Canon Consistently Ranked Among the Top Three U.S. Patent Holders for the Past 17 Years

One measurement of a company’s R&D capabilities is the number of U.S. patents it acquires. For 22 of the last 23 years, Canon has maintained ranking in the top five. In 2008 Canon ranked third in the world for receiving patents in the private sector from the U.S. Patents and Trademark Office, with 2,114 patents awarded. In the ongoing effort to continually enhance its market position, Canon strives to produce new patent-protected products as well as develop innova tive technologies.

Exceptional Service and Support Canon’s Systems and Technical Support Division delivers

world-class support value to our Channel Partners and customers, resulting in the highest level of customer satisfaction. The high standards of Canon support are accomplished by providing extensive product and solutions training to our Partners, who are supported by the expertise of our award-winning “Center of Excellence” Technical Support Center. Based on an independent industry study commissioned by Canon’s Imaging Systems Group, the Systems and Technical Support Division’s support services continue to be rated “number One” as compared to Ricoh, Hewlett-Packard, Sharp, Konica Minolta, and other competitors. In addition, our Servicing Partners provided Canon Systems and Technical Support Division with the highest score-to-date in Overall Support Satisfaction for the past five years.

Source: Gartner, Inc. Printer, Copier, and MFP Quaterly Statistics United States (Unit Shipments): Database by Federico De Silva Leon,

Cindy K. Mesaki, and Sergio Santos, February 11, 2009

The Top Reasons Canon Holds the

#1 Position Overall in the Copier Industry

Canon Captures Overall Brand Leader Ranking for Past10 Years

Canon Revolutionizes Imaging Technology and Encourages Industry Trends

Canon has successfully produced technological advancements in all product categories in which it competes, making the company a pioneer of many technologies, features, and capabilities. Products developed from Canon’s R&D and patented technology include the laser beam print engine, Bubble Jet Printing systems, plain-paper copying devices, eye-control focus systems for cameras and camcorders, and optical image stabilization for video cameras, broadcast lenses, camera lenses, and binoculars. These advancements enable the company to maintain the market position and the reputation of a leader. Canon also has led industry trends promoting the first Multifunctional Peripheral (MFP) and the first Color Laser Copier (CLC®).

The MFP trend began with the GP® Series devices in 1994 and continues today with ever-evolving technology and advancements. Canon was first-to-market with a customi-zable architecture called MEAP® (Multifunctional Embed-ded Application Platform). Canon has been at the forefront of the business color/office color device category, first-to-market with Web Access software for multifunctional devices, and much more.

Strong Sales Distribution Channels are an Integral Part of Canon’s Success

Canon U.S.A. has a strong dealer network, which provides customers with a choice when it comes to selecting the dealer that best suits their needs. Canon’s highly skilled dealer network provides technical and sales expertise to customers, enabling them to implement the right solution for their application workflows. Canon is committed to training our sales channels and, as a result, Canon U.S.A. sales channels are of the most skilled in the industry. For the third year in a row, in 2008, the Computing Technology Industry Association (CompTIA) recognized Canon field staff with the Strongest Advocate of CDIA+ Certification Achievement Award. The industry leadership award recognizes Canon’s CDIA+ education program and indicates Canon’s advocacy of well trained, well developed certified sales professionals. This certification is part of Canon’s overall commitment to sales training as well as maintaining qualified sales professionals throughout our channels.

Canon Offers More Complete Solutions with the Alliance Marketing Program

Canon is committed to helping its customers meet their digital office needs by delivering best-in-class products and solutions. As part of that commitment, Canon developed the Canon Alliance Program. This enables Canon to partner with other leading software and hardware companies to deliver new solutions that bring added value and satisfaction to their end-customers.

The Alliance program has identified partners that can provide solutions for document management and distribution, enterprise printing, host printing, variable data printing, document accounting, output manage-ment, network/device management, and production printing environments. In addition, Canon has developed industry-specific solutions and workflows to assist with the challenges companies face from regulations such as HIPAA, Sarbanes-Oxley and Gramm-Leach-Bliley Acts, and Bates numbering legal documents.

Delivering Greater Value with Professional Services and Solutions

Canon’s extensive portfolio of Professional Service delivers value to customers by designing and implement-ing solutions that create a positive impact on business application workflow and user productivity. The portfolio includes output assessment, document workflow analysis, Software Development Kits, customized software includ-ing MEAP and Windows® applications, and software engineering support. Backed by Canon’s extensive portfolio of hardware and software solutions, Canon’s services keep customers ahead of the competition by providing the tools needed to increase operational effectiveness.

Canon Wins Countless Awards As a testament to Canon’s leading market positions and

innovative technology, there are numerous awards and acknowledgements that Canon has received from various third parties. Those listed here acknowledge Canon as a company. Canon products have also received several product-specific awards not listed below.

• Canon U.S.A., Inc. was ranked #1 in office copier product category in Brandweek’s Annual Customer Loyalty Survey for nine of the 11 years of the survey's existence.

The Overall Copier Market Share Leader

• Canon was named to Fortune Magazine’s list of Global Admired Companies in 2008.

• Canon is ranked #36 in Computer Hardware Industry for Interbrand's Best Global Brands in 2008.

• For the sixth consecutive year, Canon was presented the award for 2007 "Strongest Advocate of CDIA+ Certification" Achievement Award.

• Canon received the prestigious "MFP Line of the Year" Award from Buyers Laboratory Inc. (BLI) 2008. This is the sixth time since 2000 Canon has received the "Line of the Year" Award from BLI.

• Canon U.S.A., Inc. received the EnERGY STAR® Partner of the Year Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy in 2005 for the fourth time. Canon has also received six other EnERGY STAR awards in recognition of its dedication to the environment, contributions to reducing greenhouse gas emissions, and its history of producing energy-efficient products.

• Canon U.S.A., Inc., Imaging Systems Group, Systems and Technical Support Division receives the presti-

gious “Center of Excellence” by Benchmark-Portal in collaboration with the Center for Customer-Driven Quality at Purdue Univer-sity. The Center of Excellence recognition is one of the most prestigious awards in the Service and Support industry.

• Canon U.S.A., Inc. has received five WasteWise Awards from the U.S. Environmental Protection Agency for implementing a “comprehensive waste reduction program.”

• Canon products have received countless awards from third-party industry analysts, such as BERTL, Better Buys for Business, Buyers Laboratory Inc., and Industry Analysts Inc.

Canon has remained the #1 choice, overall, for black-and-white copiers in the U.S. for 27 of the past 28 years. The strength of its products is reflected in the demand for its devices.

Loyal customers, strong sales channel partners, innova-tive products, and exceptional service and support have enabled Canon to become a leading digital imaging and networking company as well as a dominant force in personal and office printers, copiers, controllers, and fax machines. Canon’s emphasis on quality and original technologies has earned the trust of customers around the world.

R&D Spending Proves Canon’s Commitment to Staying #1

Canon’s commitment to R&D is clearly evidenced by the large investment the company makes toward this effort. Canon Inc. consistently devotes approximately 8% of its net sales to R&D investment each year, which exceeds such spending of many key competitors and has increased 1.6% from last year.

A large portion of Canon’s R&D investment goes toward the development of software technology and peripheral utilities, which embrace Canon’s core business—print engine technology. Canon also focuses R&D efforts on standard device architecture, network management, network productivity, total cost of ownership, and standards support. Our R&D division in Japan and nine other facilities throughout the world are dedicated to developing custom products and solutions for customers worldwide.

Commitment to R&D is a clear indication of Canon’s dedication to developing leading-edge technology.

Committed to Our Communities The National Center for Missing & Exploited Children

(NCMEC) and Canon4Kids

The national Center for Missing & Exploited Children (nCMEC) and Canon U.S.A. have collaborated since 1997 to raise public awareness about the issue of child abduc-tion. Under our initiative with nCMEC and Canon4Kids, we stress the need for parents to update photos and have them available to assist authorities in a search for a miss- ing child. Canon and Michelle McGann (LPGA Tour), in conjunction with nCMEC, will participate at every TOUR stop in 2009. Ms. McGann's bag will carry a digital photo of a local missing child and Canon will donate to nCMEC:

• $100 for every Birdie

• $250 for every Eagle

• $500 for every Double Eagle

• $1,000 for every Hole-In-One

The Clean Earth Campaign Canon is guided by the philosophy of kyosei – all people,

regardless of race, religion, or culture, harmoniously living and working together into the future.

Embracing this philosophy, Canon U.S.A. has chosen to protect future generations by preserving America’s most valuable resources through the support of a wide range of environmental and youth programs.

Canon’s Clean Earth Campaign is one of the leading and most visible environmental initiatives in the U.S. Learn more at www.usa.canon.com/environment.

The Canon Clean Earth Crew

• Canon U.S.A. employees volunteer in communities nationwide for conservation activities involving parks, beaches, and nature preserves.

Eyes on Yellowstone • 2008 - The Yellowstone national Park

(www.ypf.org) received the national Freeman Tilden Award for excellence in education. This prestigious national Park Service award was given in honor of Old Faithful Live!, a streaming webcam, and Inside Yellowstone and Yellowstone In-Depth, a series of educational Web

videos and podcasts. The two educational programs received funding from the Yellowstone Park Founda-tion, through a partnership with Canon, U.S.A., Inc. The programs bring the wonders of Yellowstone directly into homes worldwide and are responsible for unprecedented visitation to Yellowstone’s official Web site: http://www.nps.gov/yell

• Technology-Based Conservation Program With Canon funding, products, and technology, scien-tists will collect never-before-obtained scientific data and images of wildlife. This is often used to develop management plans that better protect the park and its endangered wildlife.

• Educational and Promotional Programs - Canon technology will be used to educate the

public, increase access to the wonder and magic of the world’s first and most popular national park, and raise awareness about the importance of environmental protection and preservation.

- Electronic Field Trips bring rare, never-before-seen images direct from Yellowstone to the world’s classrooms. And the Greater Yellowstone Science Learning Center, a Web-enabled “virtual” park, brings science and education together to preserve and protect areas of national significance. Visit www.greateryellowstonescience.org and www.windowsintowonderland.org.

R&D Expenditure (Billions of Yen)

Source: Canon Annual Report

50

100

150

200

250

300

350

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

125

150

171177 178

195

219234

259

275286

308

368374

2008 Overall MONOCHROME and COLOR COPIER Market Share

2008 Overall MONOCHROME COPIER Market Share

VENDOR TOTAL UNITS

CANON 469,144

HP 350,373

Brother 304,921

Ricoh 283,527

Xerox 222,838

Konica Minolta 117,154

Sharp 87,577

Dell 82,444

Samsung E. 77,041

Toshiba 69,530

Kyocera Mita 50,739

Lexmark 46,757

Other 107,729

TOTAL 2,269,774

VENDOR TOTAL UNITS

CANON 416,032

HP 251,560

Brother 251,227

Ricoh 207,280

Xerox 153,497

Sharp 67,852

Dell 64,705

Konica Minolta 62,335

Samsung E. 56,071

Toshiba 54,166

Other 169,287

TOTAL 1,754,012

Source: Gartner, Inc. Printer, Copier, and MFP Quarterly Statistics United States (Unit Shipments): Database by Federico De Silva Leon, Cindy K. Masaki, and Sergio Santos, February 11, 2009

Canon Consumer Recycling Program

Canon is committed to the world community and the belief that we are building a better world for future generations. We work with our customers to ensure that Canon products are recycled appropriately to help improve the environment and our local communities. The following types of Canon products are eligible:

The First to Introduce a Toner Return Operations Program

Since 1990, over 190,000 tons of cartridges have been returned for recovery. These are put through a recycling and energy recovery process that produces plastics, metals, and reconditioned parts for use in the manu- facture of new cartridges and other products.

Voluntary EPA Program Promotes the Manufacture of Energy-Efficient Office Equipment

Canon was the first office equipment manufacturer to participate in the voluntary EPA program and is a leading producer of energy-efficient copiers, fax machines, printers, and multifunction devices.

The EPA has recognized Canon 10 times for its com-mitments and accomplishments:

• 2008 Partner of the Year – Labeling

• 2001-2003, 2005 Partner of the Year – Manufacturing

• 1997 Best Advertising Campaign

• 1997 Facsimile Partner of the Year

• 1996 100% Club for Facsimile Products

• 1996 Copier Partner of the Year

• 1994 Technological Innovation

NATURE Series with PBS

Sponsored through THIRTEEn, new York since 1990, this award-winning series raises environmental consciousness by celebrating the beauty, diversity,

and value of the Earth’s species and habitats. www.pbs.org/wnet/nature

Canon Envirothon

Canon U.S.A. is title sponsor of the largest high school environmental education competitions in north America, with the winning teams earning college scholarships. Students who participate in this one-year-long learning process

will develop an early sense of environmental responsi-bility and be introduced to related careers. This program is administered under the national Association of Conservation Districts and provinceal Forestry Associations. www.envirothon.org

ENERGY STAR and the ENERGY STAR mark are registered U.S. marks. Windows is a registered trademark of Microsoft Corporation in the United States and/or other countries. CANON, IMAGECLASS, CLC, GP, and MEAP are registered trademarks of Canon Inc. in the United States and may also be registered trademarks or trademarks in other countries. IMAGEANYWARE is trademark of Canon. All other referenced product names and marks are trademarks of their respective owners and are hereby acknowledged. ©2009 Canon U.S.A., Inc. All rights reserved. 0133W071 0509-MSB-25M-LCR

printed on recycledpaper in the u.s.a.

• Camcorders • Printers • Projectors

• imageCLASS® Devices • PC Copiers

• Fax Machines • Cameras • Binoculars

1-800-OK-CANONwww.usa.canon.com

Canon U.S.A., Inc.One Canon PlazaLake Success, NY 11042

Statements made in this document are the opinions of Canon U.S.A. None of these statements should be construed as legal advice, as Canon U.S.A. does not provide legal counsel or compliance consultancy, including without limitations, Sarbanes-Oxley, HIPAA, GLBA, Check 21, or the USA Patriot Act. Each customer must have its own qualified counsel determine the advisability of a particular solution as it relates to regulatory and statutory compliance.