Press Release

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July 26, 2000

Sony Establishes a New Network Company for Semiconductor Business "Semiconductor Network Company (SNC)"

Sony Corporation today announced plans to position the semiconductor business at the core of its group by establishing a new Network Company called "Semiconductor Network Company (SNC)", effective August 1, 2000. Takeo Minomiya, Corporate Senior Vice President, will head the SNC as the Network Company President.

SNC will work to develop system LSI with its latest manufacturing technologies that add key competency to the end products. By working closely with Sony's product development divisions, SNC will closely reflect the trends and needs of semiconductors that are required for new product development.

As a result, SNC will strengthen Sony's overall electronics business by adding key value to products such as the PlayStation, digital camcorders and digital still cameras. SNC will also work to enhance its current line of competitive devices (eg. CCD, bipolar IC) to broaden its semiconductor business.

In addition to standardizing semiconductor design infrastructure and developing the latest semiconductor process, SNC will centrally manage its manufacturing facilities (Sony Kokubu, Sony Nagasaki, Sony Oita, Sony Semiconductor Thailand, Sony Semiconductor San Antonio (Sony Electronics Inc.) and Sony Computer Entertainment Fab1/2) to optimize operations.

After the establishment of SNC, Core Technology & Network Company (CNC) will continue its activities in the areas of batteries, recording media, electronic devices and storage drives.