Press Release

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February 1, 2000

"Sony Style" - Creating a New Consumer Lifestyle for the Internet Age
New e-commerce site provides integrated services and products
for the Japanese market.

(Tokyo, Japan) - Sony Corporation has announced the establishment of a new network marketing company "Sony Japan Inc." The company will be dedicated to the sales and marketing of Sony products and provision of related services over the Internet. The company's e-commerce site "Sony Style" goes on-line today (URL: Sony Japan will operate only in Japan.

Sony, world-renowned for the creation of new consumer lifestyles through products such as the Walkman, Handycam and VAIO PC, will now provide products for a digitally networked society, where hardware is linked to services and contents. The Sony Style site will forge a new relationship between the company and its customers through the integrated provision of products and related internet services, application software and information.

Sony Style harmonizes 3 style concepts. "Product Style" defines a new kind of "product" which combines hardware with internet services and contents. Taking advantage of the communication capacities of the Internet, "Customized Style" envisages products being directly tailored to the needs of customers. And "Shopping Style" envisions product and service information exactly fitting consumer lifestyle patterns, safe and efficient product orders over the Internet, and easy product selection and purchasing.

Sony Japan Inc. does not view its role as simply selling consumer goods over the Internet. As the company does business, it will construct a customer database which will be the foundation for added value services. It also proposes to fully utilize the strength of the Sony Group infrastructure in its operations (e.g. Sony showrooms such as Sony Building in Ginza, Tokyo and Sony Tower in Shinsaibashi, Osaka as well as the So-net online network service and Sony Service Co., Ltd).

The Sony Style site will also contain a "bit-Select" zone which seeks to provide new kinds of sales formats and shopping experiences through e-shop sites. Sony Japan Inc. hopes to cooperate actively with retailers and companies from various industries in establishing this zone. Initially the "bit-Select" zone will consist of "e-Sony Shops" and "PC e-tailers". The former will be a new sales format linking physical locations (Sony stores) and "Sony Style" web sites. "PC e-tailers" will offer new sales opportunities for PC retailers as they meet the predicted increase in demand for built-to-order and customized PCs.

In this way Sony Style will not just be a virtual e-commerce platform but a "real world" business forging new connections between areas such as retailing, distribution and after service. With this new internet business model Sony is once again transforming consumer lifestyles.

Note: Sony Style will be divided into 4 zones: VAIO Style (PC-related); Home Network Style (customized AV-related) Visual Network Style (camcorder, digital camera-related) and Music Style (Memory Stick-related). The site will start with VAIO zone on February 1, with the other zones appearing in order until completion by the end of March.

Overview of Sony Japan Inc.

Company Name:Sony Japan Inc.
Date of Establishment:January 27, 2000
Start of Operations:February 1, 2000
Headquarters:1-8-15 Konan, Minato-ku, Tokyo, Japan
Capital:400 million yen (50-50 investment by Sony Corporation and Sony Marketing (Japan) Inc.
President:Kazumasa Sato
Number of employees:About 30 at start of operations