This notice contains forward-looking statements with respect to future results, performance and achievements that are subject to risk and uncertainties and reflect management’s views and assumptions formed by available information. All statements other than statements of historical fact are statements that could be considered forward-looking statements. When used in this document, words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” or “should” and similar expressions, as they relate to Canon, are intended to identify forward-looking statements. Many factors could cause the actual results, performance or achievements of Canon to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements, including, among others, changes in general economic and business conditions, changes in currency exchange rates and interest rates, introduction of competing products by other companies, lack of acceptance of new products or services by Canon’s targeted customers, inability to meet efficiency and cost-reduction objectives, changes in business strategy and various other factors, both referenced and not referenced in this notice. A detailed description of these and other risk factors is included in Canon’s annual report on Form 20-F, which is on file with the United States Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. Canon does not intend or assume any obligation to update these forward-looking statements.

The Company is closely examining the influence on the consolidated and non-consolidated earnings forecasts of the Company resulting from making the Target Company a subsidiary.
Should the consolidated and non-consolidated forecasts require revision, it will be disclosed in a timely manner.

As a result of the Tender Offer, the Company will become the largest shareholder of the Target Company, holding 77.05% of the Target Company’s total number of issued shares.
If the Company’s shareholding ratio in the Target Company is maintained until the end of the Target Company’s fiscal year (March 31, 2008), the shareholding ratio of the “Special Few,” may meet the delisting criteria set by the TSE. In this case, the Target Company’s stock may be delisted through a prescribed procedure.
At the commencement of the Tender Offer, the Company was planning to study carefully such possibilities as making the Target Company a wholly owned subsidiary through exchange of shares or other means, if the TSE’s delisting criteria was met. Given the result of the Tender Offer, in that the Company’s shareholding ratio exceeds 75%, the possibility that the Target Company may be delisted has increased. The Company will expedite the examination of possible actions, such as making the Target Company a wholly owned subsidiary through exchange of shares or other means, with an eye towards protecting the interests of minority shareholders of the Target Company. Although the specific policy, conditions and other factors are yet to be determined, based on the outcome of our investigation and the Company’s decision on how it will respond, the Company will provide this information in a timely disclosure.

“The Third Series of Unsecured Convertible Debentures Due 2008” (the “Convertible Bonds”) issued by Canon Inc. (the “Company”) on November 24, 1993 has fell under the delisting criteria provided in article 4, section 2, clause 1 of the special rules regarding the securities listing regulations on convertible bonds, and therefore will be delisted as follows: