Press Release

CANON SHOWCASES FULL DIGITAL RADIOGRAPHY PRODUCT LINE AT AHRA

NEW ASSEMBLY FACILITY IN JAPAN INCREASES SUPPLY OF DIGITAL RADIOGRAPHY SYSTEMS FOR THE U.S. MARKET

IRVINE, CALIFORNIA, August 11, 2003 — Canon Inc. (NYSE: CAJ) has established a new multi-million dollar medical device assembly facility in Japan dedicated to supporting the growing U.S. market demand for digital radiography (DR) systems. The Kamisato Office facility, located in Saitama Prefecture northwest of Tokyo, will increase production capacity and reduce production costs for Canon medical products.

" A state-of-the-art facility that provides us with the ability to mass produce digital radiography sensors is the key to maintaining our leadership position in the DR market," said Neo Imai, director and assistant general manager, medical systems division, Canon U.S.A., Inc. Canon U.S.A., Inc. is a subsidiary of Canon Inc. "We have made a significant investment that allows us to provide a full line of DR systems to meet the growing need in the U.S."

Canon provides the U.S. market — hospitals, medical centers, clinics and private practices — with a full line of DR products, all of which are assembled at this new facility.

DR products that will be displayed at the American Healthcare Radiology Administrators conference (August 10-14, Anaheim Convention Center, Anaheim, California) include:

• Canon CXDI-40G — Designed for all general radiographic applications, it can be installed in a table or used with an upright or universal stand. The versatile 17x17-inch sensor can capture X-ray images from almost any position or angle.

• Canon CXDI-40C — A highly sensitive DR system designed for most general radiographic applications. With advanced technology, it produces detailed patient images. Featuring a 17x17-inch imaging area, it has a very high Detective Quantum Efficiency (DQE) and a high film speed equivalent. These features provide high image quality while reducing X-ray exposure for the patient.

• Canon CXDI-50G — A portable digital radiography system designed for diverse applications that include trauma and bedside exams. It combines a large imaging area (14x17 inches) with a lightweight design (10.6 pounds and less than an inch thick) that extends the range of radiographic exams that can be completed with DR. It is large enough for chest and abdominal X-rays, yet it is as easy to position as a conventional film cassette or computing radiography (CR) imaging plate when performing lateral or axial imaging of limbs and other areas. If necessary, a patient easily can hold the sensor in place during image capture.

• Canon CXDI-31 — Compact and lightweight, the CXDI-31 features a 9x11-inch portable sensor that may be used for trauma, neonatal and orthopedic imaging in addition to other applications that are difficult to set with fixed devices. Canon introduced the CXDI-31 in 2001 as the world's first portable DR system. Recently, it was used to help identify the 3,000 year-old Egyptian mummy Nefertiti.

The new assembly facility officially opened at the end of last year and manufacturing began earlier this year. Unlike most other manufacturers of DR sensors, Canon has the ability to produce all components for each sensor, controlling all production with the Canon-developed process for creating Amorphous sensor technology. The facility has the capacity to manufacture more than 1,000 DR systems each year.

The new facility, which also manufactures and assembles Canon's ophthalmic products and analog X-ray products, employs the cell system, a process in which a team works together to build a product. When compared to conventional conveyer belt manufacturing systems, cell groups are more flexible in handling product mix and meeting fluctuating market demands.

A leader and innovator in the digital radiography market since 1999, Canon has continued to offer cutting-edge DR products with reliable and innovative technology. Canon has produced approximately 1,000 DR systems since manufacturing began in 1997.

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 #43 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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