To: Manuel Vizcaya who wrote (49546 ) 6/20/2000 3:21:00 PM From: John Rieman Respond to of 50808
Sony worked with Western Digital on those hard drives. They must be planning to use it in their own PVR designs.....................westerndigital.com SONY AND WESTERN DIGITAL TO FORM STRATEGIC PARTNERSHIP TO CO-DEVELOP HARD DISK DRIVES FOR CONSUMER AV APPLICATIONS Integrates WD HDD development and high-volume manufacturing expertise with Sony?s AV technology; Major storage utilization required in non-PC market TOKYO, JAPAN and IRVINE, CA?December 15, 1998?Sony Corporation (NYSE: SNE) and Western Digital Corporation (NYSE: WDC) today announced that they will form a strategic partnership to co-develop a new hard disk drive (HDD) for consumer audio and video (AV) applications. As the first phase of the joint development, prototypes of the AV HDD will be developed and tested, for verification of basic technologies by the end of March 1999. From April 1999 onward, joint development is scheduled to continue for commercial applications of the AV HDD based on results of the first phase. Commercialization of the AV HDD is being targeted in the year 2000. With the advent of the digitization of broadcasting and communications, and the convergence of AV and information technology, it is expected that users will require an environment that will allow personal computers and various digital AV appliances to be interconnected and interoperated in an integrated home network system. The home network environment will need products such as home servers which are capable of securely storing large amounts of digital AV data received from digital broadcasting and the Internet. The home server will play an important role in the home network and will enable users to enjoy quick and easy access of digital content through appliances such as televisions or personal computers. In order to realize new products such as home servers, Sony and Western Digital have recognized the need for a new HDD architecture with the ability to handle multiple streams of AV data?along with the large storage capacity, high transfer rates and data protection features of today?s rotating magnetic storage devices. The collaborative agreement calls for Sony to develop the interface, architecture, and protocol for AV applications, while Western Digital will be responsible for developing the mechanical and electronic components and firmware of the HDD. Each company will contribute their respective expertise to the development effort. Sony will contribute in the areas of digital video and audio processing, and Western Digital in HDD design and manufacturing technology. Commenting on today?s announcement, Yoshihide Nakamura, corporate vice president and president of Sony?s Computer Peripherals & Components Company, said, "We are looking forward to working with Western Digital, a leader in the design and manufacture of high quality hard disk drives. Our partnership with Western Digital is a strategic one, and it allows us to combine their hard disk drive technology with our expertise in AV technology. We hope to provide users with various new possibilities and forms of enjoyment in AV home entertainment." Chuck Haggerty, chairman, president and chief executive officer of Western Digital, stated: "The time has arrived for the practical application of hard disk drive technology in consumer electronics, transcending traditional HDD markets. The demand for storage capacity and performance consumption in these markets will be huge. We are very pleased to be partnering with Sony-- the consumer electronics industry leader-- and we are excited about a collaborative and strategic relationship with them." Sony Corporation is a leading manufacturer of audio, video, communications and information technology products for the consumer and professional markets. Its music, pictures and computer entertainment operations make Sony one of the most comprehensive entertainment companies in the world. Sony recorded consolidated annual sales of over $51 billion for the fiscal year ended March 31, 1998, and it employs 173,000 people worldwide. Sony Corporation?s home page URL is sony.com . Western Digital Corporation is a leader in information storage products and services. The Company designs and manufactures hard drives for personal and enterprise-wide computing?and in the future for digital audio/video applications--and markets them to leading systems manufacturers and selected resellers under the Western Digital brand name. Western Digital is the first Fortune 500, multinational company to have been awarded company-wide ISO 9001 registration, linking all Western Digital organizations with a consistent global standard for quality processes. The company was founded in 1970 and is noted for its storage and end-market systems-level design knowledge. The Company?s World Wide Web home page can be found at westerndigital.com . This release contains forward looking statements, including statements relating to the development of a hard disk drive for consumer audio and video application, the commercialization of such a drive, and the future consumer demand for such a drive. The forward looking statements are based on current management expectations, and actual results may differ materially as a result of several factors, including: successful development of such a drive, the successful commercialization of such a drive, the actual consumer demand for such a drive; possible development of other competing consumer storage technologies; and other factors discussed in Western Digital's Form 10-K for its most recent fiscal year, its Form 10-Q for the first quarter of its current fiscal year, and its other SEC filings. Western Digital undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of such statements. Western Digital is a registered trademark of Western Digital Corporation. All other brand and product names mentioned herein are the property of their respective companies. This page was last modified on March 09, 1999.