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The following information is true and accurate at the time of publication.
August 6, 2003
Samsung and Sony Strengthening Cooperation through Memory Stick Business
Samsung Electronics
to expand line of Memory Stick compatible products and begin
in-house Memory Stick media production from third quarter
2003
Samsung Electronics
Sony Corporation
Seoul, Korea, Tokyo, Japan, August
6, 2003 - Samsung Electronics Co., Ltd (hereafter "Samsung")
and Sony Corporation (hereafter "Sony") today announced
that an agreement has been reached whereby Samsung is licensed
by Sony to manufacture and sell Memory Stick media. Under
this agreement, Samsung will begin in-house manufacturing
and sales of Memory Stick media from the third quarter of
2003.
This agreement strengthens the cooperative relationship
existing between the two companies beyond the basic agreement
reached in August of 2001. Under the 2001 agreement, Sony
worked with Samsung to add Memory Stick compatibility to
a range of Samsung products including DVD players, mobile
phones, PCs and televisions.
In addition to manufacturing Memory Stick compatible products,
the current license enables in-house manufacturing of Memory
Stick media by Samsung. Once production begins in the third
quarter of 2003, Samsung will commence bundling of Memory
Stick media with compatible products as well as separate
media sales under the Samsung brand. In addition to the
product lines agreed on with the 2001 announcement, Memory
Stick will be employed in Samsung's new product categories.
With the expanding range of Memory Stick compatible products,
Memory Stick's "Connected World" is gaining momentum.
Sony believes that by strengthening cooperation with Samsung
and accelerating the incorporation of Memory Stick slots
into Samsung's wide range of product categories, Memory
Stick's "Connected World" will grow to offer customers
a wider range of cutting-edge products.
Through the strengthening of their cooperative relationship,
Samsung and Sony aim to expand the Memory Stick business
and secure Memory Stick's position within the memory card
market while providing customers with a wider range of products.
Comment from Samsung Electronics Vice Chairman and CEO
Jong-Yong Yun:
"Together with our current expansion of Memory Stick
compatible products aimed at expanding the 'Memory Stick
World,' Samsung expects the current licensing contract to
result in a synergy effect which will further strengthen
the flash memory business. Samsung will continue offering
new lifestyles and value to Memory Stick customers while
introducing next-generation mobile media products suited
to a ubiquitous environment. We also look forward to the
further cooperation with Sony in related applied technologies"
Comment from Sony Corporation President and Group COO
Kunitake Ando:
"Memory Stick is a network media allowing seamless
connection of content and services between PCs and various
digital consumer electronics. Samsung Electronics is a major
semiconductor manufacturer and its manufacture and sale
of Memory Stick media will accelerate the growth of Memory
Stick throughout the world. Together with media, the expansion
of Samsung's lines of digital cameras, mobile phones and
other Memory Stick compatible products will enable Memory
Stick's 'Connected World' to expand allowing customers to
enjoy a broad range of content and services through a diverse
array of devices. The current agreement further strengthens
the cooperative relationship between the two companies and
I am convinced that it will strengthen the Memory Stick
format's position as the global standard within the memory
card market."
About Memory Stick:
Since its market introduction in September 1998, Memory
Stick has evolved from a storage media for still images
and computer data into a broad networking media for recording
diverse content, including copyrighted material, and sharing
it among the widest possible variety of products. As of
April 2003, worldwide cumulative shipments of Memory Stick
media had reached 40 million units and shipments of Memory
Stick compliant products had reached over 40 million units.
About Samsung:
Samsung Electronics Co. Ltd. is a global leader in semiconductor,
telecommunication, and digital convergence technology. Samsung
Electronics employs approximately 75,000 people in 89 offices
in 47 countries. The company is the world's largest producer
of memory chips, TFT-LCDs, CDMA mobile phones, monitors
and VCRs. Samsung Electronics consists of four main business
units: Digital Media Network, Device Solution Network, Telecommunication
Network and Digital Appliance Network Businesses.
About Sony:
Sony Corporation is a leading manufacturer of audio, video,
game, communications, key device and information technology
products for the consumer and professional markets. With
its music, pictures, computer entertainment and on-line
businesses, Sony is uniquely positioned to be the leading
personal broadband entertainment company in the world. Sony
recorded consolidated annual sales of approximately $62
billion for the fiscal year ended March 31, 2003.
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