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September 22, 2005


Tokyo, September 22, 2005 -- Sony Corporation announced today a revision of its consolidated results forecast for the fiscal year ending March 31, 2006 from those announced on July 28, 2005.

Current Forecast
Change from
July Forecast

July Forecast
Sales and operating revenue ¥7,250 billion Unchanged ¥7,250 billion
Operating income (loss) (20 billion)
30 billion
(Restructuring charges included within
operating income

140 billion


88 billion)
Income before income taxes 40 billion -43% 70 billion
Equity in net income (loss) of
affiliated companies

(8 billion)


(8 billion)
Net income (loss) (10 billion)
10 billion

Assumed foreign currency exchange rates from the second quarter: approximately ¥107 to the U.S. dollar and approximately ¥130 to the Euro.

There has been no revision to the forecast for sales and operating revenue announced on July 28.

However, as a result of additional restructuring announced today as part of Sony Group's mid-term corporate strategy, the forecast for operating income (loss) has been revised downward by ¥50 billion. Excluding restructuring charges, the forecast is essentially unchanged from the forecast as of July 28. For more information regarding restructuring please refer to today's announcement “Sony Group Mid-Term Corporate Strategy FY2005-FY2007.”

The above forecast includes restructuring charges, recorded as operating expenses, of approximately ¥140 billion expected to be incurred across the Sony Group, primarily within the Electronics segment, an increase of ¥52 billion from the forecast as of July 28, 2005, while ¥90 billion of restructuring charges were recorded for the fiscal year ended March 31, 2005.

The principal reason for the increase in restructuring charges is additional asset impairment write-downs related to CRT televisions primarily in the U.S. and additional early retirement program expenses particularly in Japan.

In addition to the reason described above, the revision to income before income taxes also reflects income of approximately ¥18 billion from the sale of a portion of Sony Corporation's shareholding in Monex Beans Holdings, Inc. announced on September 6, 2005.

Net income has been reduced for the impact of the factors noted above, offset by the net income tax benefit of these events.

Cautionary Statemen

Statements made in this release with respect to Sony's current plans, estimates, strategies and beliefs and other statements that are not historical facts are forward-looking statements about the future performance of Sony. Forward-looking statements include, but are not limited to, those statements using words such as “believe,” “expect,” “plans,” “strategy,” “prospects,” “forecast,” “estimate,” “project,” “anticipate,” “may” or “might” and words of similar meaning in connection with a discussion of future operations, financial performance, events or conditions. From time to time, oral or written forward-looking statements may also be included in other materials released to the public. These statements are based on management's assumptions and beliefs in light of the information currently available to it. Sony cautions you that a number of important risks and uncertainties could cause actual results to differ materially from those discussed in the forward-looking statements, and therefore you should not place undue reliance on them. You also should not rely on any obligation of Sony to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Sony disclaims any such obligation. Risks and uncertainties that might affect Sony include, but are not limited to (i) the global economic environment in which Sony operates, as well as the economic conditions in Sony's markets, particularly levels of consumer spending; (ii) exchange rates, particularly between the yen and the U.S. dollar, the Euro and other currencies in which Sony makes significant sales or in which Sony's assets and liabilities are denominated; (iii) Sony's ability to continue to design and develop and win acceptance of its products and services, which are offered in highly competitive markets characterized by continual new product introductions, rapid development in technology and subjective and changing consumer preferences (particularly in the Electronics, Game and Pictures segments, and music business); (iv) Sony's ability to implement successfully personnel reduction and other business reorganization activities in its Electronics segment, and music business; (v) Sony's ability to implement successfully its network strategy for its Electronics, Pictures and Other segments, including the music business, and to develop and implement successful sales and distribution strategies in its Pictures segment and music business in light of the Internet and other technological developments; (vi) Sony's continued ability to devote sufficient resources to research and development and, with respect to capital expenditures, to correctly prioritize investments (particularly in the Electronics segment); (vii) shifts in customer demand for financial services such as life insurance and Sony's ability to conduct successful Asset Liability Management in the Financial Services segment; and (viii) the success of Sony's joint ventures and alliances. Risks and uncertainties also include the impact of any future events with material unforeseen impacts.

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