Canon Inc. Reports Record Results for Fiscal Year 2002.

Business Editors

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Jan. 30, 2003

Canon U.S.A., Inc., a subsidiary of Canon Inc. (NYSE: CAJ - news) and a leader in imaging technologies, today announced Canon Inc. fiscal-year 2002 consolidated net sales of 2,940.1 billion yen (US$ 24,501 million), which represents a year-over-year increase of 1.1% over fiscal year 2001.

Canon Inc. reported 2002 net income of 190.7 billion yen (US$ 1,589 million), which represents a year-over-year increase of 13.8% or a net income per common share of 217.56 yen (US$ 1.81).

Operating profit also advanced, improving 22.9% over fiscal year 2001.

Canon Inc. reported fourth-quarter revenue of 861.7 billion yen (US$ 7,181 million), 14.4 percent higher than fourth-quarter 2001 with net income of 60.1 billion yen (US$ 501 million), 100 percent higher than fourth-quarter 2001.

"For the year as a whole, while net sales increased only slightly by 1.1%, we achieved double-digit growth in both operating profit and net income despite the difficult economic climate. Boosted by this strong performance, we are able to report not only our third consecutive year of sales and profit growth, but also record annual sales and profits.

As for digital cameras in 2003, we expect strong growth to continue with sales increasing 36.6% year-on-year. We also aim to increase market share by enhancing our line-up. On a volume basis, compared to 2002, we aim to increase our worldwide share to 25%, which will close the gap with the sector leaders," said Toshizo Tanaka, Senior Managing Director and Group Executive for Finance and Accounting Headquarters, Canon Inc.

For more detailed information and tables, please refer to our Announcement of Fiscal Year 2002 financial results at http://www.canon.com/finance/index.html.

Canon U.S.A., Inc. delivers consumer, business-to-business and industrial imaging solutions. In 2001, the Company was listed as one of Fortune's Most Admired Companies in America, and was ranked # 41 on the BusinessWeek list of "Top 100 Brands." Its parent company Canon Inc. (NYSE:CAJ) is a top patent-holder of technology, ranking third overall in the U.S. in 2001, with global revenues of $22 billion. Canon U.S.A. employs approximately 11,000 people at over 30 locations. For more information, visit www.usa.canon.com.

This release may contain forward-looking statements which reflect management's current views with respect to certain future events and financial performance. Actual results may differ materially from those projected or implied in any forward-looking statements. Further, certain forward-looking statements are based upon assumptions of future events which may not prove to be accurate. (Cautionary Statements for Purposes of the Safe Harbor Provisions of the United States Private Securities Litigation Reform Act of 1995.)

Note: In this release, U.S. dollar amounts are translated from yen at the rate of US$ = JPY 120, the approximate exchange rate on the Tokyo Foreign Exchange Market as of December 30, 2002, solely for the convenience of the reader.