Konica Corporation
January 7, 2003

(Continued.)

4. The Effects of the Management Integration

(1) Image information products (Office equipment) business, which is the largest business sector, greatly increases competitiveness through the integration of specialized areas -- color products, high-speed products, and polymerized toner. By improving market presence, in addition to a great increase in the impact the group has on the market, a vast increase in sales is also anticipated.

(2) Optical products business further solidifies the number one position by combining the specialized technologies of Konica and Minolta. A great expansion of micro-camera unit is expected, and the company assumes to achieve the top share in this area.

(3) In camera business and consumer imaging business, the companies expect to achieve increases in profitability and sales through a complete lineup of cameras and photosensitive materials and through enhanced sales forces.

(4) For all of the fields that will be integrated, efficiency will be increased through the reformation of the business structures of each company, the reorganization of corporate structures. Increased purchasing power enables reduction of material costs, and stronger sales force increases sales and profits. Through the effects of the integration, the group expects to achieve annual effects in profit of 50 billion yen.

5. Stock Swap

(1) Schedule (Tentative)
January 16, 2003: Agreement on the stock swap ratio
Mid-May, 2003: Board of Directors meetings to approve the stock swap contract, and the signing of the contract.
End of June, 2003: General shareholders meetings to approve the stock swap contract for the formation of the new integrated holding company.
Beginning of August, 2003: Stock swap for the formation of the new integrated holding company.

(2) Stock Swap Ratio
The stock swap ratio will be determined by agreement between Konica and Minolta based on the evaluation by a third-party.

(3) Items Related to Stock Market Listing after the Integration of Management
After stock swaps, Konica, as the parent company, maintains its listing on the stock markets and Minolta, as a subsidiary, will cease stock market listing by August 2003.

• Attachment(PDF)