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Thursday, July 17, 2003
Pioneer To sell shares of two audio/video software units to Dentsu

Pioneer Corporation today announced that it has reached a preliminary agreement with Tokyo-based Dentsu Inc., Japan's largest comprehensive advertising agency, to sell to Dentsu shares of two of its subsidiaries, namely, Pioneer LDC, Inc. in Tokyo, and Pioneer Entertainment (USA) Inc., in California, U.S.A., both engaged in the audio/video software businesses in Japan and the United States, respectively.

This move is in line with Pioneer's "select and focus" management policy of its resources and operations on core businesses in order for Pioneer to promote even more efficient and effective management. These two companies have contributed to Pioneer's consolidated business performances in the field of software-supply, and are expected to take another leap forward under the new ownership.

The specific conditions, timetable and other matters of the transfer are yet to be determined under definitive agreements separately governing the two transfers in Japan and in the United States, but it is contemplated that all the issued shares of these two companies will be sold to Dentsu.

Pioneer LDC, Inc., a Tokyo-based wholly-owned subsidiary of Pioneer Corporation, is engaged in the planning, production and selling of a variety of video and music software in Japan. Pioneer LDC currently has 145 employees.

Pioneer Entertainment (USA) Inc., with headquarters in Long Beach, California, is a wholly-owned subsidiary of Pioneer North America, Inc., another wholly-owned subsidiary of Pioneer Corporation. Engaged in the planning, production and selling of music and video software, mostly animation, in the United States, Pioneer Entertainment (USA) has 43 employees.

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