TOKYO, June 5, 2009—Canon Inc. announced today that it would begin construction of Nagasaki Canon Inc. (President: Hiroyuki Wakasa; Location: Higashi Sonogi-gun, Nagasaki Prefecture) in July this year with the aim of starting operation in April of next year.

Original plans for Nagasaki Canon, which will produce digital single-lens reflex (SLR) cameras and compact digital cameras, had called for starting construction in January 2009 and commencing operation in December 2009. The company, however, decided to delay these plans in response to the rapid decline in demand for digital cameras due to the global economic downturn that began last fall.

A careful review of recent market and economic conditions by the company indicates that the digital SLR camera market is recovering steadily and is expected to continue realizing steady growth. The company decided to begin the construction of Nagasaki Canon upon assessing its production allocation for digital cameras from a mid- to long-term perspective.

As of next spring, Nagasaki Canon is scheduled to begin production operations for digital SLR cameras and compact digital cameras in collaboration with Oita Canon Inc., also located in Kyushu.

Overview of Nagasaki Canon Inc. (Newly revised items in bold text)

1. Name: Nagasaki Canon Inc.
2. Location: Hasami-cho, Higashi Sonogi-gun, Nagasaki Prefecture
3. Representative: Hiroyuki Wakasa, President
4. Business activities: Production of compact digital cameras and digital SLR cameras
5. Employees: more than 1,000
6. Capital: 80 million yen
7. Equity structure: Canon Inc.: 100%
8. Establishment: July 2008
9. Land area: approx. 207,000 sq. meters
10. Total floor area: approx. 41,700 sq. meters (Phase 1: 37,400 sq. meters)
11. Investment: approx. 17.4 bil. yen (Phase 1: 14.4 bil. yen)
12. Construction (start): Phase 1: July 2009 (tentative)
13. Construction (end): Phase 1: March 2010 (tentative)
14. Start of operations: April 2010 (tentative)
15. Production capacity: approx. 4 mil. units