13-Jan-00

Sanyo Teams with Sarnoff to Develop Affordable Digital TV Converter For Analog TV Sets

SANYO To Build Set-Top Box For Release In 4th Quarter 2000 Gives Existing Sets Access To Over-the-Air DTV Programs

Sanyo Manufacturing Corporation of Forrest City, Arkansas and Sarnoff Corporation of Princeton, New Jersey have announced that they will create an affordable set-top box (STB) to convert digital and high-definition television (DTV/HDTV) broadcasts for display on a standard analog television. The announcement was made at the Consumer Electronics Show (CES 2000) in Las Vegas. Sanyo and Sarnoff will work together to develop a customized STB solution which Sanyo will manufacture. Distribution is expected to begin in the 4th quarter of 2000. Sanyo is known worldwide for its electrical and electronic products, including televisions, VCRs, and other consumer audio and video equipment. The company also supplies OEM products to major retail chains. Sarnoff's role under the agreement includes developing a special graphical user interface and a customized reference design targeted at the owners of the more than 250 million analog TV sets in use in American homes and businesses. The STB will include a second-generation 8VSB demodulator for reliable reception and a video decoder that delivers superior video quality at an affordable price. ""Every station will be transmitting in digital in three years,"" said Mr. Yoshimasa Takahashi, Vice President of Sanyo Manufacturing Corporation. ""People will want to equip their existing televisions and home theaters to receive digital programming, and our set-top converter box will meet this demand with excellent video quality and outstanding digital sound at an affordable price. We are pleased to be working with DTV pioneer Sarnoff to make this product a reality."" The product will handle reception of both ATSC digital and NTSC analog broadcasts without manual switching by the user. ""We're designing it for ease of use as well as advanced performance,"" said Takahashi. ""Sanyo is recognized around the world for the quality and value of its consumer electronics products, and we're happy to be working with them,"" said Dr. Robert Bartolini, Vice President of Sarnoff. ""I predict that the market will welcome the Sanyo DTV set-top box."" According to Sanyo, the company is planning to introduce other DTV/HDTV solutions over the next few years. Huge Potential Market for Set-Top Boxes Set-top converter boxes for DTV effectively turn an analog TV into a display for digital content, giving consumers access to digital television programming and such DTV features as CD-quality surround sound. Sanyo sees the over 250 million analog TVs in American homes today as a huge potential market for popularly-priced versions of STBs, especially as DTV programming availability increases. More than 100 DTV stations are currently on the air, reaching over 50 percent of the U.S. population. Like all set-top boxes, the Sanyo product outputs standard definition NTSC video to the TV set regardless of the resolution of the original ATSC digital signal. The analog picture benefits from the increased clarity and lack of interference typical of digital transmission. When the original video is broadcast in HDTV, the analog picture also benefits from HD's superior production values, even though it is not HD. About Sanyo Recently, Sanyo Manufacturing Corporation (SMC), proudly watched its 20 millionth television set roll off the production lines, and then celebrated its 20th year manufacturing this fixture in today's households. Established in 1976, SMC produces Sanyo and Fisher brand color television sets for Sanyo Fisher Company and Sanyo Canada, Inc., as well as other retailers in North America. The current product line ranges from 13-inch to 36-inch screen sizes, and offers a variety of features and models. The final assembly facilities are located at its headquarters in Forrest City, Arkansas, and in Tijuana, Mexico. About Sarnoff Corporation Sarnoff Corporation creates and commercializes electronic, biomedical and information technology. Founded in 1942 as RCA Laboratories, Sarnoff has been a wholly-owned, for-profit subsidiary of SRI International since 1987. The company's decades of innovation include the development of color television and the liquid-crystal display and a leadership role in creating the digital and HDTV standard for the US. Sarnoff now works with a wide variety of industry and government clients to develop and improve specific technologies that will help change the world. A key element of the company's overall strategy is the founding of new companies that bring its technologies to market. Fourteen such companies are in various stages of development.