News Release：Pioneer Announces its "Vision 2005" and a New Corporate Logo, to be Introduced October 1, 1998

August 24, 1998 Tokyo, Japan --- Pioneer Electronic Corporation announced that a new corporate logo will be introduced worldwide on October 1, 1998, as part of its ongoing corporate identity (CI) activities that began in the autumn of 1996. Pioneer also revealed "Vision 2005," a new corporate business plan that is to showcase the highlights of its management objectives as the company prepares to enter the 21st century.

< The Outline of "Vision 2005" >

1. Corporate Philosophy "Move the Heart and Touch the Soul"
   Pioneer was founded with the motto "To Present High Quality Sound to The World", an ideal formulated and pursued by the late Mr. Nozomu Matsumoto, the company's founder. Pioneer will continue this mission to share thrilling experiences in sight and sound with as many people as possible. The company sees this as its role in society.
2. CS Management
   The principle of Pioneer management is Customer Satisfaction (CS). As defined by Pioneer, customers include shareholders, dealers and consumers, subcontractors, and employees. Also included in Pioneer's definition are the environment and society. To promote CS Management, the company has instituted a Customer Satisfaction Planning & Coordination Division, which has already begun its activities, including reinforcement of the Customer Support Center.
3. Business Vision
   Over the years, Pioneer has built a solid foundation to promote and pursue research and development, and has achieved a track record that is the envy of the industry. Beginning with its experiments with the optical videodisc in 1975, Pioneer has continued to be at the forefront of technological R&D.
   
   Pioneer has also dedicated itself to developing the next generation of display devices, such as Plasma Display and Organic Electroluminescent Display. This is more evidence that Pioneer believes its mission is to proffer unique and creative products to customers. As a further extension of its commitment to the future of a fully networked society, Pioneer is also endeavoring to expand its business into CATV, digital satellite broadcasting and other communications technologies.
   
   With such an extensive and diverse technological background, Pioneer is aiming to be an even more creative corporation that will always offer unique, cutting-edge entertainment to its customers in the 21st century.
   
   Our business visions are:
   1. To be the leading company in the DVD business.
      As one of the patent holders in DVD technology, Pioneer will make every effort to promote DVD products worldwide. The core of Pioneer's business will be DVD-Video, DVD-ROM, DVD-Audio, DVD-R, and DVD-RW, which are the next generation of high-density recording media. To achieve this goal, Pioneer will concentrate its efforts on the development of laser pickup devices, manufacturing engineering technology and strengthening its cost competitiveness and product planning capability. The company also plans to track various business opportunities around the world, ranging from the consumer market to OEM sales of devices and completed products.
   2. To establish the business foundation of next-generation displays such as PDP and Organic EL Displays.
      During the next three years, Pioneer will concentrate on reducing the cost of products in these categories and developing applications for existing business fields. The company will also expand its business into OEM sales of devices and key modules. To this purpose, DPC (Display Products Company) was started on May 16, 1998, to support promotional activities.
      
      For the promotion of PDP, the company can make much use of its experiences marketing projection TVs in both the worldwide consumer and industrial markets. Plasma display panels will be launched in the U.S., European and Asian markets this autumn.
      
      For the promotion of Organic EL Displays, Pioneer is striving for the earliest realization of full-color emission, after which it can be employed in small display devices for use in car electronics products and PAD (Personal Digital Assistant) products. In the same vein, Pioneer is aggressively researching HEED (High Efficiency Electro-Emission Device) for the earliest possible realization.
   3. To expand from a stand-alone category to a network domain.
      Networking is the norm in modern society. Pioneer has developed CATV-related products, digital satellite broadcasting receivers and on-line karaoke systems. Furthermore, Pioneer has recently introduced car navigation systems incorporating Internet applications.
      
      Thus, Pioneer is committed to developing creative products and systems that meet the new demands of a changing world. On the long list of Pioneer achievements in these areas are the introduction of on-line karaoke; bringing the Super BeMAX's to the Japanese market; concluding a contract with Time Warner Cable in America to deliver 1 million advanced analog converters; and supplying digital satellite broadcasting receivers to Canal+ in Europe.
   4. To become a global company in the purest sense.
      Pioneer is devoted to exploring all avenues to expand its business domain. This includes business tie-ins and collaboration with other manufacturers. The company's expertise and technological know-how in digital optical discs, next-generation displays, speakers, and related manufacturing engineering will prove to be indispensable assets for such ventures. Pioneer will aggressively pursue such business opportunities as OEM supply of parts and products for PDP, DVD, Organic EL Display, and car navigation systems. Pioneer believes it is activities like these that will help meet - and surpass - the goals of "Vision 2005."
   5. Business target.
      The turnover target is ¥1,200 billion for 2005, our 60th fiscal year; consolidated net income targeted at ¥55 billion and consolidated ROE is targeted at 10 percent.
4. Introduction of the New Corporate Logo
   
   
   To symbolize the many changes at Pioneer and to express the company's commitment to the future, Pioneer will introduce a new corporate logo on October 1, 1998 almost 30 years after the current logo was first shown to the public in 1969.
   
   The new logo features softly formed letters with crisp edges. These design changes are meant to indicate the company's direct involvement with entertainment and its fluid use of thinking and creativity. At the same time, the logo is meant to reflect Pioneer's devotion to the spirit of the next millennium.
   
   The new corporate color, known as "Bordeaux Red," is a symbol of key words in the Pioneer philosophy, such as "challenge," "innovation" and "passion." The color has been dubbed "Pioneer Red" by company employees. With the introduction of a new logo and color, Pioneer promises to deliver on the promise of its brand concept, "The Discovery of Fun," and will bring satisfaction to all customers, who will be able to enjoy Pioneer uniqueness, freshness and technological advancement.

On a final note, this year marks the 60th anniversary of our foundation in 1938. Though Pioneer has helped usher in many entertainment advances, it has also weathered some difficult times. From both of these comes the realization that the future is a time for growth. Envigored by the symbolism of our new color and logo, Pioneer would like to express its determination and commitment to its corporate philosophy, "Move the Heart and Touch the Soul." Pioneer hopes to have continued support during this time of renewal and commitment to the future.