Interview with Gregory Flasch, Nikon

P: 1- a. How is NIKON doing in the digital camera market?

GF: In the first quarter of 2005 according to Nikon Japan, Nikon Corp Worldwide saw a ten-fold jump in profit of $226M US based on the high global demand for digital cameras.

P: 1- b. What are NIKON's goals specifically for Canada in 2005?

GF: Regarding Nikon Canada's goals for 2005, we will continue to focus on our advanced technologies and superior optics that provide users with what they really want - great pictures that are simple and easy to achieve. Exclusive Nikon Technologies such as D-Lighting (a one-button fix to lighten overly dark images), In-Camera Red-Eye™ fix, or Face-Priority Auto-Focus are just a few of the many features of the new COOLPIX line-up that make picture-taking more enjoyable and rewarding.

We will also continue to raise awareness of our 2-Year in-Canada warranty program for all COOLPIX and the D50/D70S digital SLR cameras. At Nikon, we are always facing the threat of grey market product entering the system, or Internet shopping where the product can come into the country from anywhere. For this reason it is important for us to educate the consumer to understand that only Nikon products purchased from an Authorized Canadian Dealer are backed by the Nikon Canada Warranty program. We support our dealers and in-turn support the customer who purchases equipment from them.

Nikon will continue to price our products very competitively. Unlike other camera vendors, Nikon includes rechargeable batteries, a battery charger, and Nikon's own PictureProject software for editing and organizing photos with all our cameras. While some competing products may on the surface seem cheaper, consumers must remember to compare pricing once the cost of the accessories (batteries, charger, etc) not included in the box are factored in.

P: 2- The NIKON D70 has been very successful though you took your time to bring it out. Now we suddenly have a D70s and a D50. How are these two new dSLRs different from one another, and how do I know which one is the right one for me?

GF: Both the Nikon D50 and the D70s Digital SLR's continue the tradition of performance and image quality excellence offered by the Nikon D70, voted Camera of the Year 2004. The Nikon D50 will appeal to entry-level users moving into digital SLR photography, who desire ease of use while benefiting from the professional technology advantages offered by Nikon's D-SLRs. The camera provides the user with the option of simply shooting in the convenient green auto exposure mode, or select from a range of scene modes, including the new dedicated "Child" mode. The Nikon D50 still offers complete manual exposure control for those who want to practice and develop their photographic skills further. In comparison, the Nikon D70s is geared towards the amateur hobby photographer who will appreciate the many versatile manual override capabilities and professional features the camera offers, including the unique "Commander Mode", where the built-in pop-up speedlight can be used to wirelessly activate the optional Nikon Creative Lighting System consisting of single or multiple Nikon SB-800 and SB-600 external dedicated speedlights linked by TTL control.

P: 3- What is NIKON's strategy for digital SLRs?

GF: Nikon will continue to research and develop products based on emerging technologies and consumer needs.

P: 4- The new NIKON D2Hs dSLR features only 4.1 megapixel resolution. How do you explain a 4.1 MP image sensor in a professional grade dSLR?

GF: The 4.1 MP LBCAST sensor in the Nikon D2Hs was designed to meet the needs of the target audience, action and sports photographers, while delivering the speed and performance control required by these working professionals. Focusing on the D2Hs primary ability to offer a blazingly fast 8fps continuous shooting for up to 50 images, our designers realized that the most effective sensor resolution would be 4.1 MP, which would properly meet the file size requirements of the target user while still maintaining the ultimate speed and performance critical to capturing the right shot.

P: 5- The digital camera market is crowded and consumers find it hard to differentiate one model from another, one brand from another.

a. How is NIKON differentiating itself from the rest of the pack?

GF: Nikon continues to differentiate itself by offering consumers advanced -- yet simple-to-use technologies; superior optics; 2 year in-Canada warranty for COOLPIX and D50/D70S cameras purchased from an authorized Canadian dealer; "All in the Box" packaging that provides purchasers of COOLPIX and D50/D70S with rechargeable batteries and charger; Nikon's PicturePerfect software for editing and organizing photos and competitive prices.

b. What do you want consumers to think of when they think "NIKON"?

GF: "Simply, Better Pictures". "Simply" refers to the simplicity of the technology that ultimately results in "Better Pictures."

P: 6- What do you see as NIKON's greatest challenge in the near future?

GF: Nikon, along with other manufacturers, is facing increased competition from low-end, mass merchandised products, stiff pricing competition, and grey-market products.

P: 7- Your neighbour approaches you one day and asks: "I want a digital camera that is not too big, something I can carry in my pocket or purse, with 3x optical zoom. It must be able to take very good quality images indoors and outdoors. Though I print mostly 4x6 in., I would like to be able to print larger, perhaps 11x13 in. occasionally. I want a large LCD monitor and one where I can see the image in bright sunlight as well as in the dark (the digital camera I have currently, I cannot see anything at night). It must focus fast and allow me to take candid pictures of my children -- not one second after I pressed the shutter release button. Oh, I would also like to be able to take short movie clips indoors to send to families and friends."

Which NIKON digital camera should he buy?

GF: COOLPIX 5900, 7600, 7900, S1, or S2 are all compact in size and feature legendary Nikkor optics for outstanding images. The LCD monitors on these range from 1.8 to 2.5 inches and are clear and easy-to-view. All the cameras can print larger images when you set the in-camera image quality (resolution) to the maximum for each camera (ranging from 5.1 to 7.1 mega pixels). These cameras are also equipped with Nikon's 16 Scene Modes that automatically adjust controls for optimal focus, exposure, while balance, and other variables based on common photographic opportunities including Party/Indoor, Beach/Snow, Sunset, Dusk/Dawn, Night landscape, Close up, Museum, Fireworks show, Back light, and Panorama assist. Or, you can use the Scene Assist modes that guide you though specific camera settings automatically in Portrait, Landscape, Sports and Night Portrait modes. For taking pictures of children during activities, the Sports Scene Assist mode would be ideal. This mode allows you to capture sharp images of moving objects. Or the Portrait mode can help you get great shots (when the little ones are ready to sit still) and the In-Camera Red-Eye Fix can automatically detect red-eye caused by flash, then correct them instantly and effectively, in-camera. No need to upload to your PC for correction.

These cameras all focus quickly, and have a short start-up time to ensure you don't miss that ideal photo opportunity. Also all the COOLPIX cameras can capture video with audio.

P: 8- Can you tell us about any new and exciting business developments?

GF: Since January of 2005, Nikon has announced the COOLPIX 4600, 5600, 5900, 7600, 7900, S1, and most recently the COOLPIX S2, Nikon D50, and D70S. The new COOLPIX line-up has many advanced features to help you get the best images -- simply. With the introduction of the D50 and D70S digital SLRs, consumers wanting more options and flexibility can purchase optional lenses and lighting systems to help them achieve more professional-like results.

P: 9- What are NIKON's warranty concerning returns and exchanges?

GF: Nikon Canada offers a 2-Year, in-Canada warranty on all COOLPIX and the D50/D70S sold through an authorized Nikon Canada dealer. Nikkor lenses sold through an authorized Nikon Canada dealer are backed by a 5-year in-Canada warranty. All service work is carried out in Canada at one of our three service departments (Mississauga ON, Montreal PQ, Richmond BC).

P: 10- Why should I buy a NIKON?

GF: Nikon cameras offer advanced technology that is simple-to-use, provides outstanding image quality -- at very affordable prices.

Gregory Flasch, National Manager Advertising & Communications, Nikon Canada Inc.