News Release：Pioneer Introduces First AV-integrated HDD-based Navigation System In Russian Consumer Market

AVIC-HD3BT

August 31, 2006, Tokyo, Japan - Pioneer Corporation announced today its AVIC-HD3BT HDD-based in-car navigation system, merging high-quality navigation and audio/visual entertainment functions in a double DIN chassis, which will mark the first all-in-one HDD-based navigation system in the Russian consumer market*1.

In Russia, there's been a lot of interest in in-car audio/visual entertainment centering on DVD media. With its recent energetic economy, consumer appetite or interest in navigation systems is growing stronger. To respond to this demand, the company has decided this launch of a high value-added, smart in-car navigation system.

Pioneer launched the world's first GPS car navigation system designed for the Japanese consumer market in June 1990, followed by the European and North American consumer markets in 1999 and Chinese market in March 2006. This entry into the Russian consumer market represents an additional step in Pioneer's efforts to further expand the global market for navigation systems.

*1 As of August 31, 2006.

Main features:

1) A 30-gigabyte hard drive, offering superior navigation and advanced A/V entertainment capabilities including:

• Intelligent re-routing
• HDD Music Library (supporting the Gracenote® Music Recognition Service)

2) The map covers Moscow and Saint Petersburg as well as the network of superhighways linking these two cities.

• In Moscow, house numbers are displayed on the map screen.
• In Saint Petersburg, route searches consider local traffic information such as the opening and closing of drawbridges.

3) Navigation Menu Language (user interface): Russian

4) Voice Guidance Language: Russian

5) 7.0-inch touch screen display

6) Bluetooth® for cellular phone handsfree operation

7) iPod® control (using Pioneer's optional iPod adaptor)

8) DVD Video, or CD's with Audio, or CD-R/CD-RW or MP3 files can be played.