IMAGING SYSTEMS
Since its founding in 1934 as a manufacturer of silver-halide photographic products, Fujifilm has contributed to the popularization of photography by pioneering numerous revolutionary technologies and bringing a wide range of products to market. During the period under review, we continued to apply our accumulated technological expertise to enhance the appeal of our imaging system products to consumers and professional users around the world. Some of these products are introduced below.

Color Films
The FUJICOLOR SUPER G PLUS line of color print films for conventional photographic systems and the FUJICOLOR REALA series, our top-of-the-line color negative film, continued to enjoy the unrivaled support of users during the period. An updated version of the latter, FUJICOLOR NEW REALA, was chosen the '96-'97 Color Negative Film of the Year at the TIPA European Photo/Video Awards.
In the color slide film category, we launched FUJICHROME ASTIA, an ISO 100 daylight film offering highly accurate reproduction of skin tones that is particularly suitable for use in fashion, portrait and product photography. This film joins the popular FUJICHROME PROVIA and FUJICHROME VELVIA lines, forming the third pillar of our FUJICHROME lineup for professional photographers and broadening the range of films from which users can select the product that best meets their objectives, needs and photographic conditions. We also introduced FUJICHROME SENSIA II, an ISO 100 daylight color slide film that features highly accurate, natural color reproduction.

Motion Picture Films
The FUJICOLOR SUPER F series, which incorporates Fujifilm's superior film technologies, is favored by filmmakers around the world. FUJICOLOR Positive Film, which features a polyester base and does not use black resin, reflects our commitment to offering products that are environmentally sound and contribute to energy and cost savings for laboratories.

Cameras
Fujifilm markets a comprehensive lineup of user-friendly compact cameras that make it possible for users of all levels to take good pictures. During the period under review, we introduced the DL SUPER MINI ZOOM line, reinforcing our popular DL SUPER MINI series, which offers ease of use and superb picture quality.
Another new release during the term was the GA645W Professional, a 45mm fully automatic autofocus medium-format camera in the same family as the GA645 Professional. In Europe, the GA645 Professional attained the 1996-1997 Professional Product of the Year at the TIPA European Photo/Video Awards, while in Japan it was selected for the Photojournalists Club Special Award at the Japanese Camera Grand Prix 1996. The GA645 Professional and the GA645W Professional together received a 1996 Good Design Award from MITI.
Our advanced instant camera systems cater to the needs of users who wish to view their photographs immediately. In response to rapid growth of this market in Japan during the period under review, we launched two products in the high-performance FOTORAMA ACE series (available only in Japan): the FOTORAMA 90ACE, which offers one-touch automatic standby and distance adjustment, and shots from as close as 90 centimeters; and the FOTORAMA 91ACE, which features an additional autofocus function. Both these models are produced at our plant in Jiangsu Province, in the PRC, which began operating in the previous fiscal year.

Magnetic Audiovisual Media
Fujifilm's accumulated technological expertise and high-quality products have earned it a solid reputation worldwide as one of the leading manufacturers of magnetic audiovisual media. During the fiscal year ended March 31, 1997, we marketed the DP121, a DVCPRO broadcast-use digital videotape, incorporating our exclusive new ATOMM-II high-density digital video technology.
In the area of VHS and other consumer-use videotapes, we focused on expanding overseas production to ensure our ability to provide products and services and to respond to consumer demand in different regions in a flexible and timely manner.

Electronic Imaging Equipment
The rapid evolution of multimedia, the soaring popularity of private-use PCs and the rising prevalence of the Internet are creating new uses for digital imaging products for the home. The increasing availability of inexpensive, high-performance PCs has brought full-color images within reach of consumers, stimulating interest in digital imaging equipment. As a consequence, demand for digital photographic equipment and processing services is also soaring.
Manufacturers are responding to market changes by introducing high-performance, inexpensive digital cameras, a trend that is increasing the popularity of these cameras among consumers as well as commercial users. Fujifilm continues to lead the way by developing and marketing advanced products. During the period under review, we marketed the Digital Camera DS-7. This compact, high-performance camera features a charge-coupled device (CCD) that supports VGA, the standard video format for PC monitors, and a liquid crystal display (LCD) monitor, and is the first camera in the world to use the SmartMedia SSFDC (solid-state floppy disk card). The excellent color reproduction and ease of handling offered by this camera have earned it a favorable reputation.
We also introduced the DS-505A and DS-515A digital card cameras, successors to our DS-505 and DS-515 models, which are favored by newspapers and other professional users. In addition, we completed development of the FUJIFILM Digital Camera DS-300, a 1.3-million-pixel professional-use digital camera and prepared for its subsequent launch, in June 1997.
Our Photo-Video Imager devices enable amateur and professional users to project negatives, slides, color prints and three-dimensional images onto a television screen or convert them into data that can be manipulated on a PC screen. During the term, we added a new version to this line: the digital Photo-Video Imager FV-10D, which features 45 zoom and high-precision autofocus functions, and succeeds the FV-10. This product has expanded the market for the Photo-Video Imager line to include not only photography enthusiasts, but also PC users.
To our lineup of full-color printers, we added the NC-5 and the NC-3D. Both these products are based on our proprietary Thermo-Autochrome (TA) Color Print System, and produce rich, full-color, photograph-quality images on paper through a heat-sensitive process. The NC-5, which is offered only in Japan and succeeds the NC-2, is a multipurpose home-use printer, while the NC-3D is designed exclusively for printing digital images. In addition, we augmented our lineup of full-color printers for professional users with the Digital Color Printer NC-500 and the Video-Graphic Printer NC-300.

Digital Imaging Services

Advances in digital imaging technologies and the development of an infrastructure to support digital imaging are expanding the frontiers of photography. By integrating our expertise in silver-halide photography and digital imaging technology, we have devised a variety of exclusive new technologies that add greater value to imaging.
We have developed and commercialized digital cameras and other digital input technologies; digital output technologies, such as those utilized in the PICTROGRAPHY digital color printer and the TA Color Print System; new media technologies, such as those used in high-density recordable compact discs (CD-Rs) and other data storage media; and digital imaging systems, including those for the Advanced Photo System.
In the photofinishing systems segment, we recently unveiled the Digital Lab System FRONTIER, a revolutionary image-processing system that employs solid-state blue and green lasers. This system heralds the digitization of silver-halide photography by combining exclusive leading-edge digital image processing and laser technologies to produce prints of unsurpassed quality and beauty.
The Fujifilm Digital Imaging Service offers an entirely new concept in imaging services that respond to the image-processing needs of the growing population of PC users, as well as of digital camera users. This cutting-edge service also comprises an exciting new business opportunity for photofinishing labs and minilab shops. The Fujifilm Digital Imaging Service currently encompasses three elements:

	Digital Media Input and Output services, including converting exposed silver-halide film to digital data, which is stored on CD-Rs or other data storage media, and producing prints from digital images;
	Fujifilm Net Service, wherein the photofinishing laboratory uses the Digital Lab System FRONTIER to produce prints and simultaneously digitize the images. The digitized images are stored in the laboratory's data servers, enabling customers to view their images via the Internet and order additional valve-added prints or enlargements from the laboratory on-line;
	Digital Camera Printout Service, which offers high-quality printouts of images taken with digital cameras.

The Fujifilm Digital Imaging Service is designed for use in an open environment.Fujifilm will continue to collaborate with manufacturers to integrate systems and with software vendors to provide a wide range of related services.