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Konica Minolta Establishes a New Manufacturing Subsidiary in China

Tokyo (December 17, 2007) --Konica Minolta Business Technologies Inc. announces establishment of a new manufacturing subsidiary, Konica Minolta Business Technologies (Dongguan) Co., Ltd. in Dongguan City, Guangdong Province, People's Republic of China, as a wholly-owned subsidiary of Konica Minolta Business Technologies Manufacturing (HK) Ltd.

Background and purpose of the establishment of a new subsidiary

Since 1994, Konica Minolta Business Technologies Manufacturing (HK) Ltd. has been consigning manufacturing of copiers and printers to Dongguan Shilong Office Machines Factory located in Shilong (a town in Dongguan), while supporting their operation by rendering manufacturing technologies and quality control techniques.

In recent years, as the Chinese government has placed greater emphasis on high-tech industries and environmental concerns, restrictions are being enforced to ban processing trade of low-value-added industries and environmental pollution type industries.

The new company will succeed the Factory's mass-production know-how and a skilled workforce accumulated to-date to avoid any risk arising from these restrictions. At the same time, we aim to enhance the efficiency of manufacturing site in China and strengthen relationship with the local component suppliers, thus further bolster our office equipment business in China.

Konica Minolta Business Technologies (Dongguan) Co., Ltd. was established on the premises of the Dongguan Shilong Office Machines Factory, succeeding its employees and facilities.

Outline of the new subsidiary

1. Name Konica Minolta Business Technologies (Dongguan), Co., Ltd.
(Chinese) 柯尼卡美能達商用科技(東莞)有限公司
2. Representative Seiichi Suzuki, (Chairman)
3. Location Dongguan City, Guangdong Province, People's Republic of China
4. Establishment November 12, 2007
5. Operation  to start in April 2008 (plan)
6. Paid-in-Capital US$20 million
(100% owned by Konica Minolta Business Technologies Manufacturing (HK) Ltd. )
7. Employees approximately 5,000
8. Business activities research and development, design and manufacture of copiers, printers and related components, and sale of own products
9. Lot area 80,000 square meters

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