News Release：Pioneer Announces its New Organization --- Internal Company-based Corporate Structure: Display Products Company

Tokyo, Japan, May 18, 1998 --- Pioneer Electronic Corporation announced a new organization, Display Products Company, an internal company-based corporate structure as of May 16, 1998. Accordingly, Pioneer will have four internal companies: Home Entertainment Company, Mobile Entertainment Company, Business Systems Company and Display Products Company.

The following are the main functions performed by these four companies:

1 ) Display Products Company (abbreviation: DPC)

(Please see below.)

2 ) Home Entertainment Company (abbreviation: HEC)

Manufacturing and sales of Home Electronics Business.

3 ) Mobile Entertainment Company (abbreviation: MEC)

Manufacturing and sales of Car Electronics Business.

4 ) Business Systems Company (abbreviation: BSC)

Manufacturing and sales of Industrial Products.

Display Products Company (abbreviation: DPC)

President: Mr. Yoshio Nakano

• DPC consists of Display Center and Planning and Coordination Division, and will be incharge of research/development and planningcoordination of Plasma Display Panel (PDP) Business.
• PDP business is expected to grow rapidly into Pioneer's main businesses. The newly established internal company intends to achieve the smooth introduction of PDP to the market and consolidate the whole display business.

Organizational Change of Domestic Sales Division of HEC

The organizations of the Domestic Sales Division is to be changed with the aim of reforming the management and achieving a consolidated business structure.

• Sales Coordination Department is created so as to be in charge of planning business strategies of mid-term and yearly sales.
• Marketing Department is created, and so organized as to be able to carry the marketing activities for each of the product items.
• Display Sales Department is created to be in charge of sales/promotion of wide-screen display as well as planning the marketing activities.