HD DVD Not Dead yet: Lower Prices, New Marketing, Strong Q4 Sales

Toshiba America Consumer Products, L.L.C. ("Toshiba") today announced that it is stepping up its successful marketing campaign for HD DVD as it experienced record-breaking unit sales in the fourth quarter of 2007. Major initiatives, including joint advertising campaigns with studios and extended pricing strategies will begin in mid- January and are designed to spotlight the superior benefits of HD DVD as well as the benefits HD DVD brings to a consumer's current DVD library by upconverting standard DVDs via the HDMI(TM) output to near high definition picture quality.

As Toshiba achieved the #1 sales volume in the next generation DVD category with an approximately 50 percent market share in 2007, HD DVD is proven to be the format of choice for consumers. Coupled with an 80 percent plus market share of all next generation DVD equipped notebooks for the 4th quarter 2007, the HD DVD format has already paved the way to a high definition digital AV solution by eliminating the boundaries between the consumer's living room and on the go.

HD DVD not only creates the ultimate high definition entertainment experience, leveraging all of the promise of the format such as superior audio/video performance, Web-enabled network capabilities and advanced interactive features - it also has a high-level of compatibility with DVD. With DVD upconversion via the HDMI output, HD DVD players instantly make a movie lover's existing DVD library look better than ever.

New Marketing Strategy for Mass Market Adoption
Taking the holiday season sales based on promotional prices into full consideration, these new manufacturer's suggested retail prices (MSRP) are designed to meet the potential demand for HD DVD players in the U.S. market. Effective on January 13, 2008 the MSRP of the entry-model HD-A3 will be $149.99, the HD-A30, with 1080p output, $199.99, and the high-end HD-A35, $299.99.

Extended Advertising Campaign
Toshiba plans to execute an extended advertising campaign that will further enhance consumer awareness of the benefits of HD DVD and drive sales to retail among potential consumers. Advertising strategies will include television, print and online media channels. Toshiba will also work with its dealers and studio partners on joint marketing and promotional initiatives to promote HD DVD. Current promotions include "The Perfect HD Offer" - a mail-in offer allowing consumers to select five HD DVD titles for free from a selection of 15 with the purchase of any Toshiba HD DVD player.