Press Release

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July 13, 2000

Towards the Creation of a New World of "Personal Entertainment"
Sony's Palm-PoweredTM Personal Entertainment Organizers for the Japanese Market

(Tokyo, Japan) Sony Corporation today announced the launch of 2 lines of Palm-PoweredTM (=Palm OSR platform-based) personal entertainment organizer in the Japanese market in September. Sony positions its personal entertainment organizer as one of the strategic products of the coming broadband network era and strives for the creation and growth of a new market segment, by offering a new world of "Personal Entertainment" where users can enjoy a wide variety of contents anywhere.

Last November, Sony and Palm Inc. agreed to collaborate in the development of next generation Palm OSR software with rich AV functionality, and Sony's Palm-PoweredTM personal entertainment organizers are the first products to result from this collaborative effort. The two products scheduled for introduction into the Japanese market have a built-in Memory Stick slot, Jog Dial for easy navigation and boast a sleek design.

In terms of software, they come standard with a web browser to handle images as well as image file management software to share information with PCs including VAIO. In addition, Sony is planning to start a network service called "ImageStation" that allows handling of still and moving images over the Internet within this year. Directly or through a PC, customers can download still and moving images from the Internet with ImageStation and playback the images with the personal entertainment organizers.

Further, Sony plans to expand Memory Stick applications and look into the commercialization of "Memory Stick Expansion Modules (preliminary name)" that will add various new applications to the personal entertainment organizers as well as other devices within 2001. Currently, modules for applications such as Camera, GPS (Global Positioning System) and Bluetooth (wireless communications technology) are being considered. Sony will make the information on "Memory Stick Expansion Modules (preliminary name)" widely available to IHVs (Independent Hardware Vendors) by arranging forums as appropriate.

Sony will also open a web site in Japan to offer developer programs, necessary for Sony's personal entertainment organizers including jog dial and Memory Stick, to ISVs (Independent Software Vendors) and IHVs at *this link is no longer active and a revised page does not exist. Sony will cooperate with ISVs and IHVs, in order to deliver attractive applications for Sony's personal entertainment organizers in a timely manner.

As a company that hopes to give people the power to fulfill their dreams, Sony is committed to the development of unique and easy-to-use hardware and software, as well as making affordable, entertaining digital network services available to anyone, leveraging the potential of the personal entertainment organizer as a key platform for the broadband network era.

"We have been looking forward to seeing the result of the collaborative work between Sony and Palm," said Alan Kessler, Chief Operating Officer of Palm, Inc. "The goal of our joint effort is to enrich the Palm OS platform and to open up new development opportunities, thus spurring a growth in the handheld computing market worldwide. We hope Sony's entry will reinforce the strength and showcase the creative applications enabled by the Palm OS platform," he added.

About Sony Corporation

Sony Corporation is a leading manufacturer of audio, video, game, communications and information technology products for the consumer and professional markets. With its music, pictures, computer entertainment and on-line businesses, Sony is uniquely positioned to be a leading broadband entertainment company in the world. Sony recorded consolidated annual sales of more than $63 billion for the fiscal year ended March 31, 2000.
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