Strong Consumer Demand for High-Definition Television Fuels Thomson HDTV Expansion Plans and 2004 Investments

INDIANAPOLIS--(BUSINESS WIRE)--Jan. 16, 2004--

Positive Retailer Reaction to Award-winning Thin, Flat, DLP Projection Technologies Unveiled at Annual Consumer Electronics Show; Thomson Renews Indianapolis Sponsorship Commitment to RCA Dome

“the products presented at the Thomson display were the best products show in the history of Thomson. The thin Profiles HDTV DLP was absolutely stunning.”

With demand for high-definition television expected to drive more than five million consumers into stores this year to buy HDTV products, Thomson (Euronext Paris: 18453) (NYSE:TMS) has stepped up its investment plans for space-saving, rear-projection Digital Light Processing (DLP(TM)) HDTV with the coming 2004 introduction of RCA Scenium Profiles HDTV - the ultra-thin projection television that is less than seven inches "thin." Thomson has invested more than $25 million to deliver DLP HDTV to the market, with an additional $35 million investment planned to accelerate new product introductions in the Americas and in Europe this year.

"Having just returned from the annual Consumer Electronics Show, we are delighted with the response from retailers and the news media to the RCA lineup of high-definition DLP HDTV products. Our current line of two models will expand fourfold in 2004 to eight models. HDTV powered by the Digital Light Processing microchip is an extremely reliable technology that delivers clear, crisp color images even in a bright room, so the television can be viewed in any room setting,"said Michael D. O'Hara, Executive Vice President Worldwide Marketing & Sales for Thomson's Consumer Products business.

At CES, Thomson unveiled Profiles HDTV -the new RCA Scenium ultra-thin Digital Cable Ready integrated rear-projection DLP HDTV Sets featuring slim cabinets less than seven inches deep and so light in weight they can be easily mounted on a wall. The sleek new designs were displayed to U.S. customers for the first time last week, including 50-inch and 61-inch models that will be available at retail stores later in 2004 and a stunning mural sized 70-inch widescreen DLP HDTV slated for early 2005 introduction that will transform the family room into a virtual wall of entertainment.

Profiles HDTV Named Editor's Choice & Best Buzz of CES

Nominated for several "Best of CES" awards, Thomson's Profiles HDTV is recognized with an "Editor's Choice" award from Popular Mechanics magazine for "the best new stuff at the 2004 Consumer Electronics Show in Glitter Gulch." RCA Scenium Profiles HDTV was also named a "Pick of the Day" by CNET.

The engineering marvel of Profiles HDTV caught the attention of Insight Media, publisher of Projection Monthly and Microdisplay Report. On Wednesday, Insight awarded the ultra-thin RCA Scenium Profiles HDTV with its Consumer Electronics Show "Best Buzz" award for the 6.85" slim cabinet with cutting-edge rear-projection technology.

"Thomson/RCA delivered by showing off its 61-inch RPTV that measures only 6.85 inches deep. This depth is a major breakthrough in technology and creates a new class of rear projection television," noted Insight.

The new ultra-thin RCA Scenium HDTV Sets feature integrated ATSC tuner/decoder and Digital Cable Ready circuitry designed to capture the striking realism of HDTV broadcasts aired by terrestrial broadcasters and carried by cable operators to consumers.

Retailers Excited About Thomson Innovations

Thomson's new product display at the 2004 Consumer Electronics Show "was the most spectacular display of CE products I'd ever seen. It took Thomson's image to a whole new level," said David Robison, Chief Executive Officer of RCA distributor DSI Systems, Inc., which serves thousands of RCA retailer accounts. "As I walked the show floor, LCD seemed to be the technology statement in every booth. Thomson had a nice LCD display but clearly the technology statement at Thomson was DLP."

Best Buy is America's largest consumer electronics retailer, and TV Business Team Leader Lee Simonson says that "RCA's thin DLP is one of the most exciting TV products I have ever seen. We are anxiously awaiting its market arrival and fully expect our customers to be as equally impressed."

Wisconsin-based retailer American TV merchandising Vice President Joe Mattioli commented that "the products presented at the Thomson display were the best products show in the history of Thomson. The thin Profiles HDTV DLP was absolutely stunning." American is a full-service retailer of electronics, appliances, and furniture with stores in Wisconsin, Illinois, Iowa, and Michigan.

RCA Scenium Profiles HDTV products will be available later this fall.

New Hard-Disc mp3 Audio, Accessory Options, and RCA Telephones Coming Soon from Thomson

Just weeks after the RCA LYRA Audio/Video Jukebox was named one of the top tech innovations of 2003, Thomson has announced five new portable mp3 players - including miniature 40GB and 20GB jukebox players that offer storage for thousands of songs, FM radio recording convenience in a package smaller than a deck of cards.

At the Consumer Electronics Show, Thomson introduced a wide range of new accessory products designed to enhance consumers' home entertainment and computing systems. The offerings, which include the first accessory products from the recently acquired Recoton portfolio, fall under eight powerful brand names: RCA, Recoton, Acoustic Research, Jensen, Ambico, Discwasher, Advent and Spikemaster. The assortment of products ranges from remote controls, computing, reception, connectivity and media imaging to product enhancement accessories.

Thomson will also break new ground in 2004 with the launch of the ATLINKS division's first line of RCA-branded telephone products, designed especially for the growing small office/home office marketplace. The RCA Executive Series consists of four new telephone models including a modern-styled silver and black Conference Phone, and three innovative multi-line Speakerphones.

With Colts in Playoffs, Thomson Extends RCA Dome Sponsorship

Thomson also announced today that it intends to accept a five year option to extend its decade-long naming rights sponsorship for Indianapolis' premiere sports and convention facility - the RCA Dome. Home to the Indianapolis Colts, which is battling for a spot in the upcoming Super Bowl, the RCA Dome has been home to several regional and final NCAA college basketball tournaments and is part of the Indiana Convention Center complex in downtown Indianapolis.

Thomson accepted the city's offer for naming rights ten years ago, in a revenue generating move that insured a high-profile name for the domed stadium while providing the final element of funding for Victory Field (home of the Indianapolis Indians minor league baseball team and located one block from Indiana Convention Center and RCA Dome.)

"With high hopes for a Colts victory this weekend, we at Thomson are delighted to accept a five-year renewal option in our naming sponsorship agreement at the RCA Dome. We believe the corporate sponsorship has been very good for the RCA brand and also for the Indianapolis area," O'Hara said.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic, business, competitive market and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson

Thomson (Euronext Paris: 18453; NYSE:TMS) provides end-to-end solutions (technologies, equipment and services) to the entertainment industries. To advance and enable the digital media transition, Thomson has four principal divisions: Content and Networks, Consumer Products, Components, and Licensing. The company distributes its products under the Technicolor, Grass Valley, THOMSON and RCA brand names. For more information: www.thomson.net

Thomson's Consumer Products division is represented by a broad range of home entertainment products, marketed primarily under the RCA brand in the Americas and under the THOMSON brand in Europe. The division comprises Consumer Mainstream (TV, home audio and video), Consumer Essential (accessories, portable audio and video, communication products) and Consumer Product Services. The company's most advanced consumer products are sold under the Scenium banner, emphasizing superior technology and elegant design. For more information: www.rca.com.