<Press Release>
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July 7, 1999

Sony Reorganizes Wireless Phone Business

Tokyo, Japan - Sony Corporation today announced that it will reorganize its wireless phone business operations worldwide. Currently, Sony is conducting its wireless phone business in three major markets - Asia (including Japan), North America and Europe. These activities encompass R&D, engineering, manufacturing, sales and marketing.

In order to revitalize its wireless phone business, Sony will implement a plan to strengthen its operations by optimizing resources. Specifically, Sony will discontinue its engineering, sales and marketing teams for wireless phones in North America, and concentrate on R&D for next-generation telecommunications technology. This will be completed within the first half of Sony's fiscal year 1999 (April-September period). About 200 people will be affected by this move. Affected employees will be provided with information regarding opportunities at other business units within Sony Electronics Inc. Moving forward, Sony will focus its wireless business activity including its CDMA business in Asia, Oceania, and Europe.

Sony will retain its U.S. based R&D team developing "cdma2000" technology, which is viewed as a promising next-generation telecommunications technology in North America and Japan. At the same time, Sony will step up its R&D efforts for "W-CDMA" which is anticipated to be a promising next-generation telecommunications technology in Japan and Europe.

"Wireless technology is indispensable for Sony to create a new IT-telecommunications world in the digital network era," said Katsumi Ihara, president of Sony's global Digital Telecommunications Company in Tokyo. "Sony will continue with its efforts to develop new products and technologies in this area, while supporting and reinforcing our current wireless business in Asia, Oceania and Europe," he added.

Sony Corporation is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. Its music, pictures and computer entertainment operations make Sony one of the most comprehensive companies in the world. Sony recorded consolidated annual sales of over $56 billion for the fiscal year ended March 31, 1999.
Sony Corporation's homepage URL:<http://www.sony.co.jp>.