Konica Minolta Announces the Establishment of Subsidiaries in China

Pertaining to the press release of November 19, 2004 announcing the establishment of new subsidiaries in People's Republic of China, Konica Minolta Holdings, Inc. hereby announces that investment in the new firms and all procedures for their establishment have been completed, as detailed below.

1. Background of the establishment of the new subsidiaries

Konica Minolta, in order to fully strengthen Konica Minolta Group's sales force in the Chinese market, established an investment company (holding company) 100 per cent owned by Konica Minolta. In addition, we established a manufacturing company under the above mentioned holding company to meet with the expanding demand for digital MFPs (Multi-Functional Peripherals) and laser-beam printers.

2. Outline of the new companies:

2-1. Investment Company (Holding Company)

1) Company Name:
    KONICA MINOLTA (CHINA) INVESTMENT LTD.

2) Representatives:
    Chairman of the Board (part time): Hiroshi Ishiko
    President (full time): Shigeki Suzuki

3) Location:
    Shanghai,People's Republic of China

4) Establishment:
    March 16, 2005

5) Capital investment completed:
    April 11, 2005

6) Paid-in-Capital:
(Registered Capital)
    US$35 million

7) Shareholders:
    100% owned by Konica Minolta Holdings, Inc.

8) Business Activities:
    Investment and Information research activities within China, promotion of the Konica Minolta brand establishment,
and common function assistant and support to the Konica Minolta Group companies within China

2-2. Manufacturing Company

1) Company Name:
    KONICA MINOLTA BUSINESS TECHNOLOGIES (WUXI) CO., LTD.

2) Representatives:
    Chairman of the Board (part time): Chiaki Shino
    President (full time): Shinichiro Kuroiwa

3) Location:
    Wuxi, Jiangsu,People's Republic of China

4) Establishment:
    December 29,2004

5) Capital investment completed:
    April 11, 2005

6) Paid-in-Capital:
    US$35million

7) Shareholders:
    85% owned by the above investment company,
    15% owned by Konica Minolta Business Technologies, Inc.

8) Business Activities:
    Manufacture and development of office equipment, such as digital MFPs and laser-beam printers, and related components