News Release：Pioneer to Establish DVD Authoring Studio in Hong Kong

TOKYO, Japan, January 19, 1998 ----- Pioneer Electronics Technology (Hong Kong) Ltd. and Pioneer Video Corp. announced the establishment of an authoring studio for DVD software production in Hong Kong, located within Pioneer Electronics Technology (Hong Kong) premises. The studio will open on the 15th of January.

Pioneer Video Corp. will provide technical and management operation support based on its long fostered experience of sales and manufacturing of DVD and Laser Disc software in the Japanese market. Pioneer Electronics Technology (Hong Kong) will handle practical authoring procedures and business operations, which include business negotiations.

< Background >

Video CD is currently the most popular video media in the Asian market, but, DVD is expected to attract a lot of attention and take its place in a short time.

With the huge memory capacity of DVD, a totally new type of software having numerous functions, which cannot be realized with any other existing media, can be developed. But, complicated processes, such as high level authoring technology and correspondence with an editor for detailed instructions of visual expressions given in local languages, are needed in order to transform such software into discs. Pioneer chose and positioned Hong Kong to be the key base within the Asian region to swiftly correspond to these needs.

At this new studio, local technicians will swiftly respond to needs by using DVD-R and emulators for efficient priory inspection of the software contents.

< New Studio >

Location:
Room 501, Greenfield Tower, Concordia Plaza,
1 Science Museum Road, T.S.T.E,
Kowloon, Hong Kong

< Pioneer Electronics Technology (Hong Kong) Ltd. >

Managing Director: Takao Takenaka
Foundation: October 10, 1995
Location: Room 501, Greenfield Tower, Concordia Plaza,
1 Science Museum Road, T.S.T.E,Kowloon, Hong Kong
Capitalization: HK$ 20.0 million
Share Holders: Pioneer Electronic Corporation 100%
Businesses: parts and semi-finished goods
procurement within Hong Kong
Number of employees: 4

< Pioneer Video Corp. >

President: Yoshikazu Nakano
Location: 2680, Nishihanawa, Tatomi-cho, Nakakoma-gun
Yamanashi-ken, Yamanashi 409-38, Japan
Foundation: October 1, 1977
Capitalization: 7.9 billion-yen
Share Holders: Pioneer Electronic Corporation 100%
Businesses: sales and manufacturer of optical discs and semi-conductors
Number of employees: 681