Sony Global - News Release - Announcement of Merger of Subsidiary

The following information is true and accurate at the time of publication.

July 22, 2005

Announcement of Merger of Subsidiary

Sony Corporation ("Sony") has decided that Sony will absorb WP Corporation by a merger effective October 1, 2005.

1.Purpose of the merger

Webpocket Corporation, a wholly-owned subsidiary of Sony, established a subsidiary company and transferred its operation on July 1, 2005. The purpose of this was to strengthen Sony's storage business to correspond to the enlarged demand for personal storage, and to improve profitability by integrating storage functions within the Sony Group. Webpocket Corporation changed its company name to WP Corporation, also effective July 1, 2005. The name, Webpocket Corporation has been adopted as the company name for the new subsidiary company.

Upon completion, Sony will directly hold WP Corporation's shareholdings of the new subsidiary company. In this manner, Sony will strive to further link and strengthen the storage business within the Sony Group.

2.Conditions of the merger

(1) Schedule of the merger

July 28, 2005 (Thursday)	Conclusion of merger agreement
August 15, 2005 (Monday)	Shareholders meeting to approve merger agreement (WP Corporation)
October 1, 2005 (Saturday)	Effective date of merger
October 3, 2005 (Monday)	Official registration of merger

*Pursuant to the provisions of Paragraph 3 of Article 413 of the Commercial Code of Japan, Sony shall perform the merger with WP Inc. without the approval of the merger agreement by its shareholders.

(2) Method of the merger

Sony, as an ongoing concern, shall absorb WP Corporation, which shall be subsequently dissolved.

(3) Others

Due to the fact that WP Corporation is a wholly-owned subsidiary of Sony, there shall be no issuance of new shares or cash payment upon this merger.

3.Summary of Parties

(1)Trade name	Sony Corporation	WP Corporation
(2)Field of business	Manufacture and sale of electronic and electrical machines and equipment	Information processing service by various mediums including the Internet
(3)Date of incorporation	May 7, 1946	September 14, 2000
(4)Location of head office	7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo	12-3, Higashishinagawa 4-chome, Shinagawa-ku, Tokyo
(5)Representative	Nobuyuki Idei, Representative Corporate Executive Officer	Tatsuya Akashi, Representative Director
(6)Share capital	\621,708 million	\100 million
(7)Total number of shares issued and outstanding	1,000,283,213 shares	9,600 shares
(8)Shareholders' equity	\2,042,798 million	\ -1,339 million
(9)Total assets	\3,684,545 million	\395 million
(10)Date of settlement	March 31	March 31
(11)Number of employees	15,892	0
(12)Major customers	Affiliated manufacturing and sales companies in and outside Japan	Sony Corporation
(13)Major shareholders and shareholding ratios	1.Moxley & Company 13.6% 2.Japan Trustee Services Bank, Ltd. (Trust Account) 4.1% 3.The Master Trust Bank of Japan, Ltd. (Trust Account) 3.8% 4.The Chase Manhattan Bank, N. A. London 3.4% 5.State Street Bank and Trust Company 505103 1.7%	Sony Corporation 100%
(14)Main banks	Sumitomo Mitsui Banking Corporation The Bank of Tokyo-Mitsubishi, Ltd. and others	Sumitomo Mitsui Banking Corporation

* The above data are as of March 31, 2005 except for the number of employees of WP Corporation, which is as of July 1, 2005.

(15) Business results for the three most recent years

(unit: millions of yen)

	Sony Corporation			WP Corporation
Fiscal year ended on	2003/3/31	2004/3/31	2005/3/31	2003/3/31	2004/3/31	2005/3/31
Net sales	2,526,264	2,814,577	2,895,413	72	46	64
Operating income (loss)	(136,644)	(139,709)	(64,622)	(350)	(472)	(453)
Ordinary income(loss)	(29,525)	(68,758)	45,755	(350)	(474)	(456)
Net income (loss)	(4,868)	(98,530)	56,656	(433)	(439)	(690)
Net income (loss) per share (yen)	(5.46)	(106.55)	60.81	(45,117.85)	(45,684.62)	(71,879.67)
Dividends per share (yen)	25.00	25.00	25.00	0	0	0
Shareholders' equity per share (yen)	1,968.62	1,856.37	2,040.32	(21,963.25)	(67,647.87)	(139,527.55)

4.Circumstances after the merger

(1)Trade name	Sony Corporation
(2)Field of business	Manufacture and sale of electronic and electrical machines and equipment
(3)Location of head office	7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo
(4)Representative	Ryoji Chubachi, Representative Corporate Executive Officer
(5)Share capital	Upon this merger the amount of share capital will not change.
(6)Total assets	This merger will not have a material effect on Sony's total assets.
(7)Date of settlement	March 31
(8)Effect on business results	This merger will not have a material effect on Sony's business results.