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DVD6C Announces New Licensing Program


    The DVD6C Licensing Group (DVD6C) consisting of nine leading
    developers of DVD technology and formats -- Hitachi, Ltd., Matsushita
    Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric
    Corporation, Samsung Electronics Co., Ltd., Sanyo Electric Co., Ltd.,
    Sharp Corporation, Toshiba Corporation, Victor Company of Japan, Ltd.
    (JVC) and Warner Bros. Home Entertainment Inc. -- today announced that
    it has revised its worldwide patent licensing program beginning on and
    after January 1, 2008, including offering a new license agreement (the
    "New DVD6C License"), which offers reduced royalty rates on certain
    products and additional licensing options.

    Key changes to the new licensing program include the following:

    -- Reduction of royalty rates for DVD Read-Only Discs (i.e., the
    DVD-Video Disc, DVD-Audio Disc and DVD-ROM Disc) from
    US$0.045/Disc to US$0.040/Disc for sales of DVD Read-Only
    Discs beginning on or after the Effective Date of the New
    DVD6C License.

    -- The addition of +R Discs and +RW Discs as new categories of
    licensed DVD Products. The royalty rates for +R Discs shall be
    the same as the current royalty rates for DVD-R Discs, and the
    royalty rates for +RW Discs shall be the same as the current
    royalty rates for DVD-RW Discs.

    -- Inclusion of Time Limited DVD Discs in the DVD-ROM Disc,
    DVD-Video Disc and DVD-Audio Disc categories of licensed DVD
    Products.

    Interested parties will remain free to negotiate individual
    license agreements with DVD6C´s member companies, rather than taking
    out a single portfolio license or license for a category of products.
    The member companies have committed to provide such licenses under
    fair, reasonable and non-discriminatory terms and conditions.

    For the convenience of current and prospective licensees, the
    royalty rates to be offered under the New DVD6C License are shown
    below:

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    Category Royalty
    ----------------------------------------------------------------------
    DVD-Video Player The greater of
    (i) 4% of the net selling price or
    (ii) US$4.00 per player or,
    US$3.00 per player on or after the effective
    date of the New DVD6C License
    US$8.00 at maximum on or after January 1, 2003
    ----------------------------------------------------------------------
    DVD-Audio Player The greater of
    (i) 4% of the net selling price or
    (ii) US$4.00 per player or,
    US$3.00 per player on or after the effective date of
    the New DVD6C License
    US$8.00 at maximum on or after January 1, 2003
    ----------------------------------------------------------------------
    DVD-ROM Drive The greater of
    (i) 4% of the net selling price or
    (ii) US$4.00 per drive or,
    US$3.00 per drive on or after the effective
    date of the New DVD6C License
    US$8.00 at maximum on or after January 1, 2003
    ----------------------------------------------------------------------
    DVD-ROM Disc US$0.075 per disc;
    US$0.065 per disc on or after January 1, 2002;
    US$0.05 per disc on or after January 1, 2004;
    US$0.040 per disc on or after the effective date of
    the New DVD6C License
    ----------------------------------------------------------------------
    DVD-Video Disc US$0.075 per disc;
    US$0.065 per disc on or after January 1, 2002;
    US$0.05 per disc on or after January 1, 2004;
    US$0.040 per disc on or after the effective date of
    the New DVD6C License
    ----------------------------------------------------------------------
    DVD-Audio Disc US$0.075 per disc;
    US$0.05 per disc on or after January 1, 2004;
    US$0.040 per disc on or after the effective date of
    the New DVD6C License
    ----------------------------------------------------------------------
    DVD Decoder 4% of the net selling price or US$1.00 per decoder,
    whichever is greater
    ----------------------------------------------------------------------
    DVD Video 4% of the net selling price or US$6.00 per recorder,
    Recorder whichever is greater
    ----------------------------------------------------------------------
    DVD (Recordable 4% of the net selling price or US$6.00 per drive,
    Disc) Drive whichever is greater
    ----------------------------------------------------------------------
    DVD Encoder 4% of the net selling price or US$1.50 per encoder,
    whichever is greater
    ----------------------------------------------------------------------
    DVD-R Disc The greater of
    (i) 4% of the net selling price or
    (ii) US$0.075 per disc;
    US$0.045 per disc on or after January 1, 2006
    ----------------------------------------------------------------------
    DVD-RW Disc The greater of
    (i) 4% of the net selling price or
    (ii) US$0.075 per disc or,
    US$0.065 per disc on or after the effective
    date of the New DVD6C License
    ----------------------------------------------------------------------
    DVD-RAM Disc The greater of
    (i) 4% of the net selling price or
    (ii) US$0.075 per disc or,
    US$0.065 per disc on or after the effective
    date of the New DVD6C License
    ----------------------------------------------------------------------
    Recordable Disc 4% of the net selling price or US0.5 cents per case,
    Case whichever is greater
    ----------------------------------------------------------------------
    +R Disc The greater of
    (i) 4% of the net selling price or
    (ii) US$0.075 per disc, or US$0.045 per disc on
    or after January 1, 2006
    ----------------------------------------------------------------------
    +RW Disc The greater of
    (i) 4% of the net selling price or
    (ii) US$0.075 per disc or, US$0.065 per disc on or
    after the effective
    date of the New DVD6C License
    ----------------------------------------------------------------------
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    For further information regarding the DVD6C licensing program,
    please visit the 6C web site (www.dvd6cla.com) or contact one of the
    following regional agents:

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    Japan:
    Toshihiro Shinohara
    Vice-President & General Manager
    Licensing
    Toshiba DVD License Services, Inc.
    5th Floor, Sumitomo-Hamamatsucho Bldg.
    18-16, Hamamatsucho 1-chome, Minato-ku
    Tokyo 105-0013, Japan
    Phone: +81-3-5777-3286
    Fax: +81-3-5401-2503
    E-mail: toshihiro.shinohara@toshiba-tdls.co.jp

    Europe and Africa:
    Masahiro Ogura
    Vice-President & General Manager
    Toshiba of Europe Limited
    Santander House
    6th Floor, 100 Ludgate Hill,
    London, EC4M 7RE
    United Kingdom
    Phone: +44(0)20 7332 9862
    Fax: +44(0)20 7332 9889
    E-mail: masahiro.ogura@toshiba.co.jp

    Asia (excluding Japan), Oceania and the Middle East:
    Takao Kato
    Department Manager
    DVD Licensing Center
    Hitachi Ltd.
    Shin-Otemachi Bldg. 2-1,
    Otemachi 2-chome, Chiyoda-ku,
    Tokyo, 100-0004, Japan
    Phone: +81-3-4232-5052
    Fax: +81-3-4232-5091
    E-Mail: takao.kato.uy@hitachi.com
    E-Mail: dli-inquiry@itg.hitachi.co.jp

    The Americas:
    Tatsuya Ii
    Matsushita Electric Industrial Co., Ltd.
    Exclusive Regional Agent for DVD6C Licensing Agency
    c/o Weil, Gotshal & Manges LLP
    201 Redwood Shores Parkway
    Redwood Shores, California 94065, USA
    Phone: 650-802-3146
    Fax: 650-802-3100
    E-Mail: dvd6c@gg.jp.panasonic.com
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