Canon Japan Earthquake Update 2011-04-04

Recovery Status Report for Canon Inc. and Canon Group Following Great East Japan Earthquake

TOKYO, April 4, 2011—The Great East Japan Earthquake, which struck off the northeast coast of Japan's main island of Honshu on March 11, caused massive damage and loss of life in the area. We at Canon extend our heartfelt condolences to all those affected by this disaster, along with their families and loved ones. We pray for the safety of everyone in affected areas and hope that the region will soon be able to begin the rebuilding and healing process.

As for the Canon Group, immediately following the earthquake, Canon Inc. established the Earthquake Disaster Recovery Task Force (Task Force Chief: Chairman & CEO Fujio Mitarai), launching recovery activities spanning development, production and sales operations through a collective effort across the Canon Group.

Although the Canon Group sustained damage to buildings and production equipment, a concerted Company-wide effort has already made possible the resumption of production activities at multiple Canon Inc. operation sites and Canon Group companies. In addition, through ongoing recovery measures being carried out in conjunction with related divisions, all Canon Inc. operation sites and Canon Group companies are expected to achieve a full recovery as of the end of April.

With regard to the multiple operation sites and Canon Group companies in Japan that sustained no direct damage due to the earthquake and its aftermath, the Company is left with no alternative but to continue adjusting some production activities due to rolling blackouts and procurement conditions for raw materials, parts and other supplies.

The status of major Canon Group operating sites as of Monday, April 4, is outlined below.

Operating Status of Operation Sites and Canon Group Companies

Canon Group Operation Sites

• Optics R&D Center, Utsunomiya Office (Utsunomiya, Tochigi Prefecture)
  Operations resumed on March 22 (Tue.)
  Currently fully operational
• Utsunomiya Plant, Utsunomiya Office (Utsunomiya, Tochigi Prefecture)
  Production to sequentially resume from mid April
• Utsunomiya Optical Products Plant, Utsunomiya Office (Utsunomiya, Tochigi Prefecture)
  Operations to resume in mid April, with production to sequentially resume from same time
• Toride Plant (Toride, Ibaraki Prefecture)
  Operations resumed on March 18 (Fri.)
  Currently carrying out intermittent production
• Ami Plant (Inashiki-gun, Ibaraki Prefecture)
  Operations resumed on March 17 (Thur.)
  Currently fully operational

Canon Group Companies

• Canon Precision Inc. (Hirosaki, Aomori Prefecture)
  Operations resumed on March 23 (Wed.)
  Currently carrying out intermittent production
• Canon Chemicals Inc.: Headquarters & Tsukuba Plant (Tsukuba, Ibaraki Prefecture) / Iwama Plant (Kasama, Ibaraki Prefecture)
  Operations resumed at headquarters and Tsukuba Plant on March 22 (Tue.)
  Currently fully operational
   
  Operations resumed at Iwama Plant on March 28 (Mon.)
  Currently almost fully operational
• Fukushima Canon Inc. (Fukushima, Fukushima Prefecture)
  Operations resumed on March 22 (Tue.)
  Currently fully operational
• Canon Mold Co., Ltd. (Kasama, Ibaraki Prefecture)
  Operations resumed on March 22 (Tue.)
  Currently almost fully operational
• Oita Canon Inc. (Kunisaki, Oita Prefecture) Operations resumed on April 1 (Fri.)
  Currently carrying out intermittent production
• Nagasaki Canon Inc. (Hasami-cho, Higashisonogi-gun, Nagasaki Prefecture)
  Operations resumed on March 30 (Wed.)
  Currently carrying out intermittent production
• Canon Optron, Inc. (Yuki, Ibaraki Prefecture)
  Production to sequentially resume from early April

Other Factors

1) Depending on the procurement conditions for raw materials, parts and other supplies, production at Canon Inc. operation sites and Canon Group companies, including those mentioned above, may become intermittent.

2) In regions subject to scheduled rolling blackouts, ensuring stable operations may prove difficult due to electrical outages.

Disclaimer: The information contained in this news release is current as of the release date. Please be aware that information regarding circumstances from April 5 onward is subject to change.