Toshiba America Consumer Products, L.L.C. ("Toshiba") revealed its third generation HD DVD players at the CEDIA show today rolling out its most advanced, affordable line of HD DVD players with outstanding functionalities and Web-enabled network capabilities of the HD DVD format. Gearing up for the new line to hit shelves this fall, Toshiba also announced new HD DVD marketing initiatives and consumer promotions, including a season-long promotional campaign with NBC Television Station Group for Sunday Night Football broadcasts, a free two movie bundle with third generation players and a new five free HD DVD movie promotion.

"We have raised the bar yet again with the unmatched interactive capabilities and state-of-the art video and audio performance of our third generation players," said Jodi Sally, Vice President of Marketing, Toshiba's Digital A/V Group. "Web-enabled network capabilities, available on HD DVD, illustrate how Toshiba is delivering on its commitment to provide consumers with the ultimate home entertainment experience in high definition. With this new line, a growing base of HDTV consumers can now look forward to an unrivaled home theater experience this fall."

Toshiba Third Generation HD DVD Players

Toshiba's third generation family starts with the entry level HD-A3 player featuring 1080i output capability. The other two new models, Toshiba's HD-A30 and HD-A35, will output 1080p resolution (1920 x 1080p), the highest HD signal currently available. Both models are capable of outputting signals at 1080p/24 frames per second so consumers can enjoy movies in their native frame rate. The HD-A30 and HD-A35 models also feature "CE-Link" (HDMI™-CEC), allowing two-way control between the HD DVD player and a TV through an HDMI connection.

With a new slim design, Toshiba's third generation players have a cabinet that is approximately ¼-inch slimmer than second generation models. All of Toshiba's HD DVD models are backward compatible allowing users to enjoy their libraries of current DVDs and CDs while improving the picture quality of regular DVDs by upconverting them through an HDMI connection to near high definition quality.

New HD DVD Promotions

To further drive HD DVD sales this fall, Toshiba also announced today a number of exciting new marketing initiatives and promotions. To communicate the benefits of HD DVD to millions of HDTV owners, Toshiba announced a season-long promotional campaign with the NBC Television Station Group and its broadcasts of Sunday Night Football with Bob Costas and Tiki Barber. This includes 30 second HD DVD ads, web sponsorships promoting the format, as well as special on-air vignettes that will build awareness and educate consumers about HD DVD throughout the holidays and into 2008.

In addition, in order to allow consumers to enjoy the HD DVD experience right out of the box, Toshiba is offering consumers free movies with the purchase of their third generation players. With Toshiba's new bundle promotion, consumers will take home the highly acclaimed HD DVDs "300" from Warner Home Video and "The Bourne Identity" from Universal Studios Home Entertainment.

"Warner is excited to offer consumers who purchase the new Toshiba HD DVD players the opportunity to own `300'," said Dorinda Marticorena, SVP Worldwide High Definition Media., Warner Home Video. "Not only is it the best selling HD DVD title to date, but it is also one of the most advanced titles with regard to new and innovative Hi Def features, both on the disc itself and through web connectivity. We believe that with the initial sales of "300", and this promotion, more than a half million consumers will own "300" on HD DVD by the end of this year."

"Now is an exciting time to buy an HD DVD player, with a blockbuster title like `The Bourne Identity' in the box at retail," said Craig Kornblau, President, Universal Studios Home Entertainment. "Toshiba is leading the way in bringing high definition home, and at prices that will fit in any home theater. By offering The Bourne Identity, in addition to Toshiba's 'Five Free' offer, we're giving consumers an amazing deal."

In addition to its bundle promotion, Toshiba announced "The Perfect HD Offer," which will begin on October 1st 2007 and continue until February 28th 2008. As a result, with the purchase of any Toshiba HD DVD player, consumers will be able to select five HD DVD titles for free, from a selection of 15, via a mail-in offer. Full offer details will be available at http://www.toshibahddvd.com.

Beyond the Hi Def Movie Experience

Beyond the high def picture and advanced audio, HD DVD delivers an immersive home theater experience with features such as picture-in-picture video and audio commentary. And now users can take their experience to a new level with value added web-enabled network capability. Thanks to the Ethernet port and persistent storage built into every Toshiba HD DVD player from the first generation models, studios have the ability to take movies to a higher level by allowing users to connect directly to their server and access bonus features as available. Examples of this value-added access can include movie trailers for new releases or the ability to share favorite scenes with other HD DVD player owners. Consumers may also purchase movie-related merchandise, ringtones and more without having to turn on their computers. Web-enabled network capability is now opening the door to a new entertainment experience beyond hi def video and audio.

Firmware Updates Keep HD DVD Consumers Current

With the Ethernet port available on every player, consumers are assured that their Toshiba HD DVD player is built for the future. With available firmware updates, Toshiba is able to keep a consumer's HD DVD player current by providing improved performance, new features and other capabilities to make the HD DVD experience consistent with what the studios have to offer. Today Toshiba is also announcing that in mid-September, a firmware update will be available for its second generation players. The update will bring 1080p/24 frames per second capability to its HD-XA2 and HD-A20 models.

Third Gen Goes Green

Toshiba is committed to not only making its products consumer friendly, but friendly to the environment as well. Its products, including the third generation HD DVD players, meet Toshiba's ongoing efforts to bring eco-conscious products to market and comply with the company's strict environmental policies. Environmental management is promoted both from the standpoint of improving products themselves and renewing manufacturing processes, which not only calls for the elimination of the use of hazardous substances in products, but also to avoid using such substances in any manufacturing process.

For example, Toshiba HD DVD players are compliant with the EU RoHS Directive, a European Union environmental directive that prohibits or restricts the use of six hazardous substances, including lead, mercury and cadmium. Also, for energy conservation, all third generation players meet the Energy Star standard. Toshiba will place the Toshiba Group Earth Protection mark on its third generation players, packaging and promotional materials. The Toshiba Environmental Standard for granting the Toshiba Group Earth Protection mark will soon be available on Toshiba America Consumer Products, L.L.C.'s official website.

Momentum For HD DVD Continues to Grow

This fall, with the availability of Toshiba's third generation players, and a significant increase in the rollout of HD DVD movie titles – expected to increase from 300 to 1,000 titles by the end of the year – momentum for HD DVD is undeniable. "With the recent announcement by Paramount and DreamWorks Animation SKG to exclusively support HD DVD, in addition to studio support from Universal and Warner, New Line Cinema and HBO, consumers now have even greater reason to supplement their HDTV purchase with a high def HD DVD movie experience," said Yoshi Uchiyama, Group Vice President, Toshiba America Digital A/V Group. "New players, new promotions, new movie titles and new studio partners are all evidence that HD DVD is delivering the ultimate high definition experience to the broader consumer market."

For more information on HD DVD, please visit http://www.toshibahddvd.com.

Expected Pricing and Expected Availability:

• HD-A3 ($299.99, October 2007)
• HD-A30 ($399.99, September 2007)
• HD-A35 ($499.99, October 2007)