Financial History

InfoPrint Solutions Company Financial History

The agreement between IBM and Ricoh was closed on June 1 2007 and Ricoh initially acquired 51 percent of the joint venture. It will progressively acquire the remaining 49 percent over the next three years as the joint venture evolves into a fully owned subsidiary of Ricoh.

As consideration for the transaction, IBM received $725 million in cash upon closing, which includes a management fee of $35 million. The cash received is consideration for the initial 51 percent acquisition of the joint venture by Ricoh as well as a prepayment for the remaining 49 percent to be acquired and certain royalties and services to be provided by IBM to the InfoPrint Solutions Company. Final consideration for this transaction will be determined at the end of the three-year period based upon the participation in the profits and losses recorded by the equity partners. The initial transaction was completed in the second quarter of 2007. The eventual transfer of the IBM Printing Systems Division to Ricoh has enabled IBM to continue to refine its focus on its strategic businesses and the clients of those businesses.

InfoPrint Solutions is central to Ricoh's efforts to become a leading global provider of output and print solutions, and will become a core business and infrastructure that can address complex solutions and mission critical environments.

A global leader in digital office solutions, Ricoh constantly creates new value at the interface of people and information, offering a broad range of digital, networked products, including copiers, printers, fax machines, semiconductor related products, DVD/CD media and digital cameras. Ricoh operates in over 100 countries and employs 79,000 people worldwide. Consolidated revenue for the year ending March 2006 was $16.4 billion. For additional information about Ricoh, please visit www.ricoh.com