HD DVD Outpacing All Next-Gen Formats in Sales Growth Promotional Group announces record HD DVD hardware and software sales

increases from Q1-Q2 2007

    LAS VEGAS, July 17 /PRNewswire/ -- At the Entertainment Merchants
 Association (EMA) Home Media Expo 2007, the North American HD DVD
 Promotional Group today announced that overall HD DVD hardware sales were
 up 37 percent from Q1 to Q2 2007, while software sales experienced a 20
 percent increase in growth. The data is based on NPD reports, Nielsen
 Netratings reports and point of sale data from the studios. During the same
 time-frame, overall Blu-ray hardware sales saw a 27 percent decline from Q1
 to Q2, and Blu-ray software sales were down 5 percent.
     Driven by major spring marketing efforts which brought standalone HD
 DVD players down to an industry first $299, dedicated HD DVD CE players
 experienced an astounding 183 percent quarterly increase. There are
 currently more than 180,000 dedicated HD DVD CE players in the market.
     "The numbers are clear -- HD DVD is steadily gaining momentum and
 market share," said Ken Graffeo, executive vice president of HD strategic
 marketing for Universal Studios Home Entertainment, and co-president of the
 HD DVD Promotional Group. "With HD DVD CE players now at MSRP prices
 starting at $299 and with strong marketing campaigns around new HD DVD
 titles with web-enabled interactive features, we're continuing to raise the
 bar for the consumer experience."
     Recent studies(1) have shown most consumers are basing their purchasing
 decisions on pricing. Benefiting from more than a decade of DVD technology
 advancements and improvements, HD DVD hardware pricing has already dropped
 from $499 to $299 since the first players were introduced last year as a
 result of manufacturing efficiencies, while still maintaining a consistent
 consumer experience.
     "With the total number of titles available for each format differing by
 only 20-30 titles at this time, the real-world gap in content between the
 two formats is in actuality not as large as many would perceive," said Paul
 Erickson, market analyst with IMS Research. "Consumers in the US and Europe
 continue to show the greatest sensitivity to price, rather than content or
 branding, in their purchase decision for standalone high-definition
     With titles like "300" coming later this month from Warner Home Video
 and "Heroes: Season 1" to be released in August from Universal Studios Home
 Entertainment, HD DVD owners will have close to 1,000 titles worldwide to
 choose from by the holidays.
     About HD DVD
     HD DVD is the next generation, post-DVD standard for high capacity,
 high definition optical discs, approved by the DVD Forum, which develops
 and defines DVD formats. Its more than 220 strong membership brings
 together leaders in movies and entertainment, computing, consumer
 electronics and software. HD DVD is fast becoming the primary visual medium
 for the age of high-definition TV. The North American HD DVD Promotional
 Group, Inc. is an organization established to promote the HD DVD format and
 educate consumers in North America. For more information and a complete
 listing of HD DVD launch titles please visit
     (1) CEA Market Research Report, June 2007

SOURCE The North American HD DVD Promotional Group, Inc.

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