DVD Geared for Biggest Fourth Quarter Ever; More Than Two Billion DVD Titles Shipped Since Launch; DVD Players on Target to Be in More Than Half of U.S. Homes by Year-End

LOS ANGELES--()--Oct. 21, 2003--DVD title shipments continue at a record pace as the industry ramps up for the holiday selling season. In the third quarter of 2003, nearly 215 million DVD software units shipped to retail, a 40 percent increase over the same period last year. According to figures compiled by Ernst & Young on behalf of the DEG: Digital Entertainment Group (DEG), the total number of units shipped in North America has reached more than two billion since the DVD format's launch in 1997.
        NORTH AMERICAN DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER
                             (in millions)

QUARTER            1997  1998   1999   2000   2001     2002      2003

1st Quarter         N/A   3.3   11.1   29.0   69.2    120.1     231.7
2nd Quarter         N/A   4.1   13.9   33.2   81.7    152.2     195.5
3rd Quarter         2.3   5.9   29.0   42.7   75.9    153.3     214.6
4th Quarter         3.2  11.8   44.0   77.5  137.6    259.4       ---
YEARLY TOTAL        5.5  25.1   98.0  182.4  364.4    685.0     641.8

TOTAL                    30.6  128.6  311.0  675.4  1,360.4   2,002.2
                                                                 (a/o
                                                              9/30/03)

Figures compiled by Ernst & Young on behalf of the DEG: Digital
Entertainment Group

"The fourth quarter of this year looks to be shaping up as one of the strongest in this industry's history. Not only has the hardware penetration grown beyond our expectations, the lineup and diversity of the software titles being offered will prove to make this year end a phenomenal success," said Bob Chapek, president of Buena Vista Home Entertainment and president of DEG.

“For the past few years, manufacturers have adopted a strategy of offering consumers a wide array of choices when it comes to purchasing DVD players and this appears to be paying off”

The fourth quarter holiday selling season is anticipated to be the biggest yet for the format, supported by $3.8 billion worth of box office hits being released on DVD. In addition, other genres such as episodic TV, family movies, classics and music titles continue to fuel DVD sales. More than 26,000 titles are currently available.

             TOP DVD-VIDEO TITLES COMING FOR THE HOLIDAYS
                       (in order of street date)

              TITLE                         STUDIO            STREET
                                                                DATE
Chicago                           Buena Vista Home
                                   Entertainment              8/19/03
Pat Benetar: Choice Cuts          EMI Recorded Music          8/19/03
Prince: Live at the Aladdin in    Universal Music Group
 Las Vegas                                                    8/19/03
Lord of the Rings: The Two        New Line Home
 Towers                            Entertainment              8/26/03
John Denver and the Muppets:      Columbia TriStar Home
 Rocky Mountain Holiday            Entertainment              8/26/03
Simpsons: Season 3                Twentieth Century Fox Home
                                   Entertainment              8/26/03
SPIN CITY: Michael J. Fox - His   DreamWorks Home
 All Time Favorites Volume 1 &     Entertainment
 Volume 2
Identity                          Columbia TriStar Home
                                   Entertainment               9/2/03
Man Apart                         New Line Home
                                   Entertainment               9/2/03
Malibu's Most Wanted              Warner Home Video            9/9/03
The Core                          Paramount Home
                                   Entertainment               9/9/03
Sleeping Beauty                   Buena Vista Home
                                   Entertainment               9/9/03
Anger Management                  Columbia TriStar Home
                                   Entertainment              9/16/03
Monty Python & the Holy Grail (2- Columbia TriStar Home
 Disc Collector's Edition)         Entertainment              9/16/03
24: Season 2                      Twentieth Century Fox Home
                                   Entertainment              9/23/03
Daddy Day Care                    Columbia TriStar Home
                                   Entertainment              9/23/03
Holes                             Buena Vista Home
                                   Entertainment              9/23/03
Justin Timberlake: Justified      BMG Entertainment
 The Videos)                                                  9/23/03
Smallville: Complete 1st Season   Warner Home Video           9/23/03
2 Fast 2 Furious                  Universal Studios Home
                                   Video                      9/30/03
Bend It Like Beckham              Twentieth Century Fox Home
                                   Entertainment              9/30/03
Chemical Brothers: The Singles    EMI Recorded Music
 93-03                                                        9/30/03
Dreamcatcher                      Warner Home Video           9/30/03
The Osbournes: 2nd Season         Buena Vista Home
                                   Entertainment              9/30/03
Scarface (Anniversary Edition)    Universal Studios Home
                                   Video                      9/30/03
Swan Lake                         Artisan Home Entertainment  9/30/03
The Christmas Story (2-Disc       Warner Home Video
 Special Edition)                                             10/7/03
Hollywood Homicide                Columbia TriStar Home
                                   Entertainment              10/7/03
Italian Job                       Paramount Home
                                   Entertainment              10/7/03
Lion King                         Buena Vista Home
                                   Entertainment              10/7/03
Chicago: Live By Request          Warner Music Group         10/14/03
Fleetwood Mac: Tango in the Night Warner Music Group         10/14/03
Matrix: Reloaded                  Warner Home Video          10/14/03
Charlie's Angels: Full Throttle   Columbia TriStar Home
                                   Entertainment             10/21/03
28 Days Later                     Twentieth Century Fox Home
                                   Entertainment             10/21/03
Adventures of Indiana Jones       Paramount Home
                                   Entertainment             10/21/03
Inside Hip Hop                    Image Entertainment        10/21/03
Pink Floyd: Live at Pompeii       Universal Music Group      10/21/03
Steven Spielberg presents TAKEN   DreamWorks Home
                                   Entertainment             10/21/03
The Hulk                          Universal Studios Home
                                   Video                     10/28/03
In Time: The Best of R.E.M.       Warner Music Group         10/28/03
Looney Tunes - The Golden         Warner Home Video
 Collection                                                  10/28/03
Millennium Actress                DreamWorks Home
                                   Entertainment             10/28/03
The Sopranos: Complete Fourth     HBO Video
 Season                                                      10/28/03
Dumb & Dumberer: When Harry Met   New Line Home
 Lloyd                             Entertainment              11/4/03
Finding Nemo                      Buena Vista Home
                                   Entertainment              11/4/03
Friends: Complete 5th Season      Warner Home Video           11/4/03
The Honeymooners: Classic 39      Paramount Home
 Episodes                          Entertainment              11/4/03
Legally Blonde 2: Red, White &    MGM Home Entertainment
 Blond                                                        11/4/03
Tenacious D: The Complete Master  Sony Music Entertainment
 Works                                                        11/4/03
Star Trek Deep Space Nine:        Paramount Home
 Complete 6th Season               Entertainment              11/4/03
To Have and Have Not              Warner Home Video           11/4/03
The X-Files: Complete 8th Season  Twentieth Century Fox Home
                                   Entertainment              11/4/03
Mudvayne: Live                    Sony Music Entertainment   11/11/03
Terminator 3: Rise of the         Warner Home Video
 Machines                                                    11/11/03
Ben Harper: Live at Hollywood     EMI Recorded Music
 Bowl                                                        11/18/03
James Bond 007 Special Edition,   MGM Home Entertainment
 Vol. 2                                                      11/18/03
Lara Croft Tomb Raider: The       Paramount Home
 Cradle of Life                    Entertainment             11/18/03
Lord of the Rings: The Two Towers New Line Home
 (Platinum Series Special          Entertainment
 Extended Edition)                                           11/18/03
Phantom Planet: Live              Sony Music Entertainment   11/18/03
Rescue Heroes                     Artisan Home Entertainment 11/18/03
Santa Clause 2                    Buena Vista Home
                                   Entertainment             11/18/03
Sinbad: Legend of the Seven Seas  DreamWorks Home
                                   Entertainment             11/18/03
Bruce Almighty                    Universal Studios Home
                                   Video                     11/25/03
The Reverend Horton Heat          Image Entertainment        11/25/03
X2: X-Men United                  Twentieth Century Fox Home
                                   Entertainment             11/25/03
Hot Wheels                        Artisan Home Entertainment   12/203
Pirates of the Caribbean          Buena Vista Home
                                   Entertainment              12/2/03
Mickey Mouse in Living Color      Buena Vista Home
 Part 2                            Entertainment              12/2/03
Bad Boys II                       Columbia TriStar Home
                                   Entertainment              12/9/03
Buffy the Vampire Slayer:         Twentieth Century Fox Home
 Complete Fourth Season            Entertainment              12/9/03
Dirty Dancing: Ultimate Edition   Artisan Home Entertainment  12/9/03
Seabiscuit                        Universal Studios Home
                                   Video                     12/16/03
Freaky Friday                     Buena Vista Home
                                   Entertainment             12/16/03
League of Extraordinary           Twentieth Century Fox Home
 Gentlemen                         Entertainment             12/16/03
Rugrats Go Wild!                  Paramount Home
                                   Entertainment             12/16/03

In addition, a variety of DVD-Audio titles are available in time for holiday gift giving. More than 350 titles are available, all of which can be played on a current DVD player, or played in a DVD-Audio/Video model to experience the Advanced Resolution sound. As with DVD Music Video, DVD-Audio offers fans "backstage access" to bonus features such as additional footage, lyrics, exclusive photos and other extras.

             TOP DVD-AUDIO TITLES COMING FOR THE HOLIDAYS
                       (in order of street date)

              TITLE                     MUSIC COMPANY         STREET
                                                                DATE
Big Phat Band: XXL                Silverline Records          9/23/03
Diana Krall: Love Scenes          Universal Music Group       9/23/03
Flaming Lips: Yoshimi Battles     Warner Music Group
 the Pink Robots                                              9/23/03
Sheryl Crow: The Globe Sessions   Universal Music Group       9/23/03
Sting: Brand New Day              Universal Music Group       9/23/03
3 Doors Down: Away From the Sun   Universal Music Group       10/7/03
Megadeth: Peace Sells... But      DTS Entertainment
 Who's Buying                                                10/14/03
AIX All Stars: Surrounded BY      Image Entertainment
 Christmas                                                   10/28/03
Mike Oldfield: Tubular Bells      Warner Music Group         10/28/03
Ray Brown Trio: Soular Energy     Image Entertainment        10/28/03
Alicia Keys: Songs in A Minor     Universal Music Group       11/4/03
Everclear: So Much for the        DTS Entertainment
 Afterglow                                                    11/4/03
Foo Fighters: One By One          Universal Music Group       11/4/03
Queensryche: Tribe                Silverline Records          11/4/03
Rod Stewart: It Had to Be You     Universal Music Group       11/4/03
Medeschi Martin & Wood:           DTS Entertainment
 Uninvisible                                                  11/4/03
Robert Cray Band: Time Will Tell  Silverline Records         11/18/03

MORE THAN 73 MILLION DVD PLAYERS SOLD IN THE U.S.

According to figures compiled by the DEG based on data from the Consumer Electronics Association (CEA), retailers and manufacturers, more than 6.4 million DVD players were sold to U.S. consumers in the third quarter 2003, a 36.5 percent increase over the same period last year. More than 73 million DVD players have sold since launch, bringing the number of DVD households to over 48 million (adjusting for households with more than one player). Due to the variety of players available, from combination TV/DVD and DVD-Audio/Video players to recordable, portable and car models, approximately 34 percent of DVD owners now have more than one player.

           U.S. DVD HARDWARE SALES BY QUARTER (in millions)

QUARTER            1997  1998   1999   2000    2001    2002      2003

1st Quarter        .030  .094   .358  1.350   2.220   3.565     4.858
2nd Quarter        .079  .149   .611  1.435   2.404   3.750     5.506
3rd Quarter        .077  .244   .880  1.550   2.537   4.740     6.470
4th Quarter        .119  .459  1.701  5.542   9.501  13.058       ---
YEARLY TOTAL       .305  .946  3.550  9.877  16.662  25.113    16.834

TOTAL                                                          73.287
(since launch)                                                   (a/o
                                                              9/30/03)

Includes set-top and portable DVD players, Home Theater in a Box
systems, TV/DVD and DVD/VCR combination players. DEG: Digital 
Entertainment Group

"For the past few years, manufacturers have adopted a strategy of offering consumers a wide array of choices when it comes to purchasing DVD players and this appears to be paying off," said Joe Stinziano, general manager, home audio/video, Sony Electronics and vice president, DEG. "As DVD recordable products continue to gain momentum, we're also seeing a marked rise in the purchase of second-room units, many of which are either combination or multi-disc/carousel models."

The DEG: Digital Entertainment Group (formerly the DVD Entertainment Group) continues to advocate and promote the many benefits associated with DVD while providing updated information regarding the format to both the media and the retail trade. As an industry-funded, nonprofit organization, the DEG offers opportunities for member companies to engage in ongoing discussions concerning various issues and opportunities, which relate to other new digital technologies that may emerge in the future.

Regular members of the DEG are Artisan Home Entertainment, Buena Vista Home Entertainment, Columbia TriStar Home Entertainment, DreamWorks Home Entertainment, DTS Entertainment, EMI Recorded Music, HBO 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, Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Video and Warner Home Video.

Associate members are Alta Resources, Blink Digital, Clear-Vu Products, Crest National, Deluxe Media Services, Digital Video Compression Corporation, InterActual Technologies, Macrovision, Media Copy, Metropolis DVD, MX Entertainment, Muze, Sonopress, Sony Disc Manufacturing and Technicolor.

Interested consumers can reach the DEG at 310-967-2953, via e-mail at getinfo@digitalentertainmentinfo.com or through its Web site at www.digitalentertainmentinfo.com.

Contacts

Digital Entertainment Group
Emily Bradley, 310-967-2953