DVD ENTERTAINMENT GROUP RE-CHARTERS AS
DIGITAL ENTERTAINMENT GROUP

Expanded Mission Embraces DVD and Other Emerging Technologies

First Half 2003 Sales of DVD Software and Hardware Continue to Skyrocket

     LAS VEGAS (July 29, 2003) - Members of the home entertainment industry met today at the opening session of the Video Software Dealer Association's Home Entertainment 2003 in Las Vegas to announce that the DVD Entertainment Group - a six-year-old trade association charged with promoting the DVD format - will expand its mission and change its name to the Digital Entertainment Group (DEG).

     Under its new charter, the Digital Entertainment Group will continue to advocate and promote the many benefits associated with DVD while providing updated information regarding the format to both the media and the retail trade. As an industry-funded, nonprofit organization, the DEG will now offer opportunities for member companies to engage in ongoing discussions concerning various issues and opportunities, which relate to other new digital technologies that may emerge in the future. The new charter takes effect August 1.

     "The momentum behind consumer enthusiasm for DVD is evident, and as an industry, we will remain dedicated to promoting acceptance and understanding of the format," said Bob Chapek, president, Buena Vista Home Entertainment and president, DVD Entertainment Group at the VSDA opening session. "Yet our revised mission reflects our organization's forward-looking commitment to explore new issues and opportunities that relate to emerging technologies on the horizon. The fact that the Digital Entertainment Group is comprised of both hardware and entertainment software companies gives us a unique forum for the discussion of such future potential technologies."

     "We're pleased with the many accomplishments we've made working together as an industry under the umbrella of the DVD Entertainment Group," said Emiel N. Petrone, executive vice president, Philips Corporate Alliance Group and chairman, DVD Entertainment Group. "We look forward to our continued partnership of hardware manufacturers and content providers as we move forward with our new agenda as the Digital Entertainment Group."

DVD SOFTWARE SHIPMENTS CONTINUE TO SOAR
DVD continues to be a driving force for the entertainment industry in the first half of 2003 with more than 427 million DVD units shipped to retail. According to figures compiled by Ernst & Young on behalf of the DEG, the total number of units shipped in North America has reached nearly 1.8 billion since launch.

DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER (in millions)

QUARTER	1997	1998	1999	2000	2001	2002	2003
1st Quarter	N/A	3.3	11.1	29.0	69.2	120.1	231.7
2nd Quarter	N/A	4.1	13.9	33.2	81.7	152.2	195.5
3rd Quarter	2.3	5.9	29.0	42.7	75.9	153.3	---
4th Quarter	3.2	11.8	44.0	77.5	137.6	259.4	---
YEARLY TOTAL	5.5	25.1	98.0	182.4	364.4	685.0	427.2
TOTAL SHIPMENTS (since launch)		30.6	128.6	311.0	675.4	1,360.4	1,787.6 (a/o 6/30/03)

More Than 66 Million DVD Players Sold in the U.S.
     According to figures compiled by the DVD Entertainment Group based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, more than 10 million DVD players were sold to consumers in the first half of 2003, a 44 percent increase over the same period last year. More than 66 million DVD players have sold since launch, bringing the number of DVD households to over 46 million (adjusting for households with more than one player).

U.S. DVD HARDWARE SALES BY QUARTER (in millions)

QUARTER	1997	1998	1999	2000	2001	2002	2003
1st Quarter	.030	.094	.358	1.350	2.220	3.565	4.858
2nd Quarter	.079	.149	.611	1.435	2.404	3.750	5.506
3rd Quarter	.077	.244	.880	1.550	2.537	4.740	---
4th Quarter	.119	.459	1.701	5.542	9.501	13.058	---
YEARLY TOTAL	.305	.946	3.550	9.877	16.662	25.113	10.364
TOTAL (since launch)							66.817 (a/o 6/30/03)

     Consumer intent to purchase DVD players continues to be stronger than all other electronics products according to a recent report from CEA. Nearly a third (32 percent) of all non-owner households expect to purchase some type of DVD player in the next year, a higher percentage than those with intent to buy them last year (28 percent).

     "As we continue to embrace the success of the DVD format, consumer enthusiasm for DVD hardware and software also continues to be one of the primary drivers for the overall success of Home Theater, said Gary Bauhard, director of marketing, Pioneer Electronics and DEG vice president. "DVD, as the center of the Home Theater experience, has directly contributed to the growth of other consumer electronics categories, such as display and HTiB."

     Regular members of the DEG are 5.1 Entertainment Group, Artisan Home Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, Funai Corporation, HBO 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, Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video and Warner Home Video..

     Associate members are Alta Resources, Blink Digital, Clear-Vu Products, Crest National, Deluxe Media Services, Digital Video Compression Corporation, InterActual Technologies, Macrovision, Media Copy, Metropolis DVD, MX Entertainment, Muze, Sonopress, Sony Disc Manufacturing and Technicolor.

     Interested consumers can reach the Digital Entertainment Group at (310) 967-2953, via e-mail at getinfo@dvdinformation.com or through its web site at www.dvdinformation.com.