TSE: 7011, MHI) today announced that they have signed an agreement to transfer MHI's X Radiation Therapy Equipment Business to Hitachi.

With this agreement, Hitachi will expand its customer-base and acquire X radiation therapy system technology, and together with its current Particle Beam Therapy Treatment Business, will further strengthen and expand the Radiation Treatment System Business.

Hitachi's Healthcare Business, one of four major focuses in the Social Innovation businesses, ranges from diagnostic and clinical areas, such as ultrasound, MRI systems, particle beam oncology treatment systems, to informatics including services utilizing IT and providing community care systems. Hitachi provides solutions to further enhance the quality and efficiency of medical healthcare.

MHI is currently undergoing a selection and concentration process by merging, reorganizing and/or transferring its business portfolio to reallocate resources and become a more global company. Machinery, Equipment & Infrastructure
Domain, the domain handling medical equipment, is currently undergoing a mid-size reorganization in order to allocate resources and increase profitability.

Hitachi and MHI reached an agreement that Hitachi is the best candidate to transfer MHI's X Radiation Therapy Business since Hitachi is focusing on Healthcare Business, with an end-to-end system from R&D to service support.

In recent years, radiation therapy has been an increasing popular method to treat cancer since this treatment does not require any surgical removal of the affected areas of body, and thus lessens patient burden.

Hitachi is well-known for its technology and providing services in Particle Beam Therapy Systems, another form of radiation oncology treatment, and has a proven track record of delivery to many leading hospitals in both Japan and North America. In addition, Hitachi provides a wide range of radiation therapy solutions to accommodate the demands of the growing market in Japan and Asia. In July 2012, Hitachi has teamed up with a world leading high precision radiation oncology treatment provider Accuray, Inc, [Nasdaq: ARAY], with exclusive sales rights in Japan to provide the world recognized brand Tomotherapy Systems in Japan.

MHI developed Japan's only radiation treatment equipment "Vero4DRT", and has been in the market since 2008. Hitachi will continue to provide maintenance services for the currently operating "Vero4DRT" after approval from the relevant pharmaceutical regulation authorities and is expected to provide the services from April, 2017.

Under this agreement, Hitachi plans to strengthen its photon radiation treatment system business by utilizing the photon radiation treatment technology acquired from MHI. Hitachi will help improve the quality of life through front-line medical and cancer treatment, and further expand the healthcare business by providing total radiation therapy solutions including treatment planning systems.