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Press Release

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January 8, 2003

Renewing the Aiwa Brand
Strengthening and Expanding Sony's Electronics Business
aiwa logo

Sony today announces its strategy for renewing the Aiwa brand and introduces a new Aiwa logo.
The logo symbolizes the dynamism of the renewed Aiwa brand as it creates business for a new era and it will be deployed globally, starting with products in the domestic market from February 2003.

Sony envisages Aiwa as a brand targeted mainly at young people, offering simple and easy-to-use products for the "private space" where you can enjoy your individual lifestyle.

As Aiwa's brand development moves forward, the Aiwa Business Center (established December 1, 2002; Masaru Hirauchi, President) will use Sony's production and sales platform to build operations that respond speedily and efficiently to changes in the market.

In the Japanese, American and European markets which are mature in terms of AV products, a new brand image will be created for Aiwa. The emphasis will be on cutting-edge products such as "Net MD" and digital still cameras which can connect to PCs, allowing consumers to quickly and easily enjoy content (movies, music etc.) This will be accompanied by an aggressive advertising campaign.

In the Latin American, Asian, Middle East and other markets, growth potential is still envisaged for AV products. For these markets, Aiwa will work to strengthen its product appeal and develop business strategies optimized for each region.

Furthermore, for the American market which is distinguished by the prominence of large-scale retailers and distributors, Aiwa Strategic Accounts Partnership, Inc. (ASAP) has been established on November 1, 2002 to handle the sales and marketing of Aiwa products.

ASAP will endeavor to create a new marketing model which will reduce operational costs to the lowest possible level. Fixed costs will be strictly controlled, while Asian production centers will be directly linked by a supply chain to major distributors/retailers in the United States.

Sony aims to strengthen its overall electronics business by creating new opportunities for the Aiwa brand as it moves into previously unexplored areas, and also to offer customers the enhanced choice of the Sony or Aiwa brands to fit their usage or lifestyle requirements.