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NEW DIGITAL AUDIO SYSTEM LAUNCH MOVES FORWARD

 NEW DIGITAL AUDIO SYSTEM LAUNCH MOVES FORWARD
 NEW YORK, May 14 /PRNewswire/ -- Philips Consumer Electronics and


PolyGram announced today that the manufacturing, industry sampling and consumer awareness phase of the launch campaign for its new audio system, Digital Compact Cassette (DCC), is now well underway.
 With the launch date for DCC set for September 1992, PolyGram has already opened the world's first pre-recorded DCC factory in the Netherlands; Philips has received the first shipment of digital heads; DCC industry groups have been established worldwide; the first DCC decks have been distributed to the industry and a new DCC logo has been created. Selective consumer demonstrations of the new DCC technology will begin in the third quarter.
 DCC brings digital sound to the world's most popular sound carrier, the music cassette. The flexible DCC system is designed for use in the home and car, as well as for portable and personal use. The new DCC decks are designed to record and play new DCCs, as well as playback cassettes from consumers' existing cassette collections. Because DCC is digital, listeners can enjoy superior sound, plus new features including digital recording, direct track access and text information display.
 The launch of the DCC system, including DCC decks and pre-recorded and blank DCCs, is being supported by major industry groups around the world. In September, Philips will launch DCC in the United States, Austria, Belgium, France, Germany, Netherlands, United Kingdom, Switzerland, Japan, Hong Kong, and Singapore. In the months following this launch, DCC will become available throughout Europe.
 PolyGram, one of the world's largest record companies, has established the world's first pre-recorded DCC factory in Amersfoort, The Netherlands to manufacture the first 500 pre-recorded DCCs for the September launch. These 500 initial DCC titles will be drawn from the catalogs of all major record companies and will consist of a combination of pop and classical music with emphasis on well established international artists.
 "There will be at least nine other cassette manufacturers and record companies worldwide that will manufacture DCCs, including Sonopress, EMI, JVC, Cinram and Warner," said Dieter Radecki, commercial director for DCC at PolyGram. "Many of the manufacturing lines will be in production before Christmas," he added.
 Blank DCCs will also be available at launch under the Philips brand name, manufactured by Philips' subsidiary Magnetic Media in Vienna. Other companies, including TDK, BASF and Memorex are also expected to offer blank DCCs to support the DCC launch.
 One of the key components of DCC system, thin film head chips which provide digital recording and playback, has been developed by Philips in conjunction with California-based Seagate Technology. Seagate has already delivered tens of thousands of the thin film head chips to Philips in Eindhoven to augment Philips' own production. Philips will supply these and other key components to its own and third-party DCC equipment manufacturers around the world.
 Wim Wielens, managing director of the Audio Business Group at Philips Consumer Electronics in Eindhoven, The Netherlands, said, "As part of the initial phase of DCC, DCC 900 players have been provided to key industry executives in both the consumer electronics and record industries, who are our partners for the launch of DCC.
 "A full range of DCC products, including in-car, portable and personal units, will be available within 12 months," he added. DCC industry groups have been established in the United States and Europe as part of the pre-launch marketing campaign for DCC. The DCC Group of America has more than 40 members representing the country's major consumer electronics and record companies. The European group's members come from each from the seven leading record companies.
 The DCC Group of America recently presented DCC equipment and music from a variety of companies at the National Association of Recording Merchandisers (NARM) convention and will actively support the DCC system at the 1992 International SUMMER Consumer Electronics Show in Chicago, May 28-31. The group is also preparing DCC point-of-sale materials for in-store use in the United States.
 Philips and PolyGram will continue to provide technical and listening demonstrations of DCC throughout the USA, Japan and Europe.
 A new logo has been designed to complement the existing DCC logo which already appears on DCC equipment and DCCs. The colorful new logo has been created to for use on all marketing materials including advertising and point-of-sale materials. The new visual has been designed by Philips, but is being made available to all supporters of the DCC system.
 -0- 5/14/92
 /CONTACT: Dawn Bridges of Philips Consumer Electronics, 212-333-8357, or Adam Chasnow of Hill and Knowlton, 212-697-5600, for Philips Consumer Electronics/ CO: PolyGram; Philips Consumer Electronics ST: New York IN: ENT SU: PDT


KD -- NY037 -- 0104 05/14/92 10:16 EDT
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Date:May 14, 1992
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