World's Largest Showcase of Consumer Technology Kicks into High Gear.

Business Editors/High-Tech Writers

2003 International CES

LAS VEGAS--(BUSINESS WIRE)--Jan. 9, 2003

2003 International CES Press Day Highlights the Latest

Advances in Consumer Technology Including Vision for

the Industry by Microsoft's Bill Gates

The 2003 International CES came roaring into town with more than 2,250 international exhibitors in more than 1.2 million square feet of space, the largest in the 36-year history of the show. Yesterday marked the traditional CES Press Day with numerous exhibitors announcing their latest product launches and innovations in a number of packed press conferences, culminating with the official Pre-Show Keynote Address by Microsoft's Chairman and Chief Software Architect Bill Gates. The 2003 International CES opens today and runs through Sunday at the Las Vegas Convention Center in Las Vegas, Nev.

"One hundred thousand industry executives, retailers, manufacturers and top government officials come to CES each year to witness the latest and greatest in consumer technology," said Gary Shapiro, president and CEO of the Consumer Electronics Association (CEA), the producer of the International CES. "CES is the World Cup of consumer technology, but also a critical place to conduct serious business and maintain crucial face-to-face interaction all under one roof."

Yesterday, press at CES got a taste of the excitement to come with more than 20 CES exhibitors holding press conferences throughout the day. The day kicked off with a presentation by Zenith Electronics and followed by big name companies such as Panasonic, Pioneer, Sirius Satellite Radio, Sony and XM Satellite Radio.

The day featured a number of new product announcements, many of which underscored how digital technology enables new advancements in consumer products. Toshiba introduced its 57" 1080p liquid-crystal on silicon (LCOS) based projection television. Zenith introduced its new high-definition personal video recorder (PVR). In addition, Pioneer announced their new DVR-A05 DVD-R/RW and CD-R/RW combination drive.

Panasonic greeted a packed forum of journalists with its announcement of the 4-in-1 A/V SD recorder with flip-out two-inch LCD screen. In addition, Panasonic introduced its combination DVD recorder with built-in hard disk drive.

XM Satellite Radio and Delphi showcased their new Delphi XM SKYFi radio. This new compact unit has the most advanced user features of any satellite radio on the market. SKYFi is a next-generation plug and play satellite radio that offers various features and plays in the car, home, office, or virtually anywhere a subscriber wants to listen to XM's programming.

Sirius Satellite Radio used its moment in the CES spotlight to demonstrate how its network can distribute video and other similar content to the car.

There Inc. surprised their audience with their amazing virtual world of There. There is the first online getaway that gives you the freedom to play and talk naturally while having fun and making friends.

PalmSource, provider of the world's most popular operating system for handhelds and smart phones, welcomed the first Palm OS handheld integrated with Global Positioning System capabilities -- the iQue 3600 from Garmin.

The day culminated with a riveting presentation by Microsoft's Bill Gates to a packed house in the Hilton Theater. The underlying theme of Gates' speech was "Smart Living in the Digital Decade." Gates cited advances in devices, connectivity and services as key factors in creating this lifestyle for consumers.

During his speech on smart devices, Gates introduced a number of products aimed at creating this world of ease including the Exertis exercise bike, complete with multimedia capabilities. Another product, the Bernina sewing machine, comes equipped with a CD-ROM, USB connection and a modem to download thousands of patterns and stitches over the Internet. Other products introduced the Polaroid DVD player, capable of playing back native Windows media and the Hi-Mat enriched Panasonic DVD player.

The movement in connectivity focused on increased utilization of Wi-Fi and Bluetooth technology to create maximum efficiency of services. MSN 8 Internet software will allow consumers extended features including parental controls and mail screening when using their PC. X-Box Live utilizes the Broadband capabilities of the X-Box gaming system to allow gamers to actually communicate while they play.

But perhaps the biggest news coming out of Gates' speech was the anticipated launch of Smart Personal Objects Technology (SPOT). This technology affords consumers the luxury of personalized real-time information whenever and wherever they demand. Microsoft announced a series of partnerships with Fossil Inc., Suunto and Citizen who will develop wristwatches utilizing the SPOT technology. Consumers will be able to personalize information categories such as stocks, traffic or weather off of their PC to be accessed on the go through SPOT technology embedded in their wristwatch. Expected launch of this technology is Fall 2003.

For more news on CES before, during and after the show or to register, visit www.CESweb.org, the interactive source for CES information.

About CEA:

The Consumer Electronics Association (CEA) represents more than 1,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $80 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES -- Defining Technology's Future. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

UPCOMING EVENTS

2003 International CES -- Defining Technology's Future
January 9-12, 2003, Las Vegas, NV

Electronic House Expo -- Spring
February 26-March 1, 2003, Orlando, FL

CEA 2003 Winter Technology & Standards Forum
February 24-February 28, 2003, Scottsdale, AZ

2003 CEA Winter Summit
March 4-6, 2003, St. Regis Aspen, Aspen, CO

HDTV Summit & the Academy of DTV Pioneers 2002 Awards
March 10, 2003, Renaissance Hotel, Washington, D.C.

CEA 2003 Spring Leadership Retreat
May 5-6, 2003, Grand Hyatt, Washington, D.C.

Connections 2003
May 7-9, 2003, Fairmont Hotel, San Jose, CA

Asian Home Electronics Fair
May 14-17, 2003, Shanghai, China

7th Annual Consumer Electronics CEO Summit
June 18-20, 2003, Vail, CO

CEA 2003 Summer Technology & Standards Forum
August 1-4, 2003, Location TBA

CEA 2003 Fall Conference and Industry Forum
October 12-15, 2003, Carlsbad, CA

CEA 2004 International CES
January 8-11, 2004, Las Vegas, NV