News Release：Pioneer Establishes a New Company,"Pioneer Shared Services Japan Corporation",To Integrate the Group's Business Support Processes

Tokyo, Japan, March 30, 2000 ----- Pioneer Corporation announced today that it has established a new company, Pioneer Shared Services Japan Corporation (JPS), which will start its operations on April 1, 2000.

The purpose of the new company is to integrate business and administrative support functions which to date have been undertaken by several divisions and departments separately within the group organization.

Pioneer Shared Services Japan Corporation will provide business and administrative support for Pioneer's headquarters and sales branches, and also develop systems and solutions regarding logistics and information systems for the group.

Pioneer Shared Services Japan Corporation will pursue optimization of existing office work systems and business support services for the whole Pioneer group to reduce cost of sales and general administration at a consolidated basis.

The establishment of this new company is a part of the headquarters' restructuring to improve consolidated management efficiency. The functions of the headquarters are now clearly divided into two criteria, "Strategic Business Planning" and "Effective Business Support Services". Pioneer Shared Services Japan Corporation will take a major role in business support services.

< Outline of new company >

1. Name: Pioneer Shared Services Japan Corporation (abbreviation: JPS)
2. Establishment: April 1, 2000
3. Location: 4-1, Meguro 1-chome, Meguro-ku, Tokyo, Japan
4. Capital: 20 million Japanese Yen
5. Number of employees: 315
6. Stock Holders: Pioneer Corporation 100%
7. President and Representative Director: Atsushi Hiraishi
8. Business Domains:
   1. Business Support services for Pioneer Headquarters and Sales Branches
      (accounting, salary and fringe benefit, general affairs, sales administration support)
   2. Planning and development of a strategic logistic system
      and to provide logistic support services
   3. Planning and development of Information Systems