DVD Video Continues on Fast Track in '99; More Than 2 Million Players Shipped to Retail During First Nine Months; Software Units Shipped Surpass 50 Million.

LOS ANGELES--(BUSINESS WIRE)--Oct. 5, 1999--

An additional 900,000 DVD Video players were shipped to retail in the third quarter, bringing the total year-to-date hardware shipments to 2.2 million, according to figures compiled by the Consumer Electronics Manufacturers Association (CEMA).

DVD Video experienced approximately a 225 percent rate of growth in the third quarter of 1999 vs. the third quarter of 1998 -- shipping 600,000 more hardware units than shipped in the third quarter of 1998.

For the first nine months of 1999, shipments reached 2.2 million units, an increase of 1.6 million units over the same period in 1998, representing a rate of growth of more than 300 percent. CEMA estimates that total players shipped in 1999 will exceed 3 million units.

"The strong consumer demand for DVD Video is unabated," said Emiel N. Petrone, chairman of the DVD Video Group and executive vice president of Philips Entertainment Group, a unit of Philips Electronics. "DVD Video continues to grow in leaps and bounds, making it the fastest-growing home-entertainment product in history."

Available to consumers for approximately 2-1/2 years, the DVD Video installed base has already reached 3 million players. The total installed base is expected to reach nearly 4 million by year-end.

The DVD Video Group includes eight of the leading consumer- electronics manufacturers, whose products represent more than 95 percent of the players in the market. The DVD Video Group's figures are based on member-company shipment numbers and are updated on a regular basis.

Software Sales Experience Meteoric Climb

According to figures released Tuesday by the DVD Video Group, nearly 55 million discs have been shipped to retail thus far in 1999. More than 110 million DVD Video movies and music-video titles have been shipped to retail since the format launched in spring 1997.

The figures were compiled by the accounting firm of Ernst & Young LLP and are part of a series of research projects conducted for the DVD Video Group.

The DVD Video Group software member companies provided the requested information directly to Ernst & Young LLP, which compiled the data. The participating companies account for more than 90 percent of the North American DVD Video software market.

"Clearly, DVD Video is exceeding all our expectations," said Paul Culberg, president, DVD Video Group, and executive vice president- Worldwide, Columbia TriStar Home Video. "Consumers know a good product when they see it, and consumers want DVD."

Disc sales are expected to remain strong throughout the year, as witnessed by the more than 200 new titles being released each month. Currently, there are more than 4,000 titles available, and the DVD Video Group projects that by the end of 1999 there will be nearly 5,000 available for rental and sell-through.

The DVD Video Group is a Los Angeles-based, industry-funded nonprofit corporation that exists expressly to promote consumer awareness of the benefits of DVD Video and to provide updated information to the media and the retail trade about DVD Video players, movies and music videos.

Regular members of the DVD Video Group are Artisan Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Video, DreamWorks Home Entertainment, Image Entertainment, MGM Home Entertainment, New Line Home Video, Panasonic Consumer Electronics Co., Paramount Home Video, Philips Consumer Electronics Co., Pioneer Electronics (USA), Sharp Electronics, Sony Electronics Inc., Sony Music/Sony Wonder, Thomson Consumer Electronics, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Studios Home Video, U.S.A. Home Entertainment, Warner Home Video and Yamaha Electronics Corp.

Associate members are Alpha Enterprises, Americ Disc, Cinram, CMC Magnetics, Crest National, Crush Digital, CVC, Disc Graphics, JVC Disc America, Nimbus CD International, Panasonic Disc Services Corp., Pioneer Video Manufacturing, Sony Disc Manufacturing, Sony Pictures DVD Center, Technicolor and Warner Media Services.

Consumers can reach the DVD Video Group at 310/967-2940 or through its Web site at www.dvdvideogroup.com. Ernst & Young LLP is one of the largest worldwide professional-services firms, with more than 85,000 people in 675 cities based in 132 countries, including more than 30,000 people in 87 U.S. cities.