Fuji Photo Film Co., Ltd. Purchases Arch Chemicals' Microelectronic Materials Business, Further Expanding Global Presence

October 25, 2004

Fuji Photo Film Co., Ltd. (hereinafter referred to as "Fujifilm"; President: Shigetaka Komori; NASDAQ: FUJIY) announced today that it has reached an agreement to purchase the majority of the operations of the Microelectronic Materials Business of Arch Chemicals, Inc. of the United States (headquarters: Norwalk, Connecticut; NYSE : ARJ) The business handles research and development and the manufacture and sale of semiconductor-related chemical products.

Fujifilm will also purchase the 49% equity interest held by Arch Chemicals in the current joint venture, FUJIFILM Arch Co., Ltd. (hereinafter referred to as "FUJIFILM Arch"; President: Masaaki Takimoto), thus making FUJIFILM Arch a wholly owned subsidiary of Fujifilm with a new name, FUJIFILM Electronic Materials Co., Ltd.

Total amount of the purchase will be approximately US$160 million.

Fujifilm established FUJIFILM Arch in 1983 as a joint venture with the Phillip A. Hunt Chemical Corporation (now Arch Chemicals, Inc.). Since then, FUJIFILM Arch has expanded its business by providing photosensitive materials such as photoresists used in the manufacture of semiconductors, and the color resist "Color Mosaic" used by electronics industries in Japan and east Asia for color filters for liquid-crystal displays (LCDs) and image sensors.

The semiconductor processing materials business is expected to grow significantly as the global market of the photoresists (posiresists) for semiconductor manufacturing is said to be growing 9% annually and the market volume is expected to exceed 100 billion yen by 2008. The global market for the color resists for production of the color filter used in LCD and image sensors is said to be growing 8% annually and the market volume is expected to be approximately 40 billion yen by 2008.

Through this acquisition, FUJIFILM Electronic Materials is able to expand its semiconductor processing materials business globally by integrating marketing functions in the European and North American markets. Focusing Fujifilm Group's technological expertise, FUJIFILM Electronic Materials will also further enrich the broad product group Arch Chemicals' Microelectronic Materials Business possesses and broaden the scope of its businesses to the whole field of the electronics industry, including the high-density mounting field, and not limited only to the semiconductor and LCD fields.

FUJIFILM Electronic Materials will also improve the already high level of trust it has from its customers worldwide by strengthening its research and development and production functions, increasing cost competitiveness and enhancing its sales and service network.

A summary of
the Microelectronic Materials Business operations (some sections excluded) acquired
Sales:US$ 135 million (for the fiscal year ended December 2003)
Facilities:Four manufacturing plants and R&D facilities (three in North America and one in Europe), seven sales offices (one in North America, four in Europe and two in Asia)
Employees:417 (as of the end of October 2003)

Media Contact:
Fuji Photo Film Co. Ltd.,
Corporate Communications Division, Public Relations Division
TEL: 81-3-3406-2490

Website: http://www.fujifilm.co.jp/ (Japanese)
http://www.fujifilm.com/ (English)