DVD Entertainment Group

EXPANDING VARIETY OF PLAYERS AND SOFTWARE FUEL MOMENTUM OF DVD SALES IN FIRST QUARTER 2002
Software Sales of 120 Million Units Up 74 Percent Over Same Period Last Year
More Than 35 Million Players Shipped Since Launch

     LOS ANGELES (April 30, 2002) - With a wide variety of players and more than 15,000 DVD movies and music videos available, DVD continues its impressive growth rate for both hardware and software. According to figures compiled by Ernst & Young on behalf of the DVD Entertainment Group, more than 120 million DVD movies and music videos shipped in the first three months of 2002, a 74 percent increase over the same quarter last year.
     Since the inception of the format in 1997, software shipments have reached more than 790 million units, according to the DVD Entertainment Group.

DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER - NORTH AMERICA
(in millions)

QUARTER 2002 2001 2000 1999 1998 1997

1^st Quarter 120.1 69.2 29.0 11.1 3.3 N/A

2^nd Quarter N/A 81.7 33.2 13.9 4.1 N/A

3^rd Quarter N/A 75.9 42.7 29.0 5.9 2.3

4^th Quarter N/A 137.6 77.5 44.0 11.8 3.2

YEARLY TOTAL 120.1 364.4 182.4 98.0 25.1 5.5

TOTAL
(since launch) 790.0
(a/o 3/31/02)

Figures compiled by Ernst & Young on behalf of the DVD Entertainment Group

     "We continue to see families and younger audiences embrace DVD as their home entertainment medium of choice," said Bob Chapek, president, DVD Entertainment Group and president, Buena Vista Home Entertainment. "The popularity of video game systems compatible with DVD has also allowed for DVD playback capability inside of kids’ rooms leading to even more software growth potential."
     In response to consumer excitement, retailers continue to add more shelf space for DVD product. Approximately 100 new DVD titles are released each week.
Hardware Continues Rapid Adoption Rate
     In the first quarter 2002, 3.6 million DVD players shipped to retail, a 29 percent gain over the same period last year, according to the DVD Entertainment Group (DEG). Total units shipped since the format’s launch has exceeded 35 million. The DEG estimates that 20 million DVD players will ship to retail this year.
     According to figures compiled by the DEG based on retail and manufacturer data, DVD players sold through to U.S. consumers have reached nearly 35 million units and the current installed base is approximately 27.4 million homes (adjusting for homes owning two or more DVD players).
DVD HARDWARE SHIPMENTS BY QUARTER – NORTH AMERICA*

QUARTER 2002 2001 2000 1999 1998 1997

1^st Quarter 3,600,000 2,800,000 1,400,000 400,000 100,000 N/A (launch)

2^nd Quarter N/A 2,500,000 1,700,000 900,000 170,000 90,000

3^rd Quarter N/A 4,100,000 2,700,000 1,100,000 280,000 90,000

4^th Quarter N/A 7,300,000 3,900,000 1,700,000 530,000 140,000

YEARLY TOTAL 3,600,000 16,700,000 9,700,000 4,100,000 1,080,000 320,000

TOTAL (since launch) 35,500,000 (a/o 3/31/02)

*Includes set-top and portable DVD players, Home Theater in Box systems, TV/DVD and DVD/VCR combination players.
According to the DVD Entertainment Group
     "DVD is the dominant home entertainment platform and is growing in popularity as its depth of product expands with cars, portables and recordable players," said Emiel N. Petrone, chairman, DVD Entertainment Group and executive vice president, Philips Entertainment Group, Worldwide. "The trends for Home Theater in a Box systems and TV/DVD combination systems are further proof that DVD has made its mark as the centerpiece of home entertainment."
     There are now more than 250 DVD player models marketed under 60 different consumer electronics brands. DVD players are available at most consumer electronics retailers and have become the focal point of the home theater category. There is also an expanding variety of DVD players available, with Home Theater in a Box systems, car players, DVD-Video/Audio combination players, portables, recordable units and TV/DVD combination systems all growing in popularity.
     The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that exists expressly to promote consumer awareness of the benefits of DVD-Video and DVD-Audio, and to provide updated information to the media and the retail trade about DVD players and titles.
     Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, Dolby Laboratories, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, Funai Corporation, HBO Home Video, Image Entertainment, JVC Company of America, MGM Home Entertainment, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Consumer Electronics, Pioneer Electronics (USA), Sony Electronics, Sony Music Entertainment, Sony Wonder, Thomson Multimedia, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, USA Home Entertainment, Warner Home Video and Warner Music Group.
     Associate members are Blink Digital, Cinram, Clear-Vu Products, Crest National, Deluxe Digital Services, Digital Video Compression Corporation, InterActual Technologies, Media Copy, Panasonic Disc Services, PlanetWeb, Ritek Global Media/Digital Studios, Sonopress, Sony Disc Manufacturing, Sony Pictures Digital Authoring Center and Technicolor.