Konica Minolta Splits its Inkjet Print Heads and Textile Print Systems Businesses into a Separate Company

Konica Minolta Holdings, Inc. announces establishment of a new business company “Konica Minolta IJ Technologies, Inc.” in order to expand its new businesses concerning print head components for commercial use inkjet printers and textile print systems.

The new business company will succeed to the inkjet technology business, which will be split from Konica Minolta Group’s research and development function company on core technologies -- Konica Minolta Technology Center, Inc., and is planned to be established on January 5, 2005. The new company expects to gain sales of over 10 billion yen within three years after the establishment.

After the management integration in August 2003 followed by the operational reorganization in October, and the integration of the photo and camera businesses in April 2004, Konica Minolta speedily carried out management under a holding company system. Also, as one of its basic policies, Konica Minolta pursues portfolio management, and takes such measures as allocation of its management resources to the strategic fields where growth is expected, and incubation of new businesses. For the most promising business, we will foster it to become a competitive company by spinning off as an independent company to expand its business through speedy management decision-making.

We have nurtured inkjet related business as one of the most promising fields and aimed to separate the business from Konica Minolta Technology Center, Inc., which is in charge of Konica Minolta Group’s research and development of cutting-edge technologies and core technologies. High-speed, high-precision inkjet printer market started out with a large-format printer. The market is quickly expanding its application fields to various industrial uses such as display advertising. In such environment, Konica Minolta decided to spin off and expand the print head and textile print businesses in the form of Konica Minolta Group’s first independent company to be established after the Konica Minolta management integration.

Under the holding company system, we will continue to aggressively manage to promote new business opportunities by shifting new businesses within the group to become independent companies as part of our management policies. On the other hand, the new spun-off company, by further enhancing management freedom, will endeavor to speedily seek the needs of various customers.

Company name

Konica Minolta IJ Technologies, Inc.

Location of head office

1 Sakura-machi, Hino, Tokyo

Establishment

January 5, 2005 (plan)

Representative

Akiyoshi Ohno

Pain-in-Capital

10 million yen

Employees

Approx. 130

Fiscal Year End

March 31

Shareholders

100% Konica Minolta Holdings, Inc.

Business Activities

1.Research and development, manufacture, and sale of inkjet print heads

The new company develops inkjet print heads compatible with various types of ink (solvent, oil, UV hardening, aqueous). Compared with other inkjet print head makers, Konica Minolta’s advantage is our long experience and know-how in fine chemistry and ink through development and manufacturing of photographic materials.

Konica Minolta is able to supply various inkjet print heads applicable to diversified printers from high-speed large-format type to high-definition type comparable to gravure prints.

We realized 360 dpi inkjet print head, which is the highest density level for industrial use and is capable of one-pass printing. Also, our inkjet print heads can be easily set in parallel, in order to meet the needs of wider one-pass prints. Moreover, our inkjet print heads are applicable to display manufacturing equipment, which requires ultra high-precision inkjet print heads.

2.Research and development, manufacture, and sale of textile print system

Our latest model of the textile printing system is possible of printing at 40 sq. meters per hour, which is the industry’s highest level of speed at high-definition mode. (60 sq. meters per hour at high-speed mode)

The system is capable of printing on various textiles from thick materials such as towel and moquette to stretch materials used for swimwears, and thin materials.

Having long experience and know-how in fine chemistry through development and manufacturing of photographic materials, we are able to develop and provide brilliant and durable ink for textiles.