JVC TO START DVD DISC PRODUCTION IN THE U.S. NEXT SPRING

Elmwood Park, NJ, September 17, 1996 ...Victor Company of Japan, Limited (JVC) will start production of DVD discs at JVC Disc America Co. (JDC), its American subsidiary, in April 1997. DVD discs will be manufactured at JDC's Sacramento, California and Tuscaloosa, Alabama plants.

The plan covers a comprehensive range of activities, from authoring and mastering to production and distribution of DVD discs. As part of this effort, JDC established the Fulfillment Center for disc packaging and distribution in Atlanta, Georgia last month.

JVC will start receiving orders for DVD discs this month and will begin sample shipments in November. Production will begin next April with an output of 600,000 discs per month.

JVC-DEVELOPED BASIC DISC TECHNOLOGY

1. Variable Bit Rate (VBR) Coding Technology:

This technology makes it possible to record more than 130 minutes of high-quality, full-motion-picture programming on a 12 cm DVD disc by controlling the allocation of the bit rate in accordance with the amount of information required.

2. Two Pass (Bit Rate Management) Technology:

This technology helps to produce high-quality picture and sound by recognizing the necessary minimum data amount in advance, and then allocating the most suitable data bit rate, thereby assuring an effective bit rate allotment throughout an entire full-motion-picture program with VBR.

3. Scrambling Pit Alignment Technology:

This technology assures stable playback of disc signals, even high-density recordings, by avoiding identical physical pit placement on neighboring tracks on the disc.

4. B-Frame Technology:

This technology is for recording high-quality picture information in a high compression rate by assuming the picture image using bidirectional frame information. It is used widely in Motion Picture Expert Group (MPEG) video compression formats.

JVC's DVD DISC MANUFACTURING TECHNOLOGY

1. JVC's own unique development, covering all processes from authoring to replication.

2. Laser Beam Recorder (LBR) featuring high-precision, anti-vibration actuator and feed mechanism for disc manufacturing.

3. High-density mastering process based on JVC's extensive experience for keeping the consistent disc quality.

4. Quality-oriented manufacturing process and high-reliability disc production benefiting from JVC's unique compact disc manufacturing technology.