Notice Regarding Litigation with Nano-Proprietary Involving SED

Canon Inc. announced today that the trial of the case brought against it by Nano-Proprietary, Inc. relating to flat-panel SED televisions concluded on May 3, 2007 in Austin, Texas. Nano-Proprietary's fraud claims against Canon were dismissed and the jury returned a verdict that Nano-Proprietary had sustained no damages. All claims against Canon USA were also dismissed.

Canon intends to appeal the Court's previous determination that Canon had breached the patent license agreement between the companies, terminating that agreement and allowing Nano-Proprietary to retain the original $5.5 million purchase price for that license.