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CANON U.S.A. INTRODUCES NEW PRODUCT ADDITIONS AND FEATURES FOR imageRUNNER LINE AND PRINT ON DEMAND ENVIRONMENTS

New Print On Demand Offerings Broaden Customer Options in Meeting Existing Application Requirements

CHICAGO, May 6, 2003 - Canon U.S.A., Inc., a subsidiary of Canon Inc. (NYSE: CAJ) and a leader in networked imaging solutions, today announced several significant product additions and new features for the Canon imageRUNNER product line and for Print On Demand (POD) environments.


The new additions, including magnetic ink character recognition (MICR) printing and the Bourg Perforating Rotating Folding Unit (BPRF) for Canon imageRUNNER 110 and imageRUNNER Pro 150+, will be unveiled at the Canon Digital Solutions Forum 2003, an annual showcase of the Company's technological leadership and strategic vision being held throughout a 100,000+ square foot exhibit at the McCormick Place Convention Center in Chicago, May 6 - 7.

"Canon is extremely pleased to bring to our customers an ever expanding array of technology suited for high production requirements," said Dennis Amorosano, director and assistant general manager, Canon U.S.A. Integrated Business Systems Division. "Through the implementation of these new products, customers can significantly impact throughput, be more productive, and support a wider array of On Demand applications."

MICR Printing
Canon is expanding its capability to support transactional, On Demand print applications through the delivery of the imageRUNNER 110M. Using interchangeable toning stations and MICR font security the imageRUNNER 110M is equally adept at handling both MICR printing applications such as checks, coupons, rebates, and financial documents while also supporting standard On Demand applications. Offering the same functionality and accessory support as Canon's existing imageRUNNER 110, the imageRUNNER 110M offers significant flexibility in meeting diverse customer application needs.

The new imageRUNNER 110M is expected to be available in June 2003 at a suggested retail price of $235,000.

BPRF
For use with imageRUNNER 110 and 150 Pro+ engines, the C.P. Bourg BPRF module enables 2-up printing for in-line perfect binding, transforming sheets of paper into signatures by a process of perforation rotation and folding for bound books. It helps to eliminate paper waste, reduces per page charges and doubles productivity in producing small size books by increasing the number that can be produced per hour. Supporting 8.5 x 11 inch and A4 paper sizes, the BPRF is also capable of supporting paper sizes up to 11 x 17 inches. The C.P. Bourg BPRF is expected to be available during the third quarter of 2003.

New In-Line Punching Tool
A productivity enhancing accessory for the imageRUNNER 110 and 150 Pro+, the In-Line Puncher unit supports multiple, interchangeable punch tools for varying customer applications. The newest punch tool supports the creation of rectangular holes designed for plastic comb finishing applications such as those typically found with training materials and calendars. Available in June 2003, it has a suggested retail price of $8,000.

ImageSmart 2.2
Version 2.2 of ImageSmart Document Mastering Software provides users with a simple, fast and reliable workflow tool for boosting productivity in digital prepress environments. Based on standard PDF workflow, ImageSmart 2.2 delivers new job setup and workflow capabilities including the enhanced SmartBoard 1.2 plug-in for taking advantage of imageRUNNER 110, 110M, and 150 Pro+ device features, and a new tab creation and enhanced image editing tool.

• Through the use of ImageSmart 2.2, users can significantly improve document "make-ready" and production workflow, driving greater job throughput and performance.
• ImageSmart 2.2, a free upgrade for existing customers, will be available in June 2003.

T/R Systems Digital StoreFront
In collaboration with T/R SYSTEMS, INC. (NASDAQ:TRSI), a leader in developing innovative solutions for the management and production of digital documents, Canon has made available through authorized dealers and subsidiaries the Digital StoreFront, a fully automated web storefront solution. Designed to increase competitiveness and productivity for in-plants and On-Demand printers, Digital StoreFront simplifies the job submission and proofing process, automates quoting and maximizes device utilization and job turnaround.

Digital StoreFront is a customizable software solution that print providers own, host and control. Service providers can modify storefronts as needed, and print center hosting ensures the confidentiality of customer information. Since Digital StoreFront is not based
on an Application Service Provider (ASP) system, there aren't any hosting or transaction fees.

Digital StoreFront's easy-to-use, fully automated processes allow customers to securely submit native files over the Internet. The documents are automatically converted into PDF for immediate review. Then, the customer provides specifications for the job and Digital StoreFront generates an on-line quote and order confirmation. Subsequently, a job ticket is created and the file is submitted into the print provider's workflow. To increase printing productivity, Digital StoreFront integrates with a wide range of printing systems, including the T/R Systems MicroPress® for Canon.

Pricing for Digital StoreFront implementations vary based on specific customer implementation and functional requirements.

I-O Corp. 5755dp Host to Net Gateway
The I-O 5755dp Host to Net Gateway for production capable Canon imageRUNNERs is designed to convert native IPDS and SCS IBM host data streams to PCL for delivery to Canon imageRUNNER engines for printing. The 5755dp is a high speed Ethernet-In, Ethernet-out gateway print server delivering maximum throughput on Canon imageRUNNER 7200/8500/105/85 systems. The I-O 5755 dp Host to Net Gateway solution goes beyond basic print functionality by delivering the unique paper handling and finishing capabilities for the Canon imageRUNNER to host print environments.

The 5755dp is a one-to-one solution that offers the same reliable full-function IBM host printing and control found with direct twinax/coax attached printers. It can support speeds up to 100 letter-size pages-per-minute when connected to a Canon imageRUNNER and is capable of supporting simultaneous connections to both host systems and standard Wintel environments.

Key features include high-speed printing, remote printing, control of print jobs with access to error reporting, job recovery, page range printing, and ease of configuration and installation.

The I-O 5755dp Host to Net Gateway will be available in June 2003 at a suggested retail price of $3,500.

imageRUNNER Large Size Paper Decks
To address the needs of legal, healthcare, and insurance industry customers, Canon will make available new large size paper decks for production level imageRUNNER devices including the imageRUNNER 7200, 85, 8500, and 105. The Side Paper Deck-S1 will support the imageRUNNER 105, while the Side Paper Deck-T1 will support imageRUNNER 7200 through 8500 models.

An optional accessory for these imageRUNNER engines, the large size paper decks are user adjustable and capable of supporting paper sizes including LTR, LGL, and 11x17. Up to 3500 sheets can be housed in the paper decks for all sizes.

The imageRUNNER large sized paper decks will be available in June 2003 at a suggested retail price of $3,000.

Canon U.S.A., Inc. delivers consumer, business-to-business, and industrial imaging solutions. The Company is listed as one of Fortune's Most Admired Companies in America, and is ranked # 41 on the Business Week list of "Top 100 Brands." Its parent company Canon Inc. (NYSE:CAJ) is a top patent-holder of technology, ranking second overall in the U.S. in 2002, with global revenues of $24.5 billion. Canon U.S.A. employs over 10,000 people at over 30 locations. For more information, visit www.usa.canon.com.
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