Message from the President

We continue working to achieve high earnings, to contribute meaningfully to our society, and to earn the respect of everyone around us.

Thanks once again to your efforts and support, Canon Electronics has firmly established itself as a lean, high-earnings enterprise. In 1999 we declared our goal of becoming a high-earning enterprise, and now in 2006 our profitability has surpassed 14% - a truly significant achievement. Our lean and focused development, production, and marketing efforts not only contribute to profits but also give us the financial wherewithal to expand our operations under our own steam. As a result of our new orientation, we have seen a true reawakening among directors and employees, a significant step up in quality, and an improved working environment where staff feels a responsibility to correct even the smallest of problems. These positive results in turn feed back into benefits to our employees, to our society in the form of higher tax payments, and to our shareholders in the form of higher share prices and dividends.
We are currently quite active in our environmental management efforts, we conscientiously maintain full compliance, and we continue our daily efforts to maintain and improve our position as a top earner. We look forward to your support as we continue on the road ahead.

President and Chief
Executive Officer