Sony Broadband Entertainment Forms Subsidiary To Serve As Operator And Developer Of Digital Media Companies

5-Oct-00

550 Digital Media Ventures, A Sony Group Company, Will Create, Incubate, Operate, Invest In And Acquire Digital Media EntitiesSony Broadband Entertainment (SBE), the U.S. holding company for Sony's music, motion picture, television and related entertainment assets, announced that it has formed the subsidiary 550 Digital Media Ventures, a Sony Group company, which will create, incubate, operate, invest in and acquire digital media companies. Working closely with Sony Corporation of America (SCA), Sony Music Entertainment (SME), and Sony Pictures Entertainment (SPE), 550 Digital Media Ventures will develop and manage a collaborative network of digital media companies, initially consisting of over 35 companies, offering them access to capital resources, operating infrastructure, facilities, and back office operations, as well as strategic oversight (for a list of companies, see www.550dmv.com). 550 Digital Media Ventures will focus on key core digital media technology areas, including broadband services, wireless, personal broadcasting, email/direct marketing, digital asset management, e-commerce facilitation, and professional Internet services. 550 Digital Media Ventures will primarily target companies based in the United States, but it will have a worldwide scope. Howard Stringer, Chairman and CEO of SCA and President of SBE, will be Chairman of 550 Digital Media Ventures. Fred Ehrlich will serve as President and CEO of the new subsidiary, and continue as President, New Technology and Business Development, SME. Robert Wiesenthal will be Vice Chairman of 550 Digital Media Ventures in addition to his role as Chief Strategy Officer of SBE. Thomas Gewecke, formerly Senior Vice President, New Technology and Business Development, SME, will be Executive Vice President of 550 Digital Media Ventures. Mr. Stringer said, ""550 Digital Media Ventures will be the primary vehicle for incubation and venture capital investment in digital media for Sony Broadband Entertainment. Fred Ehrlich has been central to our success in creating a strong presence in digital media, and I am delighted that he will be spearheading this important initiative which will essentially formalize and accelerate many of our activities over the past several years."" Mr. Ehrlich said, ""We have a great slate of companies currently assembled in 550 Digital Media Ventures, and with the depth and breadth of Sony's vast resources at hand, we will be able to offer them the tools they need to accelerate their growth. Our management team has the collective strategic and operating experience to help these companies realize their potential, and has the vision to identify and pursue additional opportunities in the digital media space."" Mr. Wiesenthal said, ""550 Digital Media Ventures will bring new and exciting opportunities for Sony Broadband Entertainment. By exploring and developing new ventures in the digital media space outside the traditional areas of Sony's operating companies, 550 Digital Media Ventures will forge relationships that can benefit all the companies in the Sony family."" In addition to Mr. Stringer, Mr. Ehrlich, and Mr. Wiesenthal, the 550 Digital Media Ventures Board will include Ted Masaki, Corporate Senior Executive Vice President, Director, Sony Corporation, Thomas D. Mottola, Chairman and CEO of Sony Music Entertainment, Mel Harris, President and COO of Sony Pictures Entertainment, Bob Bowlin, Chairman, Sony Music International, Kevin Kelleher, CFO, Sony Music Entertainment, and Yair Landau, President of Sony Pictures Digital Entertainment. 550 Digital Media Ventures and its incubated and operated companies employ over 100 people. The company will be headquartered in New York City with offices in San Francisco, Los Angeles and London. Sony Broadband Entertainment (SBE) is the U.S. holding company for Sony Music Entertainment and Sony Pictures Entertainment, under the umbrella of Sony Corporation of America. Sony Corporation of America, based in New York City, is the U.S. subsidiary of Sony Corporation, headquartered in Tokyo. Sony Corporation is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. Its music, motion pictures, computer entertainment operations, and online businesses make Sony one of the most comprehensive entertainment companies in the world. Sony Corporation of America background and other information can be found on Sony Corporation of America's Web site (http://www.sony.com/SCA). Sony Corporation worldwide information can be found at www.world.sony.com.

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http://www.sony.com/SCA
http://www.world.sony.com.