REVIEW OF OPERATIONS

PHOTOFINISHING SYSTEMS
Fujifilm provides an extensive range of advanced photofinishing systems and related equipment, as well as prompt, high-quality photofinishing services through a broad network of laboratories. During the term, we reached an agreement with Wal-Mart Stores to purchase six photofinishing laboratories from the U.S. retail giant. We are confident that this move will enable us to enhance the quality of our photofinishing services in the United States.

Photofinishing Equipment
In response to growing demand for digital processing of photographic data, Fujifilm is combining silver-halide chemistry and advanced digital technologies to devise innovative photofinishing equipment. During the period, these efforts yielded the Digital Lab System FRONTIER, a revolutionary system designed to offer both superb quality and high productivity. The system's technologies, which include an advanced processing function and an exclusive laser scanning exposure technology, together with our newly developed FUJICOLOR LASER PAPER, enable it to produce prints of the highest quality, even from underexposed negatives. At the same time, the Digital Lab System FRONTIER delivers a level of productivity comparable to that of a Minilab system.
We also offer the Minilab SFA series of photofinishing systems for the Advanced Photo System. All four systems in the series, including the popular SFA-258, are compatible with 135mm systems and come with a built-in color LCD index printer to output high-quality index prints.
We have upgraded our high-quality color print paper with the introduction of FUJICOLOR Paper SUPER FA Type 5, which produces purer whites and clearer, sharper colors. SUPER FA Type 5 brings out the best in all Fujicolor films, both for conventional silver-halide and Advanced Photo System photography.
In March 1996, we completed construction of color print paper production facilities at our plant in Greenwood, South Carolina, and subsequently began manufacturing paper for sale in the U.S. market. We now have color print paper production capabilities in Japan, Europe and the United States, enabling us to provide stable supplies of high-quality paper and flexible services around the world.


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