December 14, 2000

Nissan Announces Sale of Holdings in Xanavi Informatics to Hitachi

Tokyo, December 14 - Nissan Motor Co., Ltd. announced that it has reached an agreement to sell its 49.0% stake in Xanavi Informatics to Hitachi . Xanavi, a leading developer of automotive audio and navigation electronics, will become a wholly owned subsidiary of Hitachi. Hitachi will continue to develop and supply Nissan with electronic components including the audio and navigation equipment previously supplied by Xanavi. The terms of the transaction were not announced by the companies and the deal was completed in early December.

As a part of the Nissan Revival Plan, the company has strengthened its supplier relationships by creating a more global suppliers. "This sale of shareholdings will allow Xanavi Informatics to further strengthen cooperative ties with Hitachi which has advanced IT technology and is doing business globally," said Itaru Koeda, Executive Vice President in charge of purchasing for Nissan Motor Co., Ltd. "This transition is in line with our policy to strengthen our partnerships with globally competitive companies. This transaction will only strengthen our business relationship with Hitachi group, an important supplier and developmental partner of Nissan, as they focus on our automotive electronics and IT needs."

Under the Nissan Revival Plan, the company has committed to returning to a net consolidated profit in fiscal year 2000, achieving an operating margin of at least 4.5 percent by fiscal year 2002 and reducing net consolidated automotive debt to less than 700 billion yen by fiscal year 2002.

- Outline of Xanavi -

Areas of operations:	Development, Production, and Sales of Car navigations and Audio
Name:	Xanavi Informatics Corporation
Representative:	Atsushi Fujii
Date of Establishment:	January 1991
Sales:	21.8bil. yen (fiscal year 1999)
Number of employees:	approximately 400
Address:	Kanagawa, Zama-shi

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