Canon Inc. Reports Third Quarter 2001 Financial Results.

Business Editors

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--Oct. 29, 2001

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 680.3 billion yen (US$ 5,717 million), which represents a year-over-year increase of 7.6% for the third quarter of 2001.

Canon Inc. reported third quarter net income of 37.5 billion yen (US$ 315 million), or 42.77 yen (US$ 0.36) per share, which represents a year-over-year increase of 4.1%.

Operating profit advanced impressively, improving 30.3% over the third quarter of 2000.

"Economic conditions remained weak during the 3rd quarter of 2001. However, sales of digital copiers, digital cameras, and semiconductor production equipment continued to be strong. Business results were also given a boost by the weaker yen. As a result, Canon was able to achieve both sales and profit growth compared to the previous year," 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 2001 3Q financial results at www.canon.com/finance.

Canon U.S.A., Inc., a subsidiary of Canon, Inc., provides professional and consumer imaging solutions that give people the Know How to access the latest technology. The company's comprehensive product line includes networked multifunction devices; digital and analog copiers (color and black and white); printers, scanners, image filing systems, and facsimile machines; camcorders, cameras and lenses; and semiconductor, broadcast and medical equipment. Canon employs 12,000 people at more than 30 facilities throughout North, Central and South America and the Caribbean.

This report 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 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 yet at the rate of US$ = JPY 119.00, the approximate exchange rate on the Tokyo Foreign Exchange Market as of September 28, 2001, solely for the convenience of the reader.