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Thomson multimedia delivers total package of mp3 solutions with extensive line of RCA portable and home audio systems

RCA mp3 Digital Audio Products Include Miniature Portables, Portable Boombox and 5-CD Shelf System

LAS VEGAS, January 7, 2002 - Continuing its commitment of integrating mp3 functionality into its core line of advanced audio products, Thomson multimedia (Paris Euroclear: 18453) (NYSE: TMS) delivers an extensive
line-up that emphasizes contemporary product designs, strong audio performance and greater versatility.

Capitalizing on the strength of the RCA brand, Thomson multimedia, a
co-developer of the mp3 and mp3PRO digital audio formats, has incorporated mp3 capability into approximately 25 percent of its personal, portable CD bookshelf and home theatre product lines. Current products include a miniature mp3 portable, mp3 boombox, mp3 CD player and two 5-disc systems.

"Thomson continues to be a leader in the very competitive digital audio product category and plans to continue to be at the forefront of incorporating mp3 technology into a wide array of products," said Mark Redmond, Vice President, Worldwide Audio Products, Thomson multimedia. "With sales of digital audio products projected to increase and reach a wider audience in the next few years, Thomson is committed to provide innovative solutions that enable consumers to experience the sounds and convenience of this fast-growing platform."

Powerful Portables

Recognizing the value and added convenience of on-board memory, Thomson has introduced a k@zoo! miniature mp3 player which contains 64 MB of on-board memory. Weighing only 1.5 ounces and about the size of a small pager, the RD1060 holds one hour of CD quality digital music downloaded directly onto the k@zoo! via a simple USB connection. An expanded memory slot lets the unit store an extra hour's worth of music on a multimedia card. The RCA k@zoo! also comes with X-Phone stereo headphones that fit behind the head, a neck strap, wrist strap and carrying case. Suggested retail price of the RD1060 is $129.

An upgrade of RCA's first mp3 product, the RCA LYRA2 (model RD2211) portable digital music player features a slim design and is compatible with both PC and Mac platforms. It includes an FM tuner allowing consumers to listen to their favorite radio stations, as well as a USB computer connection to download digital music files at faster speeds. It ships with a 64 MB CompactFlash card for storing digital music files and includes a compact remote control for enhanced convenience. It supports both mp3 and Windows Media audio files. Suggested retail price of the LYRA2 player is $149.

Enjoy mp3 CDs In and Out of the Car

For consumers who prefer burning their mp3 files onto CDs, Thomson offers the RCA RP2415 Personal CD Player with mp3 playback and car kit. A car cassette adapter is included to allow consumers to listen to their favorite mp3 CDs on their way to work or on long road trips. The RP2415 plays both CD-R/CD-RW and standard audio CDs and supports multiple mp3 compression rates. Its eight-level subfolder management system holds up to 250 folders per disc and lets the consumer organize music files by title/artist/genre. Consumers can create favorite playlists, or simply use the shuffle feature. Suggested retail price of the RP2415 is $119.

Still small enough to carry, but big in sound, the RCD118 portable CD boombox is compatible with CD-R/CD-RW and standard audio discs. It supports multiple mp3 compression rates, and features a multi-line dot matrix LCD display to list song title and artist data encoded on the CDs. This 10-watt system sports a modern design and features a programmable
32-track CD memory and play, repeat and shuffle functions, as well as a remote control. Suggested retail price of the RCD118 is $119.

5-CD Shelf System and Changer Increase Listener Options

Perfect for a dorm or living room, the RCA RS2533 is a 5-CD Shelf System with mp3 playback that features surround sound speakers and two built-in powered subwoofers. The 120-watt system holds 60 hours of music and over 1,000 songs, and features an LCD screen that displays eight levels of subfolders to allow easy navigation through classifications such as music genre, artist and album title. The RS2533 also includes a digital AM/FM stereo tuner, 32 station presets and Kevlar speakers for powerful bass response. Suggested retail price of the RCA RS2533 is $199.

The RP8078 is a 5-CD, stand-alone carousel changer for a home stereo component system and features simultaneous play-and-load for easy playback and over 60 hours of mp3 playback. It includes CD-titling, CD text and CD editing, allowing consumers to manage their custom made CDs. Suggested retail price of the RP8078 is $99.

LYRA Personal Jukebox on the Way

Scheduled to be added to Thomson's extensive digital audio product line-up is the RCA LYRA Personal Jukebox (model RD2800). The RD2800 is a combination portable mp3 player and storage device with a 10 GB hard
disc-drive that can hold 300 hours of mp3PRO digital music files (an mp3PRO upgrade will be available in 2002). The unit - RCA's first mp3PRO-ready and hard-drive digital music device - also stores digital images, presentations and word processing. Consumers can organize their music library with the LYRA Personal Jukebox's comprehensive sorting capability, arranging songs by artist, album, title, genre, user playlist, audio files and all files. The LYRA Personal Jukebox also features automatic synchronization of music and data files when connected to the computer. Weighing just 11 ounces, the RD2800 utilizes a USB connector and is compatible with both PC and Mac computers (Windows 98 SE, Windows Millennium Edition, Windows XP or Mac OS X). Available in late spring, the suggested retail price of the RD2800 is $299.

* * *

This press release contains forward-looking statements regarding prospects for the future that involve a number of risks and uncertainties. Among the factors that could cause actual income to differ materially from those expected are the following: business conditions and general economic conditions; competitive factors such as pricing and marketing efforts of rival companies; timing of product introductions; ability of contract manufacturers to meet product price objectives and delivery schedules; legislative, regulatory, and industry initiatives that may affect planned or actual product features and marketing methods; and the pace and success of product research and development. For more information on the potential factors that could affect the company's financial income, please review the relevant SEC filings.


About Thomson Multimedia
With sales of 9.1 billion euros (U.S. $ 8.3 billion) in 2000 and 73,000 employees in more than 30 countries, Thomson multimedia (Paris Euroclear: 18453) (NYSE: TMS), provides a wide range of video (and enabling) technologies, systems, finished products and services to consumers and professionals in the entertainment and media industries. To advance and enable the digital media transition, Thomson multimedia has five principal activities: Digital Media Solutions, Displays and Components, Consumer Products, Patents and Licensing and New Media Services. The company distributes its products and services under the THOMSON, RCA and TECHNICOLOR brand names.
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