Canon Dumps Ikon "MFP Wars"

Let the WARS begin. Canon officially cuts ties to Ikon. Canon will continue to sell spare parts and supplies for three years. Canon will provide "certain technical" support for at lease one year! Below is the letter from Canon.

October 31, 2008

TO:

Canon Office Imaging Dealers and Office Product Dealers

SUBJECT: Acquisition of IKON Office Solutions, Inc. by Ricoh Co. Ltd.

On October 31, 2008, Ricoh Co. Ltd. ("Ricoh") announced completion of its acquisition of IKON Office Solutions, Inc. ("IKON").

Canon USA and IKON have entered into a confidential agreement regarding the terms of their relationship following the acquisition of IKON by Ricoh. Effective upon the closing of the acquisition, the retail dealer agreements between Canon USA and IKON terminated, and IKON is no longer an authorized retail dealer of or authorized service provider for Canon-brand business equipment. IKON will no longer be able to place new orders for Canon-brand business equipment with Canon USA. However, IKON is not precluded from selling and may continue to sell its inventory of Canon-brand business equipment, spare parts and supplies, and is not precluded from providing and may provide maintenance and repair services for Canon-brand business equipment. In addition, Canon USA will continue to sell spare parts and supplies to IKON for three years, and will provide certain technical support to IKON for Canon brand business equipment for at least one year.

Sincerely yours,

CANON U.S.A., INC.