Hitachi and Wenco Commence a Proof of Concept Project for Utilizing Fleet Management System on Cloud Service

January 14, 2014

RICHMOND, BC, CANADA (January 2014) - Hitachi, Ltd. (TSE: 6501, "Hitachi") and Wenco International Mining Systems Ltd. ("Wenco"), a Canadian subsidiary of Hitachi Construction Machinery Co., Ltd., are proud to announce the beginning of a joint Proof of Concept (PoC) project. The PoC project, initiated by Hitachi and Wenco, and facilitated by Teck, will combine Hitachi's highly reliable cloud service and Wenco's Fleet Management System (FMS) with Teck's mining operation team to demonstrate how much the efficiency of the system will be improved. The results of the project will be evaluated for approximately 40 days after its launch on January 20.

In this PoC project, Wenco's FMS will be installed at Hitachi's data center in North America, and will provide cloud-based FMS service to Teck via the internet. Teck, a trusted leader in the mining industry, will support the project and provide feedback on the performance and efficiency of the system within one of its facilities located in British Columbia, Canada.

"Wenco is very excited about the associated benefits our industry partners can leverage with the combination of fleet management and cloud computing. Minimizing learning curves on hardware and software, expanding accessibility, and reducing capital costs will increase system longevity and effectiveness for our clients," said Phil Walshe, President and CEO, Wenco.

Using on-board computers, the Wenco FMS is installed on dump trucks, excavators and additional equipment. It displays mine-specific instructions for the operators that help increase efficiencies at a mine site. Currently, the FMS is individually maintained and operated on each mine site, but the cloud-based FMS service utilized in the PoC project will demonstrate the ability for mines with multiple sites to manage their mine sites from one facility. The goal of the project is to reduce the initial start-up and operating costs of the FMS in small-scale mining.

Hitachi and Wenco will work together toward the success of this PoC project and its future full-scale application in other mines. Hitachi has positioned the mining-related area as one of the core focus areas of the Social Innovation Business, and will accelerate the global rollout of these business activities. Also Hitachi has organized its smart information related products and services into "Intelligent Operations." After analyzing and evaluating the results of the project, Hitachi will advance the development of an "Intelligent Operations for Mining" solution as a part of its "Intelligent Operations."

"The PoC project that Hitachi and Wenco are starting with Teck is a new chapter in the history of resources development. We will work through this PoC project to promote efficiency of resources development by improving efficiency of the equipment with our advanced IT by the whole Hitachi Group," said Keiichi Shiotsuka, Vice President and Executive Officer, Chief Executive Officer of Services Business, Information and Telecommunication Systems Company, Hitachi, Ltd.

PoC Wenco Hitachi Teck

About the PoC project


About Hitachi, Ltd.

Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, is a leading global electronics company with approximately 326,000 employees worldwide. The company's consolidated revenues for fiscal 2012 (ended March 31, 2013) totaled 9,041 billion yen ($96.1 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional material & components, automotive systems and others.For more information on Hitachi, please visit the company's website at http://www.hitachi.com.

About Wenco International Mining Systems

For over 30 years, Wenco International Mining Systems has worked with mining companies to extract unrealized value. Under this mission, Wenco has developed an integrated suite of solutions to support the digital transformation of the mining industry. Fleet management, asset health, data analytics, and other technologies join together in the spirit of open interoperability and scalability to raise mine productivity and efficiency, lower routine costs, and establish a safe and smooth mining operation.

Wenco is a wholly owned subsidiary of Hitachi Construction Machinery headquartered in Vancouver, Canada.

www.wencomine.com

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