Canon announced 3rd quarter results

Canon announced 3rd quarter results

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http://www.canon.com/ir/conf2009q3/p01.html

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http://www.canon.com/ir/conf2009q3/conf2009q3e.pdf

Notice regarding Canon’s semiconductor equipment business operations

Canon Inc. (President and COO: Tsuneji Uchida, “Canon”) and Canon Marketing Japan Inc. (President: Masami Kawasaki, “Canon Marketing Japan”) announced that both companies reached a basic agreement today regarding the transfer of Canon Marketing Japan’s semiconductor equipment-related business to Canon, effective January 1, 2010.

Currently, Canon Marketing Japan’s semiconductor equipment business division handles the sales, service and support of mainly semiconductor exposure systems and LCD exposure systems. In order to facilitate greater flexibility in response to the rapidly changing semiconductor equipment market, this division will be transferred to Canon to realize an integrated framework, spanning from development and design to production, sales, service and support.

The move will enable not only the building of an organizational structure in which market and customer feedback is quickly relayed to development teams and swiftly reflected in products, but also the boosting of technological strength on the sales front.

In accordance with the restructuring, plans call for most of the employees of Canon Marketing Japan’s semiconductor equipment business division to be transferred to Canon.

Canon launches global Managed Document Services initiative

Canon Inc. announced today the launch of Canon Managed Document Services (Canon MDS), a common global service designed to assist customers in more effectively managing their document input-output environments and document processes.

Until now, Canon regional sales organizations had been responsible for delivering Managed Print Services (MPS) within their national and regional markets, contributing to improved productivity and reduced costs for customers through the building and operation of optimized output environments in offices and Centralized Reprographic Departments (CRD). Through the new initiative, Canon will effectively leverage these MPS while simultaneously unifying and standardizing the company’s menu of services, providing optimized service as “Canon MDS” for customers in each region. By delivering a range of high-quality, consistent services globally, particularly for global enterprises with operations all over the world, Canon aims to provide new added value by enabling customers to take advantage of better operational performance, lower costs and improved workflow efficiencies leading to higher customer satisfaction.

While Canon MDS offers compatibility with a wide range of input-output devices, including those of other manufacturers, Canon’s latest imageRUNNER ADVANCE Series of color multifunction office systems, featuring improved remote-management capabilities, makes possible optimal end-user input-output environments.

With regard to the rollout of Canon MDS, the company is expanding the infrastructure that will provide the foundation for the delivery of service worldwide while also accelerating the development of new service menu offerings. The company will also expand Canon MDS sales and support staff at each regional sales organization and establish essential training systems. In support of these efforts, the company plans to invest approximately 20 billion yen over the next three years.

Canon MDS will be launched initially in North America and Europe and expanded globally to include Japan, Asia and Oceania with the goal of achieving sales revenue of over 100 billion yen for the entire Canon group in 2012.

Through the provision of high-quality, consistent service to effectively meet the needs of customers, from global enterprises operating worldwide to the individual divisions of small and mid-sized businesses, Canon will continue working to deliver increased business efficiency and new added value.

Canon and HP to Provide Unmatched Office Workflow Solutions

Customers to benefit from Canon’s cutting-edge corporate multifunction device technologies and service and support capability while leveraging HP’s enterprise leadership in the areas of network printing, printer management and workflow solutions

Canon Inc. (NYSE: CAJ) and HP (NYSE: HPQ) today announced an expanded alliance to jointly market and distribute a new range of multifunction office systems that unite the best of both companies: Canon’s leading multifunction devices and HP’s enterprise printing and imaging assets.

The alliance builds on an established relationship between Canon and HP, and positions the companies to offer customers a new class of web-enabled solutions that combine Canon’s superior multifunction device processing and imaging systems with HP’s leading device manageability, IT integration and office workflow capabilities. With the broader range of software and service offerings supported by EDS, an HP company, along with Managed Print Services from HP and Canon’s global Services and Support offerings, enterprise customers now have access to one of the most complete offering in the industry, delivering improved efficiencies and greater cost savings.

This alliance includes current and future product portfolios from both companies, providing customers greater fleet compatibility across their entire office printing infrastructures. Canon and HP also will benefit from access to each other’s management and third-party development software portfolios, including Canon imageWARE Enterprise Management Console and Canon MEAP as well as HP Web Jetadmin and the HP Open Extensibility Platform. The expanded portfolio of products and services is expected to be available to customers in North America and Europe, as well as global customers from these regions.

“Through this new alliance with HP, we look forward to bringing the advantages of Canon’s high-versatility, high-performance multifunction products to an expanded user base,” said Masaki Nakaoka, managing director and chief executive, Office Imaging Products Operations, Canon Inc. “We expect this will maximize benefits for both companies’ customers while also paving the way to increased growth for both Canon and HP.”

“HP has long been an industry leader with a portfolio of products, software, services and solutions that enable enterprise customers worldwide to improve their imaging and printing efficiencies without compromising the reliability, quality or professionalism of their documents,” said David Murphy, senior vice president, Imaging and Printing Group, HP. “In growing our relationship with Canon to offer customers value-added and more holistic IT solutions, we are confident organizations will enhance productivity with their imaging and printing and overall business workflow needs.”

Canon celebrates production of 10000 digital radiography systems

Canon Inc. today announced the achievement of a medical equipment manufacturing milestone as cumulative production of the company’s CXDI digital radiography systems surpassed the 10,000-unit mark. The accomplishment was reached over a period of ten years and nine months, beginning with the launch of the CXDI-11 in December 1998.

Canon began research and development on X-ray imaging sensors in 1993, leading to the introduction in December 1998 of the world’s first digital radiography system, the CXDI-11, equipped with Canon’s proprietary LANMIT (Large Area New MIS Sensor and TFT) flat-panel detector. In addition to making possible the confirmation of an on-screen preview image in approximately three seconds following exposure, the CXDI-11 also enabled the transmission of examination orders and the sharing of image data over intra-hospital networks. The system created a stir in the industry with its range of groundbreaking features not found in conventional radiography systems.

Canon went on to build a comprehensive DR system product lineup with the introduction of such models as the Bucky-type CXDI-22, launched in September 2000; the CXDI-31, the world’s first portable DR system, released in September 2001; the portable CXDI-50G launched in December 2003, featuring a large imaging area; and the CXDI-40C, also launched in December 2003, equipped with a Cesium Iodide (CsI) scintillator that delivers high sensitivity while reducing X-ray exposure for the patient.

Canon’s CXDI series of DR systems have been lauded by members of the medical community and research institutions for their rapid-display capability, high image quality, and high reliability. Accordingly, the systems have been installed at countless medical and healthcare facilities worldwide. In 2005, the company’s large-area sensor for real-time digital X-ray imaging was awarded Japan’s prestigious Imperial Invention Prize, the highest honor of the National Commendation for Invention.

Additionally, the CXDI-50G and other Canon compact, lightweight DR systems, which offer outstanding portability, have proven invaluable in such areas as home healthcare and disaster relief missions. The CXDI-50G was used after the earthquake that struck central China’s Sichuan Province in 2008 in the examination of a survivor rescued after 139 hours buried under rubble. These compact systems have also contributed to an expanded range of applications for digital radiography in fields outside of conventional medicine, including the examination of animals, such as the checking of leg injuries on racing horses, and the inspection of artifacts and other remains at archaeological excavation sites.

Canon is now working on the development of a new portable flat-panel DR system capable of both viewing dynamic and capturing static X-ray images with plans to enter the medical fluoroscopic device market.

Taking advantage of its proprietary sensor and imaging technologies, Canon aims to realize further market expansion by maximizing the performance of DR systems that combine dynamic-image viewing and static-image capture, while also enhancing the company’s overall DR system lineup. Additionally, through the promotion of filmless X-ray procedures at healthcare facilities and provision of strong support for monitor diagnosis, the company intends to contribute to improved diagnostic accuracy and more efficient examination procedures.

Canon USA Enters a New Era of Digital Imaging Excellence with the Introduction of Its New imageRUNNER ADVANCE Series

Opening the door to a new era of advanced image quality, workflow simplicity and efficiency in the workplace, Canon U.S.A., Inc., a leader in digital document imaging, today launched the imageRUNNER ADVANCE Series, a new document service platform that blends hardware, software and services to help advance modern business environments.

Building upon the Company’s long heritage of its award-winning imageRUNNER product line, the new imageRUNNER ADVANCE Series will help seamlessly bridge the distance between user and multifunction printer (MFP) to transform and advance one’s business and digital communications. Incorporating sophisticated workflows and innovative technologies, the Canon imageRUNNER ADVANCE Series is designed to address the ever-growing needs of users, administrators and business decision makers to better manage and customize workflows, while accomplishing more tasks in less time and achieving higher levels of quality.

The new Canon imageRUNNER ADVANCE Series will include:

imageRUNNER ADVANCE C9075 PRO/C9065 PRO1 – Rounding out Canon’s digital color solutions portfolio, the imageRUNNER ADVANCE C9075 PRO will produce letter-sized output at up to 75 pages-per-minute (ppm) in black-and-white and 70 ppm in color, while the imageRUNNER ADVANCE C9065 PRO will operate at up to 65 ppm in both black-and-white and color. These models help address the growing digital document imaging needs of a vast array of light production users, including Central Reprographics Departments (CRDs), small copy centers and quick print shops.

imageRUNNER ADVANCE C7065/C7055 – Producing letter-sized output at 65 ppm for black-and-white and 60 ppm for color on the imageRUNNER ADVANCE C7065, and 55 ppm for both color and black-and-white on the imageRUNNER ADVANCE C7055, these models provide a fast and reliable solution for high-volume office and busy enterprise environments.

imageRUNNER ADVANCE C5051/C5045/C5035/C5030 – These new models, running color and black-and-white, letter-sized output at 51 ppm, 45 ppm, 35 ppm and 30 ppm, respectively, offer innovative new features and functionality to help maximize productivity and efficiency for general office users, all within a compact footprint.

“Over the years, Canon has developed and delivered several monumental technology innovations and solutions to respond to customers’ needs and change the marketplace, including the transition to digital with its GP product line in the early 1990s and the introduction of the current imageRUNNER product line in 1999,” said Sam Yoshida, vice president and general manager, Imaging Systems Group, Canon U.S.A

“The new imageRUNNER ADVANCE Series is a game-changer that will exceed customers’ expectations. These new solutions will help increase the productivity of ‘knowledge workers’ through greater efficiency and simplified workflow, while producing consistent high-quality color and black-and-white output in office and light production environments,” adds Yoshida.

Advanced Design
Its new sleek, compact and natural color design, combined with its advanced innovations, allows the imageRUNNER ADVANCE Series to fit harmoniously into nearly any work environment. These models have been redesigned from the inside out with the user in mind, starting with its brand new system architecture. Built upon a new Advanced imageCHIP system architecture, these models leverage two central processing units separating image processing and information processing functions. These CPUs work together to accomplish multiple tasks simultaneously, and achieve exceptional performance, faster processing speeds, as well as deliver new features and functionality.

The new Canon imageRUNNER ADVANCE series will also incorporate a Full Color SVGA TFT Control Panel (8.4-inch screen on the imageRUNNER ADVANCE C5000 Series models and up to 10.4-inch screen on the imageRUNNER ADVANCE C7000 and C9000 PRO Series models), with a customizable user interface to help define and simplify specific user workflows. The new large control panel also features a Main Menu key to easily access main functions and a Quick Menu key to help improve and simplify workflow, as well as share frequently used jobs or functions within a workgroup using one-touch buttons.

The new models are designed with robust and flexible paper handling capacities and finishing options, including staple and booklet finishing, and a wide range of media support through a variety of optional hardware accessories. The new imageRUNNER ADVANCE C9075 PRO and C9065 PRO, which have a paper capacity up to 9,300 sheets, and the imageRUNNER ADVANCE C7065 and C7055, with a paper capacity up to 6,900 sheets, will support a variety of media, including coated and tab paper, in sizes up to 13 x 19 1/4 inches and with a weight up to 300 gsm (110 lb. Cover), while the imageRUNNER ADVANCE C5051/C5045/C5035/C5030 will have a capacity up to 5,000 sheets, and support paper ranging from 14 lb. bond to 140 lb. index (52 to 256 gsm) and up to 12 x 18 inches.

Advanced Workflow
The Canon imageRUNNER ADVANCE Series delivers superior and seamless workflow productivity and efficiency, thanks to a number of new functional capabilities including its innovative Advanced Box functionality and imageWARE ADVANCE Essentials Solutions Package.

The Advanced Box is a document sharing space built into the new models, providing enhanced document storage and advanced collaboration. With the ability to store documents in their native file formats and share Advanced Box documents across network connected models and personal computers, the Advanced Box delivers a new level of capability in document storage and collaboration.

imageRUNNER ADVANCE Essentials is an integrated software suite designed to enhance the end-user experience and interaction with imageRUNNER ADVANCE models. imageRUNNER ADVANCE Essentials, which includes imageRUNNER ADVANCE Desktop, imageRUNNER ADVANCE Tracker and Workflow Composer with connectors, will allow users to easily access the functions that simplify their work. Users can bring imageRUNNER ADVANCE functionality directly to their desktops for one-touch workflow key creation, document publishing and management, and basic document tracking and accounting.

The imageRUNNER ADVANCE Essentials Package allows any size work environment to optimize the core functionality of the new Series and includes:

imageRUNNER ADVANCE Desktop – A client-based device dashboard application to operate the document publishing, management, and printing operation from the user’s personal computer. In addition, this desktop application can be used in conjunction with Canon’s new imageWARE Document Server application in cases where customers want to share documents being managed across workgroups or departments.

imageRUNNER ADVANCE Tracker – A cost recovery and usage management solution designed specifically for the imageRUNNER ADVANCE Series and based on Canon’s proprietary MEAP (Multifunction Embedded Application Platform) technology.

Workflow Composer and Connectors – Simplifies imageRUNNER ADVANCE workflow processes by customizing multi-step workflow functions into single-button operations. A number of MEAP connectors for SMB and FTP file delivery inclusive of document indexing come standard on the new models, while connectors for imageWARE Document Server and SharePoint Server 2007 are available as options.

Advanced Control
From easy set-up to centralized administration and security, the new imageRUNNER ADVANCE models deliver a combination of integrated hardware and software for scaling and managing document workflow. For example, administrators can use the improved Remote User Interface (RUI) on the imageRUNNER ADVANCE to monitor a single device on the network or imageWARE Enterprise Management Console to check the activity of an entire fleet. Enhanced security solutions, including Authentication, Data, Network and Document Security, are incorporated into the new models to protect sensitive and confidential documents, as well as the device’s integrity.

Advanced Performance
With the imageRUNNER ADVANCE Series, Canon delivers a consistent and reliable platform that easily integrates into any environment to increase uptime and encourage seamless communication and collaboration. The new models, which will provide true 1,200 x 1,200 dots-per-inch (dpi) print resolution, will deliver exceptional image output quality, yielding smooth, vivid and well-defined images by virtue of the new system architecture and technologies. Also, the imageRUNNER ADVANCE Series will use a new oil-free “pQ” toner to produce sharp, vivid and dense images with a smooth finish, combined with new fusing technologies to improve color consistency and gloss optimization.

The new models will come standard with Ultra Fast Rendering II (UFRII) printing technology, as well as optional Adobe PostScript 3 and PCL 5c/6 capabilities. For color intensive users, there will be imagePASS and ColorPASS* print controller options available. In addition, these models will have a tighter collaboration with Adobe technologies, by offering the ability to print and scan into a variety of Adobe PDF formats, support for a wider variety of Adobe PDF formats, and integration with Adobe LiveCycle Rights Management Server ES to bring secure collaboration to PDF documents.

The imageRUNNER ADVANCE models all support Canon’s MEAP technology, allowing for greater integration with customized business processes and with leading third-party software applications. eCopy, the leading document imaging software provider, is announcing the availability of its ShareScan document imaging application with the imageRUNNER ADVANCE Series, giving customers instant connectivity to more than 100 of the most commonly used business applications. In addition, NT-Ware is announcing that uniFLOW Output Manager, an intelligent output management application, will run on the new imageRUNNER ADVANCE platform. Other third-party developers are expected to announce that their MEAP applications will support imageRUNNER ADVANCE models at the time of shipping or shortly thereafter.

Advanced Responsibility
Canon is committed to the environment and green technologies through every phase of the product lifecycle. With these new imageRUNNER ADVANCE models, Canon will have an even stronger environmental focus than in past products, including:

Reducing Carbon Emissions – Through Canon’s Life Cycle Assessment system, the new series is expected to reduce CO2 emissions by more than 30 percent over previous models by focusing on each stage of manufacturing, energy use and logistics. These models, which are designed to be the smallest and lightest in their class, with less packaging to make transportation more efficient, are the first Canon offerings to make use of 100 percent recycled plastics and bio-plastic materials in certain parts within the new devices.

Maximizing Energy Efficiency – The series, which meets and exceeds ENERGY STAR standards, realizes an up to 75 percent reduction2 in overall power consumption thanks to a number of advanced technologies including the use of White LED Array technology in the devices’ image reader, and the use of Canon’s Proprietary Image Sensor technology versus traditional CCD sensors. Also, new fusing technologies reduce overall power consumption in the new models to 1W or less in Sleep Mode**.

Reducing Pollution – These devices exceed the toughest global regulations set by the European Union’s RoHS Directive in restricting hazardous substances and minimize the use of lead in steel, copper and aluminum materials. The RoHS Directive requires the restriction of six specified hazardous substances, while Canon currently restricts the use of 24 such substances.

Conserving Resources – Each new imageRUNNER ADVANCE model comes equipped with a number of paper-, toner- and energy-saving features, aiding in cutting costs and conserving resources. Also, with long-life parts and high-yielding supplies, customers can maximize uptime and reduce the amount of materials consumed during the product life cycle.

The imageRUNNER ADVANCE models are expected to be available for customer delivery in the fourth quarter of 2009 through Canon Authorized Dealers and Canon Business Solutions. The manufacturer’s suggested retail prices will be:

imageRUNNER ADVANCE C9075 PRO – $50,000
imageRUNNER ADVANCE C9065 PRO – $40,000
imageRUNNER ADVANCE C7065 – $35,000
imageRUNNER ADVANCE C7055 – $28,000
imageRUNNER ADVANCE C5051 – $18,500
imageRUNNER ADVANCE C5045 – $17,000
imageRUNNER ADVANCE C5035 – $12,400
imageRUNNER ADVANCE C5030 – $11,400

Canon U.S.A. Introduces The CX1 Mydriatic Non-Mydriatic Digital Retinal Camera at Vision Expo West

Canon U.S.A., Inc., a leader in digital imaging solutions, today introduced the CX-1 Mydriatic/Non-Mydriatic Digital Retinal Camera1 at Vision Expo West. In addition to the CX-1, Canon will showcase its complete line of ophthalmic solutions in the Canon booth (MS6063) at the Sands Expo Center in Las Vegas (October 1st – 3rd, 2009).

Canon_hiRes_cx1

The CX-1 is the Company’s first fully hybrid digital retinal camera with both mydriatic and non-mydriatic modes. With one-touch, the operator can automatically switch between mydriatic and non-mydriatic modes, effortlessly utilizing different functions within seconds and performing several concurrent ocular tests.

As the world’s first non-mydriatic digital retinal camera to take FAF (Fundus Autofluorescence) photography, the CX-1 eliminates the need to refer patients to an ophthalmologist. To date, FAF photography was only possible when in mydriatic camera mode. Detecting Autofluorescence of the retina is an important indication of the retina’s health. Using the non-mydriatic mode not only saves time and resources, it also can make the diagnostic procedure more comfortable for the patient.

“As a pioneer and leader in the field of retinal imaging for more than 30 years, Canon is proud to introduce the world’s first non-mydriatic digital retinal camera to take FAF photography, the CX-1 Mydriatic/Non-Mydriatic Digital Retinal Camera,” said Tsuneo Imai, senior director and general manager, Medical Systems Division, Canon U.S.A.

“At Vision Expo West, Canon will demonstrate its commitment to helping make it simple and convenient for ophthalmic professionals to provide quality care to their patients by providing the latest digital imaging technology,” noted Imai.

Canon’s EOS camera technology, with its renowned image processing capabilities, is adapted exclusively for medical use in the CX-1, providing up to 15.1 megapixel resolution. The CX-1 is capable of delivering clear and detailed diagnostic images for virtually immediate review. The single onboard digital camera handles five different photography modes with ease, including non-mydriatic FAF, Color, Red-free, Cobalt and Fluorescein angiography photography.

The Retinal Imaging Control Software that comes with the CX-1 puts tools for comprehensive study management, image capture controls and easy viewing at your fingertips. The intuitive graphical interface is simple and straightforward to use. The PC-based software provides quick input and access to all information and images required to assist in patient diagnosis, and data can be easily saved to various external media.

Integrating Digital Imaging Technology and Workflow Management for the Ophthalmic World
Canon offers and markets a full line of digital imaging solutions for the ophthalmic world, including Non-Mydriatic and Mydriatic Retinal cameras, and full auto-tonometer and full auto-ref keratometers, all of which will be on display at the show. In addition to the CX-1, the Canon product line includes:

CR-1 Mark II Digital Non-Mydriatic Retinal Camera reduces brightness, helps improve overall patient comfort and significantly shortens exams. When attached to a Canon EOS Digital SLR Camera (sold separately), the CR-1 Mark II is capable of delivering clear and detailed diagnostic images for virtually immediate review. The low flash intensity of CR-1 Mark II minimizes miosis, thus shortening the time required for taking multiple pictures. High-resolution diagnostic images are achieved at a 45˚ angle of view suitable for health check-ups and screening. The Retinal Imaging Control Software, which comes with the CR-1 Mark II, includes a range of tools that enable the user to analyze images immediately after they are captured. The image brightness and color separation can be altered during the examination for faster diagnosis. Once the images are stored, they can be quickly reviewed, analyzed, printed, stored, exported and digitally communicated.

OPTOPOL Technology S.A. SPOCT HR2 provides ultra-high resolution which can help give the doctor more comfort in diagnosis. Optical Coherence Tomography ultra-high scanning speeds shorten data collecting times and helps to improve comfort of examination for patient and operator. The SPOCT HR has three micron axial resolution which, when combined with advanced analysis algorithm, makes SPOCT HR state-of-the art in SPOCT technology.

RK-F1 Full Auto Ref-Keratometer simplifies the standard measurement procedure in just one step when using the Full Auto Mode. With a press of the Start button, the RK-F1 automatically completes the entire series of steps for both eyes: alignment, measurement and printout. The motorized optical head automatically aligns, acquires the readings and then automatically moves over to the opposite eye to perform the same function. The unit can also be operated manually to acquire readings.

TX-F Full Auto Tonometer is very easy to operate using the Full Auto Mode. Once the eye is located on the alignment screen, just press start. The motorized optical head automatically aligns, acquires the readings and then automatically moves over to the opposite eye to perform the same function. The unit can also be operated manually to acquire readings.

Canon introduces flat-panel X-ray detector device for fluoroscopy

digital-x-ray-detector

Canon Inc. announced plans to enter the medical fluoroscopic device in the market with the development of a new portable flat-panel DR (digital radiography) system capable of both viewing dynamic and capturing static X-ray images.

Canon launched the CXDI-11, the world’s first static-image DR system, in 1998, and since that time has introduced nine generations of flat panel technology with a variety of products, including general DR sensors for use in upright stands, universal stands and imaging tables, as well as portable DR sensors. Now, with the development of its new system, Canon announces its crossover to the dynamic imaging market.

Building on the outstanding image quality and speed of the CXDI series for radiography, Canon developed a compact, lightweight DR system capable of both viewing moving images and capturing static X-ray images. While the newly developed prototype accommodates standard static X-ray image capture of the chest area and extremities, it also enables “X-ray fluoroscopy,” which radiographers can use to observe dynamic images of internal organs, such as those used in digestion, for optimal timing in capturing static images. Canon is currently developing the system for a commercial release, which it plans for the latter half of 2009.

Improving and expanding the lineup of its X-ray DR systems to include a system capable of capturing both fluoroscopic and radiographic images will allow Canon to further expand the market for these products, as well as support the advancement of medical institutions for digitization and soft copy diagnostic reading. In this way, Canon will continue to contribute to the medical community through increased diagnostic assistance and efficient patient procedures.

Canon Taiwan plans to construct lens production capability

Canon Inc. announced today plans to construct new production facilities on the premises of Canon Inc., Taiwan with the aim of expanding production of interchangeable EF lenses for single-lens reflex cameras.

Canon currently manufactures EF lenses at: the Canon Inc. Utsunomiya Plant; Oita Canon Inc.; Canon Inc., Taiwan; and Canon Opto (Malaysia) Sdn. Bhd.

The continued growth of the global digital SLR camera market has led to a rapidly increasing demand for interchangeable lenses, which has created a pressing need for Canon to expand production capacity for its EF lenses. In response to these market conditions, Canon has been actively working toward the selection of a site for the establishment of new production facilities. As a result, upon taking into consideration such factors as the advanced levels of technology required for lens production based on many years of experience and securing a stable workforce, the company decided on Canon Inc., Taiwan.

Construction of the new facilities is scheduled to begin in September 2008 with the expanded production operations expected to commence in July 2009.

Overview of Expansion Plans

1. Name: Canon Inc., Taiwan
2. Location: Taichung Hsien, Taichung Export Processing Zone, Taiwan
3. Representative: Kenji Yoshida, President
4. Business activities: Production of EF lenses for SLR cameras
5. Employees: approx. 2,400 (as of August 2008)
6. Capital: NT$800 million
7. Establishment: June 1970
8. Land area: approx. 20,365 sq. meters
9. Total floor area: Expansion area: 13,744 sq. meters (Total: 59,276 sq. meters)
10. Planned staff increase: approx. 600 (by 2009)
11. Investment: approx. ¥2 billion
12. Start of construction: September 2008
12. Start of production: July 2009 (tentative)