Canon Continues to Expand Offerings for Small and Home Office with Launch Of imageCLASS Personal Digital Copiers.

LAKE SUCCESS, N.Y. -- New imageCLASS(R) D800 Series Devices Offer Exceptional Business Quality Copying and Printing at New Low Price Points

Canon U.S.A., Inc., the nation's market share brand leader in black-and-white and color laser copier/printer solutions(a), today announced the addition of the imageCLASS(R) D880 and imageCLASS D860 to its increasingly diverse line of Personal Digital Copier/Printers. The new machines effectively bring Canon's renowned business quality printing at unprecedented low prices to small office/home office (SOHO) users.

"Canon continues to raise the bar by delivering personal digital copiers that offer exceptional business performance and functionality combined with affordable pricing geared towards the SOHO market," said Yusuke Mizoguchi, assistant director, SOHO Workgroup Systems, Imaging Systems Group, Canon U.S.A. "Once again, Canon has distinguished itself with new imageCLASS products - the D880 and D860 - which offer the reliability, features and economical operation that have made Canon a leader in the digital personal copier market."

The imageCLASS D880 and D860 are intended for offices that require robust copier and laser printer functionality with virtually maintenance-free performance. Both devices offer enhanced output speeds, copying at 18 copy-per-minute (cpm) and printing at 16 page-per-minute (ppm) for Letter-size documents. These models offer fast, efficient paper handling through a 500-sheet front-loading paper cassette, 100-sheet multipurpose tray, which accepts a variety of media, and a 30-sheet Automatic Document Feeder (ADF) for multi-page originals. Each device can copy up to 8.5 inches x 14 inches (legal) from both the ADF and platen glass. In addition, the machines incorporate Canon's Advanced Printing Technology (CAPT) for the highest-quality laser printing performance. For added flexibility and user convenience, the D880 and D860 support both parallel and USB interfaces, which are network capable with an optional print server.

The D880 and D860 also include Canon's exclusive Single Cartridge System, which contains the drum, development unit and toner in one easily replaceable cartridge. These models use the L50 cartridge that has a yield of approximately 5,000 black-and-white copies, at 5% coverage. Each device also comes standard with a starter cartridge.

In addition, the imageCLASS D880 stands out as a fax machine, offering a 33.6 Kbps Super G3 fax function(b). A strong list of fax features including 12 one-touch speed dial numbers, 100 coded speed dial numbers, 255-page memory capacity, sequential broadcasting and printing in order make the D880 an ideal solution for the customer needing comprehensive faxing applications in a desktop product.

A further measure of Canon's commitment to small office/home office customers is the inclusion of a three-year limited warranty with first year on-site service -- one of the most extensive warranties in the industry.

The imageCLASS D880 and D860 meet the ENERGY STAR(R) guidelines set by the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy. The EPA established the International ENERGY STAR Program in 1992 to help prevent global warming by promoting the development and use of energy-efficient products. Canon U.S.A. has won the ENERGY STAR Partner of the Year - Product Manufacturers Award the past three years in a row (2001, 2002 and 2003). Over 350 Canon products have been qualified under the ENERGY STAR Program, more than any other business machine manufacturer.

The suggested retail price of the imageCLASS D860 is $599, with suggested retail pricing for the imageCLASS D880 at $699. The devices will begin shipping to retailers in September 2004.

About Canon U.S.A., Inc.

Canon U.S.A., Inc. delivers consumer, business-to-business, and industrial imaging solutions. The Company is listed as one of Fortune's Most Admired Companies in America, and is ranked #35 on the Business Week list of "Top 100 Brands." Its parent company Canon Inc. (NYSE:CAJ) is a top patent-holder of technology, ranking second overall in the U.S. in 2002, with global revenues of $24.5 billion. Canon U.S.A. employs more than 10,000 people at over 30 locations. For more information, visit www.usa.canon.com.

All referenced product names, and other marks, are trademarks of their respective owners.

(a) Source - Gartner Dataquest - "Printer Quarterly Statistics United States - Database," Camille Iorns February 2004.

(b) The Public Switched Telephone Network currently supports fax modem speeds of 28.8 Kpbs or lower, depending on telephone line conditions. Sending and receiving fax machines need to conform to ITU-T V.34 guidelines.