JVC INAUGURATES BROADCAST BUSINESS

Victor Company of Japan, Limited (JVC) will invest in BS Japan Corporation (tentative name), a joint venture company to be established in Tokyo this fall jointly with TV Tokyo, Nihon Keizai Shimbun and Mitsui & Co., Ltd., to initiate precision BS digital HDTV broadcasting services in the fall of 2000. JVC will acquire a 2.5% share, valued at \500 million.

The new company will provide satellite and multimedia broadcasting programs, enabling viewers to enjoy high-definition, wide-screen pictures backed by digital technology. JVC's audiovisual technology and know-how will contribute to the synergy of the new joint venture company's capabilities and services.

Against the backdrop of the ongoing digitization of broadcasting media, 2000 will be a turning point for the broadcasting business in Japan as HDTV broadcasting through the BS4 satellite is scheduled to begin and terrestrial broadcasting becomes feasible. There will be tougher competition among broadcasters as NHK, WOWOW, BS Japan and other newcomers enter this new market.

Given this, JVC will address the growing demand for digitized broadcasting with its experience and advanced audiovisual technologies for consumers and professionals, compression and transfer/receiving systems for digital signals, and production of music and movie content. In digital broadcasting, JVC has provided broadcasting stations in North America with production and editing systems based on Digital S, JVC's digital VTR for professionals. For consumers, JVC has developed D-VHS capable of long-duration recording and playback of digital programs and D-ILA, a multimedia projector that enables viewers to enjoy high quality, high-resolution pictures.

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