News

May 10, 2002


FOR IMMEDIATE RELEASE

DVD6C Announces Limited-Time Incentive Program for DVD-Video Players Manufactured and Sold in China

Tokyo, Japan - The DVD6C Licensing Group, which represents the six leading developers of DVD technology and formats – Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd., Mitsubishi Electric Corporation, Time Warner Inc., Toshiba Corporation and Victor Company of Japan, Ltd. (JVC), has provided new incentives for companies who manufacture in China (excluding Hong Kong, Macao and Taiwan) and sell DVD-Video players for the use of end users in China (excluding Hong Kong, Macao and Taiwan) to become licensed under the DVD 6C patents on or before June 30, 2002.

The DVD6C's standard royalty for DVD-Video players is 4% of the net selling price of the player, or US$4.00 per the player, whichever is greater. Under the new incentive program, companies that enter into the DVD 6C patent license on or before June 30, 2002, will be exempted from the royalty payments for the DVD-Video players manufactured in China (excluding Hong Kong, Macao and Taiwan) and sold for the use of end users in China (excluding Hong Kong, Macao and Taiwan) on or before December 31, 2002. DVD-Video players manufactured in China and exported directly or indirectly from China shall be subject to the standard royalty rates stated above (4%/$4).

Current licensees will also enjoy this incentive program. The licensees that have already paid royalties will be entitled to receive a credit against future royalties.

Manufacturers of DVD-Video players who are not licensed by June 30, 2002 will continue to accrue royalties, plus interest, at the standard royalty rate not only on DVD-Video players manufactured in China and exported from China but also on the products manufactured and sold in China.

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