Gemstar Enters EPG Agreement With Sony On Digital Set Top Boxes

Business Wire, Oct 22, 1998

PASADENA, Calif.--(BUSINESS WIRE)--Oct. 22, 1998--Gemstar International Group Limited (NASDAQ: GMSTF) Thursday announced that it has entered into a multi-year agreement with Sony Corp. under which Sony's Digital Network Solutions Co. division will incorporate Gemstar's interactive program guide ("Guide") technology in all of their satellite and digital terrestrial set top boxes in the United States, Canada and Japan.

Under the agreement Sony will pay Gemstar a per unit license fee based on platform and territory, as well as an up front payment.

"Sony's selection of the Gemstar Guide is an important endorsement for Gemstar," said Henry C. Yuen, chief executive officer of Gemstar. "Sony Digital Network Solutions is a leading innovator of digital video technology, and today's agreement is a major milestone in establishing Gemstar's Guide as an ubiquitous feature in television entertainment of the future."

Gemstar develops, markets and licenses proprietary technologies and systems aimed at making technology user-friendly for consumers.

Gemstar's technology and intellectual property are licensed to major companies in the consumer electronics, satellite, cable and personal computer industries, including Aiwa, Akai, Cox, Daewoo, Funai, GTE, Hitachi, Hughes Network Systems, JVC, LG Electronics (Goldstar), Matsushita (Panasonic, Quasar), Microsoft Corp., Mitsubishi, Orion, Philips (Magnavox, Philips), Samsung, Sanyo, Scientific-Atlanta, Sharp, Shintom, Sony, Southern New England Telephone, Thomson Multimedia (GE, Proscan, RCA), Time Warner, Toshiba, Uniden and Zenith.

Gemstar has over 60 issued U.S. patents in the general area of audio-visual technologies with over 1,000 claims and over 70 foreign patents with over 1,000 claims. The company continues to pursue a worldwide patent prosecution program and has more than 130 pending U.S. patent applications and over 160 pending foreign patent applications.

Gemstar's VCR Plus (R) instant programming system is a world standard for VCR programming. VCR Plus allows a user to record a television show simply by entering a number -- the PlusCode(R) number -- printed in television program guides. The PlusCode numbers are published by over 1,800 newspapers and television program guides worldwide, with a combined circulation of over 330 million.

The VCR Plus system has been licensed to virtually every major television and VCR manufacturer and is now available in 40 countries and 6 continents, including the United States, Canada, United Kingdom, Continental Europe, Japan, Southeast Asia, Australia, New Zealand, South America and South Africa.

Gemstar is a leading provider of electronic program guide services, which allow a user to view a television program guide on screen, obtain details about a show, sort shows by themes or categories, and select shows for tuning or recording, all through the remote control.

In the United States, data for Gemstar's electronic program guide services are carried on the ABC, FOX, CBS, NBC, UPN and PBS networks by hundreds of over-the-air broadcast stations and on a number of cable networks. Gemstar's electronic program guide has been built into a number of models of new televisions, VCRs and TV/VCR combination units.

Gemstar's electronic program guide is also licensed to cable, telco and MMDS service providers, and has been integrated into direct broadcast satellite receivers, digital and advanced analog cable set-top boxes, PCTV, Internet devices and computer operating systems such as Windows 98.

This news release contains forward-looking statements which involve risks and uncertainties, some of which are discussed from time to time in the company's reports on file with the Securities and Exchange Commission. The company's actual results in the future may differ significantly from the results discussed in the forward-looking statements.

EDITORS: GUIDE Plus , VCR Plus and PlusCode are registered trademarks of Gemstar Development Corp. Other product names used herein are for identification purposes only and may be trademarks of their respective companies.