Samsung Electronics Launches Digital Multimedia Platform Worldwide

Business Wire, Nov 9, 1999

Product available in the United States in third quarter 2000 is:

-- DVD Recorder (DVR-2000), one of the first DVD players with a DVD-RAM format, offering recording as well as playback, and featuring a rewritable optical disc and built-in MPEG-2 encoder and decoder, as well as high-resolution component video output terminals (Y, Pb, Pr), priced at $1999.99.

The remaining products from the new digital product suite will be introduced in the United States at later dates or, in limited cases, distributed in Asia only.

"Our progressive multimedia products are designed for people who are comfortable with computers and with the Internet, who are mobile and constantly in touch," said Mr. Yun. "It's clear that the consumer of the future will demand total digital connectivity anytime and anywhere, and Samsung is committed to defining the extraordinary potential of this emerging Digital Age."

To date, the company has invested $3 million in market research identifying the lifestyle and purchase patterns of Generation Y (13-25 years old) and Generation N (Internet-friendly) consumers. The company also has invested $100 million this year in online marketing of its new brand and product portfolio, with an additional $200 million slated for online marketing in 2000.

In addition, the company has allocated $150 million for U.S. advertising campaigns to promote the new digital brand through year 2001, including Olympics-themed advertising scheduled to begin in 2000. The new brand slogan - "Samsung DIGITall - everyone's invited" - debuted with national TV spots during the World Series telecasts in late October.

With its massive investment in digital media, Samsung Electronics anticipates a significant realignment of its four business sectors in a single year (year 2000).

Telecommunications Business, which includes mobile multimedia and now comprises 23 percent of Samsung Electronics' revenues, is expected to increase to 25 percent of total company sales. Consumer Electronics Business is expected to drop from 21 percent to 17 percent of total sales, and Computer & Peripherals Business will rise to 24 percent from 21 percent. Semiconductors Business will decrease from 35 percent to 34 percent of total sales.

Samsung Electronics Co., Ltd., with 1998 sales revenues of US $16.6 billion, is a world leader in the electronics industry. The Korea-based firm has operations in 46 countries and employs 59,000 people. The company consists of four main business divisions: Telecommunications, Consumer Electronics, Computer & Peripherals, and Semiconductors.

Headquartered in Ridgefield Park, NJ, Samsung Electronics America, Inc. (SEA), a wholly owned subsidiary of SEC, markets a broad range of consumer electronics and information systems products. The SEA organization oversees the North American operations of Samsung Telecommunications America, Samsung Electronics Canada and Samsung Electronics Mexico.