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Konica Corporation and Minolta Plan to Merge, 4000 Jobs to be Cut

Press release from the issuing company

January 7, 2003 -- (CAPV) -- Bloomberg News and other sources are reporting that Konica Corporation is planning to buy Minolta Company. The value of this acquisition could amount to approximately 195 billion yen (about $1.6 billion). All the specifics of the deal are not yet known, as neither company has issued a press release to date. CAP Ventures expects Konica to make an announcement later today or tomorrow. Bloomberg reported that Konica and Minolta had released a joint statement through the Tokyo Stock Exchange, which noted that the acquisition would allow a 10% reduction in the combined company’s workforce (about 4,000 workers). The statement also noted that Konica President Fumio Iwai would head a holding company to be formed by Konica, into which Minolta's operations would be merged. The report referenced a January 16th decision that the companies would make on the ratio of shares each shareholder in the two companies would receive after the acquisition. Reports on Japanese television specified that Konica will be creating separate companies for each of its businesses in April, and then consolidating with Minolta in July or August.