Canon Inc. (the "Company") announced today that its Board of Directors authorized on May 11, 2006 a stock split, as described below.
To expand the investor base by establishing an environment that will make the Company's shares more accessible to a broader range of potential shareholders by reducing the investment amount for one trading unit.
| 1. | Method of split
Shares held by stockholders, listed or recorded in the final register of shareholders (including the register of beneficial owners of shares) as of June 30, 2006 (Friday), shall be split on a 3-for-2 basis. Any fractions of shares (less than one share) arising from the stock split will be sold or purchased by the Company. The proceeds arising from this sale or purchase will be distributed among shareholders who had fractions of shares after the split, in proportion to their fractional shares. |
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| 2. | Increase in the number of shares due to the stock split
The increase in the number of shares due to the stock split will be the total number of outstanding shares as of the end of June 30, 2006 (Friday) multiplied by 0.5. However, any fractions of shares (less than one share) resulting from the calculation will be omitted. |
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| 3. | Schedule
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| 4. | Increase in authorized number of shares to be issued
On July 1, 2006 (Saturday) the Company's Articles of Incorporation will be amended to increase the authorized number of shares by 1 billion shares from the current 2 billion shares to 3 billion shares. |
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| 5. | All other matters involving the stock split that may arise will be resolved accordingly by the Board of Directors, if necessary. |
| 1. | The delivery date for stock certificates following the stock split is scheduled for August 23, 2006 (Wednesday).
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| 2. | The Company has not indicated in concrete terms the number by which shares will increase as a result of the stock split because, given the possibility that the number of outstanding shares may increase due to shares issued upon the conversion of convertible debentures between the resolution date and the record date of the stock split, it is not possible to determine the total number of outstanding shares as of the record date of the stock split.
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| 3. | Based on the number of outstanding shares as of April 30, 2006, the number of outstanding shares after the stock split would be as follows:
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| 4. | The stock split has no effect on paid-in capital.
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| 5. | Since the effective date of the stock split is July 1, 2006, the payment of the Company's mid-term dividend for fiscal year 2006 will be based on the number of shares before the stock split.
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| 6. | In conjunction with the stock split, the conversion price of the third series of Unsecured Convertible Debentures Due 2008 of the Company will be adjusted as follows from July 1, 2006.
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