Leica Press Release

Leica Camera AG, Solms, will establish a new Japanese subsidiary on March 1, 2005. The subsidiary, to be named Leica Camera Japan Co., Ltd., will take care of the promotion and distribution of Leica products in the important Japanese market. To date, these tasks have been performed by the independent distributor Nihon SiberHegner K.K. Leica products are already held in high esteem by Japanese customers for their quality, precision, and solidity. The Company’s creation of its own Japanese sales organisation will reinforce its service to the customers and will also stimulate sales increases.

Leica Camera Japan Co., Ltd. will be a joint venture of Leica Camera AG, Solms, which is to hold 51% of the capital, and Hermès Japan Co., Ltd., Tokyo, with a share of 49%. Hermès International, Paris, the latter company’s parent, is one of the major shareholders of Leica Camera AG, owning 31.5% of the capital of the German optics specialist.

Leica Camera Japan Co., Ltd. is the fourth foreign subsidiary to be established directly by Leica Camera AG, following the subsidiaries in the United States, the United Kingdom and France. In the Company’s fiscal year 2003/2004 (FY end March 31), sales of the Leica Camera Group in the Asian-Pacific region amounted to € 25.0 million, while total sales stood at € 119.1 million. The Japanese market is the most important market in this region and the fourth most important market on a global scale.