Press Release


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November 29, 2002



Announcement of Merger of Subsidiary


The Board of Directors of Sony Corporation ("Sony") today decided that Sony shall absorb CyberGene.com Corporation ("CyberGene.com"), a wholly-owned subsidiary of Sony, by a merger.

1. Merger Objectives

Sony has decided to absorb CyberGene.com, a wholly-owned subsidiary of Sony, on February 1, 2003. CyberGene.com has been pursuing the application of IP3, a network interface technology and has been offering a service platform which connects dispatchers and end-users. The company also has been offering database marketing services. Sony recognizes that IP3 is one of the most significant technologies for the development of network services. Sony has concluded that it is more efficient to integrate IP3 technology and related businesses into the Sony Group where they can be aligned with many other network services.

2. Merger Conditions

(1) Merger Schedule
November 19, 2002
(Tuesday)
Board meeting to approve merger agreement (CyberGene.com)
November 29, 2002
(Friday)
Board meeting to approve merger agreement (Sony)
December 2, 2002
(Monday)
Conclusion of merger agreement
December 17, 2002
(Tuesday)
Shareholders meeting to approve merger agreement (CyberGene.com)
February 1, 2003
(Saturday)
Effective date of merger
February 3, 2003
(Monday)
Official registration of merger


*Pursuant to the provisions of Paragraph 3 of Article 413 of the Commercial Code of Japan, Sony shall carry out the above merger without holding a shareholders meeting to approve the merger agreement.

(2) Merger Method
Sony, as an ongoing concern, shall absorb CyberGene.com, which shall be subsequently dissolved.

(3) Others
Due to the fact that CyberGene.com is a wholly-owned subsidiary of Sony, there shall be no issuance of new shares or cash payment upon this merger.


3. Summary of Parties
(as of September 30, 2002)

(1) Trade name Sony Corporation CyberGene.com Corporation
(2) Field of business Manufacture and sale of electronic and electrical machines and equipment Providing of information service on the Internet
(3) Date of incorporation May 7, 1946 May 1, 2000
(4) Location of head office 7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo 7-35, Kitashinagawa 4-chome, Shinagawa-ku, Tokyo
(5) Representative Nobuyuki Idei, Representative Director Yutaka Sato, President andRepresentative Director *
(6) Share capital ¥476,224 million ¥240 million
(7) Total number of shares issued and outstanding 922,918,991 shares 4,800 shares
(8) Shareholders' equity ¥1,886,389 million (¥1,199 million)
(9) Total assets ¥3,615,038 million ¥568 million
(10) Date of settlement March 31 March 31
(11) Number of employees 16,836 4
(12) Major customers Affiliated manufacturing and sales companies in and outside Japan -
(13) Major shareholders and shareholding ratios 1. Moxley & Co. 6.1%
2. Japan Trustee Services Bank, Ltd. (Trust Account)4.4%
3. The Master Trust Bank of Japan, Ltd. (Trust Account) 3.3%
4. The Chase Manhattan Bank, N. A. London 2.9%
5 State Street Bank and Trust Company 2.8%
Sony Corporation 100%
(14) Main banks Sumitomo Mitsui Banking CorporationThe Bank of Tokyo-Mitsubishi, Ltd. and others Sumitomo Mitsui Banking Corporation

*Mr. Hiromasa Otsuka shall become the President and Representative Director of CyberGene.com on November 30, 2002.

(15)Business results for the three most recent years
(unit: millions of yen)


Sony Corporation CyberGene.com Corporation
Fiscal year ended on 2000/3/31 2001/3/31 2002/3/31 2000/3/31 2001/3/31 2002/3/31
Net sales 2,592,962 3,007,584 2,644,195
0.2 118
Operating income (2,755) 50,458 (52,994)
(744) (1,034)
Ordinary income 30,237 81,502 (6,122)
(745) (669)
Net income 30,838 45,002 29,635
(434) (388)
Net income per share (yen) 73.09 49.18 32.22
(90,549.87) (80,909.43)
Dividends per share (yen) 50 25 25
0 0
Shareholders' equity per share (yen) 3,956.68 2,021.33 2,024.10
9,450.13 (71,459.30)

*Sony split its shares at a ratio of 2 shares for each share on May 19, 2000.
*CyberGene.com's business results for the fiscal year ended March 31, 2001 include only the eleven-month period from May 1, 2000 to March 31, 2001.


4. Circumstances after the merger
(1) Trade name Sony Corporation
(2) Field of business Manufacture and sale of electronic and electrical machines and equipment
(3) Location of head office 7-35, Kitashinagawa 6-chome, Shinagawa-ku, Tokyo
(4) Representative Nobuyuki Idei, Representative Director
(5) Share capital Upon this merger the amount of share capital will not change.
(6) Total assets This merger will not have a material effect on Sony's total assets.
(7) Date of settlement March 31
(8) Effect on business result This merger will not have a material effect on Sony's business results.