Press release

Las Vegas, January 2007 – Onkyo Corporation today announced plans to launch its first HD DVD player for the North American market in 2007. HD DVD is the next generation DVD format approved by the DVD Forum.

Today, the global environment for audio visual products has changed dramatically; large screen HDTV sales have been growing and consumerdemand for the high definition content is increasing. In parallel with the expansion of digital broadcasting services, DVD has been required to provide much more data capacity and higher density, which HD DVD can fulfill.

Dolby Digital Plus, Dolby TrueHD and DTS-HD 5.1 channel audio processing formats are supported by HD DVD, which allows consumers to enjoy a high quality home theater experience. HD DVD also will offer the advanced content and features such as active menus and PinP video adopted by HD DVD.

Onkyo will introduce an HD DVD player initially in the North American market, where there is a strong demand for packaged media in high definition with the increasing large screen HDTVs market, and then plans to further expand to other markets. Onkyo also plans to develop AV receivers to enjoy attractive and vigorous HD DVD content through a single HDMI cable that transfers video, audio and control signals.

Details of the Onkyo HD DVD player for North America, including launch timing, specifications and specifics of the launch in other regions along with future AV receivers will be announced separately.