Fujifilm and Mitsubishi Paper Mills forge partnership in the photographic business

August 28, 2007

FUJIFILM Corporation
Mitsubishi Paper Mills Ltd.

FUJIFILM Corporation (President and CEO Shigetaka Komori, hereafter “FUJIFILM”) and Mitsubishi Paper Mills Ltd. (President Takeshi Sato, hereafter “Mitsubishi Paper Mills”) have reached a basic agreement to forge a partnership in the photographic business, with focus on the area of photographic paper, to mutually reinforce their business operations and international competitiveness. The two companies will enter into further detailed negotiations in the near future.

The recent proliferation of digital cameras has diversified the ways consumers enjoy photography, e.g. viewing shots on computers or sending them over the Internet, in addition to the silver halide photography prints*1 printed on conventional photographic papers. At the same time, the number of photos people take with digital cameras has substantially increased, pointing to a demand surge for high-quality, fade-resistant silver halide photo prints.
For many years, FUJIFILM and Mitsubishi Paper Mills have developed quality photographic papers in response to various customer needs, and expanded the demand for silver halide prints across the world.
This partnership between FUJIFILM and Mitsubishi Paper Mills is aimed at improving efficiency and mutually reinforcing their business operations through allowing the companies to tap into each other••s advanced technological capacity in their respective fields of expertise, to build a cooperate relationship for photographic paper production with a global perspective.

FUJIFILM and Mitsubishi Paper Mills will contribute to the further development of the culture of photography by supplying high-quality photographic papers that meet customer needs in the world of imaging, which is expected to continue making further development in the future.
*1 Photo prints obtained by exposing and processing photographic emulsion layers containing silver halide and color couplers on the base film

Details of business partnership
(1)  FUJIFILM and Mitsubishi Paper Mills will build a cooperate relationship to improve global production efficiency of photographic papers toward enhancing competitive edge of their businesses. As a part of partnership, FUJIFILM shall receive the supply of paper base for producing photographic papers from Mitsubishi Paper Mills.
(2)  Mitsubishi Paper Mills will invest in the development of base-paper manufacturing facilities and associated environmental measures (approximately 4 billion yen in total) to ensure stable supply of paper base for producing photographic papers to FUJIFILM. To this end, Mitsubishi Paper Mills will increase capital by approximately 2 billion yen through the third-party allocation of new shares to FUJIFILM.

The two companies will actively build a far-reaching partnership beyond the imaging department to reinforce each other’s individual business operations and international competitiveness, thereby enhancing the corporate values of both parties.

Media Contact:
FUJIFILM Corporation
Corporate Public Relations Division
Tel: +81-3-6271-2000
Management Planning Department,
President’s Office, Mitsubishi Paper Mills Ltd.
Tel: +81-3-3213-3763