CULVER CITY, CA - March 13, 2000 -- Sony Pictures Entertainment (SPE) Chairman and CEO John Calley announced today that SPE is taking a further step into the digital future, creating a new business unit that aligns SPE’s digital production with its award-winning online content and game services to deliver next-generation broadband entertainment.

Senior SPE executive Yair Landau was named president of the new operating unit, called Sony Pictures Digital Entertainment. Mr. Landau, previously executive vice president, Corporate Development and Strategic Planning for the studio, will report to Yuki Nozoe, SPE co-president, and Mel Harris, co-president and chief operating officer of SPE.

Under Mr. Landau’s direction, Sony Pictures Digital Entertainment will lead SPE’s digital initiatives in three key areas:

• First, supervising digital production and computer-generated imaging (CGI) of compelling content for motion picture, television, online and PlayStation audiences;
• Second, tapping the studio’s vast film and TV libraries and its talent relationships to develop engaging new forms of online content, games and interactive programming; and,
• Third, spearheading SPE’s drive to provide video-on-demand, interactive television and other forms of digital content and services over the emerging broadband networks.

Sony Pictures Digital Entertainment will oversee the activities of SPE’s existing digital production and online assets: Sony Pictures Imageworks, the CGI house that created the animated mouse for the hit film “Stuart Little”; Sony Online Entertainment, the leading online games service whose Web site The Station@sony.com features such popular attractions as “Everquest,” “Wheel of Fortune” and “Trivial Pursuit”; and Columbia TriStar Interactive, a producer of original online entertainment – including “Dawson’s Desktop” and SoapCity.com – created from SPE’s branded film and TV properties.

“This important venture clearly demonstrates Sony’s intent to marshal our tremendous range of assets in film, television, new media and content creation to take a leadership position in the burgeoning field of broadband entertainment,” said Howard Stringer, Chairman and CEO, Sony Corporation of America.

“I am delighted,” Mr. Stringer continued “that Yair will be leading this key new venture for SPE. Working together with his colleagues at Sony Music, and Sony’s newly announced Broadband Services Company, we expect that broadband entertainment will evolve as one of the most important business initiatives in Sony’s portfolio.”

“The creation of Sony Pictures Digital Entertainment is an important strategic business move for us in the rapidly evolving online world,” said Mr. Nozoe, the SPE executive with overall management responsibility for the studio’s digital operations. “Yair has done much to make our Internet strategy and investments happen, and his experience will serve us well.”

“I am thrilled to see Yair take on this exciting new challenge,” Mr. Harris said. “Under his leadership, we expect this new business to create a ‘value chain’ of digital assets within the studio that will clearly position us as industry leaders in broadband entertainment.”

“I greatly appreciate the vote of confidence from our senior management,” Mr. Landau said. “Our new business unit will actively capitalize on the tremendous opportunities ahead in digital entertainment. The strong management teams at Imageworks, Sony Online Entertainment and Columbia TriStar Interactive will be a valuable asset as we work together to turn Sony’s broadband entertainment vision into reality.”

Mr. Landau, a nine-year veteran of SPE, joined the company in May 1991 as director, financial planning and analysis. Throughout his time at SPE, he has worked on operational, transactional and planning matters at all levels of the company, including the motion picture, television and interactive areas. Mr. Landau is an honors graduate of the University of Chicago and he received his MBA degree from Stanford University.

About SPE’s Digital Studios
Sony Pictures Imageworks previously was part of SPE’s Digital Studios Division, led by President Ken Williams. Mr. Williams continues to report to Mr. Nozoe and to oversee the Digital Studio Division’s other operations, including the DVD Center, High-Definition Center, Digital Post-Production facilities and Digital Media Management. He also will assume additional responsibilities at SPE.

About Sony Pictures Entertainment
Sony Pictures Entertainment (SPE) is a division of Sony Corporation of America (SCA), a subsidiary of Tokyo-based Sony Corporation. SPE’s global operations encompass motion picture production and distribution, television programming and syndication, worldwide channel investments, home video acquisition and distribution, operation of studio facilities, development of new entertainment products, services and technologies and distribution of filmed entertainment in 67 countries. Sony Pictures Entertainment can be found on the World Wide Web http://www.spe.sony.com.