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CANON U.S.A. AND KPG ANNOUNCE RESELLER RELATIONSHIP TO DELIVER SHORT RUN COLOR IMAGING SOLUTIONS



LAKE SUCCESS, NY — May 6, 2004 — Canon U.S.A., Inc., a subsidiary of Canon Inc. (NYSE: CAJ) and the nation's market share brand leader in black-and-white and color laser copier/printer solutions* and Kodak Polychrome Graphics, LLC (KPG), today announced an agreement whereby KPG will become a reseller of current Canon branded CLC products and accessories in the United States. The reseller agreement is expected to expand the presence of both companies in the U.S. graphic arts and commercial print markets.


Instrumental to Canon's 17-year ownership of the No. 1 brand market position in color copier/printer solutions*, Canon's CLC product line features optimized speed, media flexibility and enhanced control technologies to meet production-grade workflow demands.

"Incorporating Canon CLC color printers into our product portfolio is a key component of our commitment to providing customers with the best digital opportunities, including CtP, DI and digital printing. We will continue to go to market with a mix of KPG branded products and offerings delivered in combination with strategic partners," says John Schloff, KPG staff vice president, Digital Printing.

The agreement includes the Canon CLC 1100 series, CLC 4000 and CLC 5100 toner-based color copiers and associated accessories. The CLC 1100 series, combined with KPG's Matchprint Professional Server, is ideally suited to proofing and very short runs, while the Canon CLC 4000 and CLC 5100, combined with the Canon ColorPass Servers, are designed for short run and variable data applications.

Adds Ted Arai, director and general manager, Graphic Arts Systems Division, Canon U.S.A. "We're delighted to partner with KPG. We believe the company's graphic arts market expertise and penetration will help provide an extremely efficient and effective channel into one of Canon USA's major growth segments."

The Canon range of CLC products are targeted at digital service providers, such as service bureaus and prepress houses. Additionally, color trade shops will also be targeted, which would include stock photography businesses as well as print providers, including quick printers and small- to medium-sized commercial offset printers.

These new digital print offerings will allow KPG customers to produce fast turn-around, short-run, four-color printing and enable them to take advantage of new and profitable markets. KPG and Canon will continue to offer the KPG Matchprint Professional Server with the CLC 1100 series as an integrated proofing and short-run printing solution**. The integrated product provides a FOGRA and SWOP-certified production solution for color-critical, short-run digital.

SWOP — Specifications for Web Offset Publications — is the publishing industry's premier standards organization. SWOP maintains recommended specifications for materials supplied by advertisers, publishers, printers, advertising agencies, and prepress service providers to ensure color accuracy and the highest image quality in printed publications.

About Canon U.S.A., Inc.
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 #39 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 2003, with global revenues of $29.9 billion. For more information, visit www.usa.canon.com.
About Kodak Polychrome Graphics
Kodak Polychrome Graphics provides one of the broadest portfolios of digital, conventional and business solutions available in the graphic arts industry today. Products and services include a wide range of computer-to-plate and conventional lithographic plate products, digital halftone, virtual, inkjet, and analog proofing products, digital printing applications, color workflow tools, business solutions and Kodak branded graphic arts films. With headquarters in Norwalk, Connecticut, USA, KPG serves customers around the globe with regional offices in the United States, Europe, Japan, Asia Pacific and Latin America. Additional information regarding Kodak Polychrome Graphics may be found on the company's website: www.kpgraphics.com.
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