Samsung and Sony strengthening cooperation through Memory Stick business: Samsung Electronics to expand line of Memory Stick compatible products and begin in-house Memory Stick media production from third quarter 2003.

Samsung Electronics Co., Ltd and Sony Corporation (NYSE:SNE) have announced that an agreement has been reached whereby Samsung is licensed by Sony to manufacture and sell Memory Stick media. Under this agreement, Samsung will begin in-house manufacturing and sales of Memory Stick media from the third quarter of 2003.

This agreement strengthens the cooperative relationship existing between the two companies beyond the basic agreement reached in August of 2001. Under the 2001 agreement, Sony worked with Samsung to add Memory Stick compatibility to a range of Samsung products including DVD players, mobile phones, PCs and televisions.

In addition to manufacturing Memory Stick compatible products, the current license enables in-house manufacturing of Memory Stick media by Samsung. Once production begins in the third quarter of 2003, Samsung will commence bundling of Memory Stick media with compatible products as well as separate media sales under the Samsung brand. In addition to the product lines agreed on with the 2001 announcement, Memory Stick will be employed in Samsung's new product categories. With the expanding range of Memory Stick compatible products, Memory Stick's "Connected World" is gaining momentum.

Sony believes that by strengthening cooperation with Samsung and accelerating the incorporation of Memory Stick slots into Samsung's wide range of product categories, Memory Stick's "Connected World" will grow to offer customers a wider range of cutting-edge products.

Through the strengthening of their cooperative relationship, Samsung and Sony aim to expand the Memory Stick business and secure Memory Stick's position within the memory card market while providing customers with a wider range of products.