6-Jan-00

Thomson Multimedia Deepens Digital Entertainment

THOMSON multimedia (NYSE: TMS) today announced a series of new product initiatives that will continue to drive its leadership position in the electronics industry through the proliferation of digital entertainment products that will reach American homes over the next year. Affordable HDTV Thomson, the manufacturer and marketer of RCA, PROSCAN, and GE-brand home entertainment products, today announced plans to broaden the appeal of digital HDTV by introducing a new lineup of HDTV receivers that will make the technology far more affordable for the average consumer. Thomsonís flagship HDTV product will be the worldís largest direct-view HDTV receiver, a 38-inch widescreen model that will carry a suggested retail price of $3,999 when introduced at mid-year. ""Weíve determined that itís time to jump-start the sales of HDTV,"" said Michael D. OíHara, Senior Vice President-Americas, Thomson. ""HDTV will now be available at less than $4,000 ñ a stunning 50 percent drop in suggested retail pricing for HDTV products from last yearís Consumer Electronics Show, when our only integrated HDTV offering carried a $7,999 suggested retail price. With digital television now moving into the mainstream, we are confident that when consumers see these sets and see the price tags they will respond with enthusiasm."" The company also showed new widescreen 34-inch, 61-inch, and 65-inch HDTV models that will be available in 2000. In addition, Thomson announced plans today to sponsor the HDTV telecast of the NCAA Menís Final Four basketball tournament that will be produced by CBS, broadcast nationally, and staged at the RCA Dome in Indianapolis in early April 2000. Digital Datacasting At CES, Thomson demonstrated the capabilities of its new alliance with GEOCAST Network Systems, which will develop a nationwide network to supply digital data to local broadcasters. An RCA-branded GEOCAST receiver will be available in 2001 to supply a free service for computer users that will bring seamless, rich media content first to consumers utilizing the flexible over-the-air digital TV system now in place throughout the U.S. Digital Television Set-Top Receivers Thomson already offers the industryís most popular digital TV set-top high-definition television (HDTV) receiver, the $649 (suggested retail price) DTC100 that receives over-the-air analog and digital broadcasts, as well as standard and high-definition satellite programming from DirecTV. Additionally, the company recently began shipments of the first digital satellite receivers that will allow local channel capability, interactivity, enhanced program guides, and Caller ID display. The new receivers and a new 24-inch reception antenna dish will be necessary in some cities where local channel service is offered by DirecTV later in 2000. Local channel service in the U.S. was made possible by the Congressional passage and Presidential signature on the Satellite Home Viewer Improvement Act. Electronic Program Guides: The Entertainment Portal Thomson will expand its offering of televisions with the built-in on-screen GUIDE Plus+ electronic program guide from GEMSTAR, which will now be featured on televisions ranging in size from 19-inches to 61-inches in the companyís RCA and PROSCAN models. The company has produced 1.5 million television sets with the ""no-fee"" guide that research says is replacing the paper TV listings in many homes. Personal Television The company will move into personal video recording devices in the year 2000, according to Senior Executive Vice President Jim Meyer. ""The next step for Thomson is a project weíve undertaken with Microsoft to jointly introduce a new line of personal video recorders that utilize the familiar hard disc drive. We will take the digital video recording platform to the next level ñ offering a program guide, Internet access, television programming, and the ability to cache information and entertainment on a hard disc drive,"" Meyer said. Additionally, Thomson is now exploring the combination of hard disc drives with other products. While service providers have not yet been finalized, Thomson plans a wide variety of personal television products that will include advanced satellite receivers and ultimately a line of TV products with integrated hard disc drives that could eliminate the need for stand-alone recording components. Other Digital Advances The company also announced support for the ""Plus RW"" digital disc recording format at the International Consumer Electronics Show, the industryís largest annual trade event staged in Las Vegas. The announcement will lead to a recordable disc product targeted for late 2000. New enhancements were announced for the RCA LYRA personal digital audio player, which will soon support the Windows Media Audio compression format in addition to MP3 and G2. And Thomson will offer a CD-Recordable/Rewritable dual tray audio recorder in the coming year, as well as a new personalized audio information and entertainment product called the RCA Command Audio receiver that is now available in selected markets. Thomson will also showcase its new digital cable modem at the Consumer Electronics show. The DCM205 recently earned CableLabsÆ certification and Excite@HomeÆ Level 2 approval on Thomsonís first submission of a second-generation high-speed digital cable modem. The newly designed DCM205 is the successor to the RCA DCM105 model which was one of the first two digital cable modems worldwide to achieve Cable Labs certification in March, 1999. The DCM205 is designed to provide two-way, high-speed Internet access to PCs used in home, small office, and educational environments. The modem operates through DOCSIS updated cable networks at speeds up to 100 times faster than a conventional 28.8 Kbps telephone modem. About Thomson Multimedia With sales over $6 billion in 1998 and 48,000 employees in over 30 countries, THOMSON multimedia (NYSE: TMS) is the fourth largest global supplier of consumer electronics products. The group has four main activities: Display and Components, Consumer Products, New Media Services, Patents and Licensing. Within its activities THOMSON multimedia develops, manufactures and sells television displays and components, consumer products such as televisions, VCRs, camcorders, audio and communication products, digital decoders, DVD players and professional video equipment.

THOMSON multimedia is the parent company of the U.S.-based Thomson Consumer Electronics, Inc. Visit Thomson Multimedia on the Web: http://www.thomson-multimedia.com/.