Sony Europe press statement

BERLIN, February 19 (PROTEXT/PRNewswire) - In October lastyear the Dutch authorities determined that some peripheralssupplied for use with the PS one game console containedcadmium levels above the limit allowed under Dutch regulations.Although Sony Computer Entertainment Europe (SCEE) hasreservations regarding the interpretation of the applicableregulations, SCEE has initiated a plan to rectify the situation.The Dutch authorities have given the company until the end ofMarch 2002 to fully complete the compliance process. Through aseries of aggressive remedial steps taken by SCEE, the companywas able to resume shipments within Europe in mid-December aftersecuring appropriate peripherals.Because of the potential wider ramifications of the causes behindthe PS one incident, and despite the same reservations describedabove, Sony initiated its own inspection of other peripherals andproducts throughout its entire supply chain in parallel with thePS one compliance program.Given the wide range of products and peripherals Sony offers, theinspection program is ongoing. As part of this program, Sony hassuspended shipments of a limited number of products to retailwithin Europe, and has also begun the rework of some models inthe existing inventory in order to replace certain peripherals,cables and accessories. Sony is now able to confirm that allcurrent production of consumer products for the European marketis compliant.Although this is an inconvenience to Sony's retail partners,shipments of current production and reworked models will becomeavailable shortly. The identified models account forapproximately 7% of the current Sony models available in Europe.Sony Corporation estimates an impact on sales of approximatelyEUR 110 million and on operating profit of approximatelyEUR 52 million including costs of rework, on a consolidated basisfor the fiscal year which ends March 31, 2002.There are no health risks associated with the use of plasticscontaining cadmium. However, in order to prevent long-termenvironmental effects resulting from the incorrect disposal ofthe plastics after use, company standards as well as regulationslimit the amount of cadmium which is used as a stabiliser orcolouring agent in plastics.Contact:Aldo Liguori,Sony Europe Corporate Communications,Kemperplatz 1, 10785 Berlin, Germany,Telephone: +49 30 25 75 5159,Aldo.Liguori@eu.sony.com

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