The following includes questions and answers at the conference for the financial results for Third Quarter of the Year Ending March 31, 2011.

A. We are currently channeling our energy into ensuring stable operation to meet the production requirements of the semiconductor manufacturers and have made considerable progress in this respect since the Second Quarter of this period. As a result, we aim to attain sales of 35 units for immersion scanners in the upcoming fiscal period.

A. We have been receiving an increasing number of inquiries regarding the use for high definition applications including smart phones and tablet computers. Although we are carefully evaluating how many of these will connect with purchase orders, we expect sales volume for the next fiscal year to exceed that of this fiscal year by 20% or more.

A. Sales volume for IC/LCD steppers and scanners has increased to a point where the Precision Equipment business has posted a profit for the first time in nine quarters. Although it is possible we will see a change in the sales mix over the 4Q, we continue to anticipate being in the black as per our current estimate for the whole fiscal year.

A. Earnings for the current quarter remained good condition that was nearly we had expected and we achieved the record-high sales volume in all categories of digital SLR cameras, interchangeable lenses and compact digital cameras. Although we expect strong sales to continue in the 4Q, in consideration of risk elements including the strong Japanese Yen, a fall in consumer spending, concern for escalated market competition and so on, we have maintained our forecasts announced in last November for this fiscal year.

A. The digital SLR camera market has grown in comparison to the same period in the previous fiscal year in all regions, with Asia, and in particular China, showing strong growth. This trend has been echoed at Nikon. In the compact digital camera market, sales were up in comparison to the same period the previous year for all regions with the exception of the U.S., and we have increased our overall market share in this category particularly in European and Asian markets. Further, the rate of decline of our average sales prices based on local currency in this 3Q period for digital SLR cameras and compact digital cameras have been lower than that of industry averages.

A. We forecast in case that a 5% cut in corporate taxes in the current period will be enforced, it will result in a decrease in net profits for this period of approximately 7 billion Yen due to the reversal of deferred tax assets. The risk of this occurring has not been incorporated into current forecasts for this fiscal year.

A. To date, the company has already converted 1.6 billion Yen of the bonds leaving a balance of 32.9 billion Yen. In the event that the stock price does not rise and falls below the conversion price preventing the company from redeeming the bonds in full before the maturity date (March 15, 2011), although we cannot be certain at this point, cash reserves should be sufficient to cover the outlay.