Canon Appeals Court Decision in SED Flat Panel Litigation with Nano-Proprietary

Canon Inc. announced today that it filed on May 15, 2007, a Notice of Appeal to the United States Court of Appeals for the Fifth Circuit in its on-going litigation with Nano-Proprietary, Inc. relating to flat-panel SED televisions. Canon recently prevailed at the trial on Nano-Proprietary's fraud accusations and on damages. Canon now is appealing the District Court's prior determination that Canon had materially breached the patent license agreement between the companies, and that Nano-Proprietary was allowed to terminate that agreement and retain the original $5.5 million purchase price for the license.