NIKON UNVEILS NEW D40 - THE SMALLEST AND EASIEST-TO-USE NIKON DIGITAL SLR EVER [DETAILED PRESS RELEASE]

MELVILLE, NY —

Nikon, (www.nikondigital.com) the world leader in high quality digital imaging, precision optics and photo imaging technology, today unveiled its new D40, the latest addition to its comprehensive line of digital SLR cameras. Designed to bring the picture performance, excitement and experience of Nikon's digital SLR cameras to more customers than ever before, the D40 is an ultra-compact, lightweight 6.1-effective megapixel D-SLR that offers simplified new features, exceptional speed and a redesigned, visually-intuitive menu system that brings consumers a whole new level of simplicity in a digital SLR. The D40 also incorporates handling and performance advantages that eliminate the frustrations often associated with compact digital cameras, making it ideal for anyone who wants to capture spectacular digital pictures without complication.

"Digital SLR cameras have gained substantial interest among consumers looking for higher-quality pictures and faster handling response," said Edward Fasano, general manager for marketing, SLR System Products at Nikon Inc. "But perceived complexity and bulkiness of some models has discouraged some customers. With the D40, Nikon addresses these challenges with incredible ease of use, compactness and a remarkable range of features and technologies. Consumers can enjoy the satisfaction of Nikon digital SLR quality by simply pressing the shutter button and getting beautiful pictures with vibrant colors, stunning sharpness and outstanding detail. With the D40, even first-time digital SLR camera users will be thrilled with their results."

Outstanding Image Quality
The D40 features a high-resolution 6.1-effective megapixel Nikon DX Format CCD image sensor and a highly advanced Nikon Image Processing Engine. Combined, these features produce exceptional image detail with vivid, true-to-life colors.

The D40 combines sophisticated exposure automation with options for complete user control to help make it the ideal camera for anyone ready to explore their creative potential with photography. Using Nikon's exclusive 3D Color Matrix Metering II, the D40 assures accurate exposure control, even in difficult lighting conditions. Its frame-wide 420-pixel sensor instantly and automatically assesses and compares each scene's brightness, contrast and color with a built-in database of information from over 30,000 real-world lighting scenarios, before setting the accurate exposure. For those who want more control over their shots, alternative metering options, such as spot metering, center-weighted metering and exposure compensation, are also available.

Precise, Quick Response
One of the hallmarks of Nikon's digital SLR cameras is how fast they operate, not only when capturing images, but also when recording them to the camera's SD memory card. The D40 proudly carries this tradition forward; the camera powers up and is ready to shoot in only 0.18 seconds.

With minimal shutter lag time and the ability to shoot 2.5 frames per second, up to 100 consecutive shots (in JPEG Normal mode) the D40 is ready to capture priceless expressions or special moments perfectly. Images are instantly processed and rapidly recorded to the SD memory card. Bright, clear preview images are also displayed in an instant on the D40's 2.5-inch color LCD monitor.

The D40's three-area auto-focus system also adds to the camera's overall speed, delivering fast and precise focus under varying shooting conditions. Incorporating Nikon's advanced Multi-CAM 530 AF Sensor Module, the three-area AF system, with central cross-type sensor operation, adds effective new focusing options and ensures greater ability to capture that perfect shot.

Designed for Life as it Happens
The D40 brings the fun, excitement and superior image quality of Nikon digital SLR photography to everyone. Its compact size and ideal ergonomics make it the digital SLR solution for pictures anytime, anywhere. Its bright and sharp viewfinder, with 0.8x magnification, ensures precise composition.

After shooting, share your new images with family and friends, or check sharpness, exposure and focus on the D40's large 2.5-inch, 230,000-dot high-resolution color LCD monitor, which provides the ability to enlarge your shot up to 19 times. The operating menus have been carefully designed with color schemes and large fonts for quick, easy navigation through the camera's options. Also, the newly introduced assist images help you select the appropriate settings for many camera features by showing illustrative end-result images typical of that setting.

The D40's innovative information display can be shown in Classic format or with the new Graphic and Wallpaper formats for Digital Vari-Program modes and Program Auto, Shutter-priority Auto, Aperture-priority Auto and Manual (P/S/A/M) exposure modes.

The camera boasts refined ergonomics and design, born from Nikon's extensive experience designing successful high performance SLR cameras for more than 50 years. The D40's size, layout and operation of all controls are designed for maximum ease-of-use. The result is an incredibly compact, light SLR camera that is comfortable to handle and can go anywhere, anytime.

Creativity at Your Finger Tips
For anyone just beginning to enjoy the added performance and versatility of digital SLR photography, creative shooting is as simple as rotating the D40's Digital Vari-Program mode dial. The camera has eight preconfigured program modes that optimize the camera's performance for specific shooting conditions, allowing photographers to take great pictures in challenging conditions that might otherwise be confusing or time-consuming. In Portrait mode, for example, the camera automatically optimizes the color, hue, and saturation levels to capture the most flattering skin tones, softens the focus of the background images to emphasize the face and applies a milder form of in-camera sharpening. The D40 includes a new Flash Off mode that shuts off the camera's flash and boosts its ISO, so users can easily take pictures in places where flash photography is not allowed, inappropriate, or when they prefer the look of natural light. Users can also select from other Digital-Vari Program modes including Auto, Portrait, Landscape, Close-Up, Sports, Night Landscape or Night Portrait. As users gain experience with the camera, the D40 offers advanced controls that offer greater creative control over the look and feel of their pictures.

D40 photographers will enjoy the camera's Image Optimize menu options that closely tailor results to the scene at hand, the intended use of an image or to the photographer's custom preference. Sharpness, tone (contrast) color, saturation and hue optimization are controlled by the user-selected choice of Normal, Softer, Vivid, More Vivid, Portrait, Custom and Black-and-White.

The D40 also features an image Retouch menu, with exclusive in-camera editing functions that promise to keep D40 shooters engaged when they're not busy shooting. Options within the Retouch menu include:

-D-Lighting: Automatically balances underexposed portions of an image to enhance detail in these areas, without affecting the highlights of the picture.
-In-camera Red-eye Correction: Automatically removes the annoying red-eye effect sometimes caused by flash.
-Trim: Images can be trimmed to produce smaller cropped versions of any file on the SD card for greater creative freedom and greater efficiency.
-Image Overlay: Merges a pair of selected RAW files to create a composite image within the camera as a RAW or JPEG file. This feature is especially useful when trying to create a soft-focus effect with two similar images.
-Monochrome settings: Convert any color image in the camera into a pleasing monochromatic picture, either in black-and-white, sepia or cyanotype.
-Filter Effects: Emulate and apply the effects of a skylight or a warming filter to any image stored on the SD card. A Color Balance menu within filter effects can also be used to make subtle shifts in color.
-Small Picture: Create a smaller version of any image in the camera for easy sharing and faster download.

Total Package: The Nikon Advantage
One of the key advantages Nikon digital SLR cameras offer is access to Nikon's extensive system of lenses, Speedlights and accessories. The D40 is compatible with all Nikon AF-S and AF-I Nikkor lenses*, and comes packaged with a new 3X zoom 18-55mm f/3.5-5.6G ED II AF-S DX Zoom-Nikkor lens that incorporates cutting-edge Nikon optical technologies, such as ED glass and aspherical lens elements. This lens offers users a popular 3x zoom range, which conveniently covers picture angles that meet the needs of everything from tight portraits to wide-angle landscapes.

The D40 is also compatible with Nikon's range of i-TTL technology enabled Speedlights including the SB-800, SB-600 and the recently introduced SB-400. A perfect companion for the D40, the SB-400 is an ultra-compact, lightweight Speedlight which is ideal for photographing subjects at extended distances or illuminating subjects with a softer, more natural appearing lighting effect with its bounce flash capability. With a guide number of over 98 feet the SB-400 provides all of the power and coverage that a D40 customer may demand for shooting group shots and reducing harsh shadows. All of the SB-400's settings can be controlled automatically by the camera's metering system or manually from the camera’s built-in menus. Keeping with the D40s remarkable ease-of-use, using the SB 400 Speedlight is as simple as sliding it on, turning it on and shooting.

The D40 comes with Nikon's PictureProject software that makes transferring, organizing and sharing images fun and easy. The camera also includes a 30-day trial version for Capture NX software (optional) Nikon's award-winning software that dramatically simplifies photo editing for JPEG, TIFF and Nikon RAW (NEF) format images. Designed specifically for photographers, Capture NX software provides a unique and easy-to-understand interface with tools that photographers need, but without the level of complexity and clutter of other image editing applications. Its patented new U Point™ technology simplifies picture editing by enabling photographers to enhance specific areas of a picture selectively, without the use of masks, selections, or layers. Capture NX also helps Nikon users realize the full potential of Nikon's RAW (NEF) file, with robust processing capabilities for the highest quality results from NEF files.

The D40 camera and the new 18-55mm f/3.5-5.6G ED II AF-S DX Zoom-Nikkor lens will be packaged together and made available beginning December 2006 for an estimated selling price of $599.95**. For more information, please visit www.nikonusa.com.

About Nikon

Nikon, At the Heart of the Image™. Nikon Inc. is the world leader in digital imaging, precision optics and photo imaging technology and is globally recognized for setting new standards in product design and performance for its award-winning consumer and professional photographic equipment. Nikon Inc. distributes the Nikon Total Imaging System of consumer and professional digital SLR cameras, Nikkor optics, Speedlights and System Accessories; Nikon COOLPIX® compact digital cameras; COOLSCAN® digital film scanners; 35mm film SLR cameras; Nikon software products and Nikon sports and recreational optics. At the heart of every Nikon camera is Nikon's Exclusive Feature System, making it easy for anyone to take amazing digital pictures. Through the Nikon Spirit Initiative™, the company, plays an active role in supporting aspiring and advanced photographers through a variety of philanthropic organizations, educational programs, events and workshops. For more information, dial (800) NIKON-US or visit www.nikonusa.com, which links all levels of photographers to the web's most comprehensive photo learning and sharing communities.

*Autofocus is supported only with AF-S and AF-I CPU lenses, which are equipped with built-in motors.

**Estimated selling prices listed are only an estimate. Actual prices are set by dealers and are subject to change at any time.