(3)Number of shares of Sony Common Stock to be issued upon compulsory conversion
The number of shares of Sony Common Stock to be issued upon compulsory conversion will be calculated by multiplying the number of shares of TS issued on Wednesday, November 30, 2005, by 1.114.
Based upon the number of shares of TS issued on September 30, 2005, the number of shares of Sony Common Stock that will be issued pursuant to compulsory conversion will be 3,440,032. However, this figure is subject to increase as a result of the exercise of outstanding TS warrants or TS stock acquisition rights.
(4)Commencement date for calculation of dividends
The dividends on the new shares (of Sony Common Stock) to be issued pursuant to compulsory conversion of shares of TS will be calculated on, and including October 1, 2005.
(5)Effects on Warrants and Stock Acquisition Rights for the shares of TS
Warrants and stock acquisition rights were issued for the purpose of giving stock incentives to SCN's directors and employees. On and after the Compulsory Conversion Date, as a result of the termination of shares of TS by way of compulsory conversion to shares of Sony Common Stock, the class of shares to be issued upon exercise of such warrants or stock acquisition rights will be changed to shares of Sony Common Stock. In addition, the exercise prices of such warrants and stock acquisition rights will be adjusted in accordance with the conversion ratio for the compulsory conversion, as follows: