<Press Release>
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November 15, 1999

Sony Gains Support from Leading IT Companies to Realize
Interoperable and Secure Electronic Music Distribution

COMDEX, Las Vegas, NV, November 15, 1999 - Sony Corporation today announced that it has reached agreements with InterTrust Technologies Corporation, Liquid Audio Inc. (Nasdaq: LQID), Preview Systems Inc., RealNetworks Inc., and Reciprocal Inc. to make Sony's "OpenMG" copyright protection technology including Digital Rights Management (DRM) interoperable with electronic music distribution technologies developed by the respective companies. This will enable OpenMG compliant personal computers and Sony's portable devices such as the "Memory Stick Walkman (NW-MS7)" and "VAIO Music Clip (MC-P10) " to receive content downloaded securely over the Internet, using the above companies' electronic music distribution technologies.

Earlier this year, IBM and Sony announced that they had reached a similar plan to realize the interoperabilitiy between OpenMG and IBM's Electronic Music Management System (EMMS), a comprehensive e-business solution for the secure sale and downloading of music over the Internet.

Today's announcement demonstrates the broad support Sony is gaining for OpenMG and portable devices from innovative companies active in electronic music distribution solutions.

Sony's OpenMG is designed to support multiple download platform and audio devices of electronic music distribution, which gives music companies various options for secure, SDMI-compliant solutions, as a result of Sony's above-mentioned agreements. Likewise, customers will be able to use Sony's portable devices for an increasing number of major music titles downloaded securely over the internet, as OpenMG commands broader support from the industry.

Consumer electronics manufacturers can tap into the potential portable device market by licensing such technologies as OpenMG, MagicGate Memory Stick and ATRAC3.

"Sony aims to create an interoperable and secure electronic music distribution environment with OpenMG. We have already agreed with leading IT companies to make each other's technology interoperable" said Kunitake Ando, president & COO, Personal IT Network Company, Sony Corporation. "I believe the majority of music files on the Internet will be enjoyed on Sony's portable devices in the near future. By realizing an interoperable and secure environment, I expect everyone will reap benefits - music companies, providers of electronics music distribution technologies, portable audio player manufacturers and consumers alike. Sony is prepared to license OpenMG and other relevant technologies to interested parties" he added.

"We are pleased that Sony has secured the support of IT companies for OpenMG, an interoperable, SDMI compatible solution for the secure distribution of music over the Internet. We believe this solution will significantly contribute to the growth of the secure electronic content delivery market in the future, " said Al Smith, senior vice president, Sony Music Entertainment.

  1. MagicGate: Copyright protection technology for "MG Memory Stick" and compliant products. Authentication technology ensures that protected content is only transferred between compliant devices and media, and protected content is recorded and transferred in an encrypted format to prevent unauthorized copying or playback.

  2. OpenMG: Copyright protection technology including DRM which consists of three key functions; allowing music download through multiple electronic music distribution platforms, enabling to playback music files and CD ripping on PCs (OpenMG Jukebox), and transferring contents securely from PCs to portable devices.

  3. More information about OpenMG will be available from Nov.20.
    URL:http://www.openmg.com/ *this link is no longer active and a revised page does not exist.

  4. ATRAC3: This sound compression technology can achieve roughly twice the data reduction rate of the ATRAC sound compression used for the MiniDisc.

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 entertainment companies in the world. Sony recorded consolidated annual sales of over $56 billion for the fiscal year ended March 31, 1999. Sony's Home Page URL: http://www.sony.net/