New Integrated Holding Company Konica Minolta Holdings, Inc. to Launch on August 5

August 5, 2003
KONICA MINOLTA HOLDINGS, INC.

Tokyo (August 5, 2003) --- Konica Minolta Holdings, Inc. (Fumio Iwai, President & CEO) is pleased to announce that it has formed a new integrated holding company through management integration on August 5, 2003.

This new holding company was formed as a result of "the letter of intent for the management integration " signed on January 7, 2003 by Konica Corporation and Minolta Co., Ltd., and of a contract for the stock exchange signed by both companies on May 15, 2003, in accordance with decisions from the Boards of Directors Meetings of the both companies. Approval to enter into this contract was received at the general shareholders’ meetings held by Konica Corporation on June 25, 2003, and Minolta Co., Ltd. on June 27, 2003.

As previously announced, under the management of Konica Minolta Holdings, Inc., the Company will be working to simultaneously reorganize its operations in the fields of image information products business, optical products business, camera business, photo imaging business, and instrument systems business, as well as its functions as a center for technology, its functions in the area of business expertise, and the strategic and managerial functions of the Group as a whole. This reorganization is targeted for completion by October 1, 2003, and will serve as the basis for the formation of a new corporate group.

1. Background and Objectives of the Management Integration
In the area of imaging, digitization and networking are expediting, technology and product developments are taking place at increasingly greater speeds, and market needs are changing drastically. In order to survive amidst today's global competition, with increasing emergence of other industries, we must aggressively form strategic alliances that enhance its strengths, and must do so in a timely manner.
The launch of the new holding company which results from this integration of management will combine the respective strengths of Konica Corporation and Minolta Co., Ltd., enhancing both the competitive business capabilities and earning capacity of the Company, and will also maximize corporate value by practicing the corporate portfolio management. Thus, one of the primary objectives of this management integration is to ensure a strong and solid position within the industry.

The new company will also adopt a company-with-committee system with the goals of allowing for the separation of management audit from the executive function, and achieving a highly transparent managerial system.

2. Overview of Konica Minolta Holdings, Inc.

3. Changes in the Number of Shares Constituting One Voting Unit
The number of shares constituting one voting unit will be changed based on the contract for the stock exchange, which was signed based on a decision of the Board of Directors meetings of both Konica Corporation and Minolta Co., Ltd. held on May 15, 2003, and the signing of which was approved by the general shareholders’ meetings held by Konica Corporation on June 25, 2003, and Minolta Co., Ltd. on June 27, 2003.
1) Reason for the Change
This change is being implemented to further promote the distribution of Konica Minolta Holdings, Inc. stock and to broaden the investor base.
2) Details of the Change
The number of shares constituting one voting unit will be changed from 1,000 shares to 500 shares.
3) ) Effective Date
August 5, 2003

* The units of exchange for Konica Minolta Holdings, Inc. on the Tokyo, Osaka and Nagoya Stock Exchanges will also be changed to 500 shares as of August 5, 2003.

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This announcement, which was released on August 4, 2003, has been posted on the new web site on August 5, with several changes in wordings but the contents remain the same.
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Cautionary Statement Regarding Forward-Looking Statements:
This press release includes forward-looking statements that reflect the plans and expectations of Konica Minolta Holdings, Inc. To the extent that statements in this press release do not relate to historical or current facts, they constitute forward-looking statements. The forward-looking statements are based on the current assumptions and beliefs of Konica Minolta Holdings, Inc. in light of the information available to it, and involve known and unknown risks and uncertainties. Potential risks and uncertainties include, but are not limited to, the ability of Konica Minolta Holdings, Inc. to integrate the operations of Konica Corporation and Minolta Co., Ltd. effectively, as well as the factors identified under “Forward-Looking Statements” of the Annual Report 2002 of Konica Corporation and “Disclaimer Regarding Forward-Looking Statements” of the Annual Report 2002 of Minolta Co., Ltd. Such risks, uncertainties and other factors may cause the actual results, performance or financial position of Konica Minolta Holdings, Inc. to differ materially from those expressed or implied in the forward-looking statements. Konica Minolta Holdings, Inc. undertakes no obligation to update publicly any forward-looking statements after the date of this press release.