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FY2008 Interim Financial Announcement

ended September 30, 2007

Date : October 25, 2007
Time : 6:00pm-7:00pm
Place : Otemachi Sankei Plaza
Contents : Mr. Zenji Miura, CFO of Ricoh Company, Ltd., explained FY2008 Interim Results using materials below.

< Attention >
This material is prepared for the convenience of those investors who could not participate in the financial results meeting. Please understand that this material does not contain any direct quotations from anyone at the meeting.
<br />Additionally, the Company bases the estimates in this material on information currently available to management, which involves risks and uncertainties that could cause actual results to differ materially from those projected.

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Presentation Materials
Financial Highlights Financial Highlights /Appendix
Interim Presentation
Consolidated Financial Figures
Summary of Interim Results Presentation

The consolidated sales of Ricoh group increased 10.3% year-on-year for the interim period ended September 30, 2007. This is the first time to exceed 1 trillion yen for interim sales. Steady growth of color products in sales of MFPs and printers both in Japan and overseas and the impact of the weaker yen contributed to the results.
Thanks to the increase of value-added products, consecutive cost reduction and the effect of the weak yen, we achieved 15.6% y-o-y increase in operating income and 14.2% y-o-y increase in income from continuing operations. Net income stayed at a 2.1% y-o-y increase if we include the net profits from discontinued operations in the net income of previous fiscal year. However, we recorded the best net income for an interim period ever. We decided a first half dividend of 16 yen per share, a 3 yen increase y-o-y. For your reference, the effects of establishing “InfoPrint Solutions Company,” a joint venture with IBM Corporation are included in this interim financial statements.
We keep to our forecast 2.25 trillion yen in sales, 195 billion yen in operating income and 117 billion yen in net income for the fiscal year ending March 31, 2008, breaking a new record.
Q1. Why was sales growth so low in the Americas? Will it recover?

A1. We recognize that reasons are slow down of American economy, more unfavorable sales results than forecasted due to severe market competition and temporary effect of the acquisition of a major distributor by a competitor. Another reason is delay in reaping the benefits from consolidating sales subsidiaries in the US.
In consideration of the above first half results, we reduce sales forecast for the Americas for this fiscal year from the previous forecast, however sales growth in Q2 has improved from Q1 and we expect sales to recover even more in the second half.
Q2. Why the steady growth in Europe and the other regions?

A2. We have deployed contingent strategies in Europe and the other regions so that even though performance varies from country to country in any given region, a synergistic effect comes into play across the whole region and results in steady performance overall.
Q3. Why did Q2 operating margin of “Office Solutions” decrease y-o-y?

A3. That was caused by unfavorable conditions in the Americas and the impact of a stronger yen than forecasted in Q2.
Q4. What is sales projection of InfoPrint Solutions Company (InfoPrint) and Infotec Europe (Infotec) for the next fiscal year?

A4. We forecast Infotec sales as about 40 billion yen for this fiscal year, and we intend to grow even higher for the next fiscal year. As for InfoPrint, we forecast 60 billion yen for 7 months of this fiscal year, which translates into 5 more months in the next fiscal year, so the added sales plus whatever extra will be included in the target for the next fiscal year.
Q5. What is the factor behind printer sales growth? Profitability is not experiencing a downturn?

A5. Profitability is not going down due to steady increase of unit sales leading consumables profit higher. We offer total solution proposals not only with printers but also combinations of MFPs and printers with global service and support structure. We intend to grow by getting more major accounts.
Q6. What is target of inventories turnover period?

A6. In the first instance we intend to achieve 1.8 months less for the time being, though we will press on with further improvements.