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DVD Patent Licensing Program Announced by Six Companies

11 June, 1999


Hitachi, Ltd.
Matsushita Electric Industrial Co., Ltd.
Mitsubishi Electric Corporation
Time Warner Inc.
Toshiba Corporation
Victor Company of Japan, Ltd.(JVC)

Tokyo, June 11 -Six leading developers of DVD technology and formats, Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd. (Panasonic), Mitsubishi Electric Corporation, Time Warner Inc., Toshiba Corporation and Victor Company of Japan, Ltd. (JVC), today announced that they have commenced a worldwide joint licensing program for patents essential for DVD-Video players, DVD-ROM drives, DVD decoders and DVD-Video and DVD-ROM discs.

This joint licensing program has been commenced following receipt of an affirmative business review letter from the U.S. Department of Justice and filing a notification with the European Commission. The potential licensees will benefit from one-stop shopping for the essential patents owned by the six companies, which will facilitate the development of the DVD market.

The license portfolio consists of the six companies' essential patents for DVD-Video and DVD-ROM. Licenses for the portfolio will be available for products that comply with the specifications for the DVD formats promulgated by the DVD Forum.

Interested parties are also free to negotiate separate license agreements, rather than taking a single portfolio license, with each of the six companies, which have committed to provide such licenses for their respective essential patents under fair, reasonable and non-discriminatory terms and conditions.

The companies have authorized Toshiba to be the agent for this joint licensing program, with Matsushita and Hitachi providing support as the first point of contact in certain regions, as follows:

1.North and South Americas: Matsushita Electric Industrial Co., Ltd.
2.Japan, Europe and Africa: Toshiba Corporation
3.Asia (excluding Japan), Oceania and the Middle East (including Turkey): Hitachi, Ltd.

Royalties under the terms of the portfolio license will be as follows:

-DVD-Video player and DVD-ROM drive: 4% of net selling price (with a minimum rate of US$4)
-DVD decoder: 4% of net selling price (with a minimum rate of US$1)
-DVD-Video disc and DVD-ROM disc: US7.5 cents per disc

For further information, prospective licensees may contact:

In North and South Americas:
Matsushita Electric Corporation of America (Panasonic)
DVD Licensing Office
2882 Sand Hill Road, Suite 280
Menlo Park, California 94025
U.S.A.
Phone:+1-650-926-7246
Fax:+1-650-926-7264

In Europe and Africa:
Toshiba of Europe Ltd.
Stephanie Square Business Center SA, Ave., Louise 65
BTE11, 1050 Brussels
Belgium
Phone:+32-2-535-7813
Fax:+32-2-535-7712

In Asia (excluding Japan), Oceania and the Middle East:
Hitachi, Ltd.
DVD Licensing Group
Hitachi Atago Bldg., 15-12, Nishi Shinbashi 2-chome
Minato-ku, Tokyo 105-8430
Japan
Phone:+81-3-3506-1668
Fax:+81-3-3506-1669

In Japan:
Toshiba Corporation
Office of DVD Patent Licensing
3rd Floor, Shiba-koen Bld. 5-5, Shiba 3-chome, Minato-ku
Tokyo 105-0014
Japan
Phone:+81-3-5484-6831
FAX:+81-3-5484-2230


Information in the press releases, including product prices and specifications, content of services and contact information, is current on the date of the press announcement,but is subject to change without prior notice.

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