Notice Regarding Recording of Extraordinary Income (Gain on Extinguishment of Tie-in Shares) as a Result of Absorption Merger of Subsidiaries

Company Name: Konica Minolta, Inc.
Representative Name: Masatoshi Matsuzaki, President and CEO
Local Securities Code Number: 4902
Contact: Yuki Kobayashi, General Manager, CSR, Corporate Communications & Branding Division
Tel: (81) 3-6250-2100

Tokyo (July 30, 2013) - As Konica Minolta, Inc. ("the Company") announced in the news release entitled "Notice Regarding Reorganization in the Group Management Systems (Simplified Merger with Consolidated Subsidiary), Change of Trade Name and Partial Revision of Articles of Incorporation" dated October 10, 2012, the Company implemented, as of April 1, 2013, the management system reorganization to merge seven group companies, including Konica Minolta Business Technologies, Inc. As a result of the merger, the Company recorded "a gain on extinguishment of tie-in shares" as extraordinary income in its non-consolidated financial statements as follows:

As of the effective date of the merger (April 1, 2013) the Company will record the difference between the net assets received from the seven merged companies (Konica Minolta Business Technologies, Inc., Konica Minolta Advanced Layers, Inc., Konica Minotla Optics, Inc., Konica Minolta Medical & Graphic, Inc., Konica Minolta IJ Technologies, Inc., Konica Minolta Technology Center, Inc. and Konica Minolta Business Expert, Inc.) and the book values of the shares of those seven companies (tie-in share), as extraordinairy income in the form of "a gain on extinguishment of tie-in shares."

(1) Amount of extraordinary income: 115,046 million yen

(2) Effective date: April 1, 2013

Because the seven merged companies were wholly-owned subsidiaries of the Company, the recording of extraordinary income will not have any impact on the Company's consolidated financial results.

The Company will record 115,046 million yen of extraordinary income (gain on extinguishment of tie-in shares) for the fiscal year ending March 31, 2014.