Thomson: High Definition, Digital Cinematography and Satellite Decoder Success; Continued Growth in the Group's Video Networks Solutions Division

Business Wire, Sept 9, 2004

PARIS & AMSTERDAM, The Netherlands -- Capping a summer in which it played a key role in many high-profile high-definition (HD) and digital cinematography events, including the European Football Cup, the Olympics, and Collateral, the latest theatrical thriller from DreamWorks, Thomson (Euronext Paris:18453)(NYSE:TMS), the world leader in integrated solutions (technologies, equipment, and services), arrived at this year's International Broadcast Convention (IBC2004) well-positioned to continue its strategic growth amid the accelerated worldwide transition to HD.

Demand for HD equipment is rising rapidly among broadcasters as well as corporate, university, and other institutional media centers. Industry analysts expect content creators and distributors to spend nearly EUR 2.8 billion over the next four years on professional equipment and services in what is considered to be the first wave of the global transition to HD. Worldwide sales of HD TV sets are growing at roughly 33 percent annually, with a total of 26 million sets expected to be sold in the United States and Europe by 2008.

Thomson expects to continue to capitalize on the growing demand for HD equipment and services, having introduced more than 35 new HD and multi-format broadcast products in the last two years, as well as a complete line of HD satellite set top boxes in the United States. The Group is notably extending its leadership in HD mobile production under its Grass Valley brand, illustrated by over EUR 3 million in new orders from several outside broadcast (OB) companies announced today at IBC2004.

In addition, Thomson continues to expand its worldwide leadership position as a provider of technology and services to satellite operators around the world. The Group also announced today the award of a new contract for the supply of digital satellite decoders to Viasat Broadcasting, a satellite operator which intends to build on its successful roll-out of digital TV across Denmark, Finland, Norway and Sweden.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson

Thomson (Euronext Paris:18453)(NYSE:TMS) is the leading provider of technology and service solutions for integrated entertainment and media companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators, manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: www.thomson.net

Thomson's Video Network Solutions division develops video and film technologies, products and services sold to all major Hollywood studios, all major television, satellite, and cable broadcasters under the Technicolor and Grass Valley brand-names for the delivery of analog and digital entertainment. The division also includes Thomson's Broadband Access Products Business, which develops technologies and products for broadband and telecommunication networks to deliver digital entertainment and data to consumers and businesses.

For information about Grass Valley products from Thomson please visit www.thomsongrassvalley.com.

Appendix: Summer of HD and Digital Cinematography Firsts for Thomson

This summer has seen a series of high-profile sports and entertainment events in which Thomson has played a key role, including those shot in HD and digital cinematography formats, as well as premier standard-definition (SD) productions.

In June, Thomson was selected by Swiss-based HBS (Host Broadcast Services) to provide the HDTV OB vans necessary for its broadcast coverage of the 2006 FIFA World Cup(TM) in Germany. As part of this agreement, Thomson will outfit as many as seven mobile trucks with a large number of Grass Valley brand products to support the SD and HD broadcasts of the soccer matches produced by HBS, which was also the host broadcaster of the 2002 FIFA World Cup(TM).

In July, Grass Valley SD cameras covered the 2004 Tour de France from the ground, air, and the backs of motorcycles. France Television (France 2 and France 3), the exclusive broadcaster used more than 35 Grass Valley cameras to cover the event, while Euromedia/SFP (Societe Francaise de Production) provided complete ground-to-air transmission of live images with three helicopters -- each equipped with Grass Valley cameras -- and two planes. Meanwhile, six Grass Valley cameras mounted on motorcycles to follow the riders through the grueling course. And six SD super slow-motion Grass Valley cameras were stationed at pre-selected destinations along the race course, including at the start and finish lines.