Imaging Systems
Originally founded 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 the Company's new products are introduced below.

Color Films
Users continued to give high marks to the FUJICOLOR NEXIA (SmartFilm in the United States) series of color film for the 24mm APS during the period. To our lineup of 35mm color negative films, we added the FUJICOLOR SUPERIA series, comprising FUJICOLOR SUPERIA 100, 200, 400, 800 and FUJICOLOR SUPERIA REALA, all of which feature wide exposure latitude, exceptional sharpness and color reproduction, and an attractive package design.
        In the color slide film category, we launched FUJICHROME MS 100/1000 Professional, a multispeed film that offers outstanding flexibility. FUJICHROME ASTIA 100 Professional was named Best Colour Slide Film 1997-1998 in the Technical Image Press Association (TIPA) European Photo/Video Awards' Best Photo/Video Products in Europe category.
        We augmented our lineup of one-time-use cameras with a number of exciting new offerings. These included the FUJICOLOR NEXIA QUICKSNAP 3 FORMATS (FUJICOLOR SMART QuickSnap Multi-View in the United States), a convenient product that lets users choose from three print aspect ratios, a function only available with the APS.

Motion Picture Films
Filmmakers around the world favor the FUJICOLOR SUPER F series, which capitalizes on Fujifilm's superior film technologies to offer fine grain and superior sharpness. During the period, we strengthened this popular series by replacing two existing models with the FUJICOLOR SUPER F-64D and F-125, both of which offer exceptionally faithful reproduction of colors, particularly blues, greens and yellows. In October 1997, we launched FUJICOLOR Positive Film F-CP, a superior-quality color-release positive film that offers rich, natural color reproduction and a highly stable processing performance. The use of these various products in combination creates additional synergies and enhances total performance.

Cameras
New APS cameras released during the period include the FOTONEX 3500ix ZOOM MRC (ENDEAVOR 3500ix ZOOM MRC in the United States), a compact 2.8X zoom camera. This new flagship camera, which features an MRC function and a detachable Multi-Function Card, received rave reviews.
        To our selection of medium-format cameras, we added the GA645i Professional and GA645Wi Professional, two fully automatic autofocus 6cm x 4.5cm-format cameras that are the first to feature an advanced version of Fujifilm's breakthrough bar code system, which automates all initial settings, as well as the GA645Zi, which offers an added zoom function.
        Fujifilm's instant cameras cater to those users who wish to view their photographs immediately. In the FOTORAMA ACE series (available only in Japan), we released the FOTORAMA 91ACE, which features an autofocus function. This is the second camera in the series produced in the PRC, the first being a standard model with one-touch automatic standby and distance adjustments.

APS: The New Worldwide Photography Standard Advanced Photo System The APS, a new worldwide photography standard that uses 24mm film, was launched in April 1996. Since then, the APS's acclaimed original innovations, namely drop-in film loading, three different print formats and an index print function, have been supplemented by a mid-roll film change function (MRC) and compact and attractive camera designs. Today, the APS is attracting customers from increasingly varied fields, and the market for APS products is expanding rapidly.

Magnetic Audiovisual Media
The DP121 broadcast-use digital videocassette, which incorporates Fujifilm's exclusive second-generation advanced super-thin-layer and high-output metal media (ATOMM-II) high-density digital video technology, is used with DVCPRO systems. During the period, we recorded growth in sales of DP121 to broadcasters and production companies in Japan and overseas. Newly released professional-use magnetic audiovisual products include the HD531 (available only in Japan), a 1/2-inch high-definition television-compatible videocassette.

Electronic Imaging Equipment
Fujifilm has responded to user needs in the rapidly growing digital still camera market by offering an extensive range of models for consumers that encompasses the FUJIFILM Digital Camera DX-5, DX-7 and DX-9 Zoom cameras. We also offer the MX-700, a consumer model featuring a 1.5-million-pixel CCD and the smallest, lightest body in its class, which has garnered praise from users since its release. All of Fujifilm's digital cameras for consumers come with a SmartMedia^TM data storage card for removable storage, as well as an optional Floppy Disk Adapter FD-A1 and a PC Card Adapter, making it easy to transfer stored image data to PCs.
        During the period under review, the DS-300 professional-use digital camera was selected European Digital Camera of the Year 1997-1998 by the European Imaging and Sound Association (EISA) and the Best Digital Camera 1997-1998 by TIPA. Sales to consumers were brisk, underscoring the popularity of this model.
        To our lineup of full-color printers, we added the Digital Printer NX-5D (Digital/Video Printer NX-5 in North America). This printer, which is based on our Thermo-Autochrome (TA) Color Print System, delivers rich, full-color photograph-quality output and can print directly from a SmartMedia^TM data storage card. Digital/Video Printer NX-5, the version offered in North America, can also print directly from a video camera. We also released the NC-300D, a TA digital printer for professional users that offers superb print resolution. We responded to increasing demand for high-quality scanners with the new CS-1, a compact, sheet-fed model that enables full-color, high-resolution scanning of text or image data to PCs.

The World's Smallest, Lightest Digital Camera Digital Cameras In March 1998, we released the MX-700, a digital camera equipped with a 1.5-million-pixel CCD and the smallest, lightest body in its class. The MX-700's outstanding image quality, full range of innovative features and high-performance functions have garnered praise from users since its release.         Digital cameras have become highly popular as image input devices because images captured with a digital camera can be downloaded directly to a computer. A digital camera can also be connected to a television, making it an exciting addition to a home audiovisual system. Print services like our own Fujifilm Digital Imaging Service, are expected to support the growth in popularity of digital cameras among consumers who are not necessarily PC users.