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November 29, 2007
Canon Inc.

Canon to build new plant in Hita City

TOKYO, November 29, 2007— Canon Inc. announced today plans to construct a new manufacturing base in Hita City, Oita Prefecture, to step up production of toner cartridges and related parts.

In recent years, steadily growing demand for toner cartridges and other consumables has created a pressing need to expand production capacity. Accordingly, Canon has been working to establish a new manufacturing base for consumables and related parts with the aim of realizing a manufacturing structure capable of flexibly responding to demand while also avoiding the risk of concentrating production operations in a single location.

As a result, the company decided on Hita City, Oita Prefecture, as the site for the new plant. In addition to convenient access to the cities of Kitsuki, where Canon currently produces toner cartridges at its Oita Canon Materials Inc. operations, and Oita, the location offers close proximity to parts suppliers and the availability of a high-quality workforce from surrounding areas.

Construction of the new plant is scheduled to begin in December 2008 with operations to commence in September 2009.

Overview of new plant

1. Name: Oita Canon Materials Inc. Hita Plant
2. Location: Oaza Nishiarita, Hita City, Oita Prefecture
3. Representative: Kenji Fujiwara, President
4. Land area: approx. 390,000 sq. meters
5. Total floor area: approx. 97,500 sq. meters (as of end of 2009)
6. Business activities: Production of toner cartridges and related parts
7. Employees: approx. 1,000 (as of end of 2010)
8. Initial investment: approx. 80 billion yen
9. Construction (start): December 2008 (tentative)
10. Start of operations: September 2009 (tentative)

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