TOKYO, December 13, 2002 — The Suwon District Court of Korea ruled today in favor of Canon Inc. on all counts in two patent-infringement lawsuits filed against Samsung Electro-Mechanics Co., Ltd. (SEM), based in Suwon, Korea.

Canon initiated legal proceedings seeking an injunction against the manufacture and sale by SEM of photosensitive drums, used in laser beam printers, that were alleged to infringe two Canon patents, as well as compensation for damages.

In today's ruling the court acknowledged in full Canon's claim that SEM infringed Canon intellectual property rights and issued an injunction preventing SEM from the further manufacture and sale of the infringing photosensitive drum. Furthermore, the ruling awarded damages against SEM of approximately 770 million won (US$636,600) to Canon.

Canon has made a substantial investment in the development, manufacture and marketing of its products over the years and views the Suwon District Court's judgment as a validation of the company's intellectual property rights protecting the technology it has realized over this period. Canon, as one of its fundamental tenets, has always held the intellectual property rights of other companies in the highest esteem and expects, as a matter of due course, reciprocity from other companies.