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Konica Minolta Details Growth Plans, Structure

Press release from the issuing company

RAMSEY, N.J., Oct. 1 -- Konica Minolta Holdings, Inc., today announced the formation of Konica Minolta Business Solutions U.S.A., Inc., a new company created by the merger of Konica Business Technologies U.S.A, Inc. and Minolta Corporation's Business Products Group. Headed by Yasuo Matsumoto, former president and chairman of Konica Business Technologies U.S.A., Inc., Konica Minolta Business Solutions will service the document production and management needs of companies throughout North America. "With the completion of the merger, Konica Minolta Business Solutions has solidified its position as a true leader, a new powerhouse in an increasingly competitive industry," said Yasuo Matsumoto, president and CEO, Konica Minolta Business Solutions U.S.A., Inc. As one company, Konica Minolta Business Solutions has: -- A projected revenue of over $1.5 billion -- Over 6,000 employees supporting more than 700 wholesale dealers and more than 90 direct/retail branches -- A 1,200+-member field support organization -- A number 2 ranking behind Canon in Segments 2 and 4 for B&W printers/copiers -- A number 3 ranking behind Canon and Xerox for color multifunctional products (MFPs) "Konica Minolta Business Solutions has set its sights on being a market leader that challenges and changes the way people think about document imaging," said Matsumoto. "By coming together, we have strengthened much more than our market share. We have strengthened our product line, our support organization and our branding. A new organization has been born - one that will make fresh new impressions in the field of imaging and in the minds of our customers." Revenue Growth and Profitability When Konica Corporation and Minolta Co., Ltd., merged in August 2003, Konica Minolta Holdings, Inc. was formed - a nearly $10 billion corporation with over 38,000 employees and 20 manufacturing facilities. With more than 200 years of combined product experience behind the new business technology group, revenue is forecasted to achieve 17% growth by 2005. Executive Leadership As part of the integration of the two companies, Matsumoto has announced his top tier management: -- Joseph (Bud) Murphy, formerly executive vice president and general manager, Business Products Group, Minolta Corporation, was named executive vice president, corporate planning. In this role, he will work closely with Matsumoto to ensure that Konica Minolta Business Solutions remains pointed in the right direction both in terms of the merger, as well as the future development and growth of the new company. In addition, Murphy will oversee international sales operations. -- Jun Haraguchi, formerly vice president of corporate planning at Konica, and Ikuo (Indiana) Nakagawa, formerly vice president of strategic planning at Minolta Corporation, will continue to serve in their current capacities and report directly to Bud Murphy. John Reilly, formerly director, marketing and strategic planning, Minolta Corporation, will assume the role of vice president of strategic planning, bringing his extensive product development and marketing experience to the mix. -- Joseph Villanella, formerly senior vice president, retail and business products group operations, Minolta Corporation, was appointed executive vice president, direct sales. He will oversee the continuing integration of the companies' branch offices. The Konica and Minolta Direct Sales Divisions will be separately maintained for the short term, with Emil Enstrom serving as senior vice president of the Konica Direct Sales Division, and John Fernandez serving as senior vice president, MBS Division. Branch integration will be ongoing, based on criteria such as shared territory, real estate leases, etc. -- Stephen T. Jones, senior vice president, Konica U.S. dealer sales, and Robert (Don) Snowden, senior vice president, Minolta U.S. dealer sales, will continue in their respective roles for the immediate future, as the dealer channels will remain separate until common product branding takes place in 2004. In the interim, Jones and Snowden are working together to ensure a smooth and effective transition to an integrated dealer channel. -- Thomas Dillon, formerly senior vice president, technical operations, Konica, has been named senior vice president, solutions and technical services. He will be responsible for the combined field services operations, the National Systems Solutions Group, the National Customer Support Center, Konica Minolta Professional Services and technical training. The unification of these critical functions has already begun, specifically in the areas of cross training on products, and help desk and solutions support, to ensure a seamless transition. -- Jon K. Reardon, formerly vice president and general manager, Office Systems Product and Technical Support Division, Minolta Corporation, was named senior vice president, marketing and new product development. In this position, he will handle the integration of the Konica and Minolta product lines, development of new products, common branding, etc. Kevin Kern and William H. Brewster, both formerly with Konica, will continue in their roles as vice president, product planning and development, and vice president, marketing, respectively. -- John Faleris, formerly Konica's executive vice president, administration, will become executive vice president, operations and support, with key functions reporting to him, including human resources, logistics, direct administration and dealer administration. -- Robert Kobylensky, formerly Konica's vice president, color sales, was named vice president, production printing. In this newly created function, he will be responsible for developing a group of sales professionals who will target opportunities in the color and high-end production printing markets, with the goal of increasing market share. Breadth of Product Line Konica and Minolta have been working together for more than two years to jointly develop some of the most exciting new products on the market, including Simitri Polymerized Toner. Now, Konica Minolta Business Solutions will tap into this experience, as well as the strengths of the companies' complementary product lines - Konica's B&W and color, high-speed, high-end production document systems and Minolta's full-color imaging systems and office multifunctional devices - to offer a comprehensive, innovative line of color and B&W imaging systems that address the needs of companies and organizations ranging in size from the small office/home office to large production operations. In 2004, Konica Minolta Business Solutions has plans to launch at least 14 new products - nine B&W and five color- including a 105 page-per-minute B&W device with complete finishing capabilities targeted at the high-end production market. National Advertising Campaign Support A full-color, full-page advertisement, touting the innovation, technology and R&D firepower behind the new Konica Minolta Business Solutions, will appear in national newspapers, as well as business publications, including The Wall Street Journal, USA Today, Fortune and BusinessWeek, during the month of October. The advertisement will also appear in key, targeted industry publications in November and December. These will include: Graphics Arts Monthly, Graphics Design USA, In-Plant Printer, Instant and Small Commercial Printer, Printing Impressions, CIO, InformationWeek and Quick Printing.