"The industry is coming off a stellar year in DVD sales (including DVD combos), and the Digital Entertainment Group expects DVD household penetration to reach 65 percent in the U.S. this year. We anticipate that recordable DVD will help drive the continued growth of the category and provide consumers with even greater enjoyment of this remarkable entertainment product," said Mark Redmond, Vice President, Worldwide Audio and Video.

DVD Recorder / VCR Combo Provides Flexibility
With a couple of button presses on the DVD Recorder/VCR Combo (model DRC8300N), consumers can easily transfer home videos from a VHS tape directly onto a DVD. More sophisticated editing is also a snap with programmable tape playback, allowing users to select only those scenes they want to copy before recording to disc. You can even split titles or hide unwanted chapters after recording the content to a DVD+RW disc.

Incorporating progressive scan DVD playback capability and a 4-head HiFi VCR, the DRC8300N offers numerous features to enhance the viewing and recording experience. Scene Again instant replay accesses previously viewed DVD or tape segments in 10-second increments, and a 30-second "Advance" function allows viewers to skip ahead to preferred scenes on DVDs or tape.

An on-screen DVD disc library stores up to 400 titles, allowing users to easily sort and locate any title they have recorded using the DRC8300N. You can even find the discs with the most available blank space for new recordings. The on-screen keyboard makes it easy for consumers to create and edit program names for all of their personal recordings. Six recording modes are available - ranging from one to eight hours and SmartRecord™ automatically adjusts the quality of the recording to fit the available disc space. Other features include S-Video inputs, for simple recording and playback from camcorders, an mp3 decoder for playing mp3 discs and Digital PhotoView™ for displaying JPEG files. The player also includes a time base corrector and digital noise reduction circuitry that eliminates picture jitters and reduces noise from videotape playback to significantly improve the quality of recordings from videocassette recorders or camcorders.

Easily integrated into an existing home theatre system, the DRC8300N includes Dolby Digital and DTS compatible digital optical output, two composite video inputs, one composite video output, analog audio inputs and outputs, RF coaxial input/output and a component video output. The DRC8300N has a suggested retail price of $449. Consumers who purchase the DRC8300N before July 31st are eligible for a $50 manufacturer's rebate.

DRC8005N DVD Recorder Includes Progressive Scan and USB Input Featuring a front-panel USB 1.1 input, the DRC8005N RCA DVD Recorder provides consumers with an easy way to playback their favorite digital photos or music files or copy them onto a DVD+RW disc using an optional flash card reader. The progressive scan unit has many of the features of the preceding model including a 400-title disc library for sorting and locating recorded programs; Smart Record, SceneAgain instant replay, and 30-second advance.

Other features include S-Video inputs for simple recording and playback of camcorder video and a time base corrector with digital noise reduction, which improves recording quality. The DRC8005N includes Dolby Digital and DTS compatible digital optical output, two composite video inputs, one composite video output, analog audio inputs and outputs, an RF coaxial input and a component video output for use with HDTV sets. The DRC8005N has a suggested retail price of $349.

"According to the Consumer Electronics Association, sales of DVD recorders will double to nearly 1.6 million units this year and we think the DVD/VCR combination will make up a significant portion of those sales as consumers transfer their home videos onto DVD for posterity," Redmond added.

New Slot-Load DVD Player
Targeted toward PC-savvy consumers, the RCA DRC240N DVD Player featuring DivX playback enables users to view downloaded video content on the television instead of the computer. Based on the MPEG-4 standard, the DivX codec compresses programs that can be downloaded and transferred to a DVD or CD-R, for playback on the DRC240N. This player also incorporates mp3 and WMA playback for audio CDs.

The slot-load, progressive scan player features Digital PhotoView and mp3 combination playback - a unique way to share favorite digital photos, complete with a personalized soundtrack. The DRC240N includes a bookmarking function for convenient navigation through favorite DVD recordings, Scene Again one-button instant replay, one set of video outputs, an S-Video output and analog audio output.

For added convenience, the unified remote control can also operate basic functions of most RCA and GE-brand TVs and VCRs. Suggested retail price of the DRC240N is $99.

Dorm Room Delight
The RCA DRC108N DVD Player is ideal for the bedroom or dorm room. Featuring a distinctive silver cabinet that is only 14 inches long, the progressive scan DRC108N includes DVD, VCD and JPEG playback and can be used to listen to mp3 and WMA encoded CDs. The mp3/JPEG combination play provides a soundtrack to a digital photo slideshow and the DVD/TV/VCR unified remote operates most RCA and GE branded entertainment components. Suggested retail price of the DRC108N is $69

Tablet-Style Portable DVD Player Provides Big Entertainment in a Slim Package
Providing a world of entertainment in a fashionable package, the DRC618N RCA Portable DVD Player features a "tablet" style design. Measuring an ultra-compact 7.95 x 6.06 x 1.02 inches, the durable DRC618N includes a 7-inch, 16 x 9 LCD screen and plays back mp3 encoded discs in addition to DVDs. An A/V input enables quick and easy connection to video games, camcorders and television sets and a high-power, rechargeable Lithium battery provides up to three hours of viewing. Added conveniences include a car adapter, espX skip protection, a headphone jack for private listening, a card-sized remote control and audio/video cables for connecting to audio and video sources. Suggested retail price of the DRC618N is $449.

Digital images of select products can be downloaded from the press room section of www.rca.com, and a limited amount of review samples are also available.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute "forward-looking statements" within the meaning of the "safe harbor" of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic, business, competitive market and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained in Thomson's filings with the U.S. Securities and Exchange Commission.

About Thomson
Thomson (Euronext Paris: 18453; NYSE: TMS) is the leading provider of technology and service solutions for integrated media and entertainment companies. By capitalizing on and expanding its leadership positions at the intersection of entertainment, media and technology, Thomson provides end-to-end solutions to content creators, video network operators, manufacturers and retailers through its Technicolor, Grass Valley, THOMSON and RCA brands. For more information: www.thomson.net

Thomson's Consumer Solutions Businesses include a wide range of products and marketing services for high-definition television, digital audio and video, accessories, and telephones found in homes throughout the world. The most advanced RCA and THOMSON consumer products carry the premium Scenium brand, emphasizing superior technology and elegant design. The latest information on our consumer product lines can be found at www.rca.com.