Sony Electronics Creates Expanded Consumer Electronics Group

As the boundaries between audio, video and information technologies continue to blur, so will the corporate boundaries between Sony Electronics Inc. (SEL)'s audio, video (AV) and information technology (IT) businesses. SEL announced the creation of a new organization that integrates its AV and IT companies into one overall Consumer Electronics Group. The new structure combines SEL's Consumer Products Marketing Group (CPMG) and its Personal Network Solutions Company (PNSC) into one organization. Fujio Nishida, former head of CPMG, was named President of CEG. Dick Komiyama, former head of PNSC, will serve as Deputy President. The new organization is effective April 1, 2000. ""This new structure will help Sony adapt even faster to our ever-changing technology landscape,"" said Teruaki Aoki, President and COO of SEL. ""CEG provides a single market-oriented focus that will help put the digital devices and interactive services of the future in our customers' hands even faster than before."" CEG will consist of four newly organized divisional companies. Two of these new companies relate to Sony's VAIO PC and digital imaging businesses, SEL's fastest growing business units. The second pair of new companies integrates the divisions of SEL's home, personal and mobile audio/video groups to address the consumer marketplace from a fully integrated applications-based perspective. One of the new divisional companies, which will retain the PNSC name, is a combination of the VAIO PC and digital imaging businesses. This marketing company will be based in San Diego, California near the Sony Technology Center to take full advantage of the company's current configure-to-order and eventual build-to-order operations for VAIO PCs. PNSC's new President will be Mark Viken, who headed up SEL's digital imaging business. The second new company, Personal Network Company Engineering and Manufacturing (PNC E&M), will also be located in San Diego. This company will consist of the Information Technology Development (ITD) manufacturing team for VAIO PCs, along with SEL's Advanced Telecommunications Development (ATD) team for wireless device applications. PNC E&M's President will be Tom Brown, formerly SEL's Corporate Controller. ""This concentration of sales and marketing with engineering and manufacturing in San Diego creates a supply-chain model that is structured for speed,"" Aoki said. ""Our PC and digital imaging businesses now have a single base of operations from where they can create and distribute products better and faster."" The other two divisional companies in the new CEG, both based in Park Ridge, New Jersey, will be the Home Network Products Company (HNPC) and the Personal Mobile Products Company (PMPC). HNPC includes SEL's consumer television, digital media (e.g., DIRECTVÆ satellite receivers and WebTVÆ Internet terminals) and other home A/V businesses (e.g., DVD-Video players, VCRs, digital network recorders integrating TiVoô technology and service, and a variety of hi-fi equipment). HNPC's new President will be Vic Pacor, formerly head of SEL's TV and digital media businesses. PMPC combines SEL's personal audio, mobile electronics, home telephone and accessories businesses. This company will be headed by Ron Boire as President, who has been in charge of SEL's personal audio division. According to Aoki, the new CEG structure will allow for more coordinated and integrated AV/IT marketing efforts to consumers, retailers and business-to-business customers. In addition to enhancing the company's supply chain management in North America, Aoki also noted that CEG will improve communications with corresponding Sony Corporation network companies in Japan. About Sony Electronics Inc.Headquartered in Park Ridge, New Jersey, Sony Electronics has more than 26,000 employees in the US and Mexico. Sony is the co-developer of CD and DVD technologies, and noted for such recent developments as Memory StickÆ IC card digital media, the MiniDisc digital audio system, Digital 8 Handycam camcorders and flat-screen FD TrinitronÆ televisions and computer displays. Sony Electronics' annual sales exceed $10.6 billion. For more SEL information, please visit the Web site at http://www.sel.sony.com. Source: Sony Electronics Inc.