Pioneer's Spring Marketing Campaign Revs up with Celeb Event and Cross-Country Mobile Tour; Campaign for Automotive Navigation Systems Proves ''It Knows'' How to Help Today's Commuters

LONG BEACH--April 21, 2005--Pioneer Electronics (USA) Inc. today launches its multi-million dollar marketing campaign for automotive navigation systems designed by BBDO West and The Elevation Group of Companies with a celebrity-studded product launch followed by a cross-country marketing tour and heavy print advertising. Set against a backdrop of mystery and intrigue, the campaign conveys the message of "putting the freedom back in driving" to millions of ultimate commuters seeking to recapture the enjoyment of getting behind the wheel.

The campaign highlights Pioneer's AVIC-N2 and AVIC-D1 navigation systems. Both systems offer XM NavTraffic service capability that alerts drivers to major traffic delays on their designated route and suggests alternative routes around the traffic. Pioneer, the market leader in navigation systems, expects this innovation in mobile navigation technology to broaden the market by delivering to consumers a valuable product that can help reduce commuting headaches and time sitting in traffic. The tagline "It Knows" is used throughout to demonstrate the omniscient power of Pioneer's all-in-one navigation co-pilot and its abilities to steer drivers from traffic.

"The AVIC is a revolutionary product line that appeals to a broader audience who spend a lot of time in their cars," said Jim Lesser, creative director for BBDO West. "Until now, we've been focused on 'Tuners' who want to trick out their vehicles with the ultimate AV gear. The goal of the 'It Knows' campaign is to show how Pioneer navigation will take its place in today's society like cell phones and PDAs."

The campaign incorporates the following elements:

-- Celebrity kick-off event tonight at Hollywood's famed Montmartre Lounge.

-- Twelve-month multi-city cross-country tour with a fleet of eight vehicles that will caravan to more than 700 locations, creating grassroots awareness and excitement for auto navigation systems.

-- Print advertising campaign in consumer publications such as Golf Digest, Money and Travel and Leisure, showing that Pioneer navigation systems 'know' the conditions of the road and can find alternate routes around traffic congested highways

Pioneer has leading share in the $85 million aftermarket fixed automotive navigation market in the United States.

Pioneer's Mobile Entertainment Division is the leading manufacturer of audio, video and information products for in-car use. Its focus is on the development of new digital technologies including audio video, navigation and satellite radio, while maintaining its strong heritage in products for car audio enthusiasts and competitors. The company markets its products under the Pioneer and Premier brand names. When purchased from an authorized dealer, consumers receive a limited warranty for one year with Pioneer and two years for Premier products.

Pioneer Electronics (USA) Inc. is headquartered in Long Beach, Calif., and its U.S. Web address is www.pioneerelectronics.com. Its parent company, Pioneer Corporation, is a leader in optical disc technology and a preeminent manufacturer of high-performance audio, video and computer equipment for the home, car and business markets. The company focuses on four core business domains including DVD, display technologies, Digital Network Entertainment and components. Founded in 1938 in Tokyo, Pioneer Corporation employs more than 39,000 people worldwide. Its shares are traded on the New York Stock Exchange.