Verbatim/MKM Shipping World's First HD DVD-R Recordable Media; Technology Advances Deliver Superior HD DVD-R Recording.

CHARLOTTE, N.C. -- Verbatim(R) Corporation and its parent company, Mitsubishi Kagaku Media (Verbatim/MKM), announced today that retailers in Japan will receive shipments of the industry's first 15GB HD DVD-R media early in July. Production of 30GB dual layer HD DVD-R media will begin in June. Shipments to other parts of the world will begin when hardware products supporting these recordable formats become available. Verbatim/MKM is also expected to be first to market with HD DVD-RW rewriteable media, as soon as the official specification is released.

The HD DVD-R media is produced at MKM's technically advanced Singapore factory. Widely recognized as the leading facility for producing new CD/DVD technologies, the Singapore factory also developed and now manufactures the world's premier dual layer DVD media.

Because the shorter wavelength blue laser that reads and writes HD DVD-R media is not compatible with standard DVD recording dye, MKM leveraged its proven Azo technology to develop a new recording dye specifically designed for HD DVD-R.

Verbatim/MKM's new recording dye delivers three key advantages:

1. Superior Compatibility. High recording sensitivity plus the
       wider power margin of the new recording layer ensure a low
       error rate, regardless of drive power fluctuations or smudges
       on the disc surface.

    2. Read Stability. Uncompromised read stability from day one to
       more than 1.5 million(1) read cycles ensures years of
       ultra-reliability.

    3. Long Life. Highly stable recording characteristics for a
       lifetime of high performance -- even after long periods of
       storage for both recorded and unrecorded media. Like the
       patented Metal AZO recording dye used with Verbatim's DVD-R
       media, the new dye is highly resistant to sunlight and heat.

The recording characteristics of Verbatim HD DVD-R discs are further enhanced by the disc's physical attributes. Features such as a uniform groove shape, consistent substrate thickness and flatness of the disc have been proven to optimize the performance and longevity of Verbatim media. These characteristics are achieved using a new mastering process, ultra precise molding technology and advanced bonding techniques developed by MKM. To achieve the narrow track pitch of the HD DVD format, MKM also developed a stamper with a precise groove shape that could not have been achieved with existing techniques.

With the availability of MKM/Verbatim HD DVD-R media, users will be able to record and enjoy the amazingly sharp images that high-definition video provides. The high-capacity discs will also find extensive application in computer data storage in the near future when PC drives supporting the format are launched.

Verbatim/MKM is a general member of the HD DVD Promotion Group and a charter member of the DVD Forum.

About Verbatim/MKM

Verbatim/MKM is an international organization that develops and markets innovative, high-quality products for storing, moving and using digital content. Known for its leadership in the removable storage media and related accessories markets, the company provides reliable, unique technologies and products that are highly sought after and broadly distributed worldwide. For the second year in a row, Verbatim/MKM has achieved the Number One position in worldwide market share of recordable CDs and DVDs as reported by the Santa Clara Consulting Group. For more information, contact Verbatim Corporation, 1200 W.T. Harris Boulevard, Charlotte, NC 28262, [phone]. In Europe, Verbatim Ltd., Prestige House, 23-26 High Street, Egham, Surrey, TW20 9DU, UK, ([phone]. In Japan, Mitsubishi Kagaku Media Co., Ltd., ANA Tamachi Bldg., 31-19, Shiba 5-Chome, Minato-ku, Tokyo 108-0014, ([phone]. Or visit the web site at www.verbatim.com and select the country of your location.

(1) Achieved read stability more than 1.5 million read cycles by testing defined in HD DVD-R specification ver.1.0.

Verbatim is a registered trademark of Verbatim Corporation. Other company and product names contained herein are trademarks of their respective companies. Specifications subject to change without notice.