According to figures compiled by Kaplan, Swicker & Simha on behalf of the DEG, approximately 340 million DVDs shipped in the third quarter of 2004 , a 59 percent increase over the same period last year. Setting another DVD record, nearly one billion discs shipped so far this year, bringing the total number of DVDs shipped since launch to more than 3.3 billion.

NORTH AMERICAN DVD-VIDEO SOFTWARE SHIPMENTS BY QUARTER (in millions) QUARTER 1997 1998 1999 2000 2001 2002 2003 2004 ---------------------------------------------------------------------- 1st Quarter N/A 3.3 11.1 29.0 69.2 120.1 231.7 332.2 ---------------------------------------------------------------------- 2nd Quarter N/A 4.1 13.9 33.2 81.7 152.2 195.5 316.8 ---------------------------------------------------------------------- 3rd Quarter 2.3 5.9 29.0 42.7 75.9 153.3 214.6 340.9 ---------------------------------------------------------------------- 4th Quarter 3.2 11.8 44.0 77.5 137.6 259.4 381.5 -- ---------------------------------------------------------------------- YEARLY TOTAL 5.5 25.1 98.0 182.4 364.4 685.0 1,023.3 989.9 ---------------------------------------------------------------------- TOTAL 30.6 128.6 311.0 675.4 1,360.4 2,383.7 3,373.6 (since (a/o launch) 9/30/04) ---------------------------------------------------------------------- Figures compiled by Kaplan, Swicker & Simha on behalf of DEG: The Digital Entertainment Group.

The holiday selling season is anticipated to provide another record-breaking fourth quarter for the popular home entertainment format, supported by new releases of more than $4 billion of box office hits. In addition to these blockbuster films, a variety of genres such as TV series, classics, special interest and music titles continue to fuel DVD sales with nearly 38,000 titles currently available.