Canon Delivers New Products, New Customers, New Channels, New Model Designations and New Revenue Growth at Six-day, Three-City Series of Digital Solution Forums.

NEW YORK--(BUSINESS WIRE)--Nov. 5, 1998--

Ten New Digital Products Scheduled for Availability by End of First Quarter

Canon U.S.A., Inc., the $7.3 billion (annual sales) subsidiary of Canon Inc. (NASDAQ:CANNY) for the Americas, today opened a series of Digital Solution Forums here highlighted by the introduction of 10 new products.

The Forums, being held in Chicago, New York, and Los Angeles, will reach over 3,000 corporate accounts and result in approximately 600 new corporate customers in the next 100 days, generating additional revenue in excess of $150 million. Orders are expected from the company's current customer base, as well as from customers of key competitors, particularly Xerox, Hewlett Packard and Ricoh.

"Canon has taken traditional rivals head-on, and we now provide our current and potential customers with the widest array of choices possible in product, service and support," said Haruo Murase, president and CEO, Canon U.S.A., Inc.

"We have leadership solutions in networked multifunction, central reprographic, print-on-demand, and print-for-pay markets, both black and white and color, and will continue to invest in the technologies and personnel critical to moving the marketplace forward."

NEW Products

The new products being showcased at the forums and scheduled for delivery between today and the end of the first quarter, 1999 include the imageRUNNER 600, imageRUNNER 400, imageRUNNER 330, imageRUNNER 60, imageCLASS 4000, imageCLASS 2200, imageCLASS C2100, C LBP 460PS, LBP-2460 and LBP-1760.

NEW Model Designations

In August, Canon introduced the GP 600, a 60 page-per-minute (ppm) digital multifunction production system to rave reviews of industry analysts. Today it was announced that the product would be brought to market in the fourth quarter of 1998 as the imageRUNNER 600, in keeping with a marketing strategy launched last October under the imageANYWARE umbrella. The imageCLASS series also debuted. (See separate press release for further details.)

"Stated simply, Canon's mid-range and high end digital product offerings, which are characterized by their use within corporate workgroups, departments and enterprises, as well as their fit within production-oriented environments, will be branded under the name imageRUNNER," said Murase. "The majority of imageCLASS devices will utilize cartridge-based engine technology to minimize customer service requirements. They are further characterized by their strategic fit within small businesses, as well as workgroups within larger ones."

NEW Digital Products and Digital Connectivity Superiority Showcased

Canon has redefined the high volume digital marketplace with its 60ppm imageRUNNER 600 Digital Multifunction Production System, which offers the highest output resolution, duty cycle and finishing capability of any competitive product available. It is specifically targeted for the needs of corporate copying and distributed printing, print-on-demand and print-for-pay markets and benefits from the company's rich heritage as market pioneer, and continues its leadership position in connectivity.

Canon also previewed the imageRUNNER 330 and imageRUNNER 400, 33- and 40-ppm multifunction production systems that also offer extensive finishing capabilities. They will join the expanded GP 200 series, which is the unparalleled leader for print job processing speed in its class.

"We continue to be the undisputed leader in digital imaging technology and networked multifunction innovation," said Robert Bryson, executive vice president and general manager, Canon Imaging Systems Group. "Our customers benefit from full solutions at time of launch, not stripped down versions of equipment with the promise of future functionality. Without full connectivity and functionality, in most instances the product's true value may never be realized. This is an unfortunate market reality. A reality Canon customers will never have to face."

NEW Printer Distribution Begins

Canon's portfolio of monochrome engines feature the recently introduced LBP-1760 and LBP-2460 laser printers capable of 16- and 24-ppm respectively. Several new engines being showcased at the Forum include the imageCLASS 2200, imageCLASS 4000 and imageRUNNER 60, rated at 16-, 32- and 60-ppm. Another new monochrome multifunction product on display is the imageCLASS 2200, with an engine speed of 17-ppm. All will be market-available beginning now through the end of the first quarter, 1999.

Canon also introduced the C LBP 460PS, a high-performance workgroup color printer with patented technology for unmatched color fidelity. It prints 4-ppm in full-color, 16-ppm monochrome and is available immediately. (See separate press release for further details.) The company appointed D & H, Inc. as the first national distributor for Canon-branded laser printers, and they will begin shipping product in November.

New Color Technology From The Leader In Color

Building further on Canon's 10 year history of leadership and innovation in the color laser copiers/printers, most recently evidenced by the debut of the CLC 2400, Canon previewed the imageCLASS C2100, an innovative 6-ppm full-color and 24-ppm monochrome network laser printer which can function as a walk-up color copier capable of making 11" x 17" full-color copies.

"The imageCLASS C2100 is yet another example of our dedication and commitment to the specific needs of the North American marketplace," said Murase. "We developed this product for Canon U.S.A. alone. It is not available from any other supplier."

The next generation of CLC Color Laser Copier was also previewed. The CLC Z surpasses Canon's quality color benchmark by extending the gamut of reproducible colors as well as improving color accuracy, resulting in higher quality output. It boasts improved durable parts and a new paper path to handle a wider variety of media and increase its paper handling capabilities.

The C LBP 460PS printer and imageCLASS C2100 all feature a revolutionary new approach to toner technology. The newly developed spherical toner particle contains a microscopic bead of wax, which evenly disperses the color at the moment the toner is fused to the paper, resulting in smooth, bright output unmatched in the industry. The CLC Z sets new fine toner benchmarks for accuracy of reproduction.

NEW Digital Radiography System

The Canon Digital Radiography System differs from traditional X-ray systems in that it has the option of eliminating the need to expose film for subsequent wet chemical processing and the need to retake X-rays. A distinct benefit of the Canon System is its networking capability, which can facilitate teleradiology and allow for almost immediate physician consultations regardless of the availability of an on-site radiologist. The System, which consists of a sensor plate imaging unit, control station and operation unit/preview panel, is available in Canada, Europe and Japan and is pending FDA approval in the United States.

NEW Technologies Previewed

The first generation of commercially viable "intelligent peripherals" was also showcased at the Digital Solutions Forums. The IP system allows a user to perform many document-centric operations, including "universal send," which is the ability to send a document using a variety of communications methods. These include pull capabilities, allowing users to receive e-mail or faxes directly on the unit, or to push documents and images to other locations, including document databases, or workflow applications, such as Lotus Notes.

A multifunction version incorporating a 24 image-per-minute full color scanner, and a printer version capable of 32-ppm were displayed. Both support built-in array printing which allows the IP units to take advantage of each others' capability when requiring additional resources for a large print job, actually splitting the job across multiple IP units. They also incorporate both the Salutation and JetSend peer-to-peer communications protocols to enhance productivity.

"In order for devices to be connected to networks and still offer seamless handling of data and hard copy in a digital office, being compatible with standards is a must," furthered Murase. "We are working with IBM and the Salutation Architecture to assure connectivity. And are also positively supporting the JetSend environment that HP proposes as well. In short, Canon is committed to investing in the future, and providing the system solutions that meet our customers' demands."

NEW Sales to CRD, Print for Pay, and Print On Demand Customers Fuel Growth

In August, Canon launched the NP-9120 high-speed b/w copier for the Central Reproduction Department (CRD) market and has orders for more than 140 units valued at $10,000,000. The CLC 2400 high-speed color copier/printer began shipping and has generated over 1,000 orders that tally $45,000,000 in additional revenues.

The Digital Solution Forums, designed to combine additional sales initiatives with a preview of new products and technologies being brought to market by the second quarter, 1999, reinforce the company's goal of generating $1 billion additional revenue by the year 2000 in high-volume, high-speed market segments where it previously had no offerings.

"When you consider our aggressive strategy of taking the competition head-on, our new and expanded product offerings, and distribution strategy tailored to the customer, I project that Canon U.S.A. will grow by 35%, to be a $10 billion company by the end of the year 2001," concluded Murase. "The Forums clearly demonstrate our determination for success in this market."

Canon Web Site: http://www.usa.canon.com