News Release：The Nine Blu-ray Disc Founder Companies Begin Licensing of the Rewritable Format of the Large Capacity Optical Disc.

Tokyo, Japan, February 13, 2003: Hitachi, Ltd., LG Electronics Inc., Matsushita Electric Industrial Co., Ltd., Pioneer Corporation, Royal Philips Electronics, Samsung Electronics Co. Ltd., Sharp Corporation, Sony Corporation, and Thomson today announced the start of licensing of the rewritable format of "Blu-ray Disc", the large capacity optical disc utilizing blue-violet laser. Licensing will commence as of February 17, 2003. The introduction of products based on "Blu-ray Disc", the first optical disc format capable of recording High Definition broadcasts, will enable the enjoyment of even greater picture quality within the home.

Overview of license for the rewritable format of "Blu-ray Disc"

1 ) License Agreement

In applicable cases, the following licenses must be obtained for the development, manufacture, and sale of products based on the rewritable format of "Blu-ray Disc":

1. "Blu-ray Disc Rewritable Format and Logo License Agreement (FLLA)" for licensing of format specifications (excluding patents) and the logo developed and owned by the 9 companies listed above.
2. "Content Protection System Adopters Agreement for Blu-ray Disc Rewritable (CPSA) " for licensing of copyright protection system specifications and keys with Matsushita, Philips and Sony.
   Both of the above agreements will take the form of 10-year renewable contracts.

2 ) License Conditions

1. "Blu-ray Disc Rewritable Format and Logo License Agreement" (FLLA)
   - Product categories: (a)Player/Recorder (b)Media
     (c)Components(d)Manufacturing Equipment and Testers.
   - License fee: 1st Category US$30,000, 2nd Category US$20,000,
     Maximum fee US$60,000 for 3 or more categories.
2. "Content Protection System Adopters Agreement for Blu-ray Disc Rewritable" (CPSA)
   - Product categories: (a)Player/Recorder (b)Media (c)Components.
   - Annual administration fee: 1st Category US$12,000, 2nd Category
     US$8,000, 3rd Category US$4,000
   - Copyright Protection Key fee: (a) US$0.10/set (b) US$0.02/media
     (Fulfillment fee US$500/order)

License Agent / Contact:

Tomihiro Nakagawa
Sony Corporation
Fax +81 3 5769 5727

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