News Release：Pioneer to Construct Third PDP Production LineExpands Total Production Capacity to 250,000 units Per Annum

July 1, 2002, Tokyo, Japan - Pioneer Corporation (TSE: 6773, NYSE: PIO) announced that it has decided to construct a new Plasma Display Panel (PDP) production line within the premises of Shizuoka Pioneer Corporation, a subsidiary in Japan. This will be the third PDP production line for Pioneer.

The production capacity of the new production line is estimated at 100,000 units per annum. This, together with the 150,000-unit production capacity at its current first and second PDP production lines, will bring the Pioneer's total production capacity of Plasma displays to 250,000 units a year.

Pioneer plans to start construction of the third line in September this year, aiming to start production in September 2003. The company originally intended to start construction of its new production line sometime spring next year, but has accelerated the plan by nearly a half-year, in order to meet the remarkable growth of market demands for PDPs.

The company said it will invest approximately 16 billion yen for the new production line, of which 5 billion yen will be used during the current fiscal year, ending March 31, 2003.

The global market size of PDPs in calendar 2001 was 360,000 units, and will increase to 530,000 units in 2002, according to Pioneer. The Nomura Financial Research Center, in Japan, has estimates that the PDP market worldwide will increase to 1,195,000 units, 2,155,000 units and 3,545,000 units, in 2003, 2004 and 2005, respectively.