2009 : Hitachi Plant Technologies' Acquisition of a Singapore-based Reverse Osmosis System Manufacturer
Accelerates the Global Expansion of the Group's Water Business

Feb. 6 , 2009
Hitachi Plant Technologies, Ltd.

  Tokyo, Singapore, Dubai, February 6, 2009 --- On January 15, 2009, Hitachi Plant Technologies, Ltd. has purchased Aqua-Tech Engineering and Supplies Pte. Ltd., a manufacturer of a reverse osmosis (RO) systems for treating water, in an important step that accelerates the global expansion of the company's water business.

  By combining Aqua-Tech Engineering and Supplies' RO systems with the Hitachi Submerged Membrane Sewage Bioreactor Systems (or compact MBR, for Membrane Bioreactor), which embodies state of the art technology, Hitachi Plant Technologies will possess in-house capacity to supply fully integrated systems for plant that desalinate sea water, treat wastewater, and supply recycled water, and will have broadened the scope of its water business, which includes both operation and maintenance.

  Hitachi Plant Technologies plans to achieve overseas sales of 30 billion yen within three years, by expanding business through steps such as this acquisition, as well as through technological development and capital investment. Also assigned importance by the company is its collaboration with other industrial companies, academia, and the government, through such means as the Global Water Recycle System Association (a limited liability partnership), established in November 2008 by a large group of Japanese leading companies.

  It is said that the 21st century will be the "water century," when water shortages and pollution will become more serious throughout the world as populations rapidly grow and emerging market economies develop.

  It is to respond to these needs that the Hitachi Plant Technologies Group is accelerating the global expansion of its water business. Hitachi Plant Technologies estimates that, in fiscal year 2008, customers, particularly in Dubai, UAE will place orders for around 100 compact MBR units (order value, around 5 billion yen) for treating household waste water. In addition, the joint venture Hi-Star Water Solutions was established with the Al Ghurair Group, one of Dubai's major business groups, to increase sales of plants for treating household waste water using a combination of the MBR and RO systems and producing medium-grade and high-grade recycled water. The joint venture has started its full operations in early 2009. Hitachi Plant Technologies Group plans to expand this business to West Asian, North African and Australian countries that are troubled by water shortages, such as members of the Gulf Cooperation Council.

  The purchase of Aqua-Tech Engineering and Supplies is one step being taken to accelerate and broaden the global expansion of the Group's water business.

  Potential demand for recycled water is great, but to satisfy that demand with high-quality treated water the water must be treated using RO downstream from the MBR process. Previously, Hitachi Plant Technologies procured RO systems from outside the Group. Now, it has gained the following benefits by bringing Aqua-Tech Engineering and Supplies, a highly competitive and abundantly experienced manufacturer of RO systems, into the group.

1. Expansion through new business, by acquiring the ability to make in-house and supply integrated plants that desalinate sea water, or process sewage and industrial waste water for supply of recycled water for various uses
2. Expand sales channels for various business lines, including after-sales service, through cross-marketing to existing customers of Hitachi Plant Technologies and Aqua-Tech Engineering and Supplies
3. Enter the desalination field, where Aqua-Tech Engineering and Supplies has abundant experience, and develop next-generation water desalination technology (featuring higher energy efficiency and larger treatment capacity) by means of the technological synergies generated between Aqua-Tech Engineering and Supplies' technologies and the water treatment and pump technology possessed by Hitachi Plant Technologies.

Summary of Aqua-Tech Engineering and Supplies

Company name	Aqua-Tech Engineering and Supplies Pte. Ltd.
Businesses	Production and sales of RO package plants and maintenance services for these plants
Head office	Paya Ubi Industrial Park, Singapore
Founded	May 1982
Capital	S$400,010
Shareholders	Hitachi Plant Technologies (100% of shares)
Representative	Kazuhiko Takino
Employees	26
Production capacity	100 units/year
Factory floor space	Around 1,100m2
Sales	FY 2007: around 800 million yen FY 2012 (target): around 3.0 billion yen

Exterior view of a reverse osmosis unit produced by Aqua-Tech Engineering and Supplies