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PMA PRESS CONFERENCE SPEECH


Las Vegas, NV,Mar. 08, 2007 -

( Steve Haber)

Good morning everyone and welcome.

 

I truly appreciate all of you waking up

so early to join us here today.

 

As your host for today’s event,

I’m proud to say we have a lot of news

to share.

 

Sony's DI business is heading in an

exciting direction.

 

We’re delivering a strong message at the show this year.

 

Quite simply,

we aim to give consumers

“the world’s most innovative digital imaging experience.”

 

From digital photography to video,

we’re delivering products and services in a way that only Sony can.

 

And this experience will encompass the entire DI eco-system from image capture to viewing and sharing.

 

 

 

This year,

Sony will make

even bigger strides in leading the industry’s transition to

high definition.

 

Building on our legacy in

HD entertainment,

Sony is uniquely positioned to bring personal content into the living room with the same quality you’ve come to expect from the industry’s leader.

 

And beyond the

living room,

we give you the ability to share actual photos,

to put them in picture frames,

greeting cards and albums.

 

To that end,

we have some exciting new

print solutions to tell you about.

 

But first,

I’d like to take a moment to acknowledge our special guests from Tokyo.

 

As I say your name,

please stand...

 

Join me in giving a warm welcome to

Mr. Shi-geki Ishizuka,

the president of the Sony Corporation’s Digital Imaging Business Group.

 

Ishizuka-san is setting the vision and leading Sony’s digital imaging business from a global perspective.

 

Also,

please welcome Ichiro Takagi,

the Deputy President of Sony Corporation’s

Digital Imaging Business Group.

 

And,

Mr. Toru Katsumoto.

 

Katsumoto-san is the head of the Sony Corporation’s

AMC Division in the Digital Imaging Business Group.

 

And,  Tiger Imamura.

 

Imamura-san is the Head of the

Personal Imaging Division in the

Digital Imaging Group in Tokyo.

 

And last but not least,

Mr. Nobu Kurita,

Executive

Vice President,

Sony Electronics Products Group.

 

Thank you all for joining us today.

 

 

 

Today Phil Lubell,

director of

product marketing for our digital camera and printer business,

is going to tell you about what’s happening here

in the U-S.

 

He’ll review the products that were announced last week,

as well as introduce a few new surprises.

 

And,

Katsumoto-san will give us a glimpse into the future of Alpha.

 

To kick things off,

I would like to ask

Ishizuka-san to come to the stage and share Sony’s

global vision for digital imaging.

 

*  *  *

 

 

j

Ishizuka-san

»

Ishizuka:

Thanks,  Steve.

 

Good morning,

ladies and gentlemen.

 

Since I joined Sony Corporation,

I have been involved in the development of a number of camcorder and digital still camera products,

and effective November last year,

I was assigned to be president of the Digital Imaging Business Group --

the group which handles Handycam camcorders,

Cyber-shot digital

still cameras,

α (Alpha) digital SLR,

printers and other.

 

With a vast product portfolio,

our group’s mission

is to continue delivering attractive products to our customers by creating and spreading a new digital imaging culture.

 

Now,

let me give you a brief overview of our digital imaging business.

 

Since we launched the first Handycam camcorder in 1985,

approximately

85 million units have been shipped,

during which time Sony has continuously launched innovative products.

 

Currently,

we are accelerating the shift to high definition or “HD” with various media formats such as DVD,

hard disk drives and DV tape,

enabling people to record definitive moments with higher picture quality.

 

In addition to driving “HD”,

we will be driving the shift of recording media towards

non-linear,

across all product categories including standard definition.

 

Our Cyber-shot business,

where we have shipped approximately

65 million units,

has so far been very good thanks to hit products such

as the T series renowned for its slim design & large LCD format.

 

The W series and

S series are enjoying enthusiastic customer approval because

of their ideal mix of

high performance and attractive pricing.

 

In our fiscal year 2006 which ends this month,

we are planning to ship approximately 17 million units,

10% more than the original estimate about a year ago.

 

Now,

most of the new Cyber-shot cameras we are launching this spring support “HD” output and are capable of displaying high definition photos on an HDTV --

we call this

“HD Photo Viewing.”

 

I believe many people here remember the

eye-opening experience when

TV became “HD.”

 

The same thrill is now coming to the world of still pictures.

 

Once you are fascinated

with the beauty of high definition,

you will never be able to go back to standard definition.

 

We are showing the difference between “HD” and “SD” in our booth.

 

Needless to say,

we never compromise on the basic camera requirements for Cyber-shot products and I am sure you can see how our products have evolved once you try them out in the booth.

 

We made the

long-awaited entry into the digital SLR business last year.

 

The first

α100 (Alpha) camera and its accessories were launched in July,

followed by additions of interchangeable lenses and other accessories

along the way.

 

The α100 (Alpha) has been

well-received

thanks to its advanced features such as its

in-camera

anti-shake function and anti-dust system.

 

But we know we need more products in order to establish our position in this market.

 

Therefore,

we plan to reinforce our product portfolio this year and on,

so that we can

live up to our customers’ expectations.

 

Toru Katsumoto who is heading our

α (Alpha) business will introduce more about our plan for

α (Alpha),

and in our booth,

you can also get a glimpse of the

great products waiting in the wings.

 

“Image Your Tomorrow”

is our vision for Sony’s digital imaging business.

 

* I often use this phrase thinking about what the future of digital imaging has in store for us.

 

This represents our passion to create a new digital imaging culture and develop attractive products that realize new values such as “HD” Photo Viewing,

“HD” slideshow with music,  and,

in the

not-too-distant future,

a fusion with wireless communication technology.

 

While nurturing the conventional pleasure of cameras and camcorders,

we will keep challenging new ways of enjoying digital lifestyles as never before.

 

Thank you very much,

and now back to Steve.

 

 

*  *  *

 

 

Steve Haber:

Thank you,

Ishizuka-san.

 

Here in the U.S. we're working hard to support our

global vision for creating a new photo imaging culture.

 

Now let’s move on

to what’s happening right here,  right now.

 

For that,

please welcome

Phil Lubell.

 

*  *  *

Phil Lubell:

Thanks,  Steve.

 

As Steve mentioned earlier,

and as you can see around you,

our theme is

“the world’s most innovative digital imaging experience.”

 

And we plan to give you that experience inside and outside of the home --

anytime,

anywhere.

 

I’ll start with what we’re bringing you

for when you’re on the go.

 

 

We’re very excited to announce today the new Cyber-shot G1 camera.

 

What’s really amazing is its unparalleled screen resolution --

nearly 1 million pixels packed into a

3 and a half inch screen.

 

Holding this camera in your hand is like holding an actual photograph.

 

It takes passing the camera around to whole new level.

 

You can see for yourself as you explore the show floor.

 

And,  it’s also a

photo album.

 

The 6-megapixel G1 is a camera you’d love to have on vacation because of its massive storage capacity --

2 GB of internal memory that lets you shoot up to 7,500 VGA-resolution pictures or 600

6-megapixel pictures.

 

The G1 is also Sony’s first step in a wireless photo sharing and archiving strategy.

 

We’ve now made it possible for you to send images to any D-L-N-A compatible device that you have in your home

such as a PC or

home server.

 

But it’s more than just archiving wirelessly.

 

You can share photos wirelessly in real time for a whole new “collaborative” experience with

peer-to-peer communication at the touch of a button.

 

And there’s more here to keep you working or playing wherever you go.

 

Last week we announced the world’s first USB portable power supply called

Energy Link.

 

It’s a power adaptor,

emergency portable power supply and battery charger.....

all in one.

 

It comes with two rechargeable

Cycle Energy batteries that charge in about 3.5 hours.

 

Starting this spring,

you’ll be able to use Energy Link with portable devices such as MP3 players,

mobile phones,

digital cameras,

laptops and other devices with USB connections.

 

This is great news for anyone who’s ever been stuck on an airplane,

taxi or the subway without power.

 

 

So as you can see,

innovation abounds outside the home.

 

But,

what are we doing in the home?

 

As you know,

we officially announced the bulk of our new cameras last week

and today you’ll have your first chance to put your hands on them.

 

One common theme that I hope you’ll notice is how closely these cameras fit into Sony’s overall

HD strategy.

 

We know that you don’t live your lives in standard def.

 

We believe you should be able to capture and share the significant moments of your life the way you see them --

in crisp resolution and outstanding color.

 

To that end,

we’re adding

high-definition output on most of our 2007 Cyber-shot models,

and providing an easy and direct connection to an HDTV via an

HD component cable.

 

You can enjoy and share images

in Full HD in your living room,

den or wherever your HDTV resides.

 

We are confident that customers will embrace

high-definition

photo viewing

as enthusiastically

as they’ve embraced HDTV.

 

It’s yet another way to take full advantage of a technology

that you either already own

or plan to have very soon.

 

 

When you think

about it,

there’s always been an inherent entertainment value in photo taking,

because we love to share our experience through photographs.

 

And with the advances in

home entertainment it’s only natural

that photos would become an important

part of it.

 

Most of you already know that Sony’s expertise in high definition covers a wide variety of products and services in both the professional and consumer arenas,

from the Hollywood community and the music industry to home audio video and Blu-ray,

to name a few.

 

Unlike other manufacturers,

we can leverage all of our company’s strengths for the ultimate

high-definition experience.

 

Because of this heritage,

we’ve secured our leadership position in digital imaging.

 

Look at our track record in camcorders.

 

We’ll be showing you an amazing seven consumer

high-definition models.

 

We’re clearly dominating this category.

 

Some people have even gone so far as to say that when it comes to high-def camcorders...

We Are The Industry.

 

Only Sony can bring innovation from the professional world

to the everyday consumer.

 

For example,

Sony's CineAlta 24p camcorders have been the key driver for Hollywood's transition from film

to the Digital

Cinema Age.

 

This same expertise and innovation can also be found on our latest Handycam camcorders.

 

At the show today,

you’ll find

high-definition camcorders from Sony that demonstrate the innovation that we continue to bring to the market in this category.

 

We’re showing four HD camcorders at the booth featuring a new technology that Sony calls X-V.Color.

 

X-V.Color is based on the new X-V-Y-C-C

international standard that enables the current color

data range to be expanded for wider color reproduction.

 

Finally your camera can capture more of the colors that your eye can actually see.

 

You can play back this video on an

X-V.Color-compliant 70-inch Sony BRAVIA television,

and it will appear more vibrant,

more life-like,

than anything you've ever seen before.

 

Most of our new HD camcorders feature Sony’s distinctive ClearVid CMOS sensor technology.

 

Originally developed to meet the processing needs of data-rich,

high-definition video,

this sensor along with Sony’s Enhanced Imaging Processor bring the advantages

of high resolution,

high sensitivity with low noise,

and virtually

smear-free video.

 

This year,

we expanded the technology to include our top-of-the-line standard-definition camcorders.

 

And we introduced a powerful 3-megapixel sensor that enhances the video quality

and delivers a whopping

6-megapixel photo.

 

As you go through our booth today,

you’ll also see that we’re bringing technological innovation to our new digital cameras.

 

One of the most exciting developments for Cyber-shot is the integration of advanced technology features borrowed from our Alpha digital SLR system.

 

 

Think about it:

 

We’re now giving you compact cameras that are powered with the same Bee-yonz processing engine as our Alpha camera to deliver incredibly

fast response times and enhanced functionality.

 

We’ve also integrated in-camera dynamic range optimization into our Cyber-shot models,

a feature that you’re familiar with from

our award-winning Alpha camera.

 

 

For most consumers,

faces make the photo,

that's why

face detection is another key technology you’ll find across our new

line-up.

 

It’s engineered to help you reduce your chances of taking a disappointing photo.

 

This automatic function can detect up to eight faces in the camera’s LCD frame and automatically adjust white balance

in addition to focus,

exposure and flash for clear,

sharp photos.

 

And each series of our Cyber-shot cameras has distinctive features that will appeal to a range of different customers.

 

Our T-series cameras continue to offer the form factor and expressive colors that tech-savvy,

style-conscious customers

are looking for.

 

The new 8-megapixel T20 camera will surely make a

fashion statement in four colors --

pink,

white,

black and silver --

along with its

2.5-inch LCD screen.

 

The 8-megapixel T100 model

stands out from the crowd as one of the thinnest and most pocket-friendly cameras,

incorporating

a powerful Carl Zeiss 5x optical zoom lens and 3-inch LCD screen.

 

 

Family photographers who are looking for an easy-to-use

point-and-shoot camera with the versatility of a

super zoom will love our H-series cameras.

 

The 8-megapixel

H7 and H9

have powerful

Carl Zeiss 15x optical zoom lenses and advanced sports shooting mode to make snapping the kids at sporting events effortless.

 

The H9 makes

fast-action shooting easier than ever with its articulating

3-inch LCD screen to better capture both high- and low-angle shots.

 

This camera also brings back,

by popular demand,

Sony’s NightShot technology for getting shots in virtually no light.

 

 

We also have our

W-series cameras that include rich features at

price points that are accessible for most everyone.

 

The W200 will be the industry’s most compact camera with a 12-megapixel imager.

 

All cameras,

including the

8-megapixel W90 and 7-megapixel W80,

will feature the new technologies I've talked about today.

 

 

Sony has a strong

point-and-shoot camera line up this year.

 

We will have a bold Alpha digital SLR

line-up as well.

 

I’d like to ask

Katsumoto-san

to come up and talk about the new developments in Alpha.

 

*  *  *

 

 

»

Katsumoto:

Thanks,  Phil.

 

Good morning ladies and gentlemen.

 

When Sony and Konica Minolta

joined forces to create a new

digital SLR camera business unit,

the AMC Division was created

and I have been heading the business unit since then.

 

Given that we were

in the midst of transition last March,

I would say this is the first PMA in terms of Sony’s digital SLR business.

 

As many of you know,

we have launched our first digital SLR camera in July 2006 under the α (Alpha) brand.

 

The first wave of our products launched together with the “α100” camera included 21 pieces of interchangeable lenses and more than 45 pieces of accessories.

 

Our desire to deliver the total system solution has led us to launch relatively large number of products during the first year.

 

The “α100” has enjoyed solid market acceptance worldwide thanks to

high picture quality and in-camera image stabilization.

 

It has received numerous Imaging industry awards,

including the C-E-A’s 2007 Innovations and Design award,

Popular Photography & Imaging’s

“2006 Camera

of the Year”

and EISA

“Best Product” award.

 

Taking this opportunity,

I would like to express my gratitude for your support of the “α100.”

 

As Shigeki Ishizuka mentioned earlier,

we need to further solidify our

market position and to do that,

we must cater to varying degrees of customer requirements.

 

Therefore,

we are now working on the second wave of α (Alpha) products in order to expand the world of α (Alpha) and meet the demands of a broader user base.

 

We would like to show a glimpse of the second wave of products in this year’s PMA.

 

Specifically,

we are now developing two new products targeted at higher market segments compared with the α100.

 

One of the two is expected to come to the market during this calendar year.

 

When both products are launched,

we will have three products that enable us to cover wider spectrum of the market.

 

Also,

this gives our customers more options and allows them to trade up products as their skills mature.

 

Now,

let me explain the products briefly.

 

The first product targets the

high amateur market.

 

It will have a

higher level of performance than

the α100.

 

The core strength of this camera is

high picture quality.

 

Sony’s vast technology and expertise,

including a

newly-developed image sensor and BIONZ processor,

have been adopted for this product to achieve superb picture quality.

 

Also,  the

”Super SteadyShot” feature,

the hallmark of

α (Alpha),

is included and the existing-compatible lenses can be used with this camera.

 

In addition,

we are planning to incorporate features that meet the demanding performance and specification requirements

of High Amateur photographers.

 

The next product is set to become our flagship product.

 

The image sensor and Bionz processor are both being developed specifically for this product.

 

And the

”Super SteadyShot” feature is

of course part of it.

 

We position this product to be the highest-end camera that meets the demanding performance and specification requirements of even Professional photographers.

 

Our second wave of products is not only camera bodies,

but interchangeable lenses are also being developed.

 

Five or more lenses,

including models suitable for

High Amateur and Professional use,

to be launched within the next 12 months.

 

This chart includes such lenses ranging from Large Aperture Standard Zoom lens,

Telephoto Zoom lens,

High Magnification Zoom and more to come.

 

With these new lenses added to the 21 pieces of existing portfolio,

broader and more diversified system configuration

will become possible.