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Press Release

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February 28, 2001

Total AV/IT Solution for the Broadband Era

- Establishing a Broadband Solution Company from April 2001 to Create a New-Style Comprehensive Business Structure for the Broadband Era -

Sony Corporation, Sony Marketing(Japan) Inc., ITOCHU TECHNO-SCIENCE Corporation (CTC) and CTC Technology Corporation (CTCT) today announced the establishment a new company called [Sony Broadband Solution Corporation] from April 1, 2001. The company will develop a total solution business aimed at business customers for the fusion of AV/IT content suitable for the broadband era.

As use of the Internet has expanded the development of broadband network infrastructure has accelerated with xDSL (high-speed, continuously connected copper fiber based technology called [DSL]), CATV Internet and FTTH (Fiber to the Home). Now many different groups such as corporate business, education and medical science are keen to develop the business potential of IT.

When the Internet becomes a broadband network, it will be possible to transmit AV communication with high-quality moving images over the net in addition to standard text data and still images. The Internet will also meet an ever expanding demand for AV communications such as conducting sales training in different locations of the country at the same time, transmitting information between head and branch offices and improving internal communications for IR purposes (investor information). In education also the possibilities are also large: conducting medical training from a remote location using HD (high definition) video images, developing interactive education tools and transmitting educational programs on-demand.

With a view to meeting these business needs, the new company will combine CTC's know-how in building manager/provider network information systems using Sun Micro System's servers and Cisco System's routers with Sony's knowledge of general AV products such as professional-use cameras,VTRs and information storage systems.It will focus on AV communication contents creation, distribution and asset management systems in the following way:

Business Outline:
(1)Developing new applications to combine AV and IT, system sales*
*System (software & hardware) design/manufacture/installation
(2)Maintenance service
(3)Systems management, engineer training, consulting, out-sourcing
Target Market:
Local government organizations, educational establishments (universities, businesses connected with creating educational content) corporations (Information/Financial /Insurance etc.) A wide variety of businesses related to AV/IT communication.

The new company will offer a new-style, comprehensive business structure helping groups such as medical and educational companies grapple with electronic communication in the broadband era by giving strong support in a wide variety of AV/IT communication areas.

New Company Outline
Company Name:
Sony Broadband Solution Corporation (SBS)
4-10-18 Takanawa Minato-Ku Tokyo
Representative Director Mr. Kazuo Ike
(Sony Communication Systems Solution Network Company - Senior Vice President)
Mr. Shirou Tsujii
(Sony Marketing/Information Systems Business Group/General Manager)
Mr. Shinji Tamaki
(ITOCHU TECHNO-SCIENCE/Development Group/Partner)
Mr. Tatsuo Asada
(CTC Technology/Kanagawa Customer Service/General Manager)
Mr. Hideo Nakamura
(Sony System Services/Director)
Mr. Takeshi Ikeno
(ITOCHU TECHNO-SCIENCE/Director & Advisor to Technology Division)
Mr. Kei Kodera
(Sony Marketing/Corporate Vice President)
Mr. Shigeru Sugiyama
(Sony Communication System Solution Network Company/Vice President)
Mr. Naoto Terakawa
(Sony Communication System Solution Network Company/Vice President)
Mr. Kazuyoshi Kiuchi
(ITOCHU TECHNO-SCIENCE/Planning Department)
Statutory Auditors
Mr. Hironobu Godo (Sony Broadcast Products/Auditor)
Mr. Yotaka Shimazuki (Sony System Services/Auditor)
Mr. Hajime Ohashi (ITOCHU TECHNO-SCIENCE/Auditor)

¥1.64 billion
Sony Corporation 32%
Sony Marketing(Japan) Inc. 28%
CTC Technology Corporation 10%
Approx. 400
Start of Business:
April 1, 2001