Corporate Profile 2006

FORWARD— Konica Minolta expands the future of imaging

[Management Philosophy]

The creation of new value

[Management Visions]

● An innovative corporation that continues to create inspiring products and services in the field of imaging● A global corporation that leads the market by advanced technologies and reliability

[Corporate Message]

*The message represents our wish to be acknowledged as an essential company,

by offering essential products, services and solutions to customers in the world of imaging.

1

*

2

Through bold structural reforms, Konica Minolta has created a strong foundations and made

great strides forward for new growth. “FORWARD” — We are continually moving forward. We

can see the infinite potential in the future — We are convinced that we can develop and expand

our target markets, and maintain our preeminent position in the field of imaging. With this as our

vision we push forward with the revolution to increase corporate value considerably.

CONTENTS

FORWARD 1

Corporate Message “The essentials of imaging” 5

Message from the President 11

Group Formation/Group Affiliates 15

Global Activities 17

CSR (Corporate Social Responsibility)/History 19

[Business Companies]

Konica Minolta Business Technologies, Inc. 21

Konica Minolta Opto, Inc. 23

Konica Minolta Medical & Graphic, Inc. 25

Konica Minolta Sensing, Inc. 27

[Common Function Companies]

Konica Minolta Technology Center, Inc. 29

Konica Minolta Business Expert, Inc. 30

[Affiliates managed by the holding company]

Konica Minolta IJ Technologies, Inc. 31

Konica Minolta Planetarium Co., Ltd. 32

Nano-fabricationtechnology

Imagingtechnology

Materialstechnology

Opticaltechnology

INNOVATION

Konica Minolta’s business spans awide range of imaging fields frominput to output. Today the world ofimaging is expanding like neverbefore, brimming with new potentialmade possible by exciting new digitaland networking technologies. KonicaMinolta is playing a key role in thesedevelopments. Based on our four coretechnologies (proprietary materials,optical, nano-fabrication and imaging),we are developing a diverse range ofcutting-edge products that cover thethree main categories in the field ofimaging — imaging input, imagingoutput, and imaging input/outputsolutions. Achieving original andinnovative imaging solutions,combining a wide range oftechnological elements includingelectricity, electronics, optics,chemistry, high precision processingand software.

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We continue to offer fresh surprises through creative innovations to our customersby realizing better products based on the fusion of a wide range of technologies inthe field of imaging.

Image inputplatform

Image outputplatform

Image input/output solutions

Core technologies

The creation ofnew value

Innovating forcustomers

Nevercompromising

on fundamentalperformance

Offering optimum qualityto meet the wide range

of imaging requirements

Reliability and security

Freshsurprises

4

Konica Minolta offers original and creative

products and services incorporating high-level

solutions to respond effectively to the many

different and changing needs of our customers.

Our development of products and services is

based on an uncompromising approach to

product innovation and the concept of market-in.

The goal of all our activities is to provide fresh

surprises and to make a deep impression on our

customers. By fully using creativity and new

technologies in various ways, Konica Minolta is

establishing itself as a company whose products

and services are essential to the field of imaging.

MFPs Printers

Optical devices Electronic materials

Medical products Graphic imaging products

Color measuring instruments 3D digitizers

Office equipment business

Optical product business

Medical & graphics business

Measuring instrument business

Inkjet printer business

Planetarium business

Offering solutionsresponding to trends

in digitization andnetworking

5

As a company essential to the imaging field,

we are constantly surprising our customers with fresh ideas and

advanced original technologies.

Polymerized toners based on emulsionpolymerization Meeting demand for faster printing and higherimage quality

We have developed a technology to make the size of toner particles fine and uniform by mixing the resin raw materials in wax and then applying emulsion polymerization. This enables oil-free, low-temperature fixing and makes possible high-speed, high-image-quality printing.

Changing the way you work,

“Emperon” Maximizing performanceOur exclusive “Emperon” next-generation printing technology maximizesprinter performance by optimizing the performance of both hardware andsoftware. To meet the different levels of performance required by differentapplications, “Emperon” is even incorporated in MFPs and printers.

Optical exposure systemFacilitating product miniaturization

In the past, the optical exposure systems used by MFPs and printersconsisted of multiple glass lenses. By using plastic lenses, KonicaMinolta has succeeded in integrating the optical exposure system into asingle, compact unit that enables the overall product to be miniaturizedwithout compromising quality or performance. This helps better utilizelimited office space.

Color material

Wax

46

High-quality color outputWith original image processing technology and polymerized toner, KonicaMinolta MFPs and printers deliver the highest levels of image quality. Supportedby industry-leading high-speed output, our MFPs and printers facilitate theproduction of business documents with high-impact color and sharp, crispdetails.

Network — ubiquitousWith a network system that combines a location control systemand security control system based on the IP telephony, output ispossible from a local MFP or printer at any time, from any place.

liberating you from time and place

Powerful securityTo prevent data leaks or unauthorized use, we provide a total securitysystem that covers all aspects of document input/output of paperinformation, including MFP’s copying, printing, faxing and scanning.

*MFP (Multi Function Peripheral): Multi-purpose machine offeringseveral functions including copier, printer, scanner and facsimile.

Full Color MFP“bizhub C352”

Imaging ----- Business

Scene

7

TAC film for LCD polarizers Excellent quality using film manufacturingtechnology

LCDs are fast becoming the standard display for computers, and areincreasingly used in TVs, mobile phones, car navigation systems, etc.We develop and provide TAC (triacetyl cellulose) film, a special filmessential to protecting polarizers — the key components used in everyLCD. Thanks to the sophisticated manufacturing technologies forphotographic film that we have developed over many years, we are ableto offer superior quality.

Pickup lenses for optical discsAdvanced technology makes us the world’smarket leader

Konica Minolta has the top share in the market for pickup lenses. Asthese lenses are designed for use in CD and DVD players, high reliabilityis essential. We also develop and manufacture the glass mold lenses forthe next generation of DVD players.

Materials Technology

Imaging ----- Personal Life

Polarizing plate

TAC filmPolyvinyl-alcohol polarizing element

Retardation film/TAC film

Glass plateColor filter electrode

LCD

TFT/electrodeGlass platePolarizing plate

Back light

With advanced optical technology, we offer

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Mirror-type optical projection system Making large-screen TVs even thinner

In the large-screen TV market, thin screens are becoming moreand more popular. Even projection TVs are getting slimmer. Now,with the mirror-type optical projection system developed by KonicaMinolta, it is possible to make rear-projection TVs even thinner andto reduce chromatic aberration to a level that human eyes cannotdetect.

Head-mounted displays Lightweight, easy-to-wear devices foreveryday life in the ubiquitous networksociety

Straight out of the future, these wearable, head-mounted displays are expected to soon become a partof everyday life in the ubiquitous network society. Wornjust like glasses, Konica Minolta’s lightweight head-mounted displays use holographic optical elements thatenable users to view images without obstructing his orher view of the outside world.

Lens units for micro camerasMiniaturization enables versatile application

From mobile phones to in-vehicle cameras and web cameras,demand is rapidly increasing for micro camera lens units. Usingour leading-edge optical technologies such as optical design andaspherical lens molding, we offer high-performance lens units tomeet market needs. An original Konica Minolta-developedpiezoelectric actuator enables our lens units to offer moreadvanced functions, miniaturization and energy-saving.

Glass substrates for hard disksEnabling high-density recording through materialsdevelopment and high-precision machining technology

Demand for glass substrates is increasing because today’s notebook computersand MP3 players require compact and reliable hard disks capable of storing veryhigh volumes of data. Konica Minolta's glass substrates are essential to themanufacture of the high-density magnetic film that enables hard disks to recordand process large volumes of data at high speeds. With strict quality control anda comprehensive development and manufacturing system that extends all theway from materials development to melting, pressing and polishing, we provide aconsistent supply of smooth, heat-resistant glass substrates.

Technologies for Near Future

affluence and emotion to everyday life

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Light and color technologies fostering

Mammography unit Enabling early detection of breast cancer

With early detection and treatment, breast cancer has a very high cure rate. Detectionof cancer at the microscopic stage has traditionally relied on analog photography.Konica Minolta’s world-first digital X-ray mammography system (PCM System) usesphase contrast technology to clearly capture and display pathologic changes.Improved detection capability makes it possible to take clear photos of the glandulamammaria structure and pathologic changes such as microcalcification — somethingthat was difficult to do with conventional systems. This mammography system hasopened the door for minimally invasive digital diagnosis that puts less stress on thepatient.

Integrated planetarium system Smooth integration of starry sky projection with dynamic full-dome images

GEMINISTAR III is a planetarium system for mid- and large-sized domes that seamlessly integrates anoptical planetarium with a full-dome digital projection system. While making the most of the natural beautyof stars projected by the optical system linked in real time with dynamic images, this system turns the nightsky into a dazzling visual show with dynamic computer graphics.

Jaundice meterEnabling painless early detection of neonataljaundice

Safe, reliable and non-invasive, Konica Minolta’s Jaundice Metercan be placed against an infant’s forehead and almostimmediately display the degree of jaundice based onsubcutaneous measurement. Since no blood samples arerequired, the risk of hemorrhaging or infection is eliminated.Because the influence of melanin pigment is minimized, thisinstrument may be used with all skin colors and with newbornbabies. Today, Konica Minolta’s Jaundice Meter is anindispensable part of the toolkit at any neonatal care facility.

PCM system image Conventionalsystem image

Mammography unit

Jaundice meter “JM-103”

Integrated planetarium system“GEMINISTAR III”

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Non-contact 3D digitizer “VIVID-9i/VI-9i”

the future with sound dream

Inkjet digital textile printer for a wide range of textilematerials

Konica Minolta’s original piezo print heads enable efficient, high-quality printing usingvoltage-activated piezo elements to shoot out ink in smaller, faster droplets. These headsare used in various applications such as advertising displays in the industrial inkjet market.The quality of these heads makes them ideal for textile printing as well. Konica Minolta’s“Nassenger V” textile printer uses piezo print heads to produce high-quality prints with awide range of textiles, including both heavy and lightweight clothing, swim wear, and more.

Non-contact 3D digitizer Helping create reproductions to preservecultural assets

3D digitizers scan three-dimensional objects, measure them,and import the 3D data into computers. At the Altamira Cavein Spain, home to some of the world’s most famousprehistoric art, the Konica Minolta non-contact 3D Digitizerwas used to take three-dimensional images of 2600 squaremeters of wall surface covered with prehistoric paintings. The resulting data was used to create a full-size three-dimensional model of the cave that fully preserves the beautyof the original paintings, enabling visitors to fully experienceour ancient cultural assets without destroying it.

Imaging ----- Culture & Health

Care

Textile printer “Nassenger V”

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Offering innovative products andprofessional servicesAt Konica Minolta, our goal is to be “an innovative corporation thatcontinues to create inspiring products and services in the field ofimaging” and “a global corporation that leads the market byadvanced technologies and reliability”. Reflected in our corporatemessage, “The essentials of imaging”, this mission has beensupported since the management integration in 2003 by amanagement philosophy that focuses on “the creation of newvalue”. To achieve this, we have formulated “FORWARD 08”, amedium term business plan for the coming three years thatimplements structural reforms and lays out a path for future growth.“FORWARD 08” takes a three-pronged approach: “promotinggrowth by leveraging collective Group resources”, “building anew corporate image” and “promoting world-class CSRprograms”. To further increase corporate value, we intend tofocus our business activities on growth fields, whilesimultaneously re-branding ourselves as an enterprise whichoffers innovative products and professional services in the fieldof imaging. The third aspect of this plan is to enhance andpromote our corporate social responsibility in terms of economy,society and the environment on a global basis.

Promoting “genre top strategies*1” in ourfour core business fieldsA key component of our growth strategy is to concentrate ourefforts in our four primary business fields by ensuring that all our businesses maintain customer-focused approach. Byidentifying the market in each of these fields, we are able todevelop and promote “genre top strategies.” The most important of these business segments is the generaloffices and industries field. With the advance of colorization inthis field, we are focusing on products such as the MFPs*2, color laser printers and related solutions. Our full-color MFPs(segment 2*3 and more) are one of industry-leaders in both theNorth America and Europe and our other new products are also introduced. To establish an even stronger presence andincrease brand awareness, we are actively seeking andpromoting collaborative solutions with IT enterprises.Another of our core businesses is the production printingbusiness (printing for industry). In this field, digital printing isbecoming increasingly important for MFP-based light production(quick printing) applications. We plan to grow this business byleveraging the industry-leading performance of our high-speed,high-volume MFPs and the know-how we have gained throughlong experience in the graphic imaging business.

KONICA MINOLTA HOLDINGS, INC.

President and CEO Yoshikatsu Ota

Focusing on fields with the strongest growth potential, we are concentrating our resources to accelerate our business into the future.“FORWARD 08” medium-term business plan launched.

Message from the President

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Equipment and servicebusiness group

General offices and industries Production printing

Medical and healthcare

Component business group

Targets for FY 2008

Consolidated sales: 1,100 billion yenConsolidated operating income: 110 billion yenOperating income ratio: 10%

Fundamental policies

1. Promote growth by leveraging collective Group resources2. Build a new corporate image3. Promote world-class CSR programs

FORWARD08

Increase in new value-added businesses Realizing sustainable growth and optimizing corporate value throughout the Group

*1 Genre-top strategies: Create many products to capture the largest market share ingrowth fields and segment where our respective strengths can be demonstrated.

*2 MFP (Multi Function Peripheral): Multi-purpose machine offering several functionsincluding copier, printer, scanner and facsimile.

*3 Segment 2: MFP with printing capacity of 21 to 30 A4 sheets/min.

The third key sector for us is the medical and healthcarebusiness. We offer a variety of advanced technologies in thisfield, including digital diagnostic equipment for image input,contrast agents for X-rays, and medical measuring instruments.We are leveraging our advanced technologies to create evenmore powerful solutions in this field.The fourth area that we are looking to for future growth is thecomponent business. In this field, Konica Minolta’s originaltechnologies really shine through. For example, we offer suchadvanced optical components as our market-leading DVDpickup lens, display-use materials such as the TAC film used toprotect polarizers in liquid crystal displays (demand for which isgrowing exponentially), and inkjet heads expected to be used invarious fields.Our goal is to establish Konica Minolta as the leader in the digitalappliance and information communication fields by continuing topursue technological innovations and synergies.

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FY 2008 (Target)

FY 2007 (Target)

FY 2006 (Target)

FY 2005

FY 2004

0 200 400 600 800 1,000 1,200Sales

(billion yen)

Consolidated Sales

1,100

1,020

980

1,068.4

1,067.4

FY 2008 (Target)

FY 2007 (Target)

FY 2006 (Target)

FY 2005

FY 2004

Operating Income0 20 40 60 80 100 120

0 2 4 6 8 10 12 (%)

(billion yen)

Consolidated Operating Income/Operating Income Ratio

110

92

80

83.4

67.6

Operating Income Ratio

FORWARD08

A partner to help your business succeedIn January 2006, Konica Minolta Group made the difficultdecision to withdraw from our photo imaging business. Photoimaging is where the Konica Minolta Group got its start.However, with demand for photographic film decreasing rapidlyand severe competition in the digital camera business reducingprofits, we judged that the all-round expansion strategiesconceived at the integration would be difficult to implement.The costs incurred as a result of this decision forced us tosuspend payment of dividends for FY 2005.On a more positive note, operating income and ordinary profitare at record-setting levels thanks to two businesses that wehave emphasized as key growth areas since the integration.One is our office equipment business, which focuses on colorcapability, and the other is our component business, whichexploits the optical and materials technology derived from ourphoto imaging business. We intend to continue investingactively in these fields and to enhance operations.Today the Konica Minolta Group is approaching an importantturning point. As outlined in the “FORWARD 08” medium termbusiness plan, we are working to ensure that between now and2008, our financial standing will improve, results will be steady,and business activities focusing on the growth fields willadvance. All of this will position us to accelerate growth andmake a significant leap forward in the future.At the same time, we are seeking to shed our previouscorporate image and instead establish a new brand image as“a partner to help your business succeed” through innovativeproducts and professional services.

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Shifting from “things” to “value”, offeringthe optimum solutionTo succeed as a manufacturer, it is important to havesophisticated technical development capability. Also, it isimportant to introduce new products to market quickly. Thisensures that the money spent on development is recouped andthat benefits to the Group. For this purpose, the Konica MinoltaGroup as a whole is committed to maximizing quality andminimizing cost through the optimization of manufacturingtechnology and SCM (Supply Chain Management). Above all, this means taking maximum advantage of thetechnologies and resources cultivated in the photo imagingbusiness enriches other businesses and develops new ones.Today's customers are demanding products that are appealingand offer value rather than increased functionality. In response,we are shifting our concept from “things” to “value.” Meetingthe real needs of customers means not only offering productsand systems, but also responding to customers’ issues byproviding products and services. By always keeping thecustomer’s point of view in mind, we are able to understandwhat the customer needs now. To ensure that we can offer ourcustomers the optimum solution, we are strengthening the tiesbetween each company in the Group and actively collaboratingwith other companies.Our corporate message “The essentials of imaging” underlinesour commitment to offering products, services and solutionsindispensable to the world of imaging. In so doing, we hope tobecome a company that is essential to the world and that offerspositive value to our customers, business partners, andshareholders.

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Group Outline

Affiliates managed by the holding company

Manufacturing, sale and related services of office equipment including copiers, digital MFPs and printers, and relatedsupplies

Manufacturing and sale of optical products (such as optical pickup lenses), related products and electronic materials(such as TAC film)

Group Formation

Location of head office: 1-6-1 Marunouchi, Chiyoda-ku, TokyoEstablished: December 22, 1936Paid-in capital: 37,519 million yen (as of March 31, 2006)Outstanding shares: 531,664,337 shares (as of March 31, 2006)

Fiscal Year End; March 31Number of employees: 90 (consolidated: Approx. 31,700)

(as of March 31, 2006)

Common FunctionCompanies

By consolidating Group-wide functions such as technology development and common servicefunctions into two common function companies, we are able to promote our businesses moreefficiently.

Business CompaniesBy spinning off all of our businesses into separate companies and delegating the authority required forexecuting operations to each business company, we have established a framework characterized byflexible and timely operational execution and business promotion.

Holding CompanyResponsible for the Group as a whole, which consists of five business companies and two common function companies,the holding company plans and promotes management strategies, and handles auditing and administration of theGroup's management.

Manufacturing, sale and related services of consumables and equipment for medical and graphic imaging

Manufacturing and sale of measuring instruments for industrial and medical purposes

R&D within the Group, promotion of commercialization of new technologies, control management of intellectualproperty and contracting of design

Provision of various management support and indirect function services including production facilities, logistics/procurement, environment/safety, export management, general affairs, personnel affairs, accounting, etc. within the Group

Manufacturing and sale of print heads (for industrial inkjet printers) and textile print systems

*

Manufacturing and sale of planetarium equipment and program software, and construction andmanagement service of planetariums

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Affiliates of Konica Minolta Holdings, Inc.� Japan

Konica Minolta IJ Technologies, Inc.Konica Minolta Planetarium Co, Ltd.

� Asia/PacificKonica Minolta (CHINA) INVESTMENT Ltd.

� North and South AmericaKonica Minolta Holdings U.S.A. Inc.Konica Minolta Headquarters North America, Inc.

Office-boerse. de Internet GmbH Plankopie Gesellschaft fur Burosysteme (Monchengladbach) mbH

Develop GmbHKonica Minolta Printing Solutions Europe B.V.Konica Minolta Business Solutions (UK) Ltd.Konica Minolta Printing Solutions (UK) Ltd.Konica Minolta Business Solutions East Ltd.Konica Minolta Business Solutions France S.A.S.Konica Minolta Printing Solutions France S.a.r.lRepro Conseil S.A.S. Konica Minolta Supplies Manufacturing France S.A.S.Konica Minolta Business Solutions Austria GmbHKonica Minolta Business Solutions (BELGIUM) N.V.Konica Minolta Business Solutions Italia S.p.A.Konica Minolta Business Solutions Spain S.A. Konica Minolta Business Solutions Portugal, Unipessoal, Lda.

Konica Minolta Business Solutions Denmark a/s Konica Minolta Business Solutions Sweden AB Konica Minolta Business Solutions Norway ASKonica Minolta Printing Solutions Nordic ABHoyeseter Utleie ASKonica Minolta Business Solutions Finland Oy Konica Minolta Baltia UABKonica Minolta Croatia-Business Solutions d.o.o. Konica Minolta Business Solutions Czech spol. s r.o.Konica Minolta Hungary Business Solutions Ltd.Konica Minolta Business Solutions Polska Sp. z o.oKonica Minolta Business Solutions Romania s.r.l Konica Minolta Slovakia spol. s r.o. Konica Minolta Business Solutions Slovenia d.o.o.Konica Minolta Ukraine Konica Minolta Business Solutions RussiaNEA Rent-Aluguer e Comercio de Equipamentos S.A.dots Gesellschaft fur Softwareentwicklung mbh

List of Group Affiliates

Affiliates of Konica Minolta BusinessTechnologies, Inc.� Japan

Konica Minolta Business Solutions Japan Co., Ltd.Konica Minolta Printing Solutions Japan Co., Ltd.Konica Minolta Supplies Manufacturing Co., Ltd.Toyohashi Precision Products Co., Ltd.Konica Minolta Supplies Manufacturing Kansai Co., Ltd.F&M Imaging Technology Co., Ltd.Konica Minolta Electronics Co., Ltd.Konica Minolta Techno Tokyo Co., Ltd.Konica Minolta Software Laboratory Co., Ltd.Powerprint Inc.

� Asia/PacificKonica Minolta Business Solutions (CHINA) Co., Ltd.Konica Minolta Business Solutions (HK) Ltd.Konica Minolta Business Solutions (Shenzhen) Co., Ltd.Konica Minolta Business Technologies Manufacturing (HK) Ltd.

Konica Minolta Business Technologies (WUXI) Co., Ltd.Konica Minolta Business Solutions (WUHAN) Co., Ltd.Konica Minolta Consulting (SHENZHEN) Co., Ltd. Konica Minolta Business Solutions (S) Pte. Ltd.Konica Minolta Business Solutions (M) Sdn. Bhd.Konica Minolta Business Solutions Australia Pty. Ltd.Konica Minolta Printing Solutions Asia Pty. Ltd.

� North and South AmericaKonica Minolta Business Solutions U.S.A., Inc.Konica Minolta Printing Solutions U.S.A., Inc.Konica Minolta Systems Laboratory, Inc.Konica Minolta Supplies Manufacturing U.S.A., Inc.Albin Industries, Inc.Frontier Business Systems, Inc.Konica Computer Solutions, Inc.Konica Minolta Business Solutions (Canada) Ltd.Konica Minolta Business Solutions (MONTREAL) Inc.Konica Minolta Business Solutions de Mexico SA de CV.Konica Minolta Business Solutions do Brazil Ltda.

� EuropeKonica Minolta Business Solutions Europe GmbHKonica Minolta Business Solutions Deutschland GmbHKonica Minolta Printing Solutions Deutschland GmbHECS Buero-und Datensysteme GmbH

Affiliates of Konica Minolta Opto, Inc.� Japan

Konica Minolta Opto Products Co., Ltd.Konica Minolta Components Co., Ltd.Nankai Optical Co., Ltd.Konica Minolta Glass Tech. Co., Ltd.

� Asia/PacificKonica Minolta Opto (DALIAN) Co., Ltd.Konica Minolta Opto (SHANGHAI) Co.,Ltd

Affiliates of Konica Minolta Photo Imaging, Inc.� Japan

Konica Minolta Camera Service Co., Ltd.Konica Minolta Packaging Co., Ltd.Konica Minolta Chemical Co., Ltd.

� Asia/PacificKonica Minolta Photo Imaging (SHANGHAI) Co.,Ltd.Konica Minolta Optical Products (SHANGHAI) Co., Ltd.Konica Minolta Photochem (Thailand) Co., LtdKonica Minolta Manufacturing Vietnam Co., LtdKonica Minolta Photo Imaging Asia H.Q. Pte. Ltd.

� North and South AmericaKonica Minolta Photo Imaging U.S.A., Inc.Konica Minolta Manufacturing U.S.A., Inc.Konica Minolta Photo Imaging da Amazonia Ltda.

� EuropeKonica Minolta Photo Imaging France S.A.S.

Affiliates of Konica Minolta BusinessExpert, Inc.� Japan

Konica Minolta Logistics Co., Ltd.Konica Minolta Sogo Service Co., Ltd.Konica Minolta Engineering Co., Ltd.Konica Minolta Information System Co., Ltd.

Affiliates of Konica Minolta TechnologyCenter, Inc.� Japan

Konica Minolta Technosearch Co., Ltd.

� North and South AmericaKonica Minolta Technology U.S.A., Inc.

* Konica Minolta Photo Imaging, Inc.On March 31, 2006, Konica Minolta Photo Imaging, Inc. withdrew from the camera business, and transferred a certain portion of the assets necessary to develop,

design and manufacture digital single-lens reflex cameras compatible with Konica Minolta’s “Maxxum/Dynax lens mount system”, to Sony Corporation. In the field

of the photo business, we will be scaling back our lineup of color film and color paper products and cease production by the end of FY 2007. Our sales offices will

undergo a similar step-by-step reorganization with consideration to our customers and regional situations, we will withdraw from all sales activities as Konica

Minolta Photo Imaging, Inc. by the end of the first half of FY 2007.

Affiliates of Konica Minolta Medical &Graphic, Inc.� Japan

Konica Minolta Medical Co., Ltd.Konica Minolta Graphic Imaging Japan Co., Ltd.Konica Minolta Medical & Graphic Technosupport Co., Ltd.

Konica Minolta Repro Co., Ltd.Konica Minolta Technoproducts Co., Ltd.

Affiliates of Konica Minolta Sensing, Inc.� North and South America

Konica Minolta Sensing Americas, Inc.,

� EuropeKonica Minolta Sensing Europe B.V.

� Asia/PacificKonica Minolta Medical & Graphics (SHANGHAI) Co., Ltd.

� North and South AmericaKonica Minolta Graphic Imaging U.S.A., Inc.Konica Minolta Medical Imaging U.S.A., Inc.American Litho Inc.

� EuropeKonica Minolta Medical & Graphics Imaging Europe GmbH

Konica Minolta Medical & Graphics Imaging Europe B.V.

Konica Minolta Medical Systems Russia LLC.

Responding to changing market needs by creating a strategicbusiness structure focused on global market trends.

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ASIA

Global Activities

Konica Minolta sponsors theworld’s most prominentmotorcycle road racing, “MotoGP Class”Along with F1 and soccer, MotoGP is one of the three most popular sportingevents in Europe. In 2005, Konica Minolta became an official sponsor of the“KONICA MINOLTA Honda Team”, headed by Makoto Tamada, who won theJapan Grand Prix in 2004, placed third in the same Grand Prix in 2005 and willchallenge for the annual world championship in 2006. With this sponsorship,Konica Minolta intends to further enhance its brand image.

With bases in some 40 countries around the world, the Konica Minolta Group develops various

businesses and is truly a global entity. In fact, overseas sales of products and services account

for more than 70% of the Group’s total sales. To strengthen Konica Minolta brand’s presence in

the global market, we have built a strategic network able to respond selectively to local market

trends and provide promptly products and services responding to changing market needs.

Expanding our production capabilities in the fast-growing office equipment marketIn December 2005, we opened our fourth center in China for theproduction of office equipment. From its base in Wuxi, China, KonicaMinolta Business Technologies (Wuxi) Co., Ltd. will manufacture andsupply digital color MFPs, laser printers and toner cartridges to theworld, employing some of the world's most advanced technologies.

Wholly owned office equipment sales subsidiaryestablished in ChinaWith an accelerated procedure to ease restrictions on commercialdistribution now in place, China’s market is expected to grow andforeign companies are allowed to operate wholly-owned salessubsidiaries locally. Seizing this opportunity, we established a wholly-owned sales subsidiary “Konica Minolta Business Solutions(CHINA) Co., Ltd. that exerts centralized control over direct sales and distributors’ resales channels.

With our own sales company in China, we can respond promptly and flexibly to market trends, reinforcing our position as the industry’sleader.

WORLDWIDE

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Taking the top share in Europe through our long-establishedsales networkKonica Minolta set up operations early on in Europe and operates sales and serviceoffices for office equipment in more than 20 countries, providing products andservices throughout the continent. In many countries, including Germany, ourMFPs*1 and A4 color laser printers have the largest market share. We are alsotaking the lead in developing the Eastern European market where demand for office equipment is growing rapidly and continue to maintain a large market share in various regions.

Expanding superiority in the graphic imagingmarket by active M&A developmentIn the United States graphic imaging market, Konica Minolta hasfocused its business development in the American newspaper andcommercial printing market, while maintaining the top share inprinting film. To further develop our CTP*2 business, an area whichis expected to grow rapidly in the future, we purchased AmericanLitho, Inc., a major manufacturer of plates for printing presses inthe United States in October 2005. Having a production base withadvanced facilities not only gives us the ability to respond quickly to customers' needs, it helps us move more quickly to thedevelopment of plates for next-generation CTP systems supportedby own core material and coating technologies.

EUROPE

Konica Minolta market share 28%

Market share by manufacturer of color MFP*1 (A3 tandem machine) in Europe, 2005Source: Gartner Data Quest (May 2006) GJ06264

AMERICA

*1 MFP (Multi Function Peripheral): Multi-purpose machine offering several functions including copier, printer, scanner and facsimile.

*2 CTP (Computer To Plate): Method for outputting digital data directly to adigital plate without using film when making a plate for printing.

Committed to fulfilling our corporate social responsibilitythrough implementation of world-class CSR management

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Corporate Social Responsibility

General Shareholders’ Meeting

Board of Directors

Auditing Committee Compensation Committee Nominating Committee

President and CEO

Executive Officers

Appointment

AppointmentAudits

Auditing Committee: Performs management audits in place of the previous corporateauditors

Compensation Committee: Determines the compensation of directors and executiveofficers

Nominating Committee: Nominates board member candidates for election by the generalshareholders’ meetings

Outside directors account for a majority of the members of each of these committees, andeach committee is chaired by an outside director. Moreover, the CEO is not a member ofany of these committees.

Acquisition of Multi-site ISO 14001 Certification— the international standard for environmentalmanagementIn FY 2005, we obtained multi-site ISO 14001 Certification for allGroup companies in Japan. By expanding the scope to all salescompanies, 20,600 personnel at 241 sites in 39 companiesthroughout Japan contributed to our success in achieving thiscertification. Each affiliate, including those overseas, continues toacquire and maintain ISO certification. Our current focus is to alignoverseas operations with domestic site management, in terms ofenvironmental objectives, compliance and internal audit resultsanalysis. In the future, we will also discuss expanding the scope ofdomestic multi-site ISO certification to overseas.

As a responsible member of the community,Konica Minolta contributes to society in manydifferent waysAt Konica Minolta we believe that our relationship with society andthe community of which we are a part is very important. Tostrengthen our ties with society, we divide our social contributionprograms into three categories by area and content — global,regional, and local and enhance each program to be more effective.

Konica Minolta Group has instituted a “world-class” CSRmanagement as one of the foundations of our medium-term businessplan. To establish ourselves as “a trusted company that strengthensits global development with regard to economic, social, andenvironmental performances, and thereby achieves a sustained rise incorporate value,” we emphasize three objectives.

� Realizing continuous improvement in Group governance

� Reinforcing both quality management and environmentalmanagement

� Strengthening stakeholder engagement measures

[Global program]

Supporting the crusade against breastcancerWe sponsor campaigns aimed at eliminating thetragedies caused by breast cancer in many parts ofthe world. In the United States and Lithuania, KonicaMinolta Group made a donation to and voluntarilyparticipated in campaigns against breast cancer. In Japan, we are supporting the“Pink Ribbon Campaign” thatunderscores the importance of early detection of breast cancer.

Global program

Environmental Protection Efforts

Coexistence with Society and Community

A company that can be trusted with regard to economic,

social and environmental performances

Disclosing information

Communicating with

stakeholders

Implementing medium-term

plans

Business projects and nonbusiness projects, Rolling

Maximizing corporate value

The Konica Minolta Group comprises Konica Minolta Holdings, Inc.,which formulates and promotes the implementation of Groupmanagement strategies and supervises Group managementactivities, and business companies, which provide products andservices directly to customers. Each business company strives formanagement efficiency and has the authority to establish andimplement needed strategies.To ensure the highest levels of management fairness andtransparency, Konica Minolta Holdings, Inc. adopted the advanced"Board with Committees" at the integration in 2003. A company isrequired to set up three committees within its board of directors(auditing, compensation, and nominating committees) that holdauthority for management, supervision and other tasks.

Corporate Governance

*For further information, please refer to the CSR report.

Regional program

Local program

20

KONICA MINOLTA’S History

1873 Rokusaburo Sugiura began sellingphotographic and lithographic materials atKonishiya Rokubeiten in Kojimachi, Tokyo(the startup of the business of KonicaCorporation).

1903 Marketed “Cherry Hand Camera,” Japan’sfirst brand name camera.

1928 Kazuo Tajima established Nichi-DokuShashinki Shoten (Japan-Germany photocompany; the precursor of Minolta Co., Ltd.)and launched production of cameras inJapan. Marketed the Company’s first camera“Nifcalette” in the following year.

1940 Released the first made-in-Japan color film“Sakura Natural Color Film.”

1956 Established the first American subsidiary inPhiladelphia, USA.

1958 Completed the Company’s first planetariumunit.

1960 Completed the Company’s first copier“Copymaster.”

1962 Established the first European subsidiary inHamburg, Germany.

1971 Released high-performance photostatic plainpaper copier “U-Bix480.”

1973 Launched the operation of the Sakuradriver’s license printing system nationwide.

1975 Released the world’s first 35mm camera withbuilt-in flash and AE functions “C35EF.”

1977 Released the world’s first 35mm compactautofocus camera “C35AF.”

1983 Released the world’s first copier with zoommagnification/reduction function “EP450Z.”

1984 Developed an ultra-high-precision asphericplastic lens for CD players.

1985 Released SLR camera with autofocusfunction “7000.”

1987 Released simple color-proofing system“Konsensus.”

1989 Released medical digital imaging outputsystem “Laser Imager Li-10.”

1990 Released monochrome laser printer“SP101”; entered LBP market on a full scale.

Released digital full-color copier “CF70.”

2000 Fully launched business for TAC films forLCD polarizers.

Established Konica Minolta SuppliesManufacturing Co., Ltd., a joint venture forthe production of polymerized toners.

2003 Integrated the management of KonicaCorporation and Minolta Co., Ltd.

2004 Released digital SLR camera “α-7 DIGITAL”.

2005 Established a subsidiary for the production of MFPs and printers in Wuxi, China.

2006 Announced withdrawal of camera businessand photo business.

Fighting global warning by reducing our CO2

emissionsKonica Minolta has set the goal of reducing the total volume of CO2 emissions associated with its business operations and the useof its products to 20% below the fiscal 2000 level by 2010. Forexample, for office equipment, the technology used in MFP image-fixing units incorporates highly efficient electromagnetic inductiontechnology to generate heat, greatly lowering the products’ powerconsumption.

[Regional program]

Elementary school construction (China)Konica Minolta (China) Investment, Ltd. contributes to a program “XiwangGongcheng (Hope Process)” that supports children who have difficulty attendingschool due to economic hardship. As a part of this program, we have donated fundsto cover the entire cost of constructing an elementary school 140 km northeast ofDalian. We intend to expand our activities to other areas in the country.

[Local program]

Supporting athletes (Norway)Skier, Lars Bystoel, won a total of three medals, including bothgold and bronze, in the ski jump competition at the TorinoOlympics. He works as an employee of Konica Minolta BusinessSolutions Norway AS, our office equipment sales company inNorway. This company employs two members of the Norway’snational ski jumping team and has been supporting their activitiessince May 2005.

Konica Minolta Track & Field ClubThe Konica Minolta Group helps promote and nurture sports.The Konica Minolta Track & Field Club, which was establishedin 1970, trains world-class runners, and won the 2006 NewYears Ekiden race for the fifth time. The Club is also involved

in a wide range of otheractivities, includingannual jogging sessionsaimed at promoting adeeper fellowship withcitizen runners.

21

Supporting evolving office document requirements and promoting “genretop strategies” by offering advanced color MFP and printing solutions

President Akio Kitani

Konica Minolta Business Technologies

handles the Group’s core business,

which is the manufacture and marketing

of office equipment. As one of the few

manufacturers that provides both

MFPs* and printers on a worldwide

basis, we offer a comprehensive lineup

with an emphasis on color machines. In

addition, our experience and expertise

in this field enable us to combine

products and systems to create optimal

solutions tailored to the specific needs,

of each customer.

Having already established ourselves as

the top brand in the mid- and high-

speed color MFP sector in both the

U.S.A. and Europe, we plan to grow our

business by concentrating resources in

the fast-growing field of color printing.

By offering high image quality and

value-added products, we intend to

promote “genre top strategies” that will

establish us as No. 1 in each segment.

Moreover, as networking and

information technologies become

increasingly integrated in today’s

businesses, we are working closely with

other IT companies to develop solutions

that meet the requirements of a wider

range of customers. By understanding

and responding quickly to changes in

society, we will be able to expand our

business as technology advances.

The essential office device is now shiftingtowards color capability and networkcompatibilityIn the modern office where demand for color output is increasing,

Konica Minolta Business Technologies is delivering advanced solutions

that contribute to the enhancement of productivity and creativity. Driven

by the concept that “the user is the center of business”, our digital MFP

“bizhub” series is equipped with multiple functions including copying,

printing and scanning. Designed to serve as the hub of the office

network, these devices can consolidate administration of networked

equipment, manage distribution of digital data, and provide enhanced

security.

MFP (Multi Function Peripheral)

Color MFP “bizhub C300” + “PageACSES Ver. 2.0” + touch panel(Document security is ensured with identical person certification usingnoncontact IC card. Optional large touch panel improves operability.)

22

Location of head office: 1-6-1 Marunouchi, Chiyoda-ku, TokyoBusiness activities: Manufacturing, sale and related services

of office equipment including copiers,digital MFPs and printers, and relatedsupplies

Paid-in capital: 500 million yenConsolidated sales in FY2005: 606.7 billion yenNumber of employees (consolidated): Approx. 19,800 (as of March 2006)

Advanced TechnologyNext-generation toner providing a foundation forenriched imagingAll of our latest copiers, MFPs and printers use “polymerized toners (SIMITRItoner)” for faster printing and better quality. “Polymerized toners” arecharacterized by the smaller diameter of toner particles and the greateruniformity of their size and shape, enabling reproduction of fine lines andhalftones with enhanced sharpness and dramatically enhancing the quality ofcolor images. These toners are also beneficial for the environment, as theyrequire less energy and produce less exhaust gas.

With demand for polymerized toners rapidly increasing, we are building a newfactory to manufacture them at Nagano Prefecture in Japan. On completion,we will have the world's largest production capability.

Conventional toner Polymerized toner

Focusing on high-performance systems, as wellas home office solutionsWith color documents fast becoming the norm in business, Konica

Minolta has developed the color laser printer “magicolor” series, that

offers both a compact design and high-resolution printing performance.

Our array of printers is expanding with the addition of new high-

performance printers for demanding office requirements, as well as

compact, lightweight, high-resolution, high-speed models for the

SOHO market. To maximize printer performance, our printers

incorporate our exclusive next-generation “Emperon” printing

technology, enhancing operability and functionality as well as facilitating

high-speed, high-quality printing.

An important domain with high future growth potentialThe light production market (quick printing) is one of our most important

target markets and we expect substantial growth in this area in the

future. Konica Minolta helps improve productivity and reliability by

providing rugged, industrial-strength color/monochrome MFPs (bizhub

PRO series) with the speed and image quality suitable for POD (Print

On Demand).

Printers

Light production High-speed monochromecopier/MFP “bizhub PRO 1050”

Color laser printer“magicolor 5450”

*MFP (Multi Function Peripheral): Multi-purpose machine offeringseveral functions including copier, printer, scanner and facsimile.

23

President Takashi Matsumaru

Konica Minolta Opto, Inc. manufactures

and supplies optical components, such

as optical pickup lenses, lens units and

microcamera units, and display

materials, such as TAC films which are

used to protect the polarizers used as

the core component in LCD displays.

Both the optical components and the

display materials businesses are

positioned as strategic businesses

within the Konica Minolta Group,

targeted at the expanding digital

appliance and information

communication markets.

In response to rising market

expectations, we are working to refine

and improve our proprietary industry-

leading optical technologies, high-

precision machining technologies and

thin film creation technologies. By

meeting market demand for high-

precision, high-value-added products

and by aggressive R&D and capital

investment, we will maintain our

reputation as “the world’s best optical

devices manufacturer” and stimulate

new areas of growth. Our ongoing

commitment to promoting technological

innovation and pursuing high-level

technological synergies will ensure that

we are able to fulfill our mission as the

“essential” enterprise in the world of

imaging.

High-precision optical components derivedfrom the synthesis of core technologiesAs the first company to successfully commercialize aspheric plastic

lenses for compact discs, we have been a leader in the development of

pickup lenses for DVD and various other optical disc drives and players.

Today, products derived from such leading-edge proprietary

technologies as optical design and precision molding processing

technologies have the large share in the global market. We are also

actively engaged in production of pickup lenses for next-generation

DVDs using blue-violet laser diode. In the field of micro cameras for

mobile phones, we provide high-value-added micro lenses with

excellent light uniformity and color reproduction. Other high-precision

products include pickup prisms, lenses for laser printers, lens units for

digital cameras and glass hard disk substrates. Superior performance

and reliability have helped us win the confidence of a wide range of

customers around the world.

Putting advanced technologies such as next-generation DVD pickup lensesand view angle magnification film to practical use

Lens unit Microcamera unit Multiple AF unit

Optical components

24

Enhancing production capabilities to meet theneeds of the expanding LCD marketLeveraging the power of the advanced film production technologies

that we have developed over the past long years, we developed thin

type (40 microns) TAC (triacetyl cellulose) film for use in protecting LCD

polarizers. With demand for LCDs growing exponentially, we are

enhancing our production capabilities by building a fifth factory

dedicated to the manufacture of TAC film. We will also exploit other

superior core technologies such as thin-film and coating technologies

to develop advanced products such as view angle magnification film for

a large-screen LCD TVs.

Advanced TechnologyIntegrating advanced technologies to support world-class high-quality lensesKonica Minolta Opto’s world-leading optical design technology is thefoundation for the renowned quality of our pickup lenses for optical discs.Stable, consistent production of high-precision and high-value-added opticalproducts would not be possible without our wide range of advanced proprietarytechnologies such as plastic molding technology (for high-precision shapes and

forms), precision mold machiningtechnology (to make smooth surfaces), aswell as optical materials evaluationtechnology, measurement & evaluationtechnology (for optical performance), andoptical thin film (coating) technology.Currently, we are enhancing these productsstill further in preparation for massproduction of high-precision optical lensesusing blue-violet laser.

Location of head office: 2970 Ishikawa-machi, Hachioji, TokyoBusiness activities: Manufacturing and sale of optical products

(such as optical pickup lenses), relatedproducts and electronic materials (such as TAC films).

Paid-in capital: 500 million yenConsolidated sales in FY2005: 110.4 billion yenNumber of employees: Approx. 2,700 (as of March 31, 2006)

Display materials

25

President Kiyofumi Tanida

Konica Minolta Medical & Graphic Inc. is

a leading provider of equipment and

services in the medical and graphic

imaging fields. With the rapid advance of

digitization in these fields, we focus on

delivering high value-added solutions that

integrate a wide range of cutting-edge

digital equipment, consumables, systems

and services. In the field of medical

imaging, we have used our well-

established technology and expertise in

radiographic image processing to

develop an image diagnosis system

centered on high-resolution digital image

readers and output devices. We are also

working to develop systems and

networks to support regional medical

treatment and individual medical

practitioners, as well as major hospitals.

In the graphic imaging field, we provide

digital color-proofing systems that take

full advantage of our advanced

technology and expertise, and

aggressively make efforts in the

development of next-generation CTP

(Computer To Plate) systems — a

market where demand is growing rapidly.

We continue to bring new leading-edge

technologies to both the medical and

graphic imaging markets, while providing

the high-quality products and services

our customers depend on. We will also

seek to grow and broaden our market

base through active investment and

diligent R&D.

Delivering leading-edge digital imaging solutions and creating new values in themedical and graphic imaging fields

Developing next-generation diagnosticsystems supported by the proven reliability ofour wide array of productsEver since we introduced the first made-in-Japan X-ray film, medical

practitioners have put their trust in Konica Minolta's imaging products.

With digitization and networking progressing rapidly in this field, we

have developed a system for digitization, storage, and transmission of

X-ray images that enables an open network system and efficient image

management. In the area of high-precision diagnostic imaging systems,

products such as our “REGIUS” series digital image readers (direct

digitizers) and DRYPRO series digital image output systems (laser

imagers) are highly regarded in the medical community. Based on these

products, we have developed our “PCM system”, which combines a

mammography unit (the world’s first mammography unit to use phase

contrast to achieve high-quality images) with an image reader, image

processor, and printer, and provides a total digital solution that has

proven to contribute to early detection of breast cancer.

We are also contributing to the advancement of next-generation

diagnosis systems through the development of software such as PACS

Digital image reader “REGIUS MODEL 190”Mammography unit

Mammography system“PCM system”

Medical imaging

26

Leading graphic imaging market to the nextlevel with superior digital solutions In the field of graphic imaging, the trend toward digitization has

increased the need for high quality and efficiency in graphic production.

Our customers have nothing but praise for the “Konsensus” series,

which sets the standard for the new generation of color-proofing output

systems. These systems can directly output digital data for color-

proofing purposes, and can improve operational efficiency, cut costs

and reproduce high-quality images. In plate making, we are helping to

improve productivity by aggressively pushing forward with the business

of CTP (Computer To Plate) systems, which expose digital text and

image data directly to plate materials without outputting them to films.

Digital color-proofing system“Digital Konsensus Pro”

Digital image output system“Laser Imager DRYPRO MODEL 793”

Advanced TechnologyNew V-Plate technology makes X-raydiagnosis easier on the human bodyIn X-ray photography, images are obtained by passing anX-ray through the body to a plate composed of layers offluorescent material placed on a board. At Konica Minolta,we developed the “V-Plate” that enables clearer images tobe obtained with less X-ray energy by evaporating specialfluorescent materials with a high X-ray absorption factor.The “V-Plate” enjoys an excellent reputation for the qualityof its images and can be incorporated in a standing orlying digital image reader.

REGIUS console “CONSOLE CS-3”

(Picture Archiving and Communication System), as well as the creation

of other promising products linked with electronic clinical records. In the

field of pharmaceuticals for diagnosis, we provide intravascular contrast

agents for X-rays, and are developing a genetic testing system for

infectious diseases in collaboration with another company.

Location of head office: 1-26-2 Nishishinjuku, Shinjuku-ku, Tokyo Business activities: Manufacturing, sale and related services of

consumables and equipment for medical andgraphic imaging

Paid-in capital: 500 million yenConsolidated sales in FY2005: 146.6 billion yenNumber of employees: Approx. 3,200 (as of March 31, 2006)

Graphic Imaging

Digital image reader (standing type)“REGIUS MODEL 370”

27

President Hiroshi Furukawa

Derived from our state-of-the-art optical

and image processing technologies,

Konica Minolta’s measuring instruments

help improve quality control and

precision in a wide variety of industries.

Our display color analyzers for measuring

the color and luminance of displays, and

spectrophotometers, colorimeters and

other color measuring instruments used

for essential color management in many

manufacturing plants play important roles

in supporting various manufacturing

industries.

In the growing field of 3D measurement,

we have been developing new products

for industrial applications with our

proprietary technologies, as well as

medical and academic applications.

In the medical field, our pulse oximeter

(for measurement of oxygen saturation)

is well regarded.

We are currently integrating development

bases and establishing overseas sales

companies for reinforcement of business

infrastructure. By continuing to provide

solutions that respond to changing

needs based on our core “technology of

light”, we will meet the challenges of the

new era.

Contributing to the enhancement of the quality and precision indispensable tovarious industries by providing high-precision measuring instruments

Our wide lineup of proven products makes usone of the market’s leading performersDisplay color analyzers help test display performance and quality in

examination and adjustment of white balance and contrast, by precisely

measuring chroma, brightness and balance. As the market for

widescreen TVs (plasma, LCD) and LED products (mobile phones,

digital cameras car navigation equipment) expands, demand for display

color analyzers is increasing. Konica Minolta’s advanced display

analyzers enjoy a large share of this growing market. We also offer a

wide range of other products to meet the needs of the display market

with various formats mixed, including a spectroradiometer for

brightness and chroma measurement and 2D color analyzer to

measure the distribution of brightness and chroma.

Active in the industrial field where precisecolor management is indispensable Color management is essential in many areas of manufacturing,

including automotive, paint, plastic, textiles, construction materials and

food, and requires the ability to measure subtle color differences that

human eyes cannot distinguish accurately. Konica Minolta’s

spectrophotometers and colorimeters are widely utilized at quality

control, R&D, distribution and sales scenes in such sectors.

2D color analyzer “CA-2000”

Color measurement

Display measurement

Spectrophotometer “CM-2600d”

High-precision, high-speed, non-contact 3D scanning3D digitizers scan three-dimensional objects and import the 3D data to

computers. Our non-contact, high-precision, high-speed 3D digitizers are

widely used thanks to their simple operation and reliable performance. In

addition to medical, academic research, 3D archiving and computer

graphics production, our digitizers are used for industrial applications,

such as reverse engineering, design verification and quality inspection.

28

Oxygen saturation monitor “PULSOX-300i”

Minimally invasive medical measuringinstrumentsWe provide the medical field with sophisticated measuring instruments

that impose little or no strain on patients. These include a pulse

oximeter, which can detect oxygen saturation in the blood simply by

projecting light on the human body, and a compact jaundice

meter that can test newborn babies for jaundice without

taking blood samples.

Advanced Technology

Measuring oxygen saturation in the blood by projecting light on a fingertipAll Konica Minolta’s measuring instruments are based on our “technology oflight.” For example, our pulse oximeter measures oxygen saturation in theblood in real time without taking blood samples. Red light and infrared light areprojected from a small probe placed at the fingertip, then the difference in theabsorption ratio of oxidized and reduced hemoglobins is detected. Thisenables the oximeter to accurately measure the amount of oxygen in arterialblood (oxygen saturation) with almost no interference from skin color or bone.

3D measurement

Medical measurement

Location of head office: 3-91 Daisennishimachi, Sakai-ku, Sakai, Osaka Business activities: Manufacturing and sale of measuring instruments

for industrial and medical purposesPaid-in capital: 495 million yenConsolidated sales in FY2006: 5.8 billion yen (11.1 billion yen*)Number of employees: Approx. 300 (as of March 31, 2006)

Non-contact 3D digitizer“VIVID 9i/VI-9i”

*As this company’s operations also included sales from Konica Minolta PhotoImaging, Inc. sales company in Europe and North America areas until 2005 FY,sale from both sectors are included in this company’s total. 11.1 billion yenrepresents the actual total sales of Konica Minolta Sensing, Inc., incorporatingthe sales from both areas.

President Masatoshi Matsuzaki

As the Konica Minolta Group’s R&D

center, the Konica Minolta Technology

Center, Inc. supports the product

development of other companies in the

Group by enhancing the basic

technologies common to each business.

We also promote activities cutting across

individual business units, including the

development of new technologies and

the incubation of new businesses with a

vision for the future.

Maintaining and securing intellectual

property rights is another key strategy in

promoting new technological

development. We also function as a

design center that creates products

based on anticipating future technologies

and social trends.

With dramatic changes in the global

environment and the advent of the

ubiquitous network society, we face a

future more challenging than ever. Our

goal is to continue to commit to social

progress by putting the results of our

research to practical use and to serve as

an “engine”, driving future progress in the

world of imaging.

Creating the “future of imaging” by promoting the research and development ofleading-edge technologies and the incubation of new businesses

Cultivating and advancing basic technologies common to all ourbusinessesOne of our most important tasks is to cultivate and advance the basic technologies common to

business companies within the Konica Minolta Group, based on our core technologies (materials,

optics, nano-fabrication and imaging). By transferring technologies that directly lead to product

development to each company, we enhance the technological power of the whole Group.

Developing leading-edge technologies and incubating newbusinesses Our efforts are primarily focused on the creation of innovative technologies by enhancing

proprietary technologies and fusing and combining them. We also support the development of new

businesses to exploit these new technologies. Konica Minolta IJ Technologies, Inc. is the first result

(refer to p. 31).

We are also working on technological developments that will lead

to the creation of future businesses such as luminescent materials

for OLED (organic light-emitting diode) displays, which have

shown potential for use in a wide range of applications. Other

technologies include display components that utilize our material

and thin film coating technologies, and ubiquitous imaging

equipment that integrates various device system technologies.

Imaging Culture Research Institute: Pursuing imaging in the ubiquitousnetworking societyAt the Imaging Culture Research Institute, we conduct studies and research on changes in lifestyle and business stylein the future. Focusing on lifestyles, business style and value rather than on “objects”, this institute carries out itsresearch in cooperation with outside social science experts. Based on this research, we make recommendations thatlead to new technical and business development in the Group and contribute to the creation of new value.

29

Location of head office: 1 Sakura-machi, Hino, Tokyo Business activities: R&D within the Group, promotion of commercialization of new technologies,

control management of intellectual property and contracting of designPaid-in capital: 50 million yenNumber of employees: Approx. 600 (as of March 31, 2006)

Molecular orbital model ofluminescence material

30

Enhancing corporate value through the promotion of CSRIn recent years, businesses have been compelled to fulfill their CSR by establishing corporate

governance and compliance frameworks and addressing employment, human rights and

environmental issues. Konica Minolta takes CSR very seriously. We are committed to carrying out

all our business activities in harmony with the needs of the economy, society, and the environment.

As the organization responsible for promulgating CSR policies (established by Konica Minolta

Holdings, Inc.), Konica Minolta Business Expert, Inc. has developed a system specifically for

disseminating the philosophy and practice of CSR throughout the Group.

To ensure accountability to a wide range of stakeholders, for example, we prepare and issue CSR

reports, actively disclosing information and promoting smooth communication as the voice of

Konica Minolta Group.

President Mitsuharu Oura

Within the Group, Konica Minolta

Business Expert Inc. handles indirect

businesses such as personnel affairs,

accounting, the general affairs of each

regional office, logistics, procurement,

environment and safety, and information

systems. It also plays an important role in

disseminating the concept of corporate

governance that is an essential part of

Corporate Social Responsibility (CSR)

throughout the Group. By supporting the

business activities of each of the Group’s

companies, we help enhance overall

corporate value and improve

management efficiency. In pursuit of this

goal, we focus on fostering “business

experts” who offer specialist services. We

also build alliances with external

consultants and specialists to enhance

service quality and mobility.

Through such efforts, we have

established a new kind of business

model as a shared service provider. By

expanding our sales outside the Group

and feeding externally acquired expertise

back into the Group, we are aiming at

the creation of the Group-wide synergies.

A team of experts in charge of infrastructual control focused on maximizingcorporate value and management efficiency

Supporting more efficient Group management structures throughinformation infrastructure development and personnel trainingTo provide the information infrastructure necessary for effective Group management, our efforts are

focused on the creation of a Group-wide IT network environment. Our priorities include “enable

knowledge and information to be shared on a Group-wide scale “and” shorten the time taken from

R&D to sales by digitizing business procedures.” We train business experts in each division,

improve the efficiency of practical operations by taking advantage of IT communications, and

provide support to indirect administration divisions, developing support businesses to maximize

overall Group management efficiency.

Location of head office: 2970 Ishikawa-machi, Hachioji, Tokyo Business activities: Provision of various management support and indirect function services

including production facilities, logistics/procurement, environment/safety,export management, general affairs, personnel affairs, accounting, etc.within the Group

Paid-in capital: 495 million yenNumber of employees: Approx. 1,300 (as of March 31, 2006)

31

President Akiyoshi Ohno

Konica Minolta IJ Technologies, Inc.

was established in January 2005 as the

first business company spun off from

Konica Minolta Technology Center, Inc.,

whose mission includes the fostering of

next-generation businesses. With inkjet

technology at the core, we provide

inkjet print heads according to

customers’ diverse needs, by taking

advantage of proprietary chemical & ink

technologies acquired through the

development and production of

photothermographic materials. We also

run a textile printer business utilizing

these technologies.

Printers for large-sized papers for

printing the graphics of advertising

displays and construction materials

currently dominate the high-speed,

highresolution inkjet printers market.

They are expected to have a wide range

of industrial applications in the future,

including display production and

biotech applications. We are committed

to promptly meeting customers’ diverse

needs by making the most of our

proprietary technologies.

Expanding our business in the rapidly-expanding industrial inkjet printers market,capitalizing on materials technology and high-precision machining technology

Applying our priority inkjet technology to meet therequirements of various industrial applicationsKonica Minolta’s proprietary high-performance piezo inkjet head is one of the

company’s most competitive products. Unlike thermal systems which apply

heat, it applies a voltage to change the shape of the piezo element to push the ink out.

This mechanism allows the use of various types of inks, including solvent, oil-based and UV curing

inks. Our lineup of print heads is wide ranging, from those for high-speed printers for large-sized

papers to those for high-resolution printers of professional-printing grade, and are supplied to and

utilized in a wide range of industries and sectors.

Advanced textile printing technology: For large-variety, small-lot productionDigital inkjet textile printing systems are attracting a great deal of attention for their innovative

dyeing technology, which eliminates the need for plate-making and mixing of color pastes to

enable the speedy production of a wide range of products in small lots. Textile printer “Nassenger

V” adopts this technology to enable high-speed processing and to bring out the sharpness and

high concentration of colors, with its newly developed, small-droplet, high-density, multiple-nozzle

inkjet head, used in combination with durable textile inks with high color saturation properties. It

draws upon our proprietary materials technology and color management technology to reproduce

smooth gradations and subtle variations in color tones in a wide range of fabrics of various

thickness, even stretch fabrics used in

swimming costumes. We are now

promoting this product in Italy

and other markets in Europe,

as well as in Japan.

Location of head office: 1 Sakura-machi, Hino, TokyoBusiness activities: Manufacturing and sale of print heads (for industrial

inkjet printers) and textile print systemsPaid-in capital: 10 million yenNumber of employees (consolidated): Approx. 130 (as of March 31,2006)

Inkjet print heads

Inkjet textile printers

Print head

Textile printer“Nassenger V”

32

President Yasushi Imai

Konica Minolta got its start in the

planetarium business out of a desire to

use our imaging technologies to

positively contribute to society’s cultural

and educational requirements. Since

introducing our first machine at a science

exhibition in 1958, we have expanded

our services to cover the full range of

planetarium requirements from

production and sale of planetariums,

digital projection systems and program

software, to construction and

management support of planetariums.

The planetarium is the fusion of leading-

edge technologies including a real starry

sky produced by an optical planetarium

using optical fiber technology and full

dome computer graphics projection

technology. The result is an extraordinary

vision of the universe that provides

viewers with an experience that

enhances scientific understanding and

stimulates the emotions.

Leading the way in advanced planetarium systems with integrated imaging andoptical technologies

Wide lineup suitable for each dome diameterFrom small domes with a 3m in diameter to large domes with a 25m in diameter or more, we offer a

wide range of products to meet the needs of any planetarium. By combining various video devices,

planetarium operators can enhance the visual power of the show and take advantage of impressive

special effects to support the performance. For example, our

full-digital planetarium “MEDIAGLOBE” is widely used in small

planetariums and movable domes. A higher level model, the

“Super MEDIAGLOBE” is also available. For mid-size and larger

planetariums, we offer the “GEMINISTAR” which integrates the

optical planetarium “INFINIUM” for reproduction of beautiful starry

skies with the full-dome digital projection system “SKYMAX.”

“MEDIAGLOBE”

“INFINIUM”

Program production for planetariums and other astronomicaland scientific applicationsWe have developed a wide range of program libraries for planetariums that take advantage of

advanced digital technologies and entertainment programs that let audiences enjoy and learn

about astronomical and scientific fields.

In addition, we produce new programs and recommend carefully selected programs.

Location of head office: 2-3-10 Nishihonmachi, Nishi-ku, Osaka Business activities: Manufacturing and sale of planetarium equipment and program software,

and construction and management service of planetariumPaid-in capital: 100 million yenNumber of employees: Approx. 40 (as of March 31, 2006)

Planetarium and digital dome imaging system

Program software and contents

Directly managed Sunshine Starlight Dome “Manten”In 2004, we opened our own self-managed planetarium in Tokyo. Audiences therehave the opportunity to enjoy an entertaining program that uses real star projectionand dynamic images across the full dome.

“SKYMAX”

This report is printed on 100% recycled paper using soy-based inks.Printed in Japan

0608KBOhttp://konicaminolta.com