Fujifilm-South Carolina Introduces New Medical Products and Announces Further Expansion.

Business Editors/Health/Medical Writers

GREENWOOD, S.C.--(BUSINESS WIRE)--March 7, 2003

Fuji Photo Film, Inc. announced today that its Medical Products Division in Greenwood has begun totally-integrated manufacturing of the newest generation of dry medical imaging film for the North American market.

Additionally, the company announced a $100 million expansion of the PS Plate factory to expand production of Computer-to-Plate (CTP) printing plates for the graphic arts industry.

Company President Harry Watanabe made the announcements at a ceremony at the Fujifilm Complex in Greenwood, attended by several hundred guests, customers and company associates. "Fujifilm is committed to being the technological leader in the medical imaging market," Watanabe said. "The new dry medical imaging film is easier to use, more cost effective and more environmentally friendly than conventional X-ray film. The production of digital dry imaging film in Greenwood gives Fujifilm the opportunity to provide the North American medical community with the world's newest and best medical imaging products from right here in South Carolina."

Of the $100 million expansion project, Watanabe said, "Use of digital CTP printing plates in the U.S. and Canada has grown ten-fold in the past four years and now accounts for over 50% of the market because they substantially increase our customers' efficiency and productivity. This expansion will allow us to expand CTP production to meet the growing needs of our North American customers." Construction will begin immediately and completion is scheduled before the end of 2004.

"We are committed to keeping Greenwood as a strategic production hub in the Fujifilm family of companies around the world," Watanabe said. "Fujifilm must continue to bring these types of capital intensive, highly automated processes to South Carolina in order to preserve and protect our existing jobs. This requires a strong commitment from Fujifilm and the state technical college system to the on-going training of our Associates to develop new technical skills and enhance our productivity for the future."

"Fujifilm is leading the way in many of the digital advances taking place in the imaging and information industry today," said Fujifilm Chairman and CEO Minoru Ohnishi. "Over the past few years, we have brought digital products to each of Fujifilm-South Carolina's divisions." In addition to producing a wide range of conventional imaging and information products, Greenwood also manufactures digital photographic paper, digital linear tape for mainframe and mid-range computer back-up and, now, digital printing plates and digital dry medical imaging film.

"We're very pleased to see one of our leading corporate citizens continue to bring new products and new expansions to our state," said Governor Mark Sanford. "Fujifilm's $1.4 billion investment is definitely a nice shot in the arm for our economy as well as a great example of what's to come if we continue our focus on quality of life and improving our state's underlying business climate."

"Competition for high tech investments such as the ones announced today is very keen around the world and South Carolina is committed to remain a preferred location for global companies such as Fujifilm," said Bob Faith, South Carolina's Secretary of Commerce.

The company also announced a $500,000 contribution to assist in a comprehensive study of the entire Reedy River and Saluda River watershed. The public/private partnership, whose members include Upstate Forever, Clemson University, Lander University, the V. Kann Rasmussen Foundation and the South Carolina Department of Natural Resources, is conducting the study to protect and enhance the water quality and overall health of the watershed, which includes Lake Greenwood. "Fujifilm chose Greenwood as its U.S. home in large part because of the excellent water quality in Lake Greenwood," Watanabe said. "There are serious concerns over the future of water quality throughout the watershed and Fujifilm will continue its long tradition of environmental stewardship by becoming a partner in this critical preservation project."

Fuji Photo Film, Inc. began manufacturing operations in South Carolina in 1988, when the company announced the construction of its first U.S. factory for the production of pre-sensitized plates for the graphic arts market. The Greenwood manufacturing complex is currently comprised of eight high technology manufacturing plants, the Greenwood Research Laboratories, and the largest Fujifilm distribution center in the world. The 1,600 Associates employed at the 500-acre complex currently manufacture digital and conventional pre-sensitized plates and film for the graphic arts market, 35mm color film and photographic paper, QuickSnap one-time-use recyclable cameras, DLTtape(TM) IV computer data storage media, VHS-format videotape for the consumer and duplication markets, and digital and conventional medical imaging products.

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