Konica Minolta Launches New Distribution Channel Backed by New Brands - OnDemand SMB and OnDemand Publisher

New Channel Designed to Fill Gaps in Geographic Distribution and Increase Share in Key Markets

Konica Minolta Launches New Distribution Channel Backed By New Brands -
OnDemand SMB And OnDemand Publisher

New Channel Designed to Fill Gaps in Geographic Distribution and
Increase Share in Key Markets

RAMSEY, N.J. - August 1, 2006 - Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta), a worldwide leader in color MFP technology, and home to the award winning bizhub and bizhub PRO product line, recorded double digit sales growth in 2005, outpacing industry growth by a considerable margin. In a strategic move to continue this momentum, the company will expand into a new distribution channel with the introduction of two new brands: OnDemand SMB and OnDemand Publisher.

"We intend to build upon our success in a highly competitive marketplace and capitalize on our strong momentum and increasing market share in color and production print segments," said Jun Haraguchi, President and CEO, Konica Minolta Business Solutions U.S.A., Inc.  "We have very aggressive growth targets for this year and in the future.  It is clear that with our target growth rate we must supplement our distribution.

"Our 'Go to Market Strategy' for our OnDemand brands includes a focus on Mid-Range Color and Production Print, two segments that represent key growth opportunities," said Stephen T. Jones, Executive Vice President, U.S. Dealer Sales, Konica Minolta Business Solutions U.S.A., Inc. "We will establish a dedicated sales, service and marketing organization to recruit and support dealers in this exciting new channel opportunity."

With the tag line "Powered by Konica Minolta," the OnDemand SMB and OnDemand Publisher product lines offer a comprehensive selection of color, monochrome and Production Print systems to meet almost any application or budget.

About Konica Minolta Business Solutions U.S.A., Inc.
Konica Minolta Business Solutions U.S.A., Inc., offers a broad range of multifunctional digital imaging solutions inspired by its bizhub™ brand of powerful solutions that serve as the central resource for document scanning, in-house printing, copying, faxing and electronic archiving and distribution.  From high-quality color and monochrome bizhub systems for workgroups and small offices, to advanced high-volume bizhub PRO™ production printing systems for large corporations and print-for-pay services, Konica Minolta is leading the industry toward integrated, networked hardware/software solutions that are more simple, reliable, and cost-effective.  Complementing its bizhub solutions, Konica Minolta also offers desktop laser printers, microform digital imaging systems, wide-format printers and scanning systems for specialized applications.

Headquartered in Ramsey, New Jersey, Konica Minolta delivers expert professional services and experienced, responsive client support, in addition to the world-class service provided through its extensive network of direct sales offices, authorized dealers, resellers and distribution partners in the United States, Canada, Mexico, Central America and South America.  For more information, please visit Konica Minolta at www.kmbs.konicaminolta.us.

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Konica Minolta and The essentials of imaging are trademarks of KONICA MINOLTA HOLDINGS, INC.  bizhub and bizhub PRO are trademarks of KONICA MINOLTA BUSINESS TECHNOLOGIES, INC.  All other trademarks mentioned in this document are the property of their respective owners.