Nikon Imaging Company to Merge Japan Distribution Bases

Nikon Corporation (President: Michio Kariya) and Nikon Photo Products Inc. (President: Takao Nishioka) are pleased to announce the establishment of Nikon Yokohama Logistics Center, a new base that brings together all of Nikon's Japan warehouses for imaging products, including digital cameras, under one roof. The after-sales service section of the Ohi Plant, which handles the Japan domestic market, will also be relocated to the new center.

All operations will begin from August 2005. The new base is being launched to maximize customer benefits through more timely delivery of products and faster repair services. The new system is expected to improve profitability and enhance competitiveness in the digital camera business through more efficient distribution within Japan.

Until now, Nikon has operated three product warehouses in the Tokyo area as distribution bases for the imaging business in Japan. Unifying these bases is expected to reduce Japanese distribution costs by about 20 percent, through elimination of transportation between warehouses and efficient use of the latest logistics facilities. The center will also significantly reduce the time between storing and forwarding through innovations in the distribution system and improved distribution operations. The new system and operations will enable one-day forwarding to Japanese retail stores, and expedite exports to an average of 2.5 days. Furthermore, by warehousing all stocks under a single roof and providing speedier, demand-based forwarding, we plan to reduce inventory by ¥2 billion.

Relocation of the Japan after-sales service section of the Ohi Plant to the new center will enable faster repair services and more efficient delivery of products for repair received through retail stores, providing better services for the customers in Japan.

Outline of new center