DEG ANNOUNCES SUPPORT FOR HD TECHNOLOGIES AT CES 2006

Industry Group Honors the Industry’s Best:
Presents Awards for 2005’s Best DVD Titles and
Most Innovative Consumer Electronics Products

Best Buy and TARGET Honored as Industry’s Top Retailers

      LAS VEGAS (Jan. 6, 2006) – DEG: The Digital Entertainment Group held its annual reception during the International Consumer Electronics Show (CES) to announce its support of HD technologies and award top honors for digital entertainment products and retailers.

      To begin, the DEG announced support for HD technologies by agreeing to promote and serve as a clearing house of information for high definition television. The DEG will provide media, trade and consumers with updated information clarifying the differences between high definition television technologies. The group aims to provide accurate information so that consumers enjoy the optimal HD experience.

     The DEG also announced support for high definition packaged media. Moving forward, the DEG will promote the core benefits of next generation HD packaged media. The DEG will disseminate information provided by the format development standards setting groups in a non-competitive, unbiased manner.

     “We believe HD will transition the home theater into an even more enjoyable viewing and listening experience. The consumer is hungry for high definition content they can own and collect, and we are pleased that the industry is meeting the demand,” said Bob Chapek, president, DEG and president, Buena Vista Home Entertainment. “The time is now for high definition technologies. And, the DEG is pleased to have instituted the necessary changes to our mission to keep this organization poised to pro-actively address the opportunities and challenges in the years ahead.”

DEG Supports U.S. Anti-Piracy Efforts
      Faced with a mounting challenge from theft worldwide, the movie industry estimates that piracy represents a loss of more than $3 billion (MPAA) and the music industry experiences $4.2 billion in losses worldwide (RIAA).  With the threat of piracy growing quickly in the U.S., the DEG will promote anti-piracy efforts in its home market. The DEG hopes to provide support to other groups and initiatives that aim to curb piracy and educate consumers about the need to respect copyrights. Representing both hardware and software, the DEG is uniquely positioned to support anti-piracy initiatives across industries.

DEG Retailers of the Year Award
      The DEG also presented its third annual industry awards honoring the Retailers of the Year. Two retailer awards were established to recognize excellence in merchandising and promoting both new digital entertainment products and DVD titles during the past year. The hardware award was presented to Best Buy and the Retailer of the Year for Software to TARGET. Best Buy wins the award for Hardware for a second year in a row.

      The content providers (studios’ home video divisions and music companies) commended TARGET’s dedication to excelling in its marketing, merchandising and promotion of all DVD titles. One member praised the retailer for demonstrating the most growth and innovative marketing ideas this past year.”

     The DEG’s hardware members (consumer electronics and IT companies) agreed that Best Buy has continued to lead the industry in consumer education of new entertainment technologies through demonstration of products, promotions and key advertising. One member noted that Best Buy is truly the industry’s leading retailer pushing new technology. Other members said this retailer continues to excel in new technology promotions, both in store and in their ad circulars.

      Selected by a panel of product reviewers from the industry’s home theater enthusiast publications, the following three products were awarded with the top honors:

Emiel N. Petrone Digital Innovation Award for SIGHT

Panasonic TH-42PX50U 42” Plasma

Emiel N. Petrone Digital Innovation Award for SOURCE

D&M Holdings for the Denon DVD-5910 CI DVD player

Emiel N. Petrone Digital Innovation Award for SOUND

Yamaha YSP-1 Surround Sound Projector

DEG Creative Excellence Awards
      The DEG also awarded five honors to acknowledge Creative Excellence in DVD titles released in calendar 2005. The judging panel, nominated by the motion picture studio and music company members of the DEG, consisted of DVD reviewers and industry reporters from trade, entertainment and daily consumer news organizations. In addition to overall sound and picture quality, all titles were considered for those features that best demonstrate the value-added nature of the DVD format.

The DEG Creative Excellence Award Winners for 2005:

The DEG Theatrical DVD Title of the Year (full length motion pictures that were originally released for theatrical viewing)

The Incredibles: Collector’s Edition
Buena Vista Home Entertainment

The DEG Catalog DVD Title of the Year (DVD titles of a full-length theatrical film, as exhibited theatrically or in an enhanced version, released on DVD more than 18 months from its original theatrical release date)

King Kong: Collector’s Edition
Warner Home Video

The DEG TV DVD Title of the Year (full-length programming that originally was broadcast on television)

Lost: The Complete First Season
Buena Vista Home Entertainment

The DEG Direct to DVD Title of the Year (full-length programming that premiered on video)

Family Guy Presents: Stewie Griffin, The Untold Story
Twentieth Century Fox Home Entertainment

The DEG Music on DVD Title of the Year (full length music productions that have been designed or repurposed for either DVD-Video or DVD-Audio)

No Direction Home: Bob Dylan
Paramount Home Entertainment

      DEG: The Digital Entertainment Group serves to advocate and promote the many benefits associated with DVD while providing updated information regarding the format to both the media and the retail trade. As an industry funded, nonprofit organization, the DEG also offers a forum for member companies to engage in ongoing discussions and provide external communications concerning various issues and opportunities which relate to new digital technologies that may emerge in the future.

     DEG regular members are Anchor Bay Entertainment, Buena Vista Home Entertainment, DreamWorks Home Entertainment, D&M Holdings, DTS, EMI Music, HBO Video, Hewlett Packard, Hitachi, Image Entertainment, JVC Company of America, Lionsgate, MGM Home Entertainment, Microsoft, New Line Home Entertainment, Panasonic Consumer Electronics, Paramount Home Entertainment, Philips Electronics, Pioneer Electronics (USA), Sony BMG Music Entertainment, Sony Electronics, Sony Pictures Home Entertainment, Thomson, Toshiba America Consumer Products, Twentieth Century Fox Home Entertainment, Universal Music Group, Universal Studios Home Entertainment and Warner Home Video.

     Associate members are AGI Media, Ascent Media/Blink Digital, Clear-Vu, Deluxe Media Services, Giant Interactive, JVC Disc America, Macrovision, Memory-Tech, Panasonic Hollywood Laboratory, Sonic Solutions, Sonopress, Sony DADC, Technicolor and Universal Operations Group.

     Interested consumers can reach DEG at (310) 888-2201, via e-mail at getinfo@digitalentertainmentinfo.com or through its web site at www.digitalentertainmentinfo.com .