News Release

Notice About the Revision of the Officers' Remuneration System

  As part of its management reforms, Ricoh Co., Ltd. (President and CEO Shiro Kondo), which has been reviewing its officers' remuneration system, will abolish the retirement allowance system, as described below. In its place the Company will introduce stock price-linked remuneration for its directors by enhancing of the bonuses for directors with the Companys performance. The change will be effective immediately following the closing of the companys ordinary general meeting of shareholders scheduled for June 2007.

<Background and circumstances of this action>

  Aiming both to strengthen corporate governance and to continue increasing corporate value, the second management reform has been in progress since fiscal 2005. Specifically, the Company has endeavored to strengthen management supervision by establishing a nomination/compensation committee, and to enhance the executive management function of the Ricoh Group by introducing a chief officer system and so on.
  Ricoh plans to raise shareholder value, keeping in mind the viewpoint of its shareholders, and to increase the incentives for greater sustainable business performance by amending the existing officers' remuneration system and enhancing the linkage of bonuses for directors (excluding outside directors) with the Companys performance.
  To revise the directors' remuneration system, verify and review the levels of directors' remuneration, and determine individuals' remuneration, discussions to ensure transparency and fairness are under way at the nomination/compensation committee, the Company-appointed members of which are mainly outside directors.

<Details of the amendment>

1. Abolishment of retirement allowances system for executives
  The retirement allowances system for executives-- fixed remuneration-- which applies to directors and corporate auditors, is to be abolished in June 2007 as of the closing of the 107th ordinary meeting of shareholders.
  On the abolishment, the Company will pay incumbent directors and corporate auditors final retirement allowances corresponding to their tenures until the end of ordinary meeting of shareholders in accordance with the standards prescribed by the Company.

2. Introduction of stock price-linked remuneration system
  With directors other than outside directors, the Company will introduce, as part of monthly remuneration, stock price-linked remuneration system (for the purpose of acquiring company own stock). The mechanism is as follows: a specified amount of remuneration is to be paid as part of a monthly basis to each director, and that amount is then contributed to the stock purchasing system to purchase company own stock. In addition, each director is required to hold company own stock purchased under this scheme for their tenure of office. In this scheme, they maintain a common viewpoint with shareholders for an extended period of time regarding the merits of a rising stock price and the risks of a declining stock price. This will also strengthen the incentives to enhance shareholder value.

3. Expansion of performance-linked remuneration (directors' bonuses) and strengthening of performance linkage
  Regarding performance-linked remuneration (directors' bonuses), which applies to directors other than outside directors, the practice has been to determine the amounts on the basis of corporate business performance. However, starting in fiscal 2006, the Company introduced a new mechanism in which such remuneration is determined based on the Company's key performance benchmarks and the assessment of individuals' performance. The increase in this type of remuneration strengthens the linkage of directors' remuneration and corporate and individual-based performance.

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