Fujifilm Acquires Land for a New FUJITAC Plant in Kumamoto Prefecture to Expand Production Capabilities for Flat-Panel Display Materials. Invests over 100 Billion Yen in New Plant Construction and Related Facilities

November 1, 2004

Fuji Photo Film Co., Ltd. (President and CEO: Shigetaka Komori; hereinafter referred to as "Fujifilm") has decided to acquire land for a new plant in Kumamoto Prefecture to facilitate the rapid expansion of its flat-panel display materials business, one of its new core businesses. It plans to invest a total of more than 100 billion yen in construction of a new FUJITAC*1 plant, related facilities, etc.

In connection with the expansion of the flat-panel display market in recent years, Fujifilm has made continuous investments to expand R&D and production capabilities at the Fujifilm Ashigara Factory in Minami Ashigara-shi, Kanagawa Prefecture and in FUJIFILM Opt Materials Co., Ltd. in Haibara-gun, Shizuoka Prefecture. However, in order to accommodate the growth in the size of monitors and laptop computer screens and the rapid growth in the market for LCD televisions, it has decided to acquire land for a new plant. In consideration of the need to distribute its plants geographically for risk management purposes and for convenience in supplying regions of Asia where demand is concentrated, Fujifilm has selected a site in Kikuyo-machi, Kikuchi-gun, Kumamoto Prefecture in southwest Japan (total area: 26.2 ha) as the location for this new plant. On this site, Fujifilm will invest a total of more than 100 billion yen for construction of a new plant, related facilities, etc. to respond to demand for FUJITAC, which is expected to show massive future growth. The new plant is planned to begin operations at the end of 2006.

To maintain pace with rapidly growing FUJITAC demand brought about by the expansion in LCD panel production, and to continue to provide a stable future supply, Fujifilm will upwardly revise FUJITAC prices this fall, allowing aggressive future investments.

Summary of new FUJITAC plant site:

Location: Kikuyo-machi, Kikuchi-gun, Kumamoto Prefecture (former site of the Kumamoto Plant of Tsuzuki Spinning Co., Ltd.)
Purpose of site acquisition: production of FUJITAC flat-panel display materials
Area: 26.2 ha
Total amount invested: more than 100 billion yen (planned)

Fujifilm contributes to the flat-panel display market with four strong products: FUJITAC*1, which is a polarizing plate material indispensable to the LCD panels that dominate flat-panel displays; WV Film*2, which widens viewing angles; CV Film*3, which has strong antireflective effects on panel screens; and Transer*4, a film used to produce color filters. In addition to these four core products, Fujifilm will utilize its own technologies to develop and sell new products for use in LCD televisions, a market expected to grow rapidly in the future. It aims to achieve sales of more than 200 billion yen in its flat-panel display materials business in FY 2008.

In the future as well, Fujifilm will make efforts including aggressive capital investment and R & D investment for developing new products.

*1 FUJITAC: Made from cellulose triacetate (TAC) material, FUJITAC contains superior optical qualities and is used as a protective film for the polarizing plates used in LCDs.
*2 WV Film: A film that greatly widens the viewing angles of LCD panels. A product unique to Fujifilm.
*3 CV Film: An antireflective film for the surfaces of LCD panels. Its characteristics include low reflectivity, high precision, and high resistance to dust and dirt.
*4 Transer: A film used to produce color filters for LCDs. A color LCD panel is created by transferring red, green, blue, and black color layers from this film to the glass board using the dry lamination technique. It is optimal for use in manufacturing large LCD panels.

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)