DELUXE Video Services Acquires PIONEER Video Manufacturing - Company Business and Marketing

Emedia Professional, May, 2000

Deluxe Video Services, Inc. has entered into an agreement to acquire the DVD and CD assets of Pioneer Video Manufacturing, Inc., a subsidiary of Pioneer North America, Inc. The Pioneer facility, located in Carson, California, has authoring and compression capabilities, and the capacity to replicate over one million discs per month. "The steadily increasing demand for DVD has made this investment a logical one," says Peter Pacitti, president and CEO of Deluxe Video Services. Deluxe will operate the facility under the newly formed Deluxe Digital Services banner.

(Deluxe Entertainment Services, Inc., 11150 Santa Monica Boulevard, Suite 700, Los Angeles, CA 90025; 310/477-3234; Fax 310/996-1100; http://www.deluxe-ent.com. Pioneer New Media Technologies, 2265 East 220th Street, Long Beach, CA 90810; 800/527-3766, 310/952-2111; Fax 310/952-2990; http://www.pioneerusa.com)

CD tracker

1999 Market Summary

CD-R/RW Writer
And Media Sales:         $3.874 billion

Writer Sales Represent   58% of Revenue

RW Writers are           89% of the Market

(Millions of units)   1999     1998    Change

Global Writer
Unit Sales:           14.226   5.722    149%

Global CD-R
Disc Unit Sales:      1583     698      126%

Source: Santa Clara Consulting Group, 65 Washington Street, Suite 170, Santa Clara, CA 95050; 408/450-1365; Fax 408/253-9938