News Release：Sharp and Pioneer Enter Into Technological CollaborationFor Next-Generation Digital Products

Tokyo, Japan, July 11, 2000, ----- Sharp Corporation (Headquarters: Osaka / President: Katsuhiko Machida) and Pioneer Corporation (Headquarters: Tokyo / President: Kaneo Ito) agreed on technological collaboration for next-generation digital products and will initiate joint projects under the umbrella project name of the "Digital Media Project".

Based on this agreement, the two companies will integrate their best technologies into the development of future digital products, which are expected to grow in the coming century. This alliance will help the two companies increase their development efficiency, shorten development time, and increase the competitiveness of each company's products.

To begin with, they will launch the "Digital Recording Device Project" and the "Digital Audio Project".

The objectives of the projects;

1 ) Technical collaboration for the development of the next generation of digital recording and playback device.

The two companies will integrate their core-competence into the next generation of digital products. Pioneers DVD-RW recording/playback technology will be combined with Sharp's semiconductor laser and high quality video signal processing technologies to develop next-generation digital recording equipment.

1. Joint development of strategic products for quick diffusion of DVD-RW products in the marketplace. Both companies will promote DVD-RW products in the marketplace through the activities of the RWPPI. (RWPPI: RW Products Promotion Initiative)
2. Joint development of basic technologies for next-generation optical disc device.
3. Joint development of next-generation personal video recorders by integrating hard disk recording technology with DVD-RW technology.

2 ) Joint development of digital audio products

Sharp's "1-bit Amplifier" technology --- the key to next-generation audio --- will be integrated with Pioneer's audio system technology to expand the future of next-generation digital audio products, which will be compact, highly efficient, and with much higher level of sound quality. These products extend from general audio, hi-fi components, up to portable MD players.

In the years ahead, Sharp and Pioneer will continue to collaborate in creating next-generation digital "Home Entertainment" products for the enrichment of human life.