Canon Inc. Reports Results for Q3 2002.

Business Editors & High Tech Writers

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Oct. 29, 2002

Canon U.S.A., Inc., a subsidiary of Canon Inc. (NYSE: CAJ - news) and a leader in imaging technologies, today announced Canon Inc. third-quarter consolidated net sales of 694.0 billion yen (US$ 5,642 million), which represents a year-on-year increase of 2.0% over the third quarter of 2001.

Canon Inc. reported third-quarter net income of 57.5 billion yen (US$ 467 million), or 65.54 yen (US$ 0.53) per share, which represents a year-on-year increase of 53.4%. Operating profit advanced impressively to 92.7 billion yen (US$ 754 million), improving 21.5% over the third quarter of 2001.

"Profits were raised by higher sales of laser beam printers and digital cameras and through further cost cutting. Our ability to maintain stable selling prices through the introduction of new products also supported profitability.

Moving forward in the fourth quarter of 2002, sales and profits will be boosted mainly by a further expansion of digital cameras, growth in sales of laser beam printers, and strong sales growth for large screen LCD aligners, an area in which Canon is dominant," 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 Q3 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 123, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 30, solely for the convenience of the reader.