1. Epson relies to a significant degree on sales and profits from its printer business.
Epson’s ¥702,918 million in sales from its information-related equipment business for the year ended March
2011 constituted 72.2% of Epson’s consolidated sales, which were ¥973,663 million. Inkjet and other printers,
including printer consumables, accounted for a large majority of the sales and profits of the information-related
equipment business. A decrease in sales of printers and printer consumables could have a material adverse effect
on Epson’s operating results.