January 27, 2005

2005 Outlook on the Shipment Forecast by Product-Type
Concerning Cameras and the Related GoodsCAMERA & IMAGING PRODUCTSASSOCIATION (CIPA)

1.

Trends on the Total Shipment of Cameras
The world economy in the year 2004 appeared to be on the path for the right course up
until the Athenes Olympic Games, foremost exemplified by the rapid recovery of theJapanese economy. However, the feeling of the effects of the economic slow-downbegan to creep in with the onset of the high price of crude oil, stagnant European
economy, weakening of the US dollar at the year-end, accelerated by the US
government running deficits in both the balance of payments and the national budget
accounts. Amidst such state of the world economy, within the Camera Industry from theworld-wide point of view, the digital camera sales showed a stable growth though withregional variations, achieving a high rate of market penetration, which was comparable
to the declining market for the silver halide cameras.
The world economy in the year 2005 continues to carry various destabilizing factors
including: the instability of the Middle East; sporadic terrorist attacks and theenlargement of its activities; geopolitical cause of concern involved in the tsunami
disaster and related damages triggered by the Sumatra-Andaman Islands Earthquakethat struck at the year-end of 2004; further weakening of the US dollar; and thestabilization of crude oil at a high price. Amidst such state of the world economy,nevertheless, the market for digital cameras is expected to see a continuous growththough with regional variations in the market penetration rate.
With these recognitions and considering that the total shipment of cameras involvingboth the domestic and foreign market figures reached approximately (approx.) 69.8
million pieces in the year 2004, up 17.0% from the previous year, the growth in the total
shipment of cameras is expected to continue in the year 2005. It is forecasted to amount
to approx. 78.6 million pieces, up 12.5% from the previous year.

2.

Outlook on the Shipment Forecast Concerning the Silver Halide and Digital Cameras
1)

Silver Halide Cameras
Under the influences of competitive pricing and progressive rate of market
penetration of the digital cameras, the shipment of the silver halide cameras in theyear 2004 stagnated at the approx. 10.1 million pieces, down 38.2% from theprevious year.
This downward trend is expected to continue and the total shipment in the year
2005 is forecasted to be approx. 6.4 million pieces, down 36.5% from theprevious year. Among this figure for the total shipment, the domestic shipment is1

expected to account for approx. 0.4 million pieces, down 35.6% from the previousyear and the export to amount to 6.0 million pieces, down 36.6 % from thepervious year.
2)

Digital Cameras
In the year 2004, the strong growth in the market for digital cameras continued
from the previous year and the total shipment of digital cameras was approx. 59.8
million pieces, the increase of approx. 16.4 million pieces over last year (up37.7% from the previous year).
In the year 2005, the shipment of digital cameras is expected to show a slightly
slower rate of growth. Nevertheless, the strong growth is expected to continue interms of the absolute number of pieces, and the shipment is forecasted to reachapprox. 72.2 million pieces, the increase of approx. 12.4 million pieces over lastyear (up 20.8% from the previous year). Among these forecasted figures, thedomestic shipment is expected to suffer the effect of the saturating market andforecasted to account for approx. 8.7 million pieces, up 1.8% from the previousyear. With respect to the export, assuming that the strong growth continues in theEuropean and other markets, except for the slightly weaker rate of growth
expected in the United States, it is forecasted to reach approx. 63.5 million pieces,up 24.0% from the previous year.

2January 27, 20052005 Outlook on the Shipment Forecast by Product-Type
Concerning Cameras and the Related GoodsCAMERA & IMAGING PRODUCTSASSOCIATION (CIPA)
Total Shipment

Unit in Thousand Pieces
Performance in Performance in Performance inYear-onForecast for theYear-onItem by Typethe Year 2002 the Year 2003 the Year 2004 Year % Growth Year 2005 Year % Growth
Silver Halide
23,660
16,297
10,078
61.8
6,400
63.5
CamerasDigital24,551
43,40859,766
137.7
72,200120.8
CamerasCameras48,211
59,70569,844117.0
78,600112.5
TotalInterchangeable
5,196
4,705
5,325
113.2
6,200
116.4
Lens for SLR

Domestic Shipment
Item by Type
Silver Halide
CamerasDigitalCameras
Cameras
Total
Interchangeable
Lens for SLR

Performance in Performance in Performance inYear-onForecast for theYear-onthe Year 2002 the Year 2003 the Year 2004 Year % Growth Year 2005 Year % Growth
2,242

1,146

621

54.2

400

64.4

6,550

8,439

8,547

101.3

8,700

101.8

8,792

9,585

9,168

95.6

9,100

99.3

865

717

797

111.2

1,000

125.5

ExportItem by Type
Silver Halide
CamerasDigitalCameras
Cameras
Total
Interchangeable
Lens for SLR

Performance in Performance in Performance inYear-onForecast for theYear-onthe Year 2002 the Year 2003 the Year 2004 Year % Growth Year 2005 Year % Growth
21,41815,150

9,457

62.4

6,000

63.4

18,001

34,96951,219146.5

63,500124.039,41950,11960,676121.1

69,500

114.5

4,331

3,988

4,528

113.5

5,200

114.8

Note: Figures include decimal-adjusted numbers.

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