Reorganization of Precision Equipment Company's Production Subsidiaries

Nikon Corporation (Michio Kariya, President, Tokyo) has determined reorganizing schema of its Precision Equipment Company's Japanese production locations, previously announced on May 26 this year, as follows.

1. Objective and Measures

   Nikon has been implementing various structural reform of its Precision Equipment Company to cope with deterioration of IC Steppers and Scanners market as well as future outlook of IC/LCD Steppers and Scanners markets. As a part of this reform, Precision Equipment Company's currently operating 4 production subsidiaries in Japan will be reorganized and integrated into 2 subsidiaries for establishment of production structure to substantially reduce fixed cost and enhance both operational efficiency and capability to cope with the drastic change of business environment. Production of IC Steppers and Scanners will be integrated into Tochigi Nikon Precision Co., Ltd. Major devices of LCD Steppers and Scanners production will be integrated into Zao Nikon Co., Ltd.

2. Outline of Reorganization

   < Date of enforcement >

   October 1, 2009

   < Schema >

   • IC Stepper and Scanner business of Sendai Nikon Precision Corporation will be transferred to Tochigi Nikon Precision Co., Ltd. via split by absorption. LCD Stepper and Scanner business of Mito Nikon Precision Corporation will be transferred to Zao Nikon Co., Ltd. via split by absorption.
   • After split by absorption, merger by absorption will be proceeded with as Tochigi Nikon Precision Co., Ltd. for continuing concern and Mito Nikon Precision Corporation for discontinuing concern.
   • In the same manner, merger by absorption will be proceeded with as Zao Nikon Co., Ltd. for continuing concern and Sendai Nikon Precision Corporation for discontinuing concern. Further, Zao Nikon Co., Ltd. will change its trade name to Miyagi Nikon Precision Co., Ltd. on the same day.

   < Allocation related to these Splits and Mergers >

   There will be neither new equity issue nor capital increase since these splits and mergers are implemented among 100% subsidiaries of Nikon Corporation.

3. Outline of new subsidiaries (estimation as of October 1, 2009)

   < Tochigi Nikon Precision Co., Ltd. >

   Main business	Manufacture of devices for IC Steppers & Scanners and lenses for IC/LCD Steppers & Scanners
   Establishment	2007
   Location	Otawara, Tochigi Prefecture
   Representative	Takeshi ASAMI, President
   Capital	425 million yen
   Financial closing date	March 31
   Number of employees	Approximately 750
   Major shareholder	Nikon Corporation (100%)

   < Miyagi Nikon Precision Co., Ltd. >

   Main business	Manufacture of devices for LCD Steppers & Scanners
   Establishment	1981
   Location	Katta-gun, Miyagi Prefecture
   Representative	Akio NAKAZAWA, President
   Capital	200 million yen
   Financial closing date	March 31
   Number of employees	Approximately 180
   Major shareholder	Nikon Corporation (100%)

4. Reference: Outline of 4 subsidiaries (As of March 31, 2009)

   Transferring and discontinuing subsidiaries

   < Sendai Nikon Precision Corporation >

   Main business	Manufacture of devices for IC/LCD Steppers & Scanners
   Establishment	2008
   Location	Natori, Miyagi Prefecture
   Representative	Tadao TATENO, President
   Capital	123 million yen
   Total Asset	5,909 million yen
   Financial closing date	March 31
   Number of employees	201
   Major shareholder	Nikon Corporation (100%)

   < Mito Nikon Precision Corporation >

   Main business	Manufacture of devices for IC/LCD Steppers & Scanners
   Establishment	1968
   Location	Naka, Ibaraki Prefecture
   Representative	Hisashi HIBI, President
   Capital	300 million yen
   Total Asset	4,809 million yen
   Financial closing date	March 31
   Number of employees	262
   Major shareholder	Nikon Corporation (100%)

   Succeeding and continuing subsidiaries

   < Tochigi Nikon Precision Co., Ltd. >

   Main business	Manufacture of IC Steppers & Scanners, and lenses for IC/LCD Steppers & Scanners
   Establishment	2007
   Location	Otawara, Tochigi Prefecture
   Representative	Takeshi ASAMI, President
   Capital	425 million yen
   Total Asset	9,713 million yen
   Financial closing date	March 31
   Number of employees	458
   Major shareholder	Nikon Corporation (100%)

   < Zao Nikon Co., Ltd. >

   Main business	Manufacture of devices for IC/LCD Steppers & Scanners
   Establishment	1981
   Location	Katta-gun, Miyagi Prefecture
   Representative	Akio NAKAZAWA, President
   Capital	200 million yen
   Total Asset	3,872 million yen
   Financial closing date	March 31
   Number of employees	80
   Major shareholder	Nikon Corporation (100%)