Fujifilm Group Adopts Holding Company Structure

October 31, 2005

Fuji Photo Film Co, Ltd. (President and CEO: Shigetaka Komori; hereinafter referred to as "Fujifilm") announced today after its Board of Directors meeting that it will move towards a holding company structure scheduled October 1, 2006. The change is subject to approval at the annual Shareholders' Meeting in June 2006.
This decision is made to enhance consolidated management, one of the three basic strategies of the VISION75 medium-term management plan. A new group management structure will be able to focus on the growth of the entire group. In particular, the concentration of head office functions of both Fujifilm and Fuji Xerox Co., Ltd. (President: Toshio Arima; hereinafter referred to as "Fuji Xerox") into the Tokyo Midtown Project Midtown Front Tower in January 2007 allows an increased opportunity to strengthen the group management structure, further proceed strategic collaborations between Fujifilm and Fuji Xerox in alignment with Xerox Corporation, which holds a 25 percent ownership stake in Fuji Xerox, and bring about more synergistic benefits.

Further details regarding the functions of the holding company and group management system after the transition shall be announced as soon as such information becomes available.

1. Purpose of establishing the holding company
(1) To strengthen strategic management of the entire group
The holding company will oversee strategic planning of the entire group, manage it on a group-wide basis, and strengthen the competitive position of each group business.
(2) To effectively manage resource allocation
The holding company will introduce various strategic measures to efficiently allocate resources within the group. In addition, the new structure will allow for quicker and smoother implementation of business reorganization and structural reforms including business alliances and business divestitures.
(3) To increase areas of synergy among group companies
With the holding company, we expect to realize an increase in the areas of synergy among group companies, to effect information and personnel exchanges within the group, and also to improve efficiency by consolidating common and regular operations.

2. Implementation Date
Late June 2006: Proposals related to the holding company to be officially approved at the annual shareholders' meeting.
October 1, 2006: A new holding company is scheduled to be established.

3. Method of establishing the holding company
Fujifilm will be the new holding company, and the current business of Fujifilm will be transferred to the newly created operating company. The holding company will continue to hold the shares of Fuji Xerox.

Media Contact:
Fuji Photo Film Co., Ltd.
Corporate Communications Division, Public Relations Division
Tel: 81-3-3406-2490
Fujifilm website:
Japanese :http://fujifilm.jp/
English :http://www.fujifilm.com/