BW20030421002057  20030422T060122Z UTC


( BW)(SONY-CORP.)(SON) Sony Computer Entertainment and Sony Invest 200 
Billion Yen Over Three Years in Semiconductor Fabrication

    Business Editors
    UK REGULATORY NEWS

    TOKYO--(BUSINESS WIRE)--April 22, 2003--

                   Installation of fabrication line
              supporting 65 nanometer process technology

Sony Computer Entertainment Inc. (SCEI) and Sony Corporation (Sony)
announced today that they would invest a total of approximately 200
billion yen over three fiscal years from 2003 to 2005 in the
installation of a semiconductor fabrication line to build chips with
65 nanometer process on 300 mm wafers.

With this investment, SCEI will manufacture the new microprocessor for
the broadband era, code-named "Cell", as well as other system LSIs, to
be used for the next generation computer entertainment system. This
investment serves an important role not only for SCEI but also for the
Sony Group to develop future broadband network businesses.

Of the 200 billion yen, 73 billion yen will be invested in the FY2003.
Installment of a new semiconductor fabrication line for building chips
with 65 nanometer process on 300mm wafers will be initiated in SCEI's
Fab2, a semiconductor fabrication facility located in Isahaya City,
Nagasaki Prefecture. Test production will begin using the new
fabrication line, gradually moving on to mass production. Execution of
the entire investment will be determined by taking optimal timing,
place and allocation into consideration.

Since the spring of 2001, SCEI has been engaged, together with IBM
Corporation (IBM) and Toshiba Corporation (Toshiba), in the
development of the new microprocessor for the broadband era. Also,
since the spring of 2002, Sony has participated in the said three
company alliance for the development of the advanced semiconductor
process technologies. Research and development of digital signal
processing technologies for broadband applications are also being
conducted.

By means of this investment, SCEI and Sony aim to effectively conduct
test production, and to quickly establish a mass production system
with 65 nanometer embedded DRAM process.

"Our work with SCEI and Toshiba on the Cell broadband processor has
progressed extremely well," said Dr. John Kelly, senior vice president
and group executive for the IBM Technology Group. "We believe the Cell
design, and the advanced technologies like SOI with which it will be
manufactured, will help change the way people work, play and
communicate. This announcement by SCEI/Sony is a confirmation of the
progress we've made with the Cell design itself, of our advances in
semiconductor technology to help it reach its full potential and of
Cell's far-reaching implications for a wide variety of applications."

"One of our key semiconductor business strategies is to place Toshiba
in the vanguard in providing processor-centric system-on-chip
solutions. Cell, which we are developing with SCEI and IBM, is an
essential, next-generation broadband processor, a core product whose
sales we will actively promote," said Takeshi Nakagawa, Corporate
Senior Vice President of Toshiba Corporation. "We expect to apply Cell
to a wide range of applications related to broadband networks,
including digital consumer electronics and mobile terminals. Today's
announcement by Sony group shows that the Cell development project is
proceeding as planned and will accelerate the realization of our
expectations."

"The introduction of advanced semiconductor technologies is imperative
for the next generation processors that support the broadband network
era," said Ken Kutaragi, president and CEO of Sony Computer
Entertainment and executive deputy president of Sony Corporation.
"Digital consumer electronics products and network products that
support various broadband applications in homes, such as games,
movies, music and digital broadcasting, will play a leading role in
the future together with the evolution of PC. Sony Group aims to
further develop and expand the market with its advanced semiconductor
technologies and a rich and wide array of applications. This
investment forms a strategic foundation towards this goal."

"SCEI's Fab 2 already applies the most advanced semiconductor
technology to produce high performance LSIs, not only for game
hardware but also other electronic products," said Kunitake Ando,
President and Group COO, Sony Corporation. "The planned investment
will further enhance this advanced semiconductor facility to become a
technology driver for the next generation of Sony products. Building
on this, Sony's Broadband Network Company, newly established as of
April this year, will play a key role in developing next generation
electronic devices and linkages to game devices."

SCEI and Sony aim to actively develop businesses as leading companies
in the broadband network era and to be the driving forces in the next
generation semiconductor business.

About Sony Computer Entertainment Inc.

Recognized as the global leader and company responsible for the
progression of consumer-based computer entertainment, Sony Computer
Entertainment Inc. (SCEI) manufacturers, distributes and markets the
PlayStation(R)game console and PlayStation(R)2 computer entertainment
system. SCEI, along with its subsidiary divisions Sony Computer
Entertainment America Inc., Sony Computer Entertainment Europe Ltd.
and Sony Computer Entertainment Korea Inc., develops, publishes,
markets and distributes software, and manages the third party
licensing programs for these two platforms in the respective markets
worldwide. Headquartered in Tokyo, Japan, Sony Computer Entertainment
Inc. is an independent business unit of the Sony Group.

About Sony

Sony Corporation is a leading manufacturer of audio, video, game,
communications and information technology products for the consumer
and professional markets. With its music, pictures, computer
entertainment and on-line businesses, Sony is uniquely positioned to
be a leading personal broadband entertainment company in the world.
Sony recorded consolidated annual sales of nearly $60 billion for the
fiscal year ended March 31, 2001. Sony's Home Page URL:
www.world.sony.com.

PlayStation and the PlayStation logo, PS one and PS2 are registered
trademarks of Sony Computer Entertainment Inc. All other trademarks
are property of their respective owners.

   Short Name: SON
   Category Code: MSC
   Sequence Number: 00004144
   Time of Receipt (offset from UTC): 20030421T200136+0100

    --30--tav/ny

    CONTACT: Sony Computer Entertainment Inc.
             Corporate Communications
             03-5413-8686
             or
             Sony Corporation 
             Corporate Communications
             03-5448-2200

    KEYWORD: UNITED KINGDOM JAPAN INTERNATIONAL EUROPE ASIA PACFIC
    INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS 
ELECTRONIC GAMES/MULTIMEDIA HARDWARE     
    SOURCE: Sony Corp.

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