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Toshiba and NEC Jointly Propose Next Generation, High Capacity, Blue-Laser DVD Format

Tokyo, Japan, Aug. 29, 2002 - (JCN Newswire) - Toshiba Corporation and NEC Corporation today jointly proposed to the DVD Forum a next-generation, high-capacity, blue-laser DVD format that will allow manufacturers to continue to use existing DVD plant and equipment and so minimize the investment required for the transition to next-generation DVD players and drives. Adoption of the proposed format will bring benefits to hardware and software developers, manufacturers and consumers.

The format proposed by Toshiba and NEC covers both read-only discs that are used to distribute high-definition movies, and read-and-write discs. The format utilizes a short wavelength blue laser and the same disc technology used in current DVDs--back-to-back bonding of two 0.6mm thick, 120mm discs.

The proposed format increases the capacity of read-only discs to 15GB for a single-sided, single-layer disc, and to 30 GB for a single-sided dual-layer disc, and pushes the capacity of read-and-write discs, which currently are single-sided with a single-layer, to 20GB. Today's single-sided dual-layer read-only discs have a capacity of 8.5 GB, while read-and-write discs (single-sided, single-layer only) can store up to 4.7GB of data. The increased capacity of the proposed format is achieved by employing a blue laser, and by utilizing the two companies' new signal-processing and phase-change media recording technologies.

In addition, Toshiba and NEC will shortly propose a 40GB single-sided, dual-layer read-and-write disc to the DVD Forum.

Please see attached chart for more details on the proposed format.

The DVD Forum established two subgroups to study different technical approaches toward the next-generation blue laser DVD format in February this year. One is considering an approach based on a 0.6mm disc substrate, the same method employed in current DVDs, and the other a 0.1mm cover layer. Toshiba and NEC separately promoted research on a 0.6mm disc substrate, the same as that of current DVD discs. After verifying one another's technology they decided to jointly propose a single, unified format to the DVD Forum.

High-definition digital imaging is the wave of the future, an increasingly powerful force in terrestrial and satellite-based broadcasting, the cinema, and in the delivery of games and entertainment and computer applications. The richer data sources and heightened user experience that digital media offer can be seen in the fast penetration of DVD, and in the growing demand for digital media supporting even higher capacities. Toshiba and NEC support this trend, with a format that provides a cost-effective upgrade path for media vendors, and a backward-compatible solution for the many consumers who have built DVD libraries.

The new formats also meets the needs of the PC-industry-driven optical-drive business, where coming years will see demand for combination drives that can handle both current and next-generation DVD media.

Toshiba and NEC's proposal is based on the following four advantages.

1. It meets manufacturers' needs by enabling use of the same manufacturing
infrastructure as current DVD, which minimizes disc production costs. 2. It supports development of backward compatible players that can playback
current and next generation DVD.
3. Like the current DVD, it is easy to realize a disc that does not need a
cartridge, which allows slim drives that can be integrated into portable
equipment.
4. It is easy to realize dual-layer discs, as the back-to-back bonding of
0.6mm-thick discs is the same as for current DVD.

Toshiba and NEC will together submit technical data to the DVD Forum that is necessary for the standardization of the next-generation, high-capacity, blue-laser DVD.

About NEC Corporation
NEC Corporation (NASDAQ: NIPNY) (FTSE: 6701q.1) (TSE: 6701) is one of the world's leading providers of Internet, broadband network and enterprise business solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as one of the world's top patent-producing companies, NEC delivers tailored solutions in the key fields of computer, networking and electron devices, through its three market-focused, in-house companies: NEC Solutions, NEC Networks and NEC Electron Devices. NEC Corporation employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002.

About Toshiba Corporation
Toshiba Corporation (TSE: 6502) (US: TOSBF) (FTSE: TOS) is a leader in information and communications systems, electronic components, consumer products, and power systems. The company's integration of these wide-ranging capabilities assures its position as a leading company in semiconductors, LCDs and other electronic devices. Toshiba has 176,000 employees worldwide and annual sales of over US$40 billion.

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