REVIEW OF OPERATIONS

INFORMATION SYSTEMS
Printing Systems
By integrating chemical imaging, electronic imaging and imaging software technologies based on its proprietary image analysis and evaluation, Fujifilm has developed a digital prepress solution that responds to the needs of customers operating in an increasingly digital market.
During the period under review, we continued to expand and improve the INTEGRA graphic arts film processing system, which has attracted praise because it uses less replenisher and delivers higher quality than any comparable system in the world. We also marketed the newly developed ADVANCED V series of presensitized (PS) plates for offset printing.
In November 1996, we established FUJIFILM Electronic Imaging Ltd., a R&D and manufacturing company, in the United Kingdom. This subsidiary will focus on developing products and services to provide customers with a variety of digital solutions. In Japan, we augmented our lineup of imagesetters with GREEN RIP and color scanners, including the popular VELVISCAN. We also continued to offer full support for advanced digital desktop publishing environments by offering the CELIX 8000 CTP computer-to-plate digital platesetter, the DIGITAL PLATE LPA/LPY plate materials and IMPULSE on-demand printing equipment.

Medical Diagnostic Systems
Since its founding, Fujifilm has developed and supplied X-ray films for medical diagnostic use. Our AD System, a screen/film system for X-ray diagnosis introduced in 1994, remains the system of choice for many medical professionals. We have also developed and commercialized (in Japan only) the environmentally sound, safe CEPROS series of automatic X-ray film processing equipment, which has earned high marks for ease of use and convenience. During the period under review, we augmented this series by releasing the CEPROS P, a compact, desktop model. With the CEPROS P system, we sought to further minimize negative environmental impact by reducing the amount of waste developing fluid to one-sixth that of conventional systems, as well as eliminating unpleasant acidic and ammonia smells. As a consequence, the CEPROS P system offers much more pleasant processing conditions than other systems.
In the electronic imaging area, we offer the Fuji Medical Dry Imager FM-DP2636 and 2636CR systems for printing of data from Fuji Computed Radiography (FCR) digital X-ray systems and other medical imaging modalities. The Fuji Medical Dry Imager FM-DP2636 and 2636CR systems employ a newly developed technology to produce ultrahigh-quality images without the use of processing chemicals or water.

Office Automation Systems
Fujifilm markets a variety of products and systems designed to create an efficient and pleasant office environment. These include the Total Image Managing System, an imaging solution system for document management that features high-speed paper scanners and microfilmers, taking advantage of both analog and digital technologies, as well as carbonless copying paper and heat-sensitive paper.
During the period, we launched a number of new products. These included a high-speed dry Computer Output Microfilming (COM) system, which uses no processing chemicals; a direct duplicating film, which enables highly accurate reproduction of microfilm; and a PC-based filing system.
The PICTROGRAPHY digital color printer combines exclusive laser scanning and thermal developing-transfer processes that enable ultrahigh-quality printing of photographs. Since its launch in 1993, this product has earned a solid reputation in the photography field, as well in such areas as testing and image analysis, medical diagnostics and research. In February 1997, we responded to demand from PICTROGRAPHY users by introducing PICTROGRAPHY 4000, an updated version that allows ultrahigh-quality printing of photographs in 14 different sizes.
The growing importance of PCs and the Internet is stimulating demand for systems that can process and output photographs and illustrations created using digital cameras, scanners, the Advanced Photo System and other media. In response to this trend, as well as to the increasing availability of inkjet printers for personal use, we introduced INKJET PHOTO PAPER glossy photo paper and INKJET FILM glossy film for high-quality printing of images and photographs using inkjet printers. Both these products take advantage of our exclusive technologies to deliver sharp resolution and natural color reproduction.

Industrial Materials
Sales of FUJITAC, a material for LCDs, and TRANSER, a transfer film for the production of micro color filters, expanded during the term. Our revolutionary WV FILM WIDE VIEW A retardation film for thin-film transistor (TFT) LCDs, which widens the angle of display visibility, continued to enjoy brisk demand from LCD manufacturers. This product is rapidly becoming one of our biggest-selling industrial materials.

Data Memory Media
Fujifilm has developed and marketed an extensive selection of advanced high- and low-end data storage media, including floppy disks, magneto-optical (MO) disks, CD-Rs, CD read-only memories (CD-ROMs), and 8mm D-8 and half-inch DLTtapeTM* data cartridge products. During the period under review, we became the first manufacturer to successfully develop and commercialize a 35-gigabit DLTtapeTM* IV data cartridge and a 12-gigabit 4mm DDS3 Data Cartridge, both of which utilize our proprietary ATOMM technologies. The superb quality and performance of both products respond to the needs of contemporary users for high storage volume, and we foresee strong demand in the years to come.
We boosted production of CD-Rs at our plant in Kleve, Germany. Demand for CD-Rs is rising sharply around the world, and we expect sales to increase in the near future.


*DLTtape is a trademark of Quantum Corp. of the United States.


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