The following includes questions and answers at the Conference for the Medium Term Management Plan on March 30, 2006

A. We expect to achieve ¥900 billion in net sales, and ¥90 billion in operating income. If we were to emphasize one of these approaches over the other, we would increase income. Operating income to net sales ratio of 10% is merely the current signpost in our ongoing quest to increase this ratio even more.

A. We expect consolidated net income for the period to be about ¥50 billion. At this time, we do not anticipate additional extraordinary gains or losses.

A. We release no such figures, but as we continue working on new basic technologies, we anticipate that a growing share of our R&D expenditures will be applied to Imaging Company developments. Our R&D spending up to this point mostly targets Precision Equipment Company investments.

A. We consider it important to pass profits along to our shareholders, and plan to continue distributing profits while seeking a favorable balance between dividends and business performance. Among the various approaches to looking after shareholder interests, we could increase dividends, for example, or utilize profits for increased business investments and research & development. Or we could increase shareholder value by reducing interest-bearing debt to strengthen finances. We consider and balance all of these factors in determining dividends and fulfilling our responsibilities to the various interests involved.

A. Nikon shipped the NSR-S609B (NA 1.07) scanner in January 2006. For the first time in the world, the NA of the projection lens is in excess of 1.0. The more ICs produced by this scanner appear on the market, the more Nikon's superiority in Immersion Lithography will be assured.

A. We are exploring several ideas, but at this time we are unable to release specifics. All of our ideas involve scanners using a light source.

A. Our LCD exposure systems employ an original multi-lens scanning method and promise greater benefits for applications involving the manufacture of large-size LCD panels. In fact, the larger the size of the panel, the more Nikon's superiority in LCD exposure systems becomes clear.

A. If first-generation digital cameras represented a shift from film to image sensors, the second generation can be seen as a giant leap in technical innovation, delivering major improvements in digital performance and systems.

A. Nikon SLR cameras are widely acknowledged as being of superior quality and reliability. These successes are the result of expertise accumulated by Nikon in optics, optical sensing, cameras and many other areas in the half of a century since we started to produce film SLR cameras. Our technologies are our core strengths; they're not something that can be achieved overnight. By constantly building on these technologies, Nikon is in strong position to maintain its pioneering leadership in the digital SLR camera field.

A. We are working to shorten production and development lead times by 30%, and to reduce manufacturing and development costs. We are also reviewing logistics systems as a means to improve efficiency and increase profits.

A. In the biological microscope business, we are shifting toward high value-added products and system solutions from the conventional microscope-focused business. We also plan to take advantage of our biological microscope technologies to make new inroads in biosciences fields with strong growth potential.