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July 10,2006

Dai Nippon Printing Co. Ltd.

Konica Minolta Holdings, Inc.

Konica Minolta Transfers the Odawara Site to DNP

Dai Nippon Printing Co. Ltd. (DNP) and Konica Minolta Holdings, Inc. (Konica Minolta) have reached agreement and today exchanged contracts on DNP taking over the Konica Minolta Odawara site, where Konica Minolta manufactures silver halide color photographic paper (color photographic paper). DNP will take over the land, buildings and color photographic paper manufacturing business, and from October 1, 2006 plans to operate the business as a wholly-owned subsidiary.

As a result of this agreement, DNP will make effective use of quality and production control technologies for color photographic paper in the manufacture of dye sublimation thermal transfer recording media(*1).

In concrete terms, DNP plans to commence the production of receiver paper for dye sublimation thermal transfer recording method at the Odawara site from 2008. DNP, thereby, is aiming for dramatic improvements in performance, quality stability and productivity compared to existing receiver paper manufacturing methods. DNP also plans to position the Odawara site as the core production base for the digital photo print business via the production of receiver paper for dye sublimation thermal transfer recording method.

DNP will also take over the manufacture of color photographic paper, and will be supplying this to the clients in Japan and abroad.

Konica Minolta, with a view to concentrate in its core “business technologies” segment, its strategic “optics and display devices” segment and its growth expected “medical and healthcare” segment on the basis of “selection and concentration,” has decided in January to withdraw from its camera and photo businesses. In this regard, Konica Minolta has been thoroughly considering how to make effective use of color photographic paper manufacturing site in Odawara in the future, and has reached the agreement with DNP this time.

DNP commenced production of dye sublimation thermal transfer recording media from the late 1980's, and in addition to capturing top global share purchased Pixel Magic Imaging TM (*2) of San Marcos, Texas in 2004. In Japan, DNP has operated the digital photo printing service “PrintRush,” (*3) a kiosk terminal format self-printing system from 2005

On July 1, 2006, DNP also took over two businesses from Konica Minolta, establishing DNP ID Imaging Co. Ltd., which will conduct an ID imaging business (*4) and DNP Photo Supplies Marketing Co. Ltd., which will carry out the domestic sales of photo related products. In addition to these businesses, by taking over the manufacturing business of the Odawara site, DNP aims to put into place a system to supply total products and services related to digital print photographs, from the manufacture of various print media, through the development and marketing of print systems, all while planning further business expansion.

Overview of the Odawara site
Location Horinouchi 28, Odawara City, Kanagawa Prefecture
Site area 41,120 m2
Main facilities Color paper plant, slitter and packaging machine
Dye sublimation thermal transfer recording media
Media used when printing digitally photographed images. Composed of an ink ribbon made up of yellow, magenta and cyan along with a transparent overcoat layer and dedicated receiver paper. As the dye is transferred in line with the density of the image in question a smooth tone can be achieved, and it is also is possible to reproduce high definition images of a quality to silver halide photographs. DNP captured and has maintained top share in this area since the late 1980's, and supplies products on an OEM basis to printer makers.
Pixel Magic Imaging TM:
Pixel Magic Imaging TM was founded in 1992. The company develops and markets the dye sublimation digital photo print system (kiosk terminal format, digital print reception terminal format, thermal minilab) along with the development and marketing of related software. The company plans to set up over 5,000 kiosks in North America by 2006, a track record which makes Pixel Magic Imaging TM the No. 2 global player in its field.
A digital photo print system developed by DNP PrintRush that facilitates the printing of images photographed with digital cameras and mobile phones. Consumers can print out photographs in a world beating three seconds per sheet on the spot at self-service kiosk terminals. Terminals are in place at consumer electronics mass merchandisers and DPE outlets throughout Japan, and DNP is aiming to top the 2000 unit by the end of March, 2007.
ID imaging business
A business which operates the photographing and marketing of ID photos that setting up ID photo boxes at railway stations and shopping centers, while also providing related consumer articles, and carrying out maintenance and servicing.

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