Sales Of Divx-Enhanced DVD Players Exceed 100,000 Units In First 90 Days Of LaunchThomson Expands DVD Manufacturing Operations To Meet Increased Demand

Las Vegas, Nevada - at the Consumer Electronics Show Thomson Consumer Electronics announced on January 6, 1999, that it shipped more than 100,000 Divx-enhanced DVD players to dealers in just the first three months of product availability.The company reported that in response to the successful growth of DVD and launch of DVD products with the Divx feature in 1998, Thomson plans to expand its DVD manufacturing operations. Effective immediately, the company will add a third DVD production shift to its Juarez, Mexico factory.""Thomson had an exceptionally strong fourth quarter in DVD product salesó most of that fueled by Divx-enhanced DVD,"" said Larry McKinney, Vice President, Worldwide DVD Product Management. ""With DVD industry sales surpassing the one million unit mark, Digital Video Disc appears to have reached in less than two years a cumulative total that took the VCR industry nearly five years to achieve,"" McKinney said.""Consumers have embraced DVD because it offers a superior entertainment experience. With new features like DolbyÆ Digital and DTSÆ digital surround options, weíve found that people who purchase DVD players are also upgrading their entertainment systems to include more speakers and other accessories,"" said McKinney.According to Thomsonís own consumer research, more than 90 percent of those who use the Divx feature clearly indicated that their expectations were surpassed. ""One of the most often mentioned comments about the system is the ability to take home five hit movies on Divx discs for less than $25,"" said Larry Pesce, General Manager, Worldwide DVD Product Planning.Thomson currently offers two Divx-enhanced DVD players ó the new RCA model RC5231Z and the deluxe ProScan model PS8680Z, both with Dolby Digital and DTS Surround audio passthrough capability. Both units also play basic DVD discs and audio CDs.