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December 16, 1997

Hitachi and Thomson to Jointly Develop HDTV

In making the announcement, the two companies said the U. S. market can be served more efficiently and with greater cost efficiency through combining shared resources and technology. HDTV projection television models carrying the Hitachi and RCA brands will be demonstrated for the first time during the 1998 Consumer Electronics Show in Las Vegas in January.

Each company will contribute its particular area of strength in developing the first high definition projection televisions that will be marketed independently under the companies' respective brands. Hitachi will provide an advanced large screen display for the projection receivers, based on its highly regarded rear projection display technology. Thomson will be responsible for digital technology that includes reception and decoding capability.

Thomson will also develop for both companies a full-featured set-top decoder that will allow today's TV sets to receive and display the new digital television broadcasts as an analog signal.

Commenting on this agreement, James E. Meyer, executive vice president and chief operating officer of Thomson Consumer Electronics, said, "Hitachi is very well known for the high quality of its display technology. This agreement enables two leaders in large screen television to establish the 61-inch screen size as a focal point of HDTV attention."

"Thomson has had a long and successful history in developing TV technology," said Kyohei Kasaba, board director and group executive of Hitachi, Ltd.'s Consumer Products & Information Media Systems Group." Thomson has very good digital technology which is complementary with Hitachi's advanced projection display technology. We look forward to a mutually beneficial relationship and believe that the resultant PTV will be attractive to consumers as the industry initiates broadcast of HDTV-compatible programming next year."

HDTV/digital broadcasts are expected to begin in 10 large markets in the U.S. next Fall, the start of a gradual change to a new broadcast standard for the United States that will require new broadcast facilities and new television receivers for HDTV reception.

Thomson's HDTV development work is underway at its America 's Technology Center in Indianapolis, headquarters for the Americas' operation of the parent company, THOMSON multimedia. The same facility also pioneered in 1994 the first major digital video consumer product in the U.S., the RCA Digital Satellite System.

Hitachi's share of the HDTV Development Agreement involves Hitachi, Ltd.'s Consumer Products & Information Media Systems Group and Hitachi Home Electronics (America), Inc., in coordination with Hitachi's R&D laboratories.

Hitachi Home Electronics (America), Inc., a subsidiary of Hitachi America, Ltd., develops and markets a variety of consumer electronics and commercial multimedia products, including handheld computers and products for image capture and information access/multimedia.

Hitachi America, Ltd., a wholly owned subsidiary of Hitachi, Ltd., Japan, markets and manufactures a broad spectrum of electronics, computer systems and products, and semiconductors, and provides industrial equipment and services throughout North America.

Hitachi, Ltd., headquartered in Tokyo, is one of the world's leading global electronics companies with fiscal 1996 (ending March 31, 1997) consolidated sales of 68.7 billion dollars* or 8,523 billion yen. The company manufactures and markets a wide range of products, including computers, semiconductors, consumer products and power and industrial equipment.

Thomson Consumer Electronics, as one of the world's leading suppliers of digital decoders, plans to develop cable networked products providing high-speed Internet access, data services, and video services to a broad spectrum of consumer households throughout the Americas. Along with RCA-brand DSS systems, Thomson also designs, manufactures and markets RCA, ProScan, and GE brand consumer electronics products including color TVs, VCRs, camcorders, network computers and audio and communications products.

*At an exchange rate of 124 yen to the dollar.

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