REVIEW OF OPERATIONS

ADVANCED PHOTO SYSTEM
In April 1996, we launched our first products for the Advanced Photo System, a new worldwide photography standard developed by Fujifilm and four other companies-Eastman Kodak Co., Canon Inc., Minolta Co., Ltd., and Nikon Corp. Our Advanced Photo System products are widely acclaimed for their convenience and ease of use, which reflects such functions as drop-in film loading and index prints, as well as for the enjoyment that comes from being able to choose from three different print formats.
Prior to the Photo Marketing Association (PMA) Convention and Trade Show, held in New Orleans in February 1997, the five collaborators in the development of the Advanced Photo System were honored with a special prize by the show's organizer, the Photographic Manufacturers & Distributors Association (PMDA). In Europe, the five companies received a special award of recognition from the Technical Image Press Association (TIPA). As well as this, the Advanced Photo System was selected as the European Photo Innovation of the Year 1996-1997 by the European Imaging Sound Association (EISA).
In addition to films and cameras, our Advanced Photo System product lineup includes a variety of other innovative products. These include the Photo Player AP-1, which makes it possible to display images from a processed Advanced Photo System film cartridge on a television screen, and the Image Scanner AS-1, which converts optical images on film to digital data that can be manipulated on a PC screen. We will continue to promote the Advanced Photo System by raising consumer awareness of the system's ability to make photography easier and offer exciting new possibilities.
Fujifilm Advanced Photo System film products include ISO 100, 200 and 400 versions of FUJICOLOR NEXIA (SMART FILM in the United States) cartridge film, and FUJICHROME 100ix color slide film. FUJICOLOR NEXIA was also recognized by TIPA, earning a special award of merit for 1996-1997 at the TIPA European Photo/Video Awards, and by the EISA, which named the film European Advanced Photo System Film of the Year 1996-1997.
To satisfy the needs of a wide range of users, we offer the FOTONEX line of nine cameras developed especially for the Advanced Photo System, all of which are within the price range of the average consumer. Cameras in this series range from the affordable and compact FOTONEX 10 (ENDEAVOR 10 in the United States) to the sophisticated single-lens reflex FOTONEX 4000ix SL (ENDEAVOR 4000ix SL in the United States). In April 1997, we launched the FOTONEX 400ix ZOOM MRC (ENDEAVOR 400ix ZOOM MRC in the United States) a new version of the FOTONEX 400ix ZOOM that is the smallest and lightest camera of its type in the world, popular for its convenient 45 zoom function, which adjusts from 25mm to 100mm and features a mid-roll change (MRC) function for film.
In 1996, we added the ultraslim (a mere 21mm), super-compact FUJICOLOR QUICKSNAP SUPER SLIM to the QUICKSNAP line of one-time use cameras. This model received a 1996 Good Design Award from Japan's Ministry of International Trade and Industry (MITI), as well as a Good Package Award from the Japan Packaging Institute, which applauded the use of more recyclable materials in the product's packaging.

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