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October 18, 2007

Sony Group Expands High-Performance Semiconductors Manufacturing Alliances with IBM and Toshiba

TOKYO, JAPAN - Oct 18, 2007: Sony Corporation and Sony Computer Entertainment Inc. (Sony Group) today announced two new and separate partnership agreements with the goal of enhancing the capabilities of Sony Group's PlayStation business.

1. IBM and Sony have signed an agreement to extend their existing manufacturing relationship to 45-nanometer silicon-on-insulator (SOI) for high volume production of the Cell Broadband Engine™ (Cell/B.E.) processor. Both companies will collaborate to optimize the 45-nanometer manufacturing capability to produce a lower power and lower cost processor for Sony Group's PLAYSTATION®3. IBM will lead the evolution of the Cell/B.E. component by transitioning production from the existing 65-nanometer generation to 45-nanometer in IBM's manufacturing facility in East Fishkill, New York.

2. Separately, Sony Group will extend their alliance with Toshiba to manufacture high-performance LSI by using 45-nanometer bulk process technology. By forming a joint venture company that leverages the knowledge and experience of both companies, Sony Group and Toshiba intend to improve power consumption and cost competitiveness for game and digital media applications by advancing to the 45-nanometer generation from the existing 65-nanometer generation process.

Sony Group will advance the high-performance semiconductors used for PlayStation while reducing costs by further strengthening its collaboration with its respective partner companies. These enhancements will continue to strengthen the leading capability of the PLAYSTATION®3 system and Sony Group's overall PlayStation business.

"The transition to 45-nanometer SOI technology for the Cell Broadband Engine is a critical step to advancing the world class processor cost and power characteristics while maintaining supercomputer on chip performance capability" said Adalio Sanchez, general manager for IBM Global Engineering Solutions. "The IBM team is excited to lead the production of the 45-nanometer Cell/B.E. processor in its East Fishkill 300mm facility and to help drive a broader use of this capability as both power and size scale down significantly."

"Games are one of the focus areas for Sony Group's semiconductor business on which we have been concentrating since earlier this year. At the same time, we have carefully assessed the manufacturing investment plan for advanced process technologies for 45-nanometer generation processes and beyond. We believe the production alliances that we have formed with IBM and Toshiba to manufacture high performance semiconductors for PlayStation by using state-of-the-art process technologies will lead to the advancement of the high-performance semiconductor business for PlayStation. Sony Group will collaborate with IBM and Toshiba to expand its high-performance semiconductor business for PlayStation by maximizing knowledge in high-performance semiconductor design capability it has gained over the years," said Yutaka Nakagawa, Executive Deputy President, Officer in charge of Semiconductor & Component Group, Sony Corporation.

"I am delighted with our respective collaborations with Toshiba and IBM, which aim to achieve LSI scaling and power reduction by 45-nanometer-generation process technology, and which will enable us to further drive the advancement and cost reduction of semiconductor devices for PlayStation systems. Cutting-edge semiconductors are core devices for the PlayStation platforms. With the support of these strengthened relationships, SCE is committed to develop further the PlayStation business and offer new and innovative interactive entertainment," said Kaz Hirai, President and Group CEO, Sony Computer Entertainment, Inc.

"This new cooperative relationship will enhance our production efficiency in high-performance semiconductors for game consoles, and accelerate the early migration of next generation process technology. Market growth of high-performance semiconductors for game consoles, driven by strong demand for such devices as the RSX graphics engine for PLAYSTATION®3, is expected to continue and we will promote it as an important part of our System LSI business, a strategic business area. We are happy to continue to support Sony Group's PlayStation business through this new framework, and we aim to offer a steady supply of high-performance semiconductors in next generation process technology as soon as possible to support market expansion," said Shozo Saito, Corporate Senior Vice President of Toshiba Corporation, President and CEO of Toshiba's Semiconductor Company.

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