Epson outlines strategy targeting convergence of imaging domains

Epson is desperately trying to change its image from a printer company to an
organization selling printers, projectors, displays and core devices that links
all these machines. In a move to implement the changes, it has initiated the
SE07 plan in 2002, which actually is a sequel to its SE05 plan that was
initiated in 2001.

SE07 details Epson's mid-to-long term corporate vision, which is now being
narrowed down to what they call the "3i's" "Since SE05 was
established, the economy and the IT industry went through serious changes and
hence the need for SE07 was felt," says Toshio Kimura, Executive VP, Epson.

3i's are essentially the three imaging domains which the company has
identified for its future business until the year 2007. i1 is 'imaging on paper'
where the company's printer products plays the key role; i2 focuses on the
'imaging on screen' through its projectors and i3 stands for the 'imaging on
glass' which are the LCD TFT display products for mobile phones and digital
cameras. Each of these three is a means for displaying a digital still or moving
images.

Through the 3i strategy, Epson hope to achieve the concept of digital image
innovation, that will drive the company's growth  till 2007."By
targeting the convergence of these imaging domains, we believe it will provide
cutting-edge imaging solutions that create a symbiosis of still and moving
images supporting richer communications and bringing color to the customers
around the world," says Toshio.

Under i1 (imaging on paper), the future business strategies is ubiquitous
printing, which enables a person to print from not only a PC, but also from a
digital camera, mobile phone, digital television, or a variety of other devices,
regardless of location.

Seiichi Hirano, Director, Imaging & Information Products Operations
Division, Epson, explains how factors such as a worldwide surge in demand for
digital cameras have fueled requirements for high quality printing in the
convenience of the home. This has been aided by environmental changes such as
the growth in popularity of camera-equipped mobile phones and digital
broadcasting contents. By taking advantage of these trends with its
industry-leading technologies and superb printer products, Epson plans to create
a new photo culture where "Epson = Photo."

The focus of i2 (imaging on screen) is to expand the market for projectors,
equipment used to display images on to a screen. Based on its proprietary 3LCD
technology, Epson has cemented a world-leading market share for its projectors.
"3LCD has become the dominant technology for projectors, being employed in
approximately 80% of the projectors in the world today," says Kenji Uchida,
Director and Chief Executive of Seiko Epson's Visual Instruments Operations
Division.

Driven forward by 3LCD, Epson's technology can be found in a wide range of
products including projectors for home and business use and LCD projection TVs,
such as the Epson Livingstation, which was launched earlier in the year in the
United States and Japan. The Livingstation, which is reasonably priced compared
to other large TVs of a similar size, is set to take advantage of the expected
proliferation of high-definition TV (HDTV).

The recent announcement of the prototype of the world's largest OLED (organic
light-emitting diode) display created using Epson's unique inkjet technology was
one of the product that illustrates Epson's commitment to the new strategy.
"OLED's high contrast, wide viewing angle and fast response time, makes
many to believe that it will be the TV technology of the future," says
Masao Akahane, Seiko Epson Corp, Managing Director. In i3 (imaging on glass),
Epson is pursuing the development of a wide range of original technology for
mobile display including LCDs.

NELSON JOHNY

SUZHOU, CHINA