Nikon Instruments Inc. ARRA Economic Impact Statement

Dear Valued Customer:

Thank you for the opportunity to allow Nikon Instruments Inc. (Nikon) to help you with your microscopy imaging needs. In these difficult economic times, we hope to continue to support you in your work, while contributing to the U.S. economic recovery by actively participating in the creation and retention of jobs in America.

At this critical time in our history, Nikon is poised to assist you to take advantage of long awaited changes in research policy (the American Recovery and Reinvestment Act of 2009) that will propel the U.S. back to the forefront of research. Our company’s mission and philosophy to meet needs and exceed expectations and to be proactive and seek new knowledge, prompt us to offer immediate assistance with your stimulus recovery grant applications. Our team is available to assist with each aspect of the stimulus grant submission – scientific, technical, quotations and financial. Our applications specialists have extensive experience in successfully applying for grants and are available to help you strengthen the rationale for including our microscope and confocal systems or our imaging and software tools, while ensuring your research goals are conveyed in an accurate and comprehensive proposal.

Nikon’s American Businesses and Personnel

Nikon Instruments Inc., a U.S. corporation, is a wholly owned subsidiary of the global Nikon Corporation headquartered in Tokyo, Japan. With over 50 years of history providing the U.S. market with quality optical microscopes and instrumentation, Nikon Instruments Inc. has built an extensive network of employees, dealers and partners across all 50 states. Directly, Nikon employs over 1,110 people residing and working in 33 states from Alabama to Wisconsin. Our partnerships with Nikon dealers and independent service centers bring another 400 U.S. jobs that rely on Nikon Instruments Inc. sales and service.

Nikon maintains 17 offices in the U.S. that support sales, marketing, service, research & development, logistics, and technical support. Nikon proudly promotes American growth and employment by outsourcing 95% of our non-Nikon produced products through subcontracting to over 100 U.S. companies. We are proud of the fact that 65% of these subcontractors are minority or disadvantaged status companies.

Crucial parts of our microscopy imaging systems are outsourced to domestic suppliers. These include precision optical filters, illuminators, advanced computer systems (Hewlett-Packard computers for most systems), lasers, precision automated stages, anti-vibration systems, scientific digital cameras, motorized imaging accessories, live-cell incubation chambers and many more. These companies employ thousands of Americans in the production and supply of these parts and components.

ARRA Impact on Employment

The precipitous decline in the economy began to affect Nikon, our distributors and affiliates immediately following the banking crisis and stock market decline after September 1, 2008. Our early sales forecast for 2009 in bioscience, clinical and industrial markets was for declines ranging from -5% to -25% depending on the business segment. After passage of the ARRA, Nikon Instruments increased its 2009 sales budget based on Stimulus Funds reaching us in 2009 and simultaneously froze our employee level at the 2008 year end level. Even so, some market segments such as automotive and electronics will still be in deep recession in 2009 but the ARRA Stimulus will hopefully enable Nikon to keep our workforce stable. To the extent that we affect our distributors and sub contractors this effect should trickle down though the supply chain to all of our U.S. affiliates.

Nikon’s Environmentally-Friendly Instruments

Nikon is committed to the implementation of pro-active sustainable activities including environmental preservation with full consciousness of the importance of its Corporate Social Responsibilities (CSR). More detailed descriptions of Nikon’s environmentally friendly processes are:

• Nikon Environmental Action Plan
• Environmental Management Organization
• Product Assessment
• Environmentally Sound Optical Glass
• Lead-free Solder, Surface Treatment, Reduction in Hazardous Substance Usage
• A full description of our commitment and details of socially responsible manufacturing, recycling, packaging and description can be found, at: http://www.nikon.com/about/csr/environment/index.htm

Nikon’s Product Innovation and U.S. Academic Partnerships

Nikon has long been an innovative leader in the microscopy and imaging marketplace, and our dedication in these uncertain times continues. For over 91 years, our pursuit of advancing technology, innovation in manufacturing and optical design has made us a strong company that can withstand unfavorable business conditions. We provide leading edge microscopes and imaging systems that impact thousands of American workers, touching the lives of thousands more from the manufacturing production line to researchers working on disease prevention and cures to educating the next generation of doctors, researchers, dentists, cytologists, histologists and engineers.

In the U.S., we have united with three prestigious institutions to support and stimulate young researchers and provide students with a variety of our cutting edge optical equipment and software. We have established Nikon Imaging Centers at Harvard University, University of San Francisco and Northwestern University. Nikon Instruments has a long and successful history of supplying the U.S. government with high-quality products through GSA.

Nikon Instruments Inc. is proud to participate in and contribute to the recovery of the U.S. economy. We are ready to be a cornerstone of the revitalized American leadership in the global community. Thank you for the opportunity to participate with you.

Sincerely and with hope for a better future,

Lee Shuett
Executive Vice President

For more information, contact us at biosales@nikon.net