DVD-VIDEO CONTINUES RECORD PACE GROWTH

Hardware Reaches Milestone Shipping 10 Million Units Since Launch

September First Month That More Than One Million Units Were Shipped

Software Shipments On Continued Up Swing in Third Quarter, Nearing 43 Million Units

LOS ANGELES - October 17, 2000 - Based on the current record breaking performance of DVD-Video, the format continues its dramatic growth. According to the Consumer Electronics Association (CEA), in the third quarter of 2000 DVD player shipments were nearly 2.5 million units. This is 120 percent more than shipped in the same period of 1999.

Launch-to-date, more than 10 million DVD players have been shipped to retailers, a benchmark of success for any consumer electronics product. DVD-Video reached this milestone faster than any other home electronics product including the compact disc and VHS. If growth continues at this rate, there will be nearly nine million DVD-Video players shipped to retailers in calendar 2000, bringing the total units shipped since the format's inception to more than 14 million.

The DVD Entertainment Group estimates that there are currently more than 9 million DVD players in consumer homes, along with an additional 9.3 million DVD-ROM drives. The Group anticipates the installed base of DVD players to reach more than 13 million by year-end.

"The current growth rate for DVD-Video is tremendous, and we expect to see the surge accelerate as we gear up for the all-important holiday season," said Emiel N. Petrone, chairman, DVD Entertainment Group and executive vice president, Philips Entertainment Group, Worldwide. "DVD is nearing the consumer electronics milestone of 10 percent market penetration. And with the introduction of DVD-based game consoles, we anticipate this mass market acceptance to continue to sky-rocket."

There are now more than 100 DVD player models marketed under 40 different consumer electronics brands. DVD-Video players are available at most traditional consumer electronics retailers and have become the focal point of the home theater category.

Software Sales Reaching New Heights

According to figures compiled by Ernst & Young on behalf of the DVD Entertainment Group, nearly 43 million DVD movies and music videos shipped in the third quarter of 2000, nearly 150 percent more units than shipped in the same period last year. This brings the total shipments year-to-date to 108 million.

Since the format's launch in 1997, software shipments have reached 233 million units, according to the DVD Entertainment Group. Based on current growth rates, shipments will exceed 230 million DVD movies and music videos this year representing more than $4.5 billion in retail revenue.

"The excitement surrounding DVD is evident, and will continue to be as the studios release dozens of content-loaded blockbuster titles in the fourth quarter," Steve Nickerson, president, DVD Entertainment Group and vice president, DVD marketing worldwide, Warner Home Video. "The cumulative box office gross of these upcoming releases is more than $3.2 billion, versus $1.7 billion in the fourth quarter last year."

With all of the major movie studios and music labels supporting the DVD-Video format, there are nearly 8,000 titles now available. The DVD Entertainment Group predicts that number to grow to more than 8,500 by the end of 2000.

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. As part of the group's charter, it also looks to incorporate future applications for the DVD format such as interactive games.

Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Video, DreamWorks Home Entertainment, EMI Recorded Music, Funai Corporation, Image Entertainment, Kenwood USA Corporation, MGM Home Entertainment, New Line Home Video, Onkyo USA Corporation, Panasonic Consumer Electronics Company, Paramount Home Entertainment, Philips Consumer Electronics Company, Pioneer Electronics (USA), ProScan, RCA, Sharp Electronics, Sony Electronics, Sony Music Entertainment, Sony Wonder, 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 Alpha Enterprises, Americ Disc, Cinram, California Video Center, Crest National, Deluxe Digital Services, Disc Graphics, Dolby Laboratories, DTS, MRT Technology, Panasonic Disc Services Corporation, Sony Disc Manufacturing, Sony Pictures DVD Center, Technicolor, VM Labs and Warner Advanced Media Operations.

Interested consumers can reach the DVD Entertainment Group at (310) 967-2940, via e-mail at getinfo@dvdinformation.com or through its web site at www.dvdinformation.com.