The Imaging Solutions segment includes businesses related to colour film, film cameras, digital cameras, lab equipment, and colour paper, chemicals, and services for photofinishing. Consolidated revenue in this segment rose 5.9% to ¥831.0 billion, supported by a surge in digital camera sales centered on North America and Europe.

Photographic Films

As an official sponsor of the 2002 FIFA World Cup Korea/Japan™, Fujifilm took the opportunity to undertake diverse promotional campaigns related to the World Cup throughout the world, thereby expanding demand for its photographic film products. In the colour negative film category, we launched the new Superia X-TRA 400, a 35mm high-speed film producing exceptional image quality and smooth granularity.

In the area of single use cameras, the FUJICOLOR QuickSnap, which was developed based on the concept of "a camera anyone can easily use to take pictures anytime, anywhere," has been greatly appreciated throughout the world, and the total number of single use recyclable cameras shipped worldwide by the Fujifilm Group has reached one billion*¹ since their appearance on the market in 1986. Fujifilm is committed to the timely development of additional single use recyclable camera models tailored to customer needs.

Regarding motion picture films, the REALA 500D, the world's first motion picture film that incorporates 4th Colour Layer Technology, contributed greatly to sales.

*¹ As of November 2002

Film Cameras

In film cameras, the Zoom Date 1300, which is the world's smallest and lightest*² 35mm 4.6x zoom*³ camera, and the 35mm compact camera Zoom Date F2.8, with a bright ultrawide F2.8/24mm lens, have been highly appreciated in the market. The stylish APS compact camera Nexia Q1, continues to record surging sales worldwide.

With respect to medium format cameras, we began the domestic marketing of the GX645AF Professional, a 6 x 4.5 format auto-focus SLR camera with interchangeable lenses that was developed in collaboration with Victor Hasselblad AB.

This change is designed to enable Fujifilm to develop products with ever greater appeal, more speedily.

Regarding instant cameras, Fujifilm continues to expand and strengthen its popular Instax Mini series, which produces credit-card-sized instant photos. The Company is sustaining its efforts to emphasize the special appeal of instant photography - being able to enjoy pictures on the spot.

*² Smallest and lightest 35mm compact camera with 4x zoom or greater, as of July 1, 2002
*³ World's most powerful zoom in a 35mm compact camera, as of July 1, 2002

Digital Cameras

The popularity and sophistication of digital cameras have continued to increase rapidly. In this operating environment, Fujifilm recorded very strong sales, particularly in Japan, of the FinePix F401 with the 3rd-Generation Super CCD, which produces ultrahigh sensitivity and high-quality images. Fujifilm increased its market share in North America and Europe, reflecting robust sales of such products as the FinePix A303, which was designed to be even more compact and lightweight through the use of the xD-Picture Card™.

In March 2003, Fujifilm further bolstered its digital camera lineup by launching the FinePix F410, incorporating the 4th-Generation Super CCD HR, which has increased pixel counts through advanced miniaturisation technology.

At the same time, we unveiled the Fine Pix F700, with the 4th-Generation Super CCD SR, which uses a mechanism analogous to that of colour negative film to deliver a wider dynamic range.

Great growth is expected in demand for CCDs used in mobile phones with camera functions, and Fujifilm has begun supplying the Super CCD sensors to mobile phone manufacturers. The Super CCD sensors have been highly evaluated as enabling unprecedented high levels of sensitivity and image quality.

As competition in the digital camera markets remains fierce, Fujifilm is upgrading its Groupwide R&D and production programme for key digital camera related devices and striving to enhance its cost-competitiveness, while strengthening the FinePix brand.

Photofinishing-Related Products and Services

The introduction of digital equipment in the minilab market is proceeding rapidly. Fujifilm's Digital Minilab Frontier series has been very highly acclaimed as its incorporation of Fujifilm's proprietary Image IntelligenceT sophisticated digital image-processing software makes it possible to provide ultrahigh-quality prints as well as a wide variety of digital imaging services. Consequently, sales of Digital Minilab Frontier systems have been growing steadily throughout the world. At the end of 2002, Fujifilm further strengthened the Frontier family by launching the Frontier 340, a compact model that features high processing capacity and easy operation, thereby reinforcing its leading position in the digital minilab market.

The rapid rise in the popularity of digital cameras and camera-phones has greatly expanded the market for prints from digital cameras. Against this background, Fujifilm is endeavouring to promote the expansion of the digital print service infrastructure by introducing its Digital Minilab Frontier systems and Printpix digital print systems. At the same time, Fujifilm is striving to expand demand for prints of digital photos by continuously implementing campaigns that encourage people to experience first-hand the process of obtaining, at print shops or via the Internet, high-quality photographic prints from photos taken with digital cameras.