Canon U.S.A. Partners With Microsoft; Imaging Technologies Leader Supports Windows XP.

Business/Technology Editors

LAKE SUCCESS, N.Y.--(BUSINESS WIRE)--June 26, 2001

Digital Cameras And Camcorders, Bubble Jet Printers,

Multifunction Products And Scanners Support New Operating

System That Enhances Digital Imaging For Consumers

Canon U.S.A., Inc., a subsidiary of Canon, Inc. (NYSE: CAJ) and a leader in imaging technologies, today announced that it is a global strategic partner of Microsoft and will participate in the launch of Windows XP.

Canon's imaging technologies, found in the company's popular lines of digital cameras, digital camcorders, Bubble Jet printers, multifunction devices and scanners that have become mainstream peripherals for PC owners, complements Microsoft's launch of Windows XP and jointly will help businesses and home users understand the value of purchasing a new personal computer with Windows XP.

"The PC continues to expand beyond its original intention of simply providing a better way to type text," said Kinya Uchida, president and CEO, Canon U.S.A., Inc. "It now incorporates practically everything we do at work and home, including storing and emailing digital photos and editing digital video. Increasingly, people are relying on PC peripherals such as digital cameras, digital camcorders, printers and scanners for work and pleasure. Our leadership in these key PC peripherals allows Canon to support the many functions of the PC and overwhelmingly champion Windows XP."

As part of Canon U.S.A.'s relationship with Microsoft, Canon will participate in a variety of marketing communications, retail and training programs associated with the launch of Windows XP. Canon products in the digital camera, digital camcorder, Bubble Jet printer, multifunction product and scanner categories will carry the "Designed for Windows XP" seal, an indication to businesses and consumers that Canon products support the new Windows XP software.

With the continued introduction of new and exciting digital camera products, Canon now has a full line of digital cameras to meet the needs of all digital consumers. From the professional level EOS D30 to the most popular PowerShot ELPH series, and the entry level PowerShot A series, consumers on every level can enjoy the fun of digital camera images.

As a leader in digital camcorders, Canon has a line of consumer, business and professional MiniDV products. These include models under $999 (ZR20, ZR25 MC and ZR30 MC), the Elura 2, Elura 2MC and Optura Pi in the consumer/business category, and the three-chip GL1 and XL1 professional models.

Canon's line of Bubble Jet printers offers high quality, high speed printing for text, color graphics, Web and photo printing solutions. The hallmark of Canon's Bubble Jet printer and MultiPASS multifunction product lines is the Advanced Microfine Droplet Technology for improved quality prints, especially photo printing, and the unique individual ink tank system that eliminates ink waste by allowing users to replace only the color that has run out.

Canon also is a leader in color flatbed scanner products, an increasingly important product group for PC and Internet users that allows consumers to easily import photos into their PC for e-mailing or Web posting.

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.

All referenced product names are trademarks of their respective owners.