News Release：AV Amplifiers' Free Inspection and Repair Service Notice(Translation of press release announced in Japan)

Tokyo, Japan, January 29, 2001 --- Pioneer Corporation has announced today that from January 30, 2001 it will perform free inspection and repair services for AV amplifiers listed below.

Due to irregularity in parts installation in the models VSA-D7EX and VSA-D6TX, AV amplifiers, released to the Japanese domestic market at the beginning of November 2000, the power switch turns off under certain conditions in some units.

Furthermore, there is a possibility that the resistors and capacitors mounted on the circuit-board inside such unit might break down to cause smoke to appear, when the power switch is repeatedly turned on and off.

Although Pioneer tests have confirmed that this problem does not result in fire, the Company has decided to check and repair the subject models free of charge.

Pioneer will publicize a "free-check and repair notice" in various nation-wide newspapers in Japan, requesting those customers who purchased the models in question to contact the Company for return and repair of their units.

Pioneer sincerely apologizes for any inconvenience this may cause customers, and will take every possible measure to ensure that such problem do not recur in the future.

Customers with these models in Japan are requested to contact Pioneer at the following toll-free number starting January 30, 2001: 0120-877-874

(Open from 9:30 a.m. to 6:00 p.m., except Sundays and national holidays)

Equivalent overseas models sold outside Japan will be repaired accordingly. The number of equivalent models sold in overseas market is as follows:

North America: 8,241 units, Europe: 4,686 units, Other regions: 185 units

The financial impact of this free inspection and repair service will be immaterial, and the forecast of consolidated financial results for the full year, ending March 31, 2001, remains unchanged as announced on November 1, 2000.