Fuji Photo Film Establishes Business Development Fund Worth a Total of 20 Billion Yen Incorporating an Internal Venture System

September 16, 2004

Fuji Photo Film Co., Ltd. (President and CEO: Shigetaka Komori; hereinafter referred to as "Fujifilm") has established the "Fujifilm Business Development Fund", aimed at creating new businesses. The total amount of the fund is 20 billion yen, and this shall be utilized for investment into external venture businesses with which Fujifilm considers to have synergy potential. Part of this fund will also be utilized for investments into internal ventures through the newly established "FEA Fund" (Fujifilm Entrepreneur Activity Fund).

Under the mid-term management plan "VISION 75" announced in February this year, accelerating the development of new businesses has been one of the main elements for Fujifilm's future growth strategies. In order to efficiently promote the development of new businesses, Fujifilm reorganized the research and development (R&D) system in January this year, and an "R&D headquarters" has been newly established as an organization that will manage the R&D strategy for the whole Fujifilm group. Also, three corporate laboratories, "Advanced Core Technology Laboratories", "Life Sciences Research Laboratories", and "Imaging Software Technology Center", have been newly established to undertake technological research, and create new future business opportunities from a company-wide point of view. Additionally, steady progress is being made in accordance with the medium-term management plan, such as, establishing "New Business Promotion Division" in April, responsible for launching new businesses, M&A and alliances relating to new businesses.

The establishment of the "Fujifilm Business Development Fund" aims not only to develop new businesses through internal resources, but also to accelerate business development by obtaining technologies, knowledge and know-how through investments into internal and external venture companies.

The "Fujifilm Business Development Fund" will focus on direct investments by Fujifilm into external companies, indirect investments through general venture funds, and investments into internal ventures.

The "FEA Fund" (Fujifilm Entrepreneur Activity Fund) has been established within the framework of the "Fujifilm Business Development Fund" to make investments into internal ventures, which are based on the entrepreneurial proposals of employees. With the "FEA Fund," Fujifilm aims to lay the foundations for new business development, entrepreneurial ideas and business models that are difficult to implement immediately within the existing organization. Employees will be encouraged to propose entrepreneurial ideas and business models and those which pass the screening process will receive support as new business ventures.

Fujifilm will make strategic investments through the "Fujifilm Business Development Fund" over the next three years, leading to the creation of new businesses for the company and to the expansion of business areas.

Outline of "Fujifilm Business Development Fund"
Investment amount:20 billion yen
Period:3 years
Business fields:Areas that are related to Fujifilm's existing business fields

Outline of "FEA Fund" (Fujifilm Entrepreneur Activity Fund)
Investment amount:3 billion yen
-3 billion yen of the "Fujifilm Business Development Fund" has been set aside for the "FEA Fund"
-New entrepreneurial ideas and business models will receive an investment of less than 1 billion yen from the "FEA Fund"
-Investment amounts exceeding 1 billion yen will be treated separately
Period:3 years
Enterprise method:(1)Establishment of independent companies: in principle, Fujifilm shall invest as a majority stakeholder; (2)Internal projects
Screening process:Decision to be made by "FEA Fund Committee"
Application period:At any time
Vision for business:Aim to turn profit in third business year. Set targets for attainment every six months, and decision on continuation or discontinuation to be made by "FEA Fund Committee"
Business fields:Areas that are related to Fujifilm's existing business fields

For further information:
[Media contacts]
Corporate Communications Division
Tel. 81-3-3406-2490

[Business inquiries]
New Business Promotion Division
Tel. 81-3-6418-2833