News Release：Pioneer Establishes Joint Venture with Shanghai Automotive Industry Corporation (Group)

Pioneer Corporation and Shanghai Automotive Industry Corporation (Group) (hereafter, the “SAIC Group”) have established a joint venture, Anyo Pioneer Motor Information Technology Co., Ltd. for the purpose of expanding the car navigation business in China.

The joint venture has functions of planning, development, and distribution in China. These functions will be combined with Pioneer’s manufacturing, software development, and map database editing capabilities, which will enable an overall　car navigation business in the Chinese market.

The joint venture will provide car navigation systems to SAIC Group, and will establish traffic information systems that matches road and traffic conditions in China, which demand is expected to rise in the future. With these operations, the joint venture aims to achieve sales of 1 billion yuan in the third year, topping 1.5 billion yuan in the fifth year.

Businesses

Expansion of car navigation business

Through collaborations with SAIC Group, the joint venture is planning to expand business involving car navigation systems, core products of Pioneer. Specifically, Pioneer plans to provide OEM car navigation systems and develop traffic information systems.

Establishment of traffic information system

The joint venture will develop traffic information systems, which will be increasingly important in China in the years to come. The joint venture will tap the expertise in traffic information systems that Pioneer has established in Japan, and will seek to optimize the traffic information system for China’s characteristic road conditions, such as ongoing construction of new roads and increasingly severe traffic congestion. The development will also consider environmental issues.

Medium-term business plan

• The joint venture will operate businesses mainly for Shanghai GM, Shanghai VW, and Shanghai Motors, which are affiliated with the SAIC Group.
• The joint venture aims to develop an extremely low cost car navigation system for the Chinese market by harnessing Pioneer’s core technologies both in hardware and software to provide a comprehensive lineup of navigation systems.

Outline of Anyo Pioneer Motor Information Technology Co., Ltd

• Headquarters: 20, West Building, Xin Hua Lian Dai Sha, 775, Huai Hai Zhong Lu, Shanghai City, China
• Representatives: Ye Yongming (Chairman), Fuyue Wu (CEO)
• Foundation: October 22, 2009
• Capital: 90 million yuan (planned amount)
• Investment ratio: Shanghai Automotive Information Systems Co., Ltd ：51%
  　　　　　　　　　　Pioneer China Holding Co., Ltd.: 49%