Thomson Completes Acquisition of Fortune Color Picture Tube Assets; Expansion More Than Doubles Thomson's Production Capacity in Growing Chinese Market.

Business Editors/High-Tech Writers

PARIS--(BUSINESS WIRE)--Jan. 9, 2004

Thomson (Paris: 18453) (NYSE:TMS) announces it has completed its acquisition of Fortune's color picture tube (CPT) assets. This strategic acquisition more than doubles Thomson's production capabilities in the growing Chinese market and establishes the group as the second largest manufacturer of large-screen CPTs in the country.

Thomson signed the agreement to purchase Fortune's CPT assets in July 2003 which comprises three CPT production lines, electron gun manufacturing equipment and related assets, located in Dongguan. These assets complement the two production lines at Thomson's recently expanded factory in nearby Foshan.

The combined Thomson and Fortune entities will generate economies of scale, providing Thomson a competitive tube manufacturing base to supply its Chinese customers as well as customers in other regions with a full range of high-quality tubes. Further, the expansion of Thomson's already profitable tube operations in China will enhance the company's overall profitability in CPTs.

Thomson plans to produce some 7.5 million mid-size (21-inch), large (25-29-inch) and very large screen (VLS; 30-inch and above) color picture tubes in China this year, enabling the company to double its market share to more than 20% in the large and VLS segments alone.

"Thomson has made tremendous progress in the past few months to meet its strategic objective of being a key player in China, where manufacturing capabilities and end-market demand are growing at a rapid pace. The finalization of our agreement to acquire the assets of Fortune strengthens Thomson's world-class CPT business with powerful resources and expanded scale. As a result, we expect to register gains in our customer portfolio, our long-term competitiveness, and our profitability," said Charles Dehelly, Chief Executive Officer of Thomson.

The Fortune acquisition includes more than 3,000 employees and expands Thomson's longstanding and respected presence in the highly industrialized Guangdong Province, where more than 50% of China's color TV production is concentrated. China accounts for nearly 30% of global TV manufacturing. The Chinese market for CPT-based televisions is expected to continue to grow, with additional demand coming from export markets.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic, business, competitive market and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson

Thomson (Euronext Paris: 18453) (NYSE:TMS) provides end-to-end solutions (technologies, equipment and services) to the entertainment industries. To advance and enable the digital media transition, Thomson has four principal divisions: Content and Networks, Consumer Products, Components, and Licensing. The company distributes its products under the Technicolor, Grass Valley, THOMSON and RCA brand names. For more information: www.thomson.net