Road to TSA Certification for Hitachi Explosive Trace Detector and Related Issues. Kazuo Takei, President & CEO Defense Systems Group, Hitachi, Ltd.

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1 Road to TSA Certification for Hitachi Explosive Trace Detector and Related Issues Kazuo Takei, President & CEO Defense Systems Group, Hitachi, Ltd.

2 Contents 1. Outline of Hitachi 2. Hitachi Physical Security Business 3. Hitachi Explosive Detector 4. Road to TSA Certification 5. Issues 6. Proposal to Government of Japan and US 7. Acknowledgement

3 Outline of Hitachi

4 Outline of Hitachi Net Sales (Consolidated base) : Total Employees: Number of Subsidiaries: Stock Exchange Listings: US $84.4 Billion ($53.8 Billion Japan, 30.6 Billion Other countries) 347,000 (243,000 Japan, 104,000 Other countries) 985 Companies (540 Japan, 447 Other countries) New York, Amsterdam, Frankfurt,Luxembourg, Paris, Tokyo, Osaka, Nagoya, Fukuoka, Sapporo Europe, Middle East & Africa 84 Companies 5,000 Employees $6.6 Billion Sales Hitachi Europe Ltd. Maidenhead, U.K. Hitachi(China), Ltd. Beijing, China Hitachi Asia Ltd. Singapore Asia & Oceania 240 Companies 78,000 Employees $13.1 Billion Sales Hitachi, Ltd. Tokyo, Japan Japan 540 Companies 243,000 Employees $53.7 Billion Sales North America 76 Companies 15,000 Employees $8.4 Billion Sales Hitachi America Ltd. Brisbane, California Other Areas 46 Companies 6,000 Employees $2.4 Billion Sales Etsuhiko Shoyama President and Chief Executive Officer Outline of Hitachi (As of March 31, 2005)

5 Group Sales Ratio in FY2004 Financial Services Logistics, Services & Others Information & Telecom Systems 21% 5% 12% 14% 12% 12% Electronic Devices 24% Power and Industrial Systems Highly Functional Materials & Components Digital Media & Consumer Products Over 20,000 Products - US$ 84,365Million Outline of Hitachi

6 Corporate Highlights Power & Industrial Systems 1910: 5hp Electric Motor 1924: Electric Locomotive Hitachi Plant Engineering 1932: Elevator Digital Media & Consumer Products 1916: Electric Fan 1932: Electric Refrigerator 1949: Power Shovel 1958: Electron Microscope 1980: Nuclear Fusion 1970: Bullet Train Control 1974: Nuclear Power Generation 1964: Bullet Train 1961: Fully Automated Washing Machine 1969: All-transistor Television 1996: ITS Hitachi Industries 1999: Electronic Tollgate Collection Hitachi Home & Life Solutions 1999: Plasma Display 2000: DVD Video Camera Information & Telecommunication Systems 1998: 128MBit Memory 1937: Telephone Materials, Financial Services & Other 1949: Automatic Telephone Exchanger Electronic Devices 1939: Transmission Tube 1953: Germanium IC Hitachi Life Hitachi Maxell 1959: Electronic Computer Hitachi Metals 1972: Ionized Semiconductor Element Hitachi Software Engineering Hitachi Chemical 1982: Super Computer 1985: CAD/CAE 1984: 128KB DRAM 1994: Super-H RISC 1995: Super TFT Hitachi Capital 1998: MONDEX 2001: egovernment Hitachi Global Storage Solutions Elpida Memory Renesas Technology Hitachi Transportation Hitachi Cable Hitachi Intermedix Hitachi High Technologies Outline of Hitachi

7 Hitachi Physical Security Business

8 Efforts for Physical Security Business Hitachi applies and combines: technologies developed for defense and medical field, provides various products for physical security - X-ray inspection machines - Explosive Trace Detector - Narcotic Detector - Bio Detector

9 Product Portfolio Intruder Safety of Personnel & Transportation Vicious replacement after inspection HAZMAT(Guns,Expl osives,narcotics) Mailing & Shipping of HAZMAT Hazardous material leakage Safety of Environment Abandoned Chemical Weapons Suspicious individual Impure Ingredient Safety of Products Fill volume Inspection Manufacturing defects Surveillance Surveillance camera & Fence Combination with Intruder Detection Sensor Maintenance by seal IC-chip μ-chip, RFID Reader Hand-held, Low Price Biometrics Finger Vein Authentication Frisking Metal detector X-ray inspection Baggage inspection machine Foreign substance inspection machine Dedicated sensor Bio detector Narcotic detection Explosive Trace Detector Chemical Agent Detector Mixture of foreign substance Safety of foods Growth of bacteria Residual pesticides Z Patrol & Surveillance UAV:Unmanned Aerial Vehicle UGV: Unmanned ground Vehicle

10 Product Portfolio Integrated Bio Detector DS-400SB/L Finger Vein Biometrics Space-saving X-ray Inspection Machine DS-400C Level of Security X-ray Inspection Machine X-ray CT Inspection Machine Chemical Agent / Narcotic Detector Explosive Trace Detector DS-110E/120E BIS-X-Series DS-1000C/N

11 Hitachi Explosive Trace Detector

12 Explosive Trace Detector Hitachi s DS-110E is the first ETD by a non-u.s. manufacturer to receive TSA certification. Mass Spectrometry was recommended by the National Academy of Sciences in May 2004 as a promising next-generation detection technology. Report Title: Opportunities to improve airport passenger Screening with Mass Spectrometry DS-120E DS-110 E TSA certified Detector

13 Explosive Trace Detection Trace Detection : Identifies microscopic traces or residues of explosive substances on bags or other objects Bulk Detection: Identifies objects by measuring their size, density, and average molecule weight through the use of X-rays Model Case of Trace Detection Wiping Sampling Terrorist Trace = remaining components of explosives Bags, etc. Analyze and identify Chemical compound Data Base

14 Comparison of Methods for Explosive Trace Detector Three methods for Explosive Trace Detectors : Method IMS: Ion Mobility Spectrometry GC/CL: Gas Chromatograph Chemi-luminescence Principle for Detection Measures moving time or distance of the target molecule in atmosphere scale Observes chemi-luminescence after splitting target component by GC Chemi -luminescence Characteristics Light and compact Needs dopant APCI/MS: Atmospheric Pressure Chemical Ionization Mass Spectrometry Measures weight of the molecule of target component Detection Achieves both Detection time, Sensitivity, Selectivity GC/MS: Most prevalent method for chemical analysis

15 Detection Principle Hitachi Explosive Detector (APCI/MS) employs mass spectrometry, as recommended by the National Academy of Sciences, to achieve both high sensitivity and selectivity. Environment-friendly system because no radioactive materials or polluting gases are used. Identify Wiping paper

16 Road to TSA Certification

17 Steps to TSA Certification Year Events In USA Sep. 11: Terrorist attacks Nov.: Birth of TSA (Division of FAA TSA Mar. : TSA under the control of DHS Jul: TSA Test procedure change Mar.: Prototype of Explosive Detector Events at Hitachi Dec.: Start developing production model Nov: Announced Hitachi Detector at FAA Symposium May: DS-110E start TSA evaluation TSA Certification In May 2005

18 Issues

19 Issues (1) Risks from Business perspective TSA Certification was challenging goal Spent 10 M$ R&D expenses for five years Should have asked Government for R&D funding?? Non transparent Performance Given the nature of Security products, should keep confidentiality of performance required for the Product Takes long testing period and always some risks involved as long as based on assuming requirements by a company

20 Issues (2) Impediments to international Cooperation among Countries Only the USA has established the performance standards (other countries tend to follow the US standards) US Security clearances are needed for accessing the US Standards Against new threats, standards for counter-measures should be established in an efficient and timely manner through Cooperation on G-to-G and G-to-C level

21 Proposals to Governments of Japan/US

22 Proposals to Governments of Japan/US Cooperative R&D by US/Japan Promote R&D for Transport Security Technology Government supports to R&D for Transport Security technology Establish a Forum to promote Government/Commercial cooperation by exchanging the latest information Establish common Certification Criteria to apply the state-of-art technologies for security products/system. Apply newly developed technologies for Air traffic, Railway, Subway, Bus and Port security

23 Acknowledgement

24 Acknowledgment Special Thanks to Dr. Sheldon BRUNK of the TSA Lab for guiding us through the TSA Certification process. Dr. Jun NAKAMURA at National Police Research Institute of Japan NOF Corporation in Japan for providing us with technical assistance regarding explosives from an early stage of the development.

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