Toshiba's Statement on Reports Related to Warner Bros.'s Announcement on Next-Generation Optical Discs.

TOKYO -- Toshiba and Warner Bros. continue to collaborate closely toward the commercial launch of HD DVD. We understand Warner Bros. continues to strongly support HD DVD, due to its outstanding features, cost structures, and market readiness.

We recognize Warner Bros.'s participation in the Blu-ray Disc Association represents the studio's understandable commitment to listen to a broad array of opinions and to continue to make technical evaluations of each format, and we are more than confident this will not affect timely introduction of HD DVD content to the market.

The fact that new voices from within the Blu-ray camp have recently called for adoption of key features already in HD DVD -- iHD for its superb PC interoperability and Mandatory Managed Copy to allow for secure DVD ripping -- shows the level of technical balance achieved by the HD DVD format.

HD DVD offers already-verified volume disc production and substantial superiority in terms of recordable disc cost. It also integrates a series of advanced technologies, including AACS for robust content protection system, and VC-1, a highly efficient video compression technology, for enhanced storage capacity.

Toshiba strongly believes the HD DVD format will eventually win broad support as the more superior format, and in cooperation with our partners, we are committed to bringing HD DVD products first to market early next year in the U.S.