Toshiba Corporation is delighted to learn that Intel and Microsoft Corporation have announced their support for HD DVD, the next generation DVD format.

Toshiba actively promotes HD DVD and serves as the chair of the DVD Forum, the industry organization that has defined the specifications of HD DVD as the next-generation DVD format.

This announcement of support by two of the key companies in the IT industry reflects the growing recognition of HD DVD as the ideal format for the IT industry in terms of superior scope, versatility and reliability—essential factors that also apply to the consumer electronics industry. This endorsement underlines the excellent interoperability offered by HD DVD in respect of sustaining the digital convergence of consumer electronics and IT.

We are confident that Intel and Microsoft's endorsement of HD DVD, in addition to the support already expressed by major Hollywood studios, Japanese and international content holders and disc replicators, will add to the momentum of support that is powering acceptance of HD DVD as the format of choice for next generation HD applications.

The HD DVD format is the family of advanced optical discs defined by the DVD Forum, an international body with some 240 member companies, including major Hollywood studios and leaders from the CE and IT industries. Disc specifications approved by the Forum are arrived at as a result of open and extensive discussions and technical evaluations.

HD DVD features compatibility with current DVD, and to this adds advanced features, including cost-efficient manufacturing of discs and hardware, superior interactivity through the adoption of iHD software, and the ability to meet rapidly increasing consumer demand for high definition DVD content on large-sized flat panel TVs and PCs.

HD DVD also realizes Hollywood's most pressing concern: robust content protection – essential for content holders – thereby supporting healthy growth of the content industry.

Toshiba will continue to promote accelerated adoption of the HD DVD format and collaboration with interested companies.

ANNEX

1) About DVD Forum
Note: The DVD Forum's major mission is to define DVD format specifications, promote exchanges and the dissemination of ideas and information about the DVD format, and to encourage broad acceptance of DVD products on a worldwide basis, across the entertainment, consumer electronics and IT industries. Key issues, including the adoption of new DVD formats and related policy decisions, are determined by the Forum's Steering Committee.

As of September 2005, the Steering Committee members are: Hitachi, Ltd., IBM Corporation, Industrial and Technology Research Institute, Intel Corporation, LG Electronics Inc., Matsushita Electric Industrial Co. Ltd., Microsoft Corporation, Mitsubishi Electric Corporation, NEC Corporation, PIONEER CORPORATION, Royal Philips Electronics, SAMSUNG ELECTRONICS CO., LTD., SANYO Electric Co., Ltd., SHARP CORPORATION, Sony Corporation, THOMSON, Time Warner Inc., Toshiba Corporation, Victor Company of Japan, Limited, Walt Disney Pictures and Television

2) Some recent highlights related to HD DVD
September 27, 2005
Toshiba announces development of the world's first notebook PC integrating a slim-type HD DVD-ROM drive. Toshiba plans to commercialize the new PC by the beginning of 2006, initially in Japan.

September 26, 2005
Toshiba Samsung Storage Technology (TSST) announces commercialization of the world's first slim HD DVD drive for notebook PCs. TSST will start sample shipment of the drive by the end of the year.

September 21, 2005
Toshiba announces a 30GB dual-layer HD DVD-R (recordable) disc that extends the capacity for a write-once next generation DVD disc.

June 29, 2005
Several key manufacturers in the disc replication and equipment industry simultaneously confirm the manufacturability of HD DVD discs at high volumes, backing up their findings with tangible data proving production feasibility and realistic output levels.

June 8, 2005
Toshiba and three major manufacturers announce successful development of a prototype 15GB HD DVD-R disc, the write-once next generation DVD disc, that can be easily produced at high volume on standard DVD-Recordable production lines.

May 11, 2005
Toshiba announces two new HD DVD discs: a triple-layer HD DVD-ROM (read-only) disc with a data capacity of 45 gigabytes; and a double-sided, dual-layer hybrid ROM disc with a dual-layer HD DVD-ROM side and dual-layer DVD-ROM side that can store 30GB of high-definition content on the HD DVD-ROM side and 8.5GB of standard-definition content on the DVD-ROM dual layer side.