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Shipment of DVD Movies and Music Videos Double in Third Quarter 2002; Holiday Season Anticipated to be Biggest Yet for the Entertainment Format with $4.3 Billion Worth of Box Office Hits Available on DVD

According to figures compiled by Ernst & Young on behalf of the DEG, more than 1.1 billion DVD movies and music videos have shipped since the format's inception in 1997.

       DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER -- NORTH AMERICA
                             (in millions)

QUARTER          2002    2001    2000    1999    1998    1997

1st Quarter     120.1    69.2    29.0    11.1     3.3     N/A

2nd Quarter     152.2    81.7    33.2    13.9     4.1     N/A

3rd Quarter     153.3    75.9    42.7    29.0     5.9     2.3

4th Quarter       N/A   137.6    77.5    44.0     11.8    3.2

YEARLY TOTAL    425.6   364.4   182.4    98.0     25.1    5.5

TOTAL           1,101
(since launch) (a/o 9/30/02)

Figures compiled by Ernst & Young on behalf of the DVD Entertainment
Group

"The record pace continues for DVD as we move into the all-important fourth quarter," said Bob Chapek, president, DVD Entertainment Group and president, Buena Vista Home Entertainment. "Consumers have been craving entertainment for the whole family on DVD, from their favorite classics to the recent box office blockbusters. This holiday season, we are anticipating stellar sales for the industry as the adoption of the format continues its penetration into mainstream households."

More than 18,000 titles are currently available with approximately 100 new DVD movies and music videos released each week. The cumulative box office gross of the releases for the fourth quarter 2002 is more than $4.3 billion, up 34 percent from last year. This is the largest box office gross of DVD releases for any quarter since the format was introduced in 1997.

          TOP BOX-OFFICE HITS COMING TO DVD FOR THE HOLIDAYS
                       (in order of street date)

TITLE                        STUDIO                        STREET DATE

"The Lord of the Rings:      New Line Home Entertainment     8/6/02
The Fellowship of the Ring"

"We Were Soldiers"           Paramount Home Entertainment    8/20/02

"The Rookie"                 Buena Vista Home Entertainment  8/27/02

"Changing Lanes"             Paramount Home Entertainment    9/10/02

"Monsters, Inc."             Buena Vista Home Entertainment  9/17/02

"Panic Room"                 Columbia TriStar Home           9/17/02
                             Entertainment

"Grease"                     Paramount Home Entertainment    9/17/02

"The Scorpion King"          Universal Studios Home Video    10/1/02

"Beauty and the Beast:       Buena Vista Home Entertainment  10/8/02
Special Edition"

"Scooby Doo"                 Warner Home Video               10/11/02

"Insomnia"                   Warner Home Video               10/15/02

"Mr. Deeds"                  Columbia TriStar Home           10/22/02
                             Entertainment

"E.T.: The Extra-            Universal Studios Home Video    10/22/02
Terrestrial"

James Bond Collection        MGM Home Entertainment          10/22/02

"Sum of All Fears"           Paramount Home Entertainment    10/29/02

"Spider-Man"                 Columbia TriStar Home           11/1/02
                             Entertainment

"Divine Secrets of the       Warner Home Video               11/5/02
Ya-Ya Sisterhood"

"Dr. Seuss: Special          Universal Studios Home Video    11/5/02
Edition (reissue)"

"The Lord of the Rings:      New Line Home Entertainment     11/12/02
The Fellowship of the Ring"
Special Extended Edition

"Star Wars -- Episode II:    Twentieth Century Fox Home      11/12/02
The Attack of the Clones"    Entertainment

"Spirit: Stallion of         DreamWorks Home Entertainment   11/19/02
the Cimarron"

"Men in Black II"            Columbia TriStar Home           11/26/02
                             Entertainment

"Ice Age"                    Twentieth Century Fox           11/26/02
                             Home Entertainment

"Austin Powers in            New Line Home Entertainment     12/3/02
Goldmember"

"Lilo & Stich"               Buena Vista Home Entertainment  12/3/02

"Stuart Little 2"            Columbia TriStar Home           12/10/02
                             Entertainment

"Minority Report"            DreamWorks Home Entertainment   12/17/02

"Back to the Future          Columbia TriStar Home           12/17/02
Trilogy"                     Entertainment

Hardware Shipments On Track for Record Year

In the third quarter 2002, 5.4 million DVD players shipped to retail, a 31 percent increase over the same period last year, according to the DEG. The total players shipped since the format's launch has reached 45.4 million. The DEG estimates that the industry is on track to ship more than 20 million DVD players this year alone.

                U.S. DVD HARDWARE SHIPMENTS BY QUARTER(a)

QUARTER        2002      2001      2000      1999      1998     1997

1st Quarter 3,500,000  2,800,000  1,400,000   400,000  100,000     N/A
                                                              (launch)

2nd Quarter 4,600,000  2,500,000  1,700,000   900,000  170,000  90,000

3rd Quarter 5,400,000  4,100,000  2,700,000 1,100,000  280,000  90,000

4th Quarter       N/A  7,300,000  3,900,000 1,700,000  530,000 140,000

YEARLY
TOTAL      13,500,000 16,700,000 9,700,000 4,100,000 1,080,000 320,000

TOTAL      45,400,000
(since
 launch) (a/o 9/30/02)

(a) Includes set-top and portable DVD players, Home Theater in Box
systems, TV/DVD and DVD/VCR combination players

According to the DVD Entertainment Group

Additionally, according to figures compiled by the DEG based on retail and manufacturer data, DVD players sold through to U.S. consumers have reached 43.7 million, with the format currently in nearly 33 million households (adjusting for homes owning two or more DVD players).

"With the wide variety of players and the growth of game systems with DVD capability, the number of homes which will be able to enjoy the format should reach more than half of all US homes this year," said Gary Bauhard, Marketing Manager -- DVD, Pioneer Electronics and vice president, DEG. "We anticipate that this diversity in both price and functionality will fuel a trend toward players for every television in the home, particularly with DVD's natural popularity this holiday season."

There are now more than 250 DVD player models marketed under 60 different consumer electronics brands. DVD players are available at most consumer electronics retailers and have become the focal point of the home theater category. There are also an expanding variety of DVD players available, with Home Theater in a Box systems, car players, DVD-Video/Audio combination players, portables, recordable units and TV/DVD combination systems all growing in popularity.

The DVD Entertainment Group is a Los Angeles-based, industry-funded nonprofit corporation that advocates and promotes the benefits of DVD-Video and DVD-Audio, and provides updated information to the media and the retail trade about DVD players and titles. The DEG also provides a platform where home entertainment companies come together to analyze, evaluate and discuss current, emerging and future technologies and formats for the home entertainment market.

Regular members of the DVD Entertainment Group are 5.1 Entertainment Group, Artisan Home Entertainment, BMG Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, Funai Corporation, HBO Home Video, Image Entertainment, JVC Company of America, MGM Home Entertainment, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Consumer Electronics, Pioneer Electronics (USA), Sony Electronics, Sony Music Entertainment, Sony Wonder, Thomson Multimedia, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video, USA Home Entertainment, Warner Home Video and Warner Music Group.

Associate members are Alta Resources, Blink Digital, Cinram, Clear-Vu Products, Crest National, Deluxe Digital Services, Digital Video Compression Corporation, InterActual Technologies, Media Copy, Panasonic Disc Services, PlanetWeb, Sonopress, Sony Disc Manufacturing, Sony Pictures Digital Authoring Center and Technicolor.

Interested consumers can reach the DVD Entertainment Group at 310/967-2953, via e-mail at getinfo@dvdinformation.com or through its web site at www.dvdinformation.com.

Contact:

     for DVD Entertainment Group
     Amy Jo Donner, 310/967-2960