SEIKO EPSON CORPORATION

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1 2004 Digital Image Innovation

2 SEIKO EPSON CORPORATION

3 SEIKO EPSON CORPORATION 1

4 2 SEIKO EPSON CORPORATION TFT 1 Print Image Matching

5 SEIKO EPSON CORPORATION 3

6 4 SEIKO EPSON CORPORATION * ** * ** IFI Claims R D R D

7 SEIKO EPSON CORPORATION 5

8 6 SEIKO EPSON CORPORATION 14 2 SE07 Action07 EPSON S A One EPSON SE07 Action

9 SEIKO EPSON CORPORATION ,274,109 1,322,453 1,413,243 $13,371, , , ,284 3,777, , , ,883 3,045,539 26,196 49,360 77, ,340 18,382 31,629 65, ,555 18,432 12,510 38, ,835 79,742 85,761 90,485 $ 856, ,533 89,111 70, , , , ,314 1,043, $ , , ,169 $ 6,709, , , ,031 3,718,715 1,241,161 1,196,080 1,206,491 11,415, , , ,573 3,950, , , ,009 3,519, , , ,367 3,920, = ,000 12,000 12,741 13,225 14, , ,

10 8 SEIKO EPSON CORPORATION Action07 One EPSON LCD DURABrite PM-A850 A3LP-9000C LP-7000C TV LCD STN , % % %

11 SEIKO EPSON CORPORATION 9 Action SE07Digital Image Innovation imaging on paper i1imaging on screen i2 imaging on glass i3 3 i Action07 Action07 i1 i2 i33 i Action ,700 9% Action %10%

12 10 SEIKO EPSON CORPORATION Action07 DPE DPE 5 10 EL 2 K-Project %

13 SEIKO EPSON CORPORATION 11 Action07 Action0733, ,200 1, One EPSON Digital Image Innovation

14 12 SEIKO EPSON CORPORATION SE07 Action07 Digital Image Innovation

15 SEIKO EPSON CORPORATION 13 SE07 / Action , i1 i2 i3 No.1

16 14 SEIKO EPSON CORPORATION Action07 3 1,500 Action07 3 i Action073 3, ,200 1,300 6% , % , % , ,

17 SEIKO EPSON CORPORATION TFT MD-TFD Mobile Graphics Engine m Action ,000 = One EPSON

18 16 SEIKO EPSON CORPORATION = DPE >

19 SEIKO EPSON CORPORATION 17 < PM-A850 > 3 DPE LP-9000C LP-7000C

20 18 SEIKO EPSON CORPORATION < TV3 OHP 20% TFT

21 SEIKO EPSON CORPORATION 19 TV TV DVD TV DVD >

22 SEIKO EPSON CORPORATION STN MD-TFD Crystal Fine STN MD-TFD MD-TFD

23 SEIKO EPSON CORPORATION dpi TFT No.1 < STN TFT > 55% 28% 28% EVF 36% 4

24 22 SEIKO EPSON CORPORATION NV FeRAM OLED EL LTPS TFT OLED Digital Image Innovation i1 imaging on paper i0 i3 imaging support devices i1 i2 i3 imaging on glass % % 0.1 i2 imaging on screen % SE07 Digital Image Innovation i1 i2 i3 i0 3

25 SEIKO EPSON CORPORATION 23 3i Barcelona R D Lab NV DURABrite Epson Research and Development, Inc. Cambridge Research Laboratory of Epson nm nm *

26 24 SEIKO EPSON CORPORATION OLED EL 40 EL TFT 40 EL EL 40 EL TFT 2007 OLED EL EL EL TFT TFT TFT TFT EL

27 SEIKO EPSON CORPORATION 25 single grain Si TFT VCSEL TFT TFT Si 500cm 2 /Vs TFT 1 10 VCSEL Vertical Cavity Surface Emitting Laser SAW NEDO SAW TFT NEDO

28 26 SEIKO EPSON CORPORATION Dolphin* *Dolphin : Double Leading Patent by Promoting High Quality Innovations

29 SEIKO EPSON CORPORATION ,487 14,153 13, ,421 9,567 10, ,414 7,737 6, ,402 7,690 6, ,256 7,582 6, ,918 6,787 6, ,847 6,339 6, ,146 4,693 5, ,370 4,678 5, ,219 4,577 4, ,195 4,484 3, ,802 3,913 3, ,939 3,476 3, ,884 2,866 3, ,618 2,800 2, IBM Corporation 3,439 Koninklijke Philips Electronics NV ,817 1,997 1,906 1,821 Hewlett-Packard Development Company, L.P. 1,763 Micron Technology, Inc. 1,708 Intel Corporation 1,595 Koninklijke Philips Electronics NV. 1,355 1,354 1, IBM Corporation Samsung Electronics Co., Ltd. 1, , , , General Electric Company 1, Advanced Micro Devices, Inc Texas Instruments Incorporated Robert Bosch GmbH 758 IFI Claims Samsung Electronics Co., Ltd. 1, LG Electronics Inc IBM Corporation

30 SEIKO EPSON CORPORATION SEED FORUM CSR

31 SEIKO EPSON CORPORATION

32 SEIKO EPSON CORPORATION 30 Web

33 SEIKO EPSON CORPORATION 31 7 IR IR Web Web

34 32 SEIKO EPSON CORPORATION % % %

35 SEIKO EPSON CORPORATION EHS SEMI Semiconductor Equipment and Materials International 2003 EHS EHS Environmental Health Safety EMP-74 EMP PX-V600 AA AA 449 Web AAA1 AA % CO2 Fab RoHS

36 34 SEIKO EPSON CORPORATION Epson El Paso, Inc. Epson de Juarez, S.A.de C.V. FY03 Junior Achievement Industrial Sponsor ISO Epson Italia s.p.a Epson Meteo Centro Ev-K2-CNR

37 SEIKO EPSON CORPORATION EPSON Epson Singapore Pte. Ltd. 17m x 8m 10 16,800 EPSON Stylus Photo 2100 SARS Epson China Co.,Ltd SARS SARS 11 5

38 SEIKO EPSON CORPORATION 36 TV TV TV TV TV TV TV PDP LCD 55%45% TFT EL EL

39 SEIKO EPSON CORPORATION 37 SAW GHz SAW SAW SAW GHz DSRC GHz SAW SAW Mobile Video Interface Mobile Video Interface FR FR FR 2 2 3

40 SEIKO EPSON CORPORATION 38 FA IC 62.5% TV PC POS PC CMOS LSI STN MD-TFD TFT 5.5% 30.0%

41 SEIKO EPSON CORPORATION ISO Tenryu (Singapore) Pte. Ltd. Singapore Epson Industrial Pte.Ltd EP Epson America, Inc ISO ISO Epson Europe B.V Epson China Co., Ltd EPSON Stylus Color EP EP Electronic Printer SON EPSON

42 40 SEIKO EPSON CORPORATION CSR CS OLED IJP LP BS MD TFT

43 SEIKO EPSON CORPORATION

44 42 SEIKO EPSON CORPORATION 90,7906.9% 1,413,243 86, %441,153 4,5230.5%920, ,380 4, % 441,153 86, % MD-TFD STN IC LCD STN 81,102 1, % IC 29,457 3, %

45 SEIKO EPSON CORPORATION 43 % , % 915, % 920, % 312, , , , , , , , , ,318, % 1,376, % 1,472, % 44,237 53,747 58,849 1,274,109 1,322,453 1,413,243 54,0945.6% 1,013, % 36, % 399, % 8,6552.8% 321,883 5,1511, , % 77, % 45,902 34, % 40,621 68,621 2,810 2, % IC 12,023 8,291

46 44 SEIKO EPSON CORPORATION 17,731 12,3435,388 23,955 17,577 5,052 33, % 65,058 7,91626, % 40.9% , % 38, , , ,943 65,329

47 SEIKO EPSON CORPORATION 45 9,111 40, , , ,000 72, , % ,000 1,196,080 1,206,491 63,85953, , ,582 75,51447, , , % 37.9%

48 46 SEIKO EPSON CORPORATION , ,183 $ 2,509, , , ,381 1,990, , ,856 1,474,652 34,508 37, ,856 36,502 43, ,969 (4,244) (3,700) (35,008) 645, ,169 6,709, , ,195 3,559, , ,448 4,441, , ,867 1,673,451 53,794 52, ,008 10,983 11, , ,900 1,094,973 1,087,004 10,284,833 (652,204) (693,973) (6,566,118) 442, ,031 3,718,715 24,778 28, ,884 11,128 10, ,924 2, ,999 9,929 2,764 26,152 26,955 23, ,132 34,053 39, ,816 (880) (755) (7,144) 108, , ,763 1,196,080 1,206,491 $11,415,375

49 SEIKO EPSON CORPORATION ,198 62,851 $ 594, ,258 47, , , ,331 1,252,067 77,492 81, ,820 8,316 6,731 63, ,526 13,590 17, ,633 14,275 14, ,141 50,097 54, , , ,573 3,950, , ,769 3,281,001 9,242 8,055 76,214 2,403 1,729 16, ,733 73,167 10,143 7,723 73, , ,009 3,519,813 2,608 2,542 24, ,458, ,864,592 12, ,364,592 53, ,397 10,259 79, , , ,575 2,834, ,087 29,208 (6,515) (20,999) (198,685) (0) (1) (9) 281, ,367 3,920,589 1,196,080 1,206,491 $11,415,375

50 48 SEIKO EPSON CORPORATION ,274,109 1,322,453 1,413,243 $13,371, , ,865 1,013,959 9,593, , , ,284 3,777,879 : 68,380 72,597 77, ,623 28,765 30,138 30, ,929 34,741 30,364 31, ,313 40,998 42,787 41, ,242 17,624 19,756 20, , , , , ,461 1,130, , , ,883 3,045,539 26,196 49,360 77, ,340 : 1,311 1,289 1,684 15,933 17,577 2,982 7,947 7,950 6,381 60,375 9,258 29,798 8,065 76,308 : 7,097 6,257 6,478 61,292 5,198 5, ,731 7,484 3,233 3,711 35,112 4,865 23,955 2,044 19,340 21,797 7,395 8,532 7,675 72,618 53,836 47,529 20, ,093 ( ) (18,382) 31,629 65, ,555 6,618 12,368 15, ,911 (6,948) 6,289 11, ,513 (330) 18,657 26, ,424 ( ) (18,052) 12,972 38, , ,296 (18,432) 12,510 38,031 $ 359, (121.37) $ $0.17

51 SEIKO EPSON CORPORATION ,864,592 12,531 10, ,305 1,565 (9,877) (1) 290,782 (18,432) (18,432) (2,734) (2,734) (208) (208) (279) (279) 11,219 11, ,864,592 12,531 10, ,931 1,286 1,342 (0) 280,349 12,510 12,510 (2,734) (2,734) (98) (98) (1,119) (1,119) (7,857) (7,857) ,864,592 12,531 10, , (6,515) (0) 281,316 38,031 38,031 44,500,000 40,673 69, ,915 (3,134) (3,134) (196) (196) 2,920 2,920 (14,484) (14,484) (1) (1) ,364,592 53,204 79, ,575 3,087 (20,999) (1) 414, $ 118,564 $ 97,067 $ 2,506,141 $ 1,580 $ (61,643) $(0) $ 2,661, , , , ,142 1,039,975 (29,653) (29,653) (1,854) (1,854) 27,628 27,628 (137,042) (137,042) (9) (9) $503,397 $752,209 $2,834,469 $29,208 $(198,685) $(9) $3,920,589

52 50 SEIKO EPSON CORPORATION (18,432) 12,510 38,031 $ 359, , , ,018 1,050,412 4,509 23,002 2,044 19,340 (9,590) (18,212) (13,338) (126,199) 5,067 1,978 5,511 52,143 (976) 95 (172) (1,627) (6,948) 6,289 11, ,513 (1,230) (459) (261) (2,470) (18,520) (1,839) (1,826) (17,277) 73,680 20,636 6,224 58,889 48,221 2,471 4,042 38,244 (53,317) (3,613) 13, ,338 (331) (10,760) 6,786 64, , , ,669 1,728,347 (222,300) (85,274) (65,416) (618,942) 3,645 7,872 4,309 40,770 (10,980) (8,898) (7,917) (74,908) (30,376) (10,943) (441) (4,172) (18,347) (10,700) 4,136 39,133 (278,358) (107,943) (65,329) (618,119) (82,668) (56,723) (76,076) (719,803) 222, ,644 92, ,485 (34,488) (81,568) (164,304) (1,554,584) 109,915 1,039,975 (2,734) (2,734) (3,134) (29,653) (631) (508) 151 1, ,701 9,111 (40,918) (387,151) 2, (3,527) (33,371) (22,984) 60,979 72, , , , ,288 1,819, , , ,183 $ 2,509,064 : 1,449 2,227 1,681 $ 15,905 (7,446) (6,143) (6,610) $ (62,541) (25,138) (14,207) (17,036) $ (161,188)

53 SEIKO EPSON CORPORATION % 5 2

54 52 SEIKO EPSON CORPORATION

55 SEIKO EPSON CORPORATION ,671 15,

56 54 SEIKO EPSON CORPORATION

57 SEIKO EPSON CORPORATION ,493 8,30078, ,08729, ,0219, , (235) 4, ( ) (42) 540 4, (277) 5, ,352 4,051 (62) 8, ( ) (6) 746 5,019 4,192 (68) 9, $41,177 $38,329 $(586) $78, ( ) 530 5,819 1,296 (57) 7,058 $47,488 $39,663 $(643) $86, ,515 19,064180, ,2372,

58 56 SEIKO EPSON CORPORATION , ,196 8,239 (43) 20,086 20,740 (654) (2) (2) 1,188 1,200 (12) ,540 1, (9) 3,246 3, (1) (561)

59 SEIKO EPSON CORPORATION ,213 4, ,600 28, ,593 1, ,170 1, (1) (0) 5,967 5,792 (175) (9) (19) (2) (0) $ 39,862 $ 39,455 $ , ,299 6,765 15,072 14, ,070 10, ,940 1,949 (9) 3,094 3,094 (0) 56,458 54,802 (1,656) 4,106 4,021 (85) 7,172 6,992 (180) (19) 6,415 6,415 (0) $ 6,

60 58 SEIKO EPSON CORPORATION ,198 62, % $ 594, ,258 47, , , , ,281, , ,000 $4,323, ,380 $ 448, , , ,707 1,009, , , , , ,149 $3,729, $ 3,652 1,602 1,457 13, , ,838 2,231 $21, $ $ ,000378, , ,465

61 SEIKO EPSON CORPORATION , ,361 $1,914, , ,915 1,740,136 43,007 18, , ,133 76,952 (38,898) (34,564) (327,032) 4,802 (7,985) (75,551) 4,440 16, ,765 9,242 8,055 $ 76, ,201 10,627 9,352 $ 88,485 7,175 6,960 5,608 53,061 (5,531) (5,830) (5,055) (47,829) (1,622) (1,338) (529) (5,005) 2,951 10,309 9,537 90,236 12,174 20,728 18, ,948 ( ) (17,577) ( ) ( ) 12,174 3,151 18,913 $178, % 3.0% 2.5% , ,18211,

62 60 SEIKO EPSON CORPORATION , , %

63 SEIKO EPSON CORPORATION ,767 $16,719 1,767 $16, ,500, ,9151,039,97544,500,000 28,305,500 16,194,500 40,673384,83369,242655, ,510 38,031 $359,835 (196) ( ) ( ) 12,314 38,031 $359, ,864, ,782, ,937, $ $

64 62 SEIKO EPSON CORPORATION % % ,759 17,511 $ 165,683 16,513 13, ,488 9,604 7,877 74,529 4,153 6,170 58,378 1,711 4,118 38,963 4,422 3,749 35,472 3,901 2,678 25,338 1,837 1,250 11,827 12,212 11, ,556 74,112 68, ,234 (15,754) (13,418) (126,956) 58,358 55, ,278 (12,249) (15,438) (146,069) (3,765) (35,623) (2,626) (3,059) (28,943) (108) (1,021) (9,660) (180) (282) (2,668) (15,163) (23,565) (222,963) 43,195 31,846 $ 301, ,33622,

65 SEIKO EPSON CORPORATION % 41.7% 43.6% (24.3) 5.1 (5.2) (3.6) (2.4) (21.9) 12.7 (0.7) (2.1) % 59.0% 40.9% % % % % ,618 7,754 1,166 APA Advanced Pricing Agreement 2, ,74285,76190,485856,

66 64 SEIKO EPSON CORPORATION , ,254 $2,519,198 () (1,548) (562) (5,318) 3 (498) (509) (4,816) 192, ,183 $2,509, ,6689,039 3,21130, ,728 2,483 $ 23,494 7,082 5,977 56,552 1,919 1,133 10,720 22,729 9,593 90,766 (17,586) (5,450) (51,566) 5,143 4,143 $ 39, ,7118,4222,997 28, ,812 1,910 $18, ,469 2,286 21,629 5,281 4,196 $39,701

67 SEIKO EPSON CORPORATION ,983 2,729 $ 25, ,071 8,511 80,528 13,054 11,240 $106, $ 2, ,589 2,008 18,999 2,927 2,309 $21, ,5343,74435, % 26.7% 38.5%

68 66 SEIKO EPSON CORPORATION $1, , $

69 SEIKO EPSON CORPORATION 67 3 POSPC TFT CMOS LSI IC , ,616 76,365 6,085 1,274,109 3,205 19,466 1,823 19,743 (44,237) 902, ,082 78,188 25,828 (44,237) 1,274, , ,470 82,295 36,375 (48,672) 1,247,913 58,803 (22,388) (4,107) (10,547) 4,435 26, , ,236 60, , ,422 1,241,161 40,672 70,459 4,182 12, ,151 32, ,348 3,990 24, , , ,460 77,155 5,379 1,322,453 4,398 25,828 2,590 20,931 (53,747) 915, ,288 79,745 26,310 (53,747) 1,322, , ,288 79,100 30,042 (53,768) 1,273,093 80,426 (28,000) 645 (3,732) 21 49, , ,248 50, , ,933 1,196,080 34,042 75,111 4,037 12, ,809 27,656 35,720 3,393 22,342 89,111

70 68 SEIKO EPSON CORPORATION , ,540 77,736 4,851 1,413,243 3,264 27,613 3,366 24,606 (58,849) 920, ,153 81,102 29,457 (58,849) 1,413, , ,532 78,292 41,480 (58,940) 1,335,842 45,902 40,621 2,810 (12,023) 91 77, , ,755 52, , ,988 1,206,491 33,312 58,006 4,013 14, ,314 34,797 20,574 4,283 10,725 70, $8,677,415 $3,912,764 $735,510 $ 45,898 $13,371,587 30, ,264 31, ,813 $ (556,808) 8,708,298 4,174, , ,711 (556,808) 13,371,587 8,273,990 3,789, , ,469 (557,669) 12,639,247 $ 434,308 $ 384,341 $ 26,588 $ (113,758) $ 861 $ 732,340 $3,466,837 $3,337,638 $494,049 $1,410,938 $2,705,913 $11,415,375 $ 315,186 $ 548,831 $ 37,970 $ 141,764 $ $ 1,043,751 $ 329,236 $ 194,664 $ 40,524 $ 101,476 $ $ 665, ,417227, ,6612,835,282 2

71 SEIKO EPSON CORPORATION , , , ,139 1,274, ,794 36,241 4, ,944 (898,867) 1,063, , , ,083 (898,867) 1,274,109 1,064, , , ,719 (905,111) 1,247,913 (1,110) 6,345 4,353 10,364 6,244 26, , ,599 79, ,978 (17,227) 1,241, , , , ,368 1,322, ,441 39,315 5, ,632 (962,961) 1,115, , , ,000 (962,961) 1,322,453 1,097, , , ,376 (967,472) 1,273,093 18,929 7,110 3,186 15,624 4,511 49, ,754 83,814 73, ,989 47,856 1,196, , , , ,235 1,413, ,089 42,320 2, ,878 (1,014,784) 1,177, , , ,113 (1,014,784) 1,413,243 1,141, , , ,517 (1,016,374) 1,335,842 36,599 11,066 9,550 18,596 1,590 77, ,593 74,024 73, , ,653 1,206,491

72 70 SEIKO EPSON CORPORATION $ 6,495,913 $2,125,868 $2,817,409 $1,932,397 $13,371,587 4,646, ,416 23,626 4,530,968 $(9,601,514) 11,142,417 2,526,284 2,841,035 6,463,365 (9,601,514) 13,371,587 10,796,130 2,421,582 2,750,677 6,287,416 (9,616,558) 12,639,247 $ 346,287 $ 104,702 $ 90,358 $ 175,949 $ 15,044 $ 732,340 $ 7,177,529 $ 700,388 $ 698,458 $1,829,889 $ 1,009,111 $11,415, ,417227, ,6612,835, , % 239, % 235, % $ 2,224, , , , ,438, , , , ,940, , % 832, % 909, % $ 8,603,898 1,274, % 1,322, % 1,413, % $13,371, LCD ,924 55% 45% D-TFDSTN TFT TFT TFTEL EL

73 SEIKO EPSON CORPORATION

74 72 SEIKO EPSON CORPORATION PC U.S. Epson, Inc. Epson America, Inc. Epson Electronics America, Inc. Epson Portland Inc. Epson El Paso, Inc. Epson Europe B.V. Epson U.K. Ltd. Epson Deutschland GmbH Epson Europe Electronics GmbH Epson France S.A. Epson Italia s.p.a. Epson Iberica, S.A. Epson Telford Ltd. Epson China Co., Ltd. Epson Korea Co., Ltd. Epson Shanghai Information Equipment Co., Ltd. Epson Hong Kong Ltd. Epson Taiwan Technology Trading Ltd. Epson Singapore Pte. Ltd. Epson Australia Pty. Ltd. Suzhou Epson Co., Ltd. Epson Precision Hong Kong Ltd. Singapore Epson Industrial Pte. Ltd. P.T. Indonesia Epson Industry Epson Precision Philippines, Inc. Epson Precision Malaysia Sdn. Bhd. 59 Time Module Hong Kong Ltd. 6

75 SEIKO EPSON CORPORATION SEIKO EPSON CORPORATION TEL NS TEL ,899 12, PC CMOS LSI FA ,458, ,364, ,047 20, , , , , , A 7, , , , ( IR NS

76 TEL: URL: Printed in Japan

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