2006 Is the Year of DTV, Forecasts CEA; New CEA Figures Show 2005 DTV Revenues Grew 60 Percent; The 2006 International CES Showcases the Hottest DTV Innovations and Policy Debates.

LAS VEGAS -- The year 2006 will be the year that high-definition television (HDTV) outsells analog television set units, forecasts the Consumer Electronics Association (CEA(R)). According to sales projections issued yesterday by CEA, HDTV sets will outsell analog sets by 89 percent in 2006, reaching total unit sales of 15.9 million and contributing to over $23 billion in total DTV revenue.

CEA also reported that growth of DTV sales grew 60 percent to $17 billion in 2005. CEA attributed DTV sales growth to the growing popularity and competitive price declines of flat panel displays such as LCD and plasma. Combined, these displays accounted for 40 percent of all DTV sales by dollar. Analog and digital LCD TVs combined for $3 billion and four million units. Plasma TVs sold nearly two million units for a total of 4 billion in dollar sales.

"With more than 12 million units shipped, the 2005 year-end numbers demonstrate the growth and success of DTV, especially HDTV, which continues to claim 85 percent of the total DTV market in the U.S.," said Gary Shapiro, president and CEO of CEA. "Legislation establishing a hard cut-off date for analog broadcasts will truly be the driver that tips the scales in 2006. A hard date will provide certainty to consumers, broadcasters, retailers and manufacturers and help drive sales to even greater heights. CEA is hopeful that 2006 will bring the passage of this legislation."

While legislation setting a hard date is crucial, consumer education remains imperative to ensuring the continued success of DTV. CEA's wealth of voluntary educational and promotional initiatives includes websites, printed collateral and regional meetings. CEA currently operates four websites that promote the DTV transition through consumer and dealer education. The websites include www.antennaweb.org, www.CEknowhow.com, www.ceaconnectionsguide.com and www.CE.org/hdtv. CEA recently distributed nearly two million copies of a Retailer Tip Sheet, developed in conjunction with the Federal Communications Commission (FCC) and the Consumer Electronics Retailers Coalition (CERC), to stores across the country. Since many consumers' primary source of information comes at the point-of-sale, the buck slip is designed to fit in the salesman's pocket for quick and easy reference when explaining DTV on the sales floor. Another piece of collateral designed to ease consumer confusion, created in conjunction with STARZ HD, is the Buyer's Guide. The Buyer's Guide details the process from buying to watching HDTV, in three simple steps.

This strong sales growth of DTV is mirrored on the show floor and in conference sessions at the 2006 International Consumer Electronics Show (CES(R)), the world's largest consumer technology tradeshow, running January 5 - 8 in Las Vegas, Nevada. DTV and related products are prevalent throughout the 1.6 million square feet of show floor space. Exhibitors are showcasing the world's largest flat panel displays, next generation DTV products, technologies to enable consumers to view HDTV on the go and a host of other new products and technologies. Besides the show floor with over 2,500 exhibits, DTV will be a hot topic of multiple conference sessions.

The Playing on Broadway 2009 conference session, Thursday, January 5 at 3:00 p.m. in the LVCC North Hall, Room N253, will bring together top leaders in the midst of the transition to digital. Moderated by Gary Arlen, president, Arlen Communications, panelists include FCC Commissioner Jonathan Adelstein; Kyle McSlarrow, president and CEO, National Cable and Telecommunications Association (NCTA); Josh Sapan, president and CEO, Rainbow Media Holdings LLC; and CEA's Gary Shapiro.

In a one-on-one conversation on Friday, January 6, at 1:00 p.m. in the Sands Convention Center, Galileo room 904, FCC Chairman Kevin Martin and CEA's Gary Shapiro will discuss their thoughts on the digital television transition, spectrum allocation and other issues critical to the consumer electronics industry.

Later in the year, CEA will be hosting an Entertainment Technology and Policy Summit in Washington, D.C. from March 14-17, 2006. This conference will also explore policy issues surrounding HDTV and a new day-long conference will focus on spectrum and the new pipelines into the home. For more information, visit www.CE.org/events.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $125 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

UPCOMING EVENTS

--  2006 International CES
    January 5-8, 2006, Las Vegas, NV

--  2006 CEA Winter Summit
    March 2-4, 2006, Vail, CO

--  CEA 2006 Winter Technology and Standards Forum
    March 6-10, 2006, Clearwater Beach, FL

--  CEA Spring Break
    March 14-17, 2006, Washington, DC

--  CEA Entertainment Technology Summit
    March 15-16, 2006, Washington, DC

--  Digital Patriots Dinner
    March 15, 2006, Washington, DC

--  EHX Spring 2006
    March 28-April 1, 2006, Orlando, FL

--  CONNECTIONS (TM) - The Digital Home Conference & Showcase
    May 2-4, 2006, Santa Clara, CA

--  2006 PARA Conference
    May 3-7, 2006, Hilton Head, SC

--  The 10th Annual Consumer Electronics CEO Summit
    June 21-24, 2006, Southampton, Bermuda

--  2006 SINOCES
    July 7-10, 2006, Qingdao, China

--  2006 CEA Summer Technology and Standards Forum
    July 24-28, 2006, Coronado, CA

--  CEA Industry Forum
    October 16-18, 2006 San Francisco, CA

--  2007 PARA Conference
    May 16-20, 2007, Coronado, CA