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Effects of and Measures taken for Earthquake in Northeastern Part of Japan

March 16, 2011

To our customers:

We are sorry to have caused you much concern over the earthquake that hit the northeastern part of Japan on March 11. We are progressing to make recoveries from this disaster by launching a special project for formulating business continuity plans to deal with the consequences of the earthquake, thereby trying to realize recoveries as early a point of time as possible.

The damages our company group has incurred and the measures planned to be taken by us at the present time are described below.

Casualties: There are no deaths or casualties among our company group employees.
Damages to our facilities: The warehouse in Sendai of our subsidiary sales company in Northeastern part of Japan has been damaged.
Capabilities of production of products: There are no adverse effects on our production capabilities of products in China as of now.
Supply of parts and raw materials: We are checking as to whether we will be able to continue supplying necessary parts and raw materials to our Chinese production facilities.
Supply of consumables: The effects on our production capabilities of consumables in Japan are described below.
a. Tatsuno Factory (toner production): There are no adverse effects on production since necessary electricity is supplied by Chubu Electric Power Co. instead of Tokyo Electric Power Co.
b. Kofu Factory (production of toner, developer and organic photo conductor drums): There is an adverse effect due to planned outage of electric power supply by Tokyo Electric Power Co.

We will take the following measures to secure stable supply of our products:
a. We will expect to resume normal production operations from the next week onwards by utilizing our own power generators.
b. We will transfer some toner production operations of Kofu Factory to Tatsuno Factory, which has room for an increase in production, thereby reducing the burden on Kofu Factory.

Although we are still experiencing aftershocks and must be alert to developments of situation, our management together with our employees are determined to take every possible measure in order to continue sound and proper business operations of our company group.

We appreciate very much your kind understanding as to the above and your helpful guidance.

We remain,

Sincerely yours,

Akio Kitani
President and Chief Executive Officer
Konica Minolta Business Technologies, Inc.

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