SUPER DENSITY DVD ALLIANCE ADOPTS 9 GIGABYTE MATSUSHITA TECHNOLOGY AS EXTENSION OF SD PLATFORM; Alliance Offers Suite of Three SD Digital Video Disc Options Suite of Products Offers Price-Performance Tailored to Entertainment and Computer Industries

Business Wire, April 27, 1995

NEW YORK--(BUSINESS WIRE)--April 27, 1995--An alliance of 17 entertainment and consumer electronics firms today announced their adoption of a single-sided, 9 gigabyte digital video disc, developed by alliance partner Matsushita Electric Industrial Co., which adds a third offering to the alliance's suite of Super Density Digital Video Discs (SD- DVDs). The extended SD-DVD family is designed to allow content developers to select the most suitable product from an array of price-performance options.

Since the formation of the SD-DVD alliance in January 1995, nine additional global firms have joined the group, including Zenith Electronics Corp. and two Korean giants, Samsung Electronics Co. and SKC Ltd.

Matsushita's 9 GB capacity, based on a dual-layering disc innovation, uses a single laser to read program content. Dual-layering disc production is fully compatible with the industry's existing manufacturing capabilities. Construction and fabrication processes are the same as those for the original SD-format disc.

"This enhanced format almost doubles single side capacity, providing the maximum single-sided storage available in the industry today," said Adam Yokoi, senior vice president of Matsushita's MCA Panasonic division. "The expanded 9 GB capacity is intended to serve not only the entertainment and consumer electronics industries, but also computer hardware and software manufacturers, companies which require maximum capacity for interactive applications still being developed."

Alliance members stressed that the single side, 9 GB option further extends the SD- DVD product family, creating a greater range of content capabilities and price-performance alternatives. Presentations and demonstrations of this new SD format will take place at several locations in May 1995.

"Single-sided discs are better for some applications, double-sided discs for others," said Warren Lieberfarb, president of Warner Home Video. "Whatever the goal of content providers, whatever their budgets, our products offer superior quality, greater capacity, and more flexible pricing and performance options."

The suite of SD-DVD products can be played on players manufactured by any alliance partner, and players for all three types of discs will have backward capability, allowing them to play conventional audio CDs. The product suite includes: SD 5: The standard single-side SD-DVD with 5 gigabytes (GBs) of capacity. This format stores 7.5 times as much information as conventional compact discs -- sufficient to hold a full-length feature film and additional film-related content, as well as to provide state-of-the-art audio, multiple screen options, dubbing and subtitling features, "lock-out" options, and multiple language versions; SD 9: The single-side SD-DVD, enhanced with technology announced last week by Matsushita Electric Industrial Co., creating the only single-side DVD with 9 GBs of capacity -- almost double the previous single-side capacity. Such enhancement supports advanced ROM applications, including sophisticated home computer games and interactive multimedia applications, requiring previously-unavailable storage capacity. SD-DVD 9 allows two layers of information to be retrieved from a single disc side; SD 10: A two-sided SD-DVD with a total 10 GB capacity, 5 GBs on each side, allowing a full array of marketing opportunities -- for example, a double feature (one movie per side), or a full-length feature film and related computer game.

The alliance also is actively promoting development of SD technology beyond read- only applications; the group has decided to accommodate a write-once high-density optical disc and recording system recently developed by Pioneer.

In addition, the SD-18 -- a product that offers 18 GB of storage using both sides of a double-sided disc, playable with a red laser diode -- is under development for future HDTV applications. Super high density optical discs using blue laser diodes also are in development to further extend the SD product family.

"We're offering a suite of product options to avoid placing manufacturers and content providers in a single-product straitjacket, and end users in a trap of one-price-fits-all," said Michael Fidler, senior vice president of Pioneer Electronics U.S.A.

"Along with product alternatives, we offer state-of-the-art performance," said Joseph Vayda, senior vice president, research and development, WEA Manufacturing Inc. "We've been making double-sided discs for six months now -- the quality is superb, and the costs competitive with any alternative."

The alliance members, which have total revenues worldwide of more than $250 billion, are Hitachi, Ltd., Matsushita Electric Industrial Co., Ltd., Metro-Goldwyn-Mayer Inc., MCA Inc., Pioneer Electronic Corp., Pioneer LDC Ltd., Samsung Electronics Co., SKC Ltd., Time Warner Inc., Thomson Multimedia S.A., Toshiba Corporation, Toshiba-EMI Ltd., Turner Home Entertainment, Mitsubishi Electric Corp., Victor Company of Japan, Nippon Columbia Co., Ltd., and Zenith Electronics Corp.