News Release：Pioneer to Reorganize PDP Production in Japan:Shizuoka Pioneer Consolidates Pioneer Video to Forma New Company, Pioneer Display Products Corporation

March 25, 2003, Tokyo, Japan - Effective April 1, Pioneer Corporation will consolidate two subsidiaries in Japan, Shizuoka Pioneer Corporation and Pioneer Video Corporation, into a new company, Pioneer Display Products Corporation. The purpose of this is to improve production efficiency of its plasma display panels (PDPs). The semiconductor production business conducted at the Pioneer Video Corp.'s Kokubo Plant will be divided into a new independent subsidiary, Pioneer Micro Technology Corporation, which will concentrate on semiconductor production and marketing.

The inauguration of Pioneer Display Products Corporation will allow Pioneer to streamline its PDP production activity, making its Plasma TVs even more competitive in the marketplace.
The new company will soon begin construction of a 4th PDP production line at its plant in Tatomi, Yamanashi Prefecture with production slated to start in the spring of 2005.

Pioneer Corporation is one of the leading manufacturers of consumer- and business-use electronics products, including audio, video and car electronics on a global scale. Its shares are traded on the New York Stock Exchange (ticker symbol PIO) and Euronext Amsterdam as well as the Tokyo Stock Exchange and Osaka Securities Exchange.

Outline of the two new companies:

1 ) Pioneer Display Products Corporation

2 ) Pioneer Micro Technology Corporation