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            <td width="90%" height="7968" valign="top" align="left"><font face="Arial, Helvetica, sans-serif" size="3" color="#000000"><b>Consumer 
              Electronics Online News (c): March 3, 2001 <br>
              By Marjorie Costello, Editor &amp; Publisher </b></font> 
              <p><font face="Arial Rounded MT Bold, Arial" size="4" color="#333333"><b><font size="3" color="#000000">THIS 
                WEEK IN CEON:</font></b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Report 
                From Sony Line Show:<br>
                * Sony Plugs Back Into HDTV With Trio For<br>
                &nbsp;&nbsp;Fall Equipped With ATSC Tuner/1394/5C<br>
                * Hi-Scan 1080i Capable PTVs &amp; Wegas,<br>
                &nbsp;&nbsp;Main Line Wega and PTV Summary<br>
                * DVD Gets Stylish, DVD Packages Play SACD, <br>
                &nbsp;&nbsp;Plus More Multichannel SACD Players <br>
                * Targeting Gen Y, MiniDisc Makes Headway, <br>
                &nbsp;&nbsp;CD Mavicas Add CD-RW Support<br>
                &nbsp;&nbsp;Other HDTV/DTV News:<br>
                * Senators Blast Broadcasters' DTV Delay<br>
                * DTV Sales Surge In January<br>
                * CBS, Mitsubishi Team Up For Final 4 In HDTV <br>
                * Curtain Rises On 1st Broadway Show Beamed In HDTV<br>
                &nbsp;&nbsp;For Electronic Cinema, Also On Home Sat In HDTV <br>
                Plus:<br>
                * Geocast Ends Operations<br>
                * Philips Sells Marantz Control<br>
                * RadioShack Setting Up ElectronicsBoutiques In Blockbuster</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>REPORT 
                FROM SONY LINE SHOW: <br>
                SONY PLUGS BACK INTO HDTV</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Though 
                Sony once again chose the same location for its annual press open 
                house, the emphasis on February 28, 2001 was different from last 
                year's event at the Sheraton Meadowlands in New Jersey. This year, 
                Sony spotlighted its DTV efforts and re-introduced new HDTV models 
                after delaying the sets' market introduction indefinitely last 
                June. This fall, Sony will market three HDTV models -- all widescreen, 
                including one Wega direct-view and two rear PTVs. They qualify 
                under Sony's definition of high-definition TVs since the sets 
                integrate ATSC tuners, i.Link and 5C copy protection like the 
                models the company postponed last year. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                HDTV trio were joined by more Hi-Scan sets -- both PTVs and flat-tube 
                Wegas -- that are capable of displaying in 1080i when connected 
                to set-top boxes. Sony also showcased an expanded Wega direct-view 
                line, new DVD packages that add SACD playback plus more standalone-SACD 
                models, a uniquely designed DVD player, and new digital still 
                cameras that record on CD media. These products are the focus 
                of this report, with additional new models -- in portable audio, 
                accessories and other categories -- covered in the next edition. 
                Sony's new line was also shown to eastern regional dealers at 
                the New Jersey hotel before moving on to make other stops for 
                dealer open houses in Chicago and San Francisco in March. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="4" color="#333333"><b><font size="3" color="#000000">DTV 
                FINALLY GATHERING STEAM</font></b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Explaining 
                Sony's renewed commitment to HDTV, Vic Pacor -- president of Sony 
                Electronics' Home Network Products Company -- said, &quot;The 
                transition to DTV is finally gathering a little steam.&quot; Sony 
                was &quot;plugging back into DTV&quot; because the broadcast industry 
                had &quot;reached a consensus to maintain the 8-VSB transmission 
                standard,&quot; noted Pacor. According to the Sony official, &quot;It 
                is our belief that i.LINK (IEEE-1394 interface) is still viewed 
                as the cornerstone of the digital home networking model not just 
                by the CE industry but also cable MSOs and <br>
                others.&quot; </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Though 
                acknowledging that DTVs could feature &quot;additional interfaces 
                in the future&quot; (in an apparent indirect reference to DVI), 
                Pacor said that since i.LINK utilizes 5C -- supported by Sony 
                Pictures and Warner Brothers -- Sony's HDTV models provide the 
                content community with security. In keeping with previous company 
                positions, Sony still sees i.LINK -- with its two-way capabilities 
                -- &quot;as the most important element to turn DTV sets into one 
                of the four gateways of the digitally networked home of the future,&quot; 
                and it hopes that by adopting 1394, the company &quot;can spur 
                industry agreement on this lingering issue,&quot; explained Pacor.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Sony's 
                decision to bring new HDTV products to market this year was actually 
                foreshadowed in CEON's recent coverage of Sony Broadcast's stepped 
                up efforts to sell HDTV equipment to TV stations (CEON, Feb. 17). 
                In that recent edition, we also noted comments made by top Sony 
                officials in Japan that changes were afoot in the company's U.S. 
                HDTV marketing efforts. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>HDTV 
                TRIO DETAILS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">This 
                fall, Sony will offer three full HDTV models -- with ATSC tuners/1394/5C 
                -- in its XBR series, and all are widescreen. They include a 34&quot; 
                direct view with a Wega flat tube, the KD-34XBR2 at $4,000, and 
                two rear-screen PTVs, the $5,000 KDP-57XBR2 and the $6,000 65&quot; 
                KDP-65XBR2. Though Sony announced 4:3 full HDTV models last year 
                -- in PTV and direct view -- the company did not announce any 
                for 2001 at last week's line show. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                second generation of Sony's direct-view Wega HDTV features Digital 
                Reality Creation (DRC) Multi-Function, CineMotion, and Multi-Image 
                Driver X (MID-X). Sony's DRC upgrades NTSC broadcasts and DVD 
                titles to either 960i or 480p resolution, and standard definition 
                digital (480i) can also be displayed as 960i or 480p. The CineMotion 
                3:2 pull-down process minimizes motion artifacts caused when 24 
                fps film is transferred to 30 fps video. When combined with DRC, 
                the result is more detailed pictures with improved sharpness and 
                enhanced image dimensionality, according to Sony. New MID-X chipsets 
                permit simultaneous viewing of NTSC and HDTV side by side with 
                Sony's Flexible Two Tuner PIP and provide the ability to display 
                images in 480p. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                new HDTV direct-view model also features new 3D digital comb filter 
                circuitry, two rear i.LINK ports, two component video inputs that 
                handle 1080i, 480p and 480i sources, a scrolling channel index 
                and a new bit-map graphic menu system. The new PTV HDTVs share 
                several of the technologies found in the direct-view HDTV (ATSC 
                tuners, dual i.LINK ports, DRC, MID-X, etc.). They also incorporate 
                a new HD &quot;Microfocus&quot; CRT, for improved picture clarity 
                and sharpness, and a high contrast protective screen with double 
                anti-reflective coating to reduce screen glare and reflection. 
                Other features include a fully automatic digital convergence system, 
                rear and subwoofer outputs and an optical Dolby Digital output.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>HD-CAPABLE 
                Hi-SCAN PTVs AND WEGAs </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Other 
                HD-capable 1080i sets (but without ATSC tuners and 1394/5C) -- 
                come in Sony's Hi-Scan series, available in both direct view and 
                PTV. Sony shipped its first 16:9 Hi-Scan series PTVs this past 
                fall -- in 57&quot; ($4,499) and 65&quot; ($5,499) -- to fill 
                a widescreen hole in its line that was left when its 2000 full 
                HDTV models did not ship. Last week, Sony announced two new widescreen 
                Hi-Scan models -- a 51&quot; ($3,500) and 57&quot; ($4,000) -- 
                both available in October. The company will also offer its first 
                43&quot; 4:3 tabletop Hi-Scan at $2,500, and continue to support 
                4:3 Hi-Scan with new 53&quot; ($2,800) and 61&quot; ($3,300) PTVs models 
                that also arrive in August along with the 43&quot;. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Joining 
                the 40&quot; Wega announced at CES ($4,000, October) -- Sony's 
                largest direct-view flat-tube TV -- were four more Wegas with 
                a Hi-Scan chassis. Two each -- in 32&quot; and 36&quot; 4:3 -- 
                are in Wega Hi-Scan and Wega XBR Hi-Scan. The Wega Hi-Scans will 
                sell for $1,900 and $2,400, and the XBR Hi-Scans for $2,000 and 
                $2,500, for the 32&quot; and 36&quot; models respectively. All 
                the Hi-Scan direct views feature DRC and MID-X, with the XBR models 
                also incorporating CineMotion. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>OTHER 
                HDTV PRODUCTS: SEEN AND UNSEEN</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">In 
                other HD-related products, Sony's first ATSC/DirecTV HD set-top 
                ($799 without dish) is arriving this month. Last year, Sony was 
                planning to offer a special i.LINK/5C-equipped DirecTV HD set-top 
                that omits an ATSC tuner, designed to link with its later postponed 
                HDTV models. But last week, the company did not announce such 
                a product for 2001, but it may very well be in the works: At this 
                point, consumers who buy Sony's new full HDTV models this fall 
                and want to receive DirecTV's HD (and standard) signals will have 
                to purchase a set-top that incorporates the requisite DirecTV IRD and a redundant ATSC tuner. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Another 
                HD-related product not mentioned last week was a device that records 
                and plays back HDTV signals. Though Sony showed a prototype optical 
                disc HDTV recorder at CES, the so-called DVR-Blue model appears 
                several years away from commercialization. Introduction of an 
                HDTV recorder based on existing solutions -- such as a hard-disk 
                drive (HDD) or D-VHS -- will to have to await resolution of copyright-related 
                issues, cautioned Sony officials.Sony currently sells an integrated 
                TiVo/DirecTV set-top ($399) and standalone TiVo ($399) that record 
                standard definition signals on a hard drive. The TiVo-based models 
                will be joined by Sony's first UltimateTV/DirecTV unit -- with 
                dual satellite tuners -- that is slated to arrive in March at 
                $449 (including wireless keyboard). </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Speaking 
                generally about Sony's plans, Vic Pacor declared, &quot;We want 
                you to know that we're committed to taking a market-driven approach 
                to DTV product developments. Stay tuned, because we've just begun.&quot; 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>MAIN 
                LINE WEGA AND PTV</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">In 
                Sony's highly successful main Wega line of flat-tube TVs, the 
                company will offer new entry-level FS models and the step-up FV 
                line in 20&quot;, 27&quot;, 32&quot; and 36&quot; screen sizes. 
                New FS and FV direct-view models feature an improved two-way speaker 
                system, amp and control panel. Most of the models will also incorporate 
                two-tuner PIP. The 2001 FS and FV models will be available in 
                July with prices ranging from about $350 to $1,800. Sony's analog 
                PTVs include the entry-level S and step-up V in 48&quot;, 53&quot;, 
                and 61&quot; screen sizes. Also available in July, these PTVs 
                will sell for about $1,700 to $2,200. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DVD 
                GETS STYLISH </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Joining 
                the DVD decks that Sony bowed at CES was a new design -- shown 
                for the first time last week -- along with two new home theater 
                packages. Sony moved into the &quot;stylish&quot; DVD category, 
                introducing the DVD-F21, which is a slim, slot-loading, silver-toned 
                DVD player that can be used vertically, horizontally or mounted 
                on a wall. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Available 
                this fall for $300, the next generation DVD model -- to be followed 
                by other stylish units later this year -- also embodies a cross 
                generational appeal, explained Sony. The DVD-F21 can fit into 
                many environments ranging from a Baby Boomer's livingroom and 
                office to a Gen Xer's dorm or bedroom -- used as a primary or 
                complementary DVD player. The model plays CD-R/RW discs, but it 
                does not include component video or progressive scan outputs. 
                It features TV Virtual Surround circuitry for connection to a 
                TV in non-home theater situations and an optional, self-powered 
                speaker system -- with two speakers and a subwoofer -- will be 
                sold later this fall at a price to be announced. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>MULTICHANNEL 
                SACD INSIDE NEW DVD PACKAGES, <br>
                MORE MULTICHANNEL SACD PLAYERS </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">After 
                last year's introduction of its successful &quot;DVD Dream System&quot; 
                -- Sony's answer to home theater in a box -- the company will 
                market two new systems in 2001. Both new packages add multichannel 
                SACD playback as well as other features. The new single- and five-disc 
                systems center around an integrated DVD/CD/SACD unit with built-in 
                Dolby Digital and DTS decoding, full digital amp, and offer increased 
                system power. The $600 DAV-S500, with 280 watts of total system 
                power, features a single-disc player, while the $800 DAV-C700 
                is a five-disc model at 350 watts. Both available in July, the 
                DVD Dream Systems are equipped with five matching micro satellite 
                speakers for front, center and surround; a passive subwoofer; 
                and color-coded speaker connectors. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Also 
                in SACD, but in a dedicated audio component, Sony bowed two new 
                multichannel SACD players at very different prices, which will 
                both be available in September. Sony will market a five-disc model, 
                the $800 SCD-C222ES, in its premium ES series, and a single-disc 
                player, the SCD-XE670, which at $300 becomes the industry's lowest 
                price multichannel SACD player. Like the multichannel SACD players 
                that Sony introduced at CES -- two, five-disc models, including 
                a $400 mainstream unit and a $1,700 ES -- last week's debuts do 
                not support DVD playback. Sony said that introductions in other 
                home AV categories would be addressed in future announcements. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>TARGETING 
                GEN Y, MD MAKES HEADWAY, VAIO NEWS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Joining 
                Pacor as speakers were Mark Viken, president of SEL's Personal 
                Network Solutions Company, and Ron Boire, president of SEL's Personal 
                Mobile Products Company. Though the products Boire showcased will 
                be covered next week, we will mention now that Sony is targeting 
                Gen Y, ages 12 to 24, described as, &quot;The fastest growing 
                segment and now representing a quarter of the U.S. population,&quot; 
                by the Sony official. According to Boire, &quot;They also spend 
                about $153 billion annually or $84 per week of their own money&quot; 
                and Sony will continue its Walkman campaign during 2001 to reach 
                Gen Y. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Boire 
                reported that MiniDisc finally took off in the U.S. after Sony 
                repositioned MD in 2000 as a digital music player that could record 
                from the Internet. He cited NPD Intelect figures from December 
                that ranked Sony's MD model MZ-R70PC as, &quot;The number one 
                selling digital music player both in units and dollars.&quot; 
                According to Boire, &quot;Portable MD sales for the industry were 
                up 34%, driven by the success of PC-to-MD bundles.&quot;</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Mark 
                Viken -- based in San Diego with PNSC -- noted that Sony's notebook 
                business, &quot;Has reached and maintained the number two market 
                share at retail both in units and dollars.&quot; This month, Sony 
                is launching a year-long national TV and print campaign to support 
                its VAIO efforts that helps, &quot;Consumers understand the enjoyment 
                technology can bring to their lives.&quot; Turning to digital 
                imaging, after noting the new models Sony had recently introduced 
                at PMA, Viken announced the two newest members of the CD Mavica 
                line. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>CD 
                MAVICAS ADD CD-RW SUPPORT</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                2001 models are less expensive than 2000's initial CD Mavica model 
                and they also add the ability to use CD-RW media along with CD-R 
                discs. The MVC-CD200 ($800) and MVC-CD300 ($1,000) -- with 2.1 
                and 3.3 megapixel resolution, respectively -- follow Sony's first 
                CD-based camera, the MVC-CD1000, introduced last year at $1,300 
                (CEON, June 17, 2000). Both of the new models will be available 
                in June, and will sell for around $800 and $1,000, respectively, 
                and both feature 3X optical/6X digital zoom, with the CD300 incorporating 
                a Carl Zeiss lens.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Sony's 
                new CD Mavica cameras, like last year's model, record images to 
                an 8cm (3&quot;) CD-R disc that costs about $5 and provides 156MB 
                of storage. But they also take CD-RW discs, which run about $8 
                per disc and have the same 156MB capacity, but can be erased and 
                reused for hundreds of cycles. With 156MB capacity, the CD can 
                store more than 1000 VGA still images and over 90 minutes of MPEG 
                video. The cost-effective media is also directly compatible with 
                virtually any PC, which simplifies image transfer. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Next 
                week, we turn to Sony's portable audio models -- including its 
                new MDs and colorful Psyc line aimed at Gen Y -- plus other products. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>SENATORS 
                BLAST BROADCASTERS' DTV DELAY</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">As 
                Sony plugged back into HDTV, there were other encouraging pieces 
                of news last week on the HDTV front -- which we will get to shortly 
                -- even as Washington legislators blasted broadcasters for DTV 
                footdragging. During last week's Senate Commerce Committee oversight 
                hearings on DTV, chairman Senator John McCain and other members 
                criticized broadcasters and suggested steps to speed the transition 
                so the government can reclaim spectrum worth an estimated $70 
                billion. Senator McCain minced few words when he told the NAB's 
                representative, &quot;Congress gave you the spectrum and you pulled 
                a classic bait and switch.&quot; In a question that was more like 
                a statement, he asked, &quot;You're going to reach 85% of the 
                homes in America by 2006? You're going to comply with the legislation? 
                There's no one in America who believes that.&quot; </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Senators' 
                suggestions included providing consumers with incentives to buy 
                new TV sets and charging broadcasters rent for using analog spectrum 
                after the 2006 deadline for ending NTSC broadcasting. Experts 
                testified that the switch to DTV could take until 2020 unless 
                Congress and the FCC act. The broadcasting industry's NAB called 
                for requiring all new TVs to include DTV tuners, a move McCain 
                and others questioned. Gary Shapiro later issued a statement reiterating 
                CEA's opposition to a DTV tuner mandate, saying, &quot;We estimate 
                that such a mandate could add hundreds of dollars to the cost 
                of almost every television set, pricing many lower-income Americans 
                out of the market and severely slowing the DTV transition.&quot; 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Shapiro 
                urged Congress to: insist that broadcasters transmit an amply 
                supply of HDTV, ensure that any copy protection solutions protect 
                noncommercial home recording rights, and direct the FCC to make 
                sure that cable systems carry broadcast DTV programs. However, 
                Senator McCain admitted that there was no consensus now in Congress 
                to pass new DTV legislation. But the committee will hold more 
                hearings in hopes that more members of Congress will &quot;recognize 
                that is was a serious mistake to give away the spectrum,&quot; 
                said McCain. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>DTV 
                SALES SURGE IN JANUARY, <br>
                FINAL FOUR IN HDTV COURTESY OF CBS/MITSUBISHI</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Moving 
                to more upbeat DTV news, CEA reported that January 2001's figures 
                indicated that DTV sales continue to grow. Factory-to-dealer sales 
                of DTV products exceeded the 80,000 unit mark this past January. 
                Sales of DTV televisions and monitors reached 81,629 units, representing 
                a 234% increase over January 2000, with dollar sales of more than 
                $159 million. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Mitsubishi 
                will sponsor NCAA men's basketball Final Four and Championship 
                games in HDTV on CBS. Last year, Thomson underwrote the sporting 
                event when it was held in Indianapolis. Mitsubishi has been sponsoring 
                events in HDTV on an case-by-case basis as part of a continuing 
                relationship with CBS, which included this past September's U.S. 
                Tennis Open. CBS Sports' coverage of the college basketball event 
                will be broadcast live in 1080i on Saturday, March 31 (5:30 to 
                10:30pm ET) and on Monday, April 2 (9:00 to 11:30pm ET) from Minneapolis. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>CURTAIN 
                RISES ON FIRST BROADWAY SHOW BEAMED IN HDTV FOR ELECTRONIC CINEMA, 
                ALSO ON HOME SAT IN HDTV </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">On 
                Saturday, March 10 the curtain will rise on the first non-film 
                program distributed for electronic cinema display. Broadway Television 
                Network (BTN), which specializes in shooting and distributing 
                Broadway musicals, will launch BroadwayCinema day and date with 
                its PPV telecast of &quot;Jekyll &amp; Hyde: The Musical&quot; 
                starring David Hasselhoff. Members of the public will be able 
                to view the production at theaters in seven cities on Texas Instruments 
                DLP projectors. Consumers, with the required home equipment, will 
                also be able to see the show at home in HDTV via satellite on 
                EchoStar and DirecTV, as well as on &quot;standard definition&quot; 
                satellite channels. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Jekyll 
                &amp; Hyde was recorded by BTN at Broadway's Plymouth Theatre 
                using 10 HDTV cameras and over 70 microphones. BTN plans to distribute 
                three more shows for digital cinema exhibition. The technology 
                team behind the presentation includes the DLP Cinema technology 
                group at Texas Instruments as well as Boeing Digital Cinema, QuVIS, 
                Barco Digital Cinema, Christie Digital Systems and Dolby Laboratories. 
                </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>SCHEDULES, 
                LOCATIONS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Based 
                on current information, the HDTV satcasts will be at 8pm and 11pm 
                (ET), but we suggest you check the EchoStar and DirecTV listings. 
                The electronic cinema presentations -- priced at $19.95, the same 
                as the home satellite PPV event -- will be presented at theaters 
                operated by National Amusements, Cinemark USA, and Harkins Enterprises. 
                The show goes on at 7pm and again at 10pm on March 10 at most, 
                but not all, of the theaters. If you are interested in attending, 
                check your local movie listings -- and confirm the time in the 
                zone -- if you live in one of the metro areas included. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">National 
                Amusements, outfitted with DLP projectors by Barco and Christie, 
                will offer the event in four of its Showcase and Multiplex Cinemas 
                in metro Boston (Randolph, MA), greater New York/New Jersey (Edgewater, 
                NJ), Cincinnati (Springdale, OH) and northern Virginia/Washington,DC 
                (Merrifield, VA). The presentation will also be shown by Cinemark 
                USA in Dallas suburb Plano and Cleveland suburb Valley View, and 
                by Harkins Theatres in Phoenix suburb Peoria. Both chains have 
                DLP installations provided by Technicolor, which has been acquired 
                by Thomson Multimedia.</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>GEOCAST 
                ENDS OPERATIONS</b></font><font face="Arial, Helvetica, sans-serif" size="2" color="#000000"> 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                future of datacasting via the DTV spectrum was dealt a blow when 
                Geocast Network Systems announced on March 1 that it has suspended 
                business operations. The Menlo Park-based company said it is currently 
                in discussions to sell off its assets. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">As 
                we have reported, Geocast initially planned to distribute its 
                personalized data and information service on broadcasters' terrestrial 
                DTV signals to home PCs (CEON, Dec. 11, 1999). Geocast's investors 
                included station groups Belo and Hearst-Argyle, Thomson, game 
                publisher Electronics Arts, Philips, Liberty Media, and several 
                others. Thomson's planned Geocast PC peripheral/DTV receiver was 
                originally slated for mid-2001. Last year, facing a number of 
                DTV-related issues (including questions about ATSC's modulation 
                scheme) and competition from other broadcaster-backed datacasting 
                operations, Geocast pursued other digital TV distribution. In 
                October 2000, the company announced that EchoStar would carry 
                the Geocast service to PC users via satellite -- giving Geocast 
                national coverage beyond its 40% terrestrial DTV reach. Geocast 
                hoped to launch both its terrestrial- and satellite-based data 
                services during Q3 2001. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Last 
                week, in announcing that Geocast was ceasing operations, company 
                chairman/CEO Joseph Horowitz explained, &quot;To reach the final 
                stage of execution we needed additional funding. The current market 
                environment was simply not conducive to our efforts in this regard.&quot;</font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>PHILIPS 
                SELLS MARANTZ CONTROL</b></font><font face="Arial, Helvetica, sans-serif" size="2" color="#000000"> 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Also 
                on March 1, Philips said that it would give up control of Marantz 
                to Marantz Japan Inc. (MJI). MJI will buy from Philips the Marantz 
                trademark and the European and American sales organizations. In 
                addition, Philips intends to sell 1.5% of its stake in Marantz 
                Japan Inc., reducing its ownership from 50.5% to 49%. MJI currently 
                owns the distribution rights for Marantz-branded products in Asia, 
                including Japan. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Marantz 
                is considered the third largest premium AV brand in the world, 
                according to the official statement, &quot;and has been growing 
                consistently over the last few years.&quot; Both Philips and MJI 
                believe it is important to have single ownership of the global 
                Marantz business in order to improve its value chain, said the 
                joint announcement. According to Kazuya Suetake, MJI CEO, &quot;The 
                new situation provides Marantz with the freedom it needs to fully 
                pursue its own interests.&quot; The companies said that existing 
                working relations will be maintained in many areas, with SACD 
                specifically mentioned. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>RADIOSHACK 
                SETTING UP ELECTRONICS <br>
                BOUTIQUES IN BLOCKBUSTER </b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">RadioShack 
                -- the CE chain famous for featuring other companies' products 
                in stores within its stores -- will introduce another version 
                of the concept. But in this case, RadioShack is the company coming 
                in and setting up shop, or &quot;mini-Shacks,&quot; in another 
                chain. Through a newly announced strategic alliance with video 
                rental chain Blockbuster, RadioShack will establish and staff 
                &quot;boutiques&quot; within up to 5,000 Blockbuster stores. RadioShack 
                will pay a license fee to Blockbuster for each location and both 
                companies will share in the cash flow and other economic benefits. 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                RadioShack stores within Blockbuster will sell consumer electronics, 
                telephony services, high-speed Internet access and emerging connectivity 
                technologies along with &quot;other fun gadgets.&quot; according 
                to the announcement. RadioShack's current store-within-a-store 
                partners in these categories include RCA, Sprint and Microsoft 
                though specifics regarding the involvement of these companies 
                were not announced. But Blockbuster and RadioShack did say, &quot;A 
                wide selection of RadioShack's most popular product and service 
                offerings will be featured&quot; noting, &quot;specific inventory 
                for the stores will be determined as the program moves forward.&quot; 
                Apparently, Blockbuster's DirecTV sales efforts -- established 
                through kiosks in many of its stores last summer -- will now be 
                integrated into the RadioShack stores. </font></p>
              <p><font face="Arial Rounded MT Bold, Arial" size="3" color="#000000"><b>REACHING 
                MORE WOMEN, TEENS</b></font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">The 
                RadioShack-Blockbuster alliance follows Best Buy's acquisition 
                of the Musicland software chain, which like Blockbuster, attracts 
                more women and teens than traditional CE chains. Both Best Buy 
                and RadioShack, by establishing a presence in software chains, 
                are expanding beyond their mainly male and adult customer base. 
                RadioShack's Blockbuster boutiques, like Best Buy's plans for 
                Musicland's software stores (such as Sam Goody and On Cue), will 
                also mean that more CE products will become available at more 
                retail locations throughout the country.</font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">RadioShack 
                and Blockbuster will launch the first phase in about 130 selected 
                Blockbuster stores this summer in four markets: Las Vegas, Tulsa, 
                Austin, and Norfolk VA. The second phase, national rollout, is 
                expected to occur in 2002. The size of the RadioShack merchandising 
                areas will vary depending on the size of the participating Blockbuster 
                store, but will range from kiosks to 600-square-foot sections. 
                </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#000000">Separately, 
                but related to RadioShack, the company recently announced that 
                2000 was its best year in history in terms of profits. RadioShack 
                reported that its adjusted net income grew 21% to $367 million 
                during the 12 months ended December 31, 2000. </font></p>
              <p><font face="Arial, Helvetica, sans-serif" size="2" color="#FF3300">***************************************************************</font><font face="Arial, Helvetica, sans-serif" size="2" color="#000000"><br>
                Copyright (c) 2001 Consumer Electronics Online News. All rights 
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                reserved. The material may not be reproduced or distributed in 
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