REVIEW OF OPERATIONS

Photofinishing Systems
Fujifilm manufactures, markets and services a wide range of photofinishing equipment and related materials for users who demand high-quality photographic output. We emphasize environmental preservation and recycling from the design stage through production. For example, we were one of the first companies to develop equipment that uses less processing liquid and generates significantly less waste solution than conventional equipment.

Photofinishing Equipment
In response to growing demand for digital processing, Fujifilm is combining silver-halide chemistry with advanced digital technologies to develop innovative photofinishing equipment. Central among recently launched products is the Digital Lab System FRONTIER, a revolutionary image processing and printing system featuring a high-resolution film scanner and a laser printer that incorporates blue and green solid-state lasers and advanced laser scanning exposure technology. In addition to automatically adjusting the density of photographs taken against the light, this system delivers prints of exceptional beauty from digital cameras.
        During the period under review, we introduced three new printer processors in the Minilab SFA series of photofinishing systems-the PP1258AII, PP1828AII and PP3008AII. All three models are designed for both 24mm APS and conventional 35mm film, and can output index prints from either.
        In response to the increasingly diverse printing service requirements of our customers, we unveiled the ALADDIN Digital Picture Center, a digital processing workstation that responds to the various needs of photoshop customers. We expanded the PICTROSTAT series of color printer/copiers, which enables instant production of color prints from positives, negatives, printed materials and actual objects, by launching the PICTROSTAT Digital 400. This multipurpose unit brings together the versatile image-enhancement capabilities of a digital printer and the photorealistic tone and gradation of silver-halide prints. The PICTROSTAT Digital 400 produces enlargements, enables digital image enhancement and can be connected directly to PCs to print from digital cameras and other digital sources.
        We expanded our selection of high-quality color print paper with Crystal Archive Paper, a breakthrough product that offers exceptional color image stability, brilliant colors and whiter background whites.



The Future of Digital Imaging

Digital Imaging Services
The Fujifilm Digital Imaging Service, an online service that enables people to share digital images and transmit them to photofinishing laboratories for printing via the Internet, is available in Japan and parts of the United States and Europe. We also offer a full menu of related services in Japan, including the Digital Camera Print Service, and plan to gradually introduce these services overseas.
        At present, most digital cameras use Exif, a standard file format for recording images which was originally proposed by Fujifilm. Exif 2.0 is a revised version of Exif that is capable of converting Exif files into FlashPix* files. FlashPix is a new image file format that is especially suited to transmitting digital images over the Internet.
        An Exif support group, comprising 11 digital camera manufacturers, has submitted a proposal to the Japan Electronic Industry Development Association (JEIDA) recommending the adoption of Exif as the industry standard to ensure compatibility with digital cameras and the problem-free sharing of images by peripheral equipment. Fujifilm currently serves as secretary of the group.
*FlashPix is a registered trademark of the Digital Imaging Group.


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