<Press Release>
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March 9, 1999

Sony Corporation
Nobuyuki Idei
President and Representative Director
(Code No.: 6758
Tokyo Stock Exchange, First Section)

Sony Music Entertainment (Japan) Inc.
Shigeo Maruyama
President and Representative Director
(Code No.: 7930
Tokyo Stock Exchange, Second Section)

Sony Chemicals Corporation
Hideyuki Kurita
President and Representative Director
(Code No.: 6746
Tokyo Stock Exchange, Second Section)

Sony Precision Technology Inc.
Sumio Sano
President and Representative Director
(Code No.: 7710
Tokyo Stock Exchange, Second Section)

NOTICE ON GOING PRIVATE OF
THREE LISTED SUBSIDIARIES OF SONY CORPORATION





Notice is hereby given that Sony Corporation ("Sony") and each of Sony Music Entertainment (Japan) Inc. ("SMEJ"), Sony Chemicals Corporation ("SCC") and Sony Precision Technology Inc. ("SPT"), three listed subsidiaries of Sony, have agreed that each of such three subsidiaries should become a wholly-owned subsidiary of Sony.

1. Purpose of going private
These four companies have determined to restructure their group architecture in the Sony group of companies (the "Group") in order to establish systems and organizations which enable the Group to rapidly develop and provide competitive products and services responding to varied demands of customers, whereby the Group may improve its shareholders' value through the reinforcement of its profitability as a group. As a result, it has been determined that the three listed subsidiaries should strengthen their cooperative relationship with their parent company, Sony, in various fields and develop their comprehensive business strategies in a manner more closely to Sony, while Sony continues to respect the independence of each such subsidiary. Further, each subsidiary will be able to more rapidly perform their assigned role in the Group's overall strategies to be established hereafter, benefiting from going private. Accordingly, these subsidiaries are expected to establish more secure positions in their respective business fields.

2. Method of going private
It is scheduled that the listed subsidiaries will become wholly-owned subsidiaries of Sony on or about January 1, 2000 by utilizing the exchange offer procedures included in the Law amending the Commercial Code and other laws which are expected to be deliberated at the ordinary session of the Diet this year. However, if the exchange offer procedures are judged to be impractical taking into account the effective date of the amended Commercial Code and status of the related amendment to other laws and regulations, an alternative method (going private in the manner that each subsidiary establish a wholly-owned subsidiary, transfer its business to such new subsidiary, and then be merged into Sony) which is legal under the laws and regulations of Japan currently in effect, may be selected.

The shareholders of each subsidiary will become shareholders of Sony by accepting the allotment of new shares to be issued by Sony when the exchange offer is made.

3. Exchange ratio (or merger ratio)
Sony and each subsidiary have respectively sought advice of Merrill Lynch Japan Incorporated (for Sony) and Morgan Stanley Japan Limited (for each subsidiary) in respect of the basis of the exchange ratio and have agreed to the following relevant ratios taking into consideration of such advice.

Any of the following exchange ratios (or merger ratios) may be amended upon mutual deliberation between Sony and the relevant subsidiary if any material change occurs in respect of conditions based upon which the relevant ratio is determined.

Corporate Name Sony SMEJ SCC SPT
Exchange ratio
(merger ratio)
1 0.835 0.565 0.203

(Note)1. Merrill Lynch Japan Incorporated has calculated the respective equity values of Sony and each of the foregoing subsidiaries (both on a consolidated basis) by utilizing the Discounted Cash Flow Analysis, the Publicly-Traded Comparable Companies Analysis and the Market Price Analysis, and calculated appropriate exchange ratios (or merger ratios) from the financial point of view based on the above calculated values by taking into account the analysis of financial impact which the proposed going private may have on Sony and the Comparable Transactions Analysis both in Japan and the United States of America.
2. Morgan Stanley Japan Limited, Tokyo Branch has made analyses of fair values of shares of Sony and each subsidiary company, by using the Discounted Cash Flow Analysis, the Market Performance Analysis and the Comparable Companies Analysis, and formed its views as to the exchange ratios (or merger ratios) on the basis of such analyses, subject to certain factors and assumptions.

4. Summary of Parties (as of September 30, 1998)

(1) Trade name Sony Corporation
(2) Kind of business Manufacture and sale of electronic and electrical machines and equipment
(3) Date of incorporation May 7, 1946
(4) Location of head office 7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo
(5) Representative Nobuyuki Idei,
President and Representative Director
(6) Share capital 415,918 million yen
(7) Total number of shares
issued and outstanding
(par value)
410,272,370 shares
(50yen)
(8) Shareholders' equity 1,606,535 million yen
(9) Total assets 3,141,747 million yen
(10) Date of settlement March 31
(11) Number of employees 21,296
(12) Major customers Affiliated manufacturing and sales companies in and outside Japan
(13) Major shareholders and
shareholding ratio
1 Moxley & Co.
2 The Chase Manhattan Bank, N.A. London
3 State Street Bank and Trust Company
4 The Mitsui Trust and Banking Company Limited
5 The Sakura Bank, Limited
5.0%
4.6%
4.3%
4.1%
3.3%
(14) Main banks The Sakura Bank, Limited
The Bank of Tokyo-Mitsubishi, Ltd. and others

(1) Trade name Sony Music Entertainment (Japan) Inc.
(2) Kind of business Planning, production, manufacture and sale of music and visual software, etc.
(3) Date of incorporation March 1, 1968
(4) Location of head office 4, Ichigaya Tamachi 1-chome, Shinjuku-ku, Tokyo
(5) Representative Shigeo Maruyama,
President and Representative Director
(6) Share capital 49,660 millionyen
(7) Total number of shares
issued and outstanding
(par value)
108,179,321 shares
(50yen)
(8) Shareholders' equity 220,045 million yen
(9) Total assets 261,213 million yen
(10) Date of settlement March 31
(11) Number of employees 1,609
(12) Major customers Affiliated planning, production, manufacturing and sales companies in and outside Japan
(13)Major shareholders and
shareholding ratio
1
2
3
4
5
Sony Corporation
The Chase Manhattan Bank, N.A. London
The Toyo Trust and Banking Company, Limited
The Mitsubishi Trust and Banking Corporation
J.P. Morgan Trust Bank Limited
(non-taxable account)
71.0%
1.7%
1.4%
1.1%
1.0%

(14) Main banks The Sakura Bank, Limited

(1) Trade name Sony Chemicals Corporation
(2) Kind of business Manufacture and sale of recording media, electrical parts and joint materials
(3) Date of incorporation March 5, 1962
(4) Location of head office 6-3, Nihonbashi Muromachi 1-chome, Chuo-ku, Tokyo
(5) Representative Hideyuki Kurita,
President and Representative Director
(6) Share capital 5,480 million yen
(7) Total number of shares
issued and outstanding
(par value)
32,670,000 shares
(50yen)
(8) Shareholders' equity 27,471 million yen
(9) Total assets 43,800 million yen
(10) Date of settlement March 31
(11) Number of employees 938
(12) Major customers Sony Corporation and overseas manufacturing and sales subsidiaries
(13) Major shareholders and
shareholding ratio
1
2
3
4

5
Sony Corporation
The Toyo Trust and Banking Company, Limited
The Sumitomo Trust and Banking Company, Limited
The Chuo Trust and Banking Company Limited
(trust account)
The Mitsubishi Trust and Banking Corporation
69.6%
2.6%
1.6%
1.5%

1.4%
(14) Main banks The Sakura Bank, Limited
The Bank of Tokyo-Mitsubishi, Ltd.

(1) Trade name Sony Precision Technology Inc.
(2) Kind of business Manufacture and sale of precise measuring machines and equipment, and precise recording machines and equipment
(3) Date of incorporation August 1, 1969
(4) Location of head office 9-17, Nishigotanda 3-chome, Shinagawa-ku, Tokyo
(5) Representative Sumio Sano,
President and Representative Director
(6) Share capital 4,640 million yen
(7) Total number of shares
issued and outstanding
(par value)
19,500,000 shares
(50yen)
(8) Shareholders' equity 16,702 million yen
(9) Total assets 20,263 million yen
(10) Date of settlement March 31
(11) Number of employees 449
(12) Major customers Sony Corporation
Manufacturers of machine tools and industrial equipment
Affiliated overseas sales companies
(13) Major shareholders and
shareholding ratio
1 Sony Corporation
2 The Chuo Trust and Banking Company Limited
3 Japan Securities Finance Company Limited
4 Sony Precision Technology Employee Stock Ownership Association
5 The Sakura Bank, Limited
69.2%
1.6%
0.7%
0.6%
0.5%
(14) Main banksThe Sakura Bank, Limited
The Bank of Tokyo-Mitsubishi, Ltd.

(15)Business result for the most recent three years

(unit: millions of yen)
SonySMEJ
Fiscal year
ended on
1996/3/311997/3/311998/3/311996/3/311997/3/311998/3/31
Net sales1,930,9982,169,8852,406,423114,547103,095114,896
Ordinary profit28,58585,727118,81620,96011,40315,024
Net income29,14539,70776,35611,4846,8167,886
Net income per
share (yen)
77.94105.72191.75106.1663.0172.90
Dividends per
share (yen)
505560353535
Shareholders'
equity per share
(yen)
3,385.783,518.113,820.121,983.472,011.112,048.73


SCCSPT
Fiscal year
ended on
1996/3/311997/3/311998/3/311996/3/311997/3/311998/3/31
Net sales33,10033,29337,07911,26812,47913,087
Ordinary profit2,1732,3293,317487959874
Net income1,1191,1361,858474946835
Net income per
share (yen)
34.2634.7856.9024.3448.5542.85
Dividends per
share (yen)
121217.551212
Shareholders'
equity per share
(yen)
738.30760.75805.31779.58818.14848.59

(Contact)
Sony Corporation
7-35, Kitashinagawa 6-chome,
Shinagawa-ku, Tokyo
Yoshimasa Chiba, General Manager of
Capital Market and Investor Relations
Tel: 03-5448-2654
Sony Music Entertainment (Japan) Inc.
4, Ichigaya Tamachi 1-chome,
Shinjuku-ku, Tokyo
Hiroshi Kato, Director and Senior General
Manager of Corporate Planning Group
Tel: 03-3266-5995
Sony Chemicals Corporation
6-3, Nihonbashi Muromachi 1-chome,
Chuo-ku, Tokyo
Isao Yawata, Director
Tel: 03-3279-0444
Sony Precision Technology Inc.
9-17, Nishigotanda 3-chome,
Shinagawa-ku, Tokyo
Sadao Takigawa, Director and General
Manager of Accounting & Finance Division
Tel: 03-3490-3151