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News Release：Pioneer to Expand Car Electronics Output in China and Thailand

Information contained in the news release is current as of the date of announcement.
It is subject to change without prior notice.

Pioneer
February 26, 2007
Pioneer Corporation

Pioneer to Expand Car Electronics Output in China and ThailandEstablishing New Manufacturing Company in China;
Constructing 2nd Plant Building in Thailand

February 26, 2007, Tokyo, Japan - Pioneer Corporation announced today that the company has decided to dramatically expand production capacity for car electronics products at its two major production bases in China and Thailand toward this summer and spring respectively. This move is to respond to high growth potential in car electronics products.

At these two major production bases, Pioneer will manufacture over 80% of its total car electronics output (currently about 70%) when going into full-scale production at the new facilities.

China

Pioneer will establish a new manufacturing company in an export zone in Shanghai to strengthen productive capacity for export car electronics products. The new company will start its operation in August 2007.

< Outline of the new company >

Company name: Pioneer Electronics (Shanghai Export Zone) Co., Ltd.
Address: 3111 Huan Cheng Xi Road, Fengxian District, Shanghai, China
Capital: 10 million U.S. dollar
(Capitalized 100% by Pioneer China Holding Co., Ltd.)
Managing Director: Hiroyuki Mineta
Start of operation: August 2007 (scheduled)

Thailand

Pioneer will construct its second plant building on the premises of Pioneer Manufacturing (Thailand) Co., Ltd. to expand the output for car electronics products in Thailand. The new plant will start its operation in April 2007.

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