Message from the President

The business environment surrounding Nikon continues to undergo rapid changes. Regardless of external conditions however, the Company's goals - stable growth and a corporate structure that enables us to secure revenue - remain firm. In March 2006, Nikon unveiled its latest medium-term management plan, which outlines an internally driven commitment to building a Strong Nikon. Within this vision, we will seek to strengthen our financial structure, ensuring that Nikon's outstanding technologies and product concepts are linked to generating revenue. This approach will make us strong enough to cope with harsh influences from changes in the marketplace environment.

Nikon is involved in a broad spectrum of businesses centering on the core business segments of precision equipment, imaging products and instruments. We focus our energies on developing proposal-based products that build on Nikon's unique strengths and capitalize on our proprietary technologies. These technologies, maximized through Nikon's singular vision, have already resulted in a long list of innovations, ranging from IC scanners that utilize immersion lithography technology to LCD steppers and scanners which feature our multi-lens scanning system, and digital cameras offering Face-priority AF Mode. Needless to say, Nikon will continue to build products that bring to our customers the joy and satisfaction they've come to expect. Moving forward, Nikon is committed to establishing an even stronger manufacturing platform that will substantially reinforce the Company's profit structure.

Nikon is also involved in businesses that support the very foundations of society. To ensure a stable product supply, it is essential that our society functions smoothly, and the social mission bestowed upon Nikon is a vital one. At Nikon, we believe the best way to fulfill our corporate social responsibility (CSR) is to execute our business in the best possible manner. We will continue to forge ahead, reinforcing our risk management while implementing initiatives in areas such as environmental conservation. Nikon practices strict compliance and corporate governance in order to ensure a robust management environment with a high degree of transparency. Simultaneously, we must respond to the confidence placed in Nikon by a broad circle of stakeholders.

Since my appointment as President, I have developed a renewed appreciation for Nikon's outstanding technologies and the vast potential of our human resources, elements that together comprise our most valuable assets. As we advance, we will transform this potential into concrete achievements by further developing these human resources and applying foresight to refine Nikon's technological advantage. Nikon will endeavor to link its outstanding technological and human assets to generating revenue, thereby applying our philosophy of Trustworthiness and Creativity to our business.

Recently, we began a process of reform to create a Strong Nikon. As we set out to fulfill this promise of a re-energized and dynamic Nikon, we sincerely look forward to your continued support and insights.

Michio Kariya
President, Member of the Board,
Chief Executive Officer and Chief Operating Officer

Afiyna, Thursday, December 7, 2006