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Thomson expands RCA Lyra portable mp3 product line with three new players

Third Generation LYRA Personal Digital Player Supports mp3PRO; New Pocket-Sized Models Provide Hours of Skip-Free mp3 Music in a Miniature Package

New York - July 10, 2002 - Continuing to provide versatile products that address the changing needs of the digital audio consumer, Thomson (Euronext: 18453) (NYSE: TMS) is expanding the range of RCA LYRA portables by adding three new pocket-sized models. The new RCA LYRA products feature internal flash memory and new ultra-compact designs.

"Thomson enjoyed a very successful 2001 in the digital audio player category, almost doubling our unit market share from 2000," said Mark Redmond, Vice President, Worldwide Audio and Video Products, Thomson. "By offering affordable products that provide more on-board memory storage, expansion options and multi-codec support, Thomson will continue to enrich the RCA LYRA brand - making it the go-to brand for consumers looking for the latest digital audio enhancements."

Third Generation LYRA Personal Digital Player Supports mp3PRO Format

The RCA LYRA RD1080 Personal Digital Player is Thomsonís first mp3PRO-ready portable product. Fitting easily in oneís hand, the RD1080 is a compact, colorful unit, weighing only two ounces. Compatible with both PC and Mac OS X computers, it contains 128MB of internal flash memory, allowing music fans to easily transport over two hours of their favorite tunes, recorded at near-CD quality, in mp3. When the user is able to download the mp3PRO codec, the RD1080 will allow for playback of up to four hours of music in the mp3PRO format. The RD1080 also supports Windows Media and standard mp3 music compression formats.

The RCA LYRA RD1080 includes a digital FM tuner with 10 preset stations, a USB connector for downloading tunes and a slot for multimedia or SD memory cards, allowing users to add more memory and more music. The alphanumeric three-line display indicates song title and artist, play mode, and battery life. The RCA LYRA RD1080 Personal Digital Player also includes a neck strap for convenient, lightweight transport. Available in July at Circuit City, the suggested retail price of the RCA LYRA RD1080 is $129.

Two New Pocket Players Double the Options

In response to the overwhelming success of Thomsonís first RCA pocket digital audio players, (model RD1000 with 32MB onboard memory and model RD1060 with 64MB onboard memory), Thomson will introduce two new RCA LYRA Pocket Digital Players. Both feature internal flash memory, mp3 and Windows Media Audio playback, an external multimedia card slot allowing for memory expansion, and a USB connection cable for downloading music directly from the PC. These tiny portables also come with a shiny metallic finish and X-Phoneš stereo headphones, which fit comfortably behind the listenerís head.

Model RD1070 (suggested retail price $129, available September at Circuit City) includes 128MB of internal flash memory that provides over two hours of mp3 music, and can be expanded to hold additional music with a plug-in MMC card. The RD1020 (suggested retail price $99, available September) has 64MB of internal flash memory, provides over an hour of mp3 music playback, and can also expand to hold additional music with an optional multimedia card.

* * *

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 managementís 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 and business conditions, consumer electronics markets, and regulatory factors. More detailed information on the potential factors that could affect the financial results of Thomson multimedia is contained in Thomson multimediaís filings with the U.S. Securities and Exchange Commission.

About Thomson
With sales of 10.5 billion Euros (U.S. $ 9.3 billion) in 2001 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.

Consumer products Press Relations
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