America Says It's Time for New Technology; Roper Survey Sheds Light on Purchase Intent of Today's Hottest Consumer Electronics

LONG BEACH, Calif.--June 27, 2006--Pioneer Electronics (USA) Inc. today announced the results of the "It's Time for Technology" survey conducted by Roper Public Affairs(1). According to the survey, more than 50 percent of Americans are ready to upgrade their existing home and mobile consumer electronics to take advantage of newer technologies.

As today's consumer electronics continue to evolve in form and function, the survey set out to uncover what influences America's technology purchasing decisions, and to measure purchase intent for new home and mobile electronics, including high definition home theater products, in-car navigation systems and portable technology such as .mp3 players and Bluetooth(R)-enabled cell phones.

"It's inspiring to see how forward-thinking today's technology consumers truly are," noted Russ Johnston, senior vice president of marketing and product planning for home entertainment at Pioneer Electronics (USA) Inc. "These survey results show that Americans are ready for the latest electronics to bring their homes and cars to the next level of a better entertainment experience."

When it comes to making a technology purchase, the survey found that men prize visual aspects such as design more highly than women, who are more influenced by product recommendations from friends and family. While different factors influence the technology purchase decisions of men and women, it seems both sexes are keen on HDTV and portable technology. At the top of the technology wish list this year for both men and women are multimedia and MP3 music players such as the Apple iPod(R) mobile digital device or the Pioneer inno(TM) MP3 and XM(R) Satellite Radio player(2), followed closely by Bluetooth-enabled cell phones, which allow for hands-free communication.

Americans Going High Def

The television has been a staple of the American living room for more than 50 years, but now that HDTV has gone mainstream, today's consumer is no longer satisfied with standard definition television. Thirty percent of Americans surveyed will upgrade their TVs in the coming year. Of those consumers, many are likely to take advantage of flat-panel technology, including plasma TVs, to bring HDTV into their homes.

Plasma TVs have become the predominant technology for HDTV because the crisp images and vibrant colors enhance what HD is meant to deliver and the sleek design appeals to both men and women. Part of what makes a Pioneer PureVision(R) plasma television so appealing is the proprietary best-in-class technology that creates an amazingly sharp, bright, accurate picture. In fact, consumers have placed such an importance on the picture quality of HDTV that according to the survey, a high definition flat panel television, such as a Pioneer PureVision plasma TV, and a high definition optical disc player, such as a Pioneer Blu-ray Disc(R) player, are the two items seen as most important in creating the ultimate home theater experience.

While Blu-ray Disc technology is still in its infancy, 67 percent of Americans surveyed plan to purchase a high definition optical disc player such as the Pioneer BDP-HD1 Blu-ray Disc player within the next few years. Blu-ray Discs look similar to DVDs, but they can play back high definition video and audio and store up to 50 gigabytes of information on one dual layer disc. Not only will consumers get the benefit of watching movies in high definition with the Pioneer Blu-ray Disc player, but they'll be able to watch added content including high definition bonus materials, seamless onscreen menus and more sophisticated interactive features(3).

Technology for the Road

As Americans continue to trade up to high definition for a better home entertainment experience, they are also looking to new car technology to deliver a better driving experience. According to the survey, one in five Americans plans to purchase a navigation system this year.

In-car navigation has come a long way since its inception and today's consumers expect more from a navigation system than just the ability to get them from point A to point B. Today's navigation systems from manufacturers like Pioneer are equipped with information and entertainment features including dynamic route guidance, voice guidance and voice recognition, and traffic data. Some are even compatible with XM(R) Satellite Radio and Sirius(R) Satellite Radio(2), and have iPod and Bluetooth connectivity.

For consumers considering a navigation purchase, the survey reveals that Americans value the ability to use the navigation system in more than one vehicle, making portable systems attractive. But when it comes to system performance, the ability to receive traffic information is considered most important. Previous surveys from Pioneer indicate that most consumers start with a portable system and later trade-up to a more sophisticated in-dash navigation model.

In-dash navigation systems such as the Pioneer AVIC-Z1 offer dynamic route guidance, detailed traffic information and traffic alerts and can re-route around heavy traffic congestion using XM NavTraffic(R) service, ensuring drivers reach their destination in the shortest amount of time(4). The systems combine valuable navigation and traffic information with entertainment features so users can listen to XM or Sirius Satellite Radio and connect their iPod players during those times when traffic is simply unavoidable. Likewise, Bluetooth connectivity gives the driver a hands-free method of using a Bluetooth-enabled cell phone through the speakers in the vehicle.

For consumers who are just getting started with navigation and prefer a portable device, Pioneer recently introduced the AVIC-S1, a compact and lightweight portable navigation product that gives drivers access to the entire map of the United States and Canada in a system slightly bigger than the palm of a hand.

With so many new technologies available, consumers who want to upgrade or invest in new products should do their homework. Technology can be a confusing whirlwind of makes and models for even the savviest buyer. Pioneer recommends looking for well-known brands that have a credible history of technical innovation and design. It is wise to check manufacturers' websites to compare product and service offerings, as well as to research recommendations from third party experts such as product reviewers and industry analysts. These resources can shed light on performance, quality and how a specific technology rates when compared to competitors. The peace of mind gained by doing a little homework before purchasing allows consumers to make sound decisions, but it will also make their overall technology experiences much more enjoyable.

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 Blu-ray Disc and DVD, display technologies, navigation and Digital Network Entertainment(TM).

(1) The study was conducted by Roper Public Affairs, a division of GfK
on behalf of Pioneer Electronics (USA) Inc. Results from the It's Time
for Technology Survey are based on OmniTel interviews conducted from
May 19-21, 2006, among a nationally representative sample of 1,004
U.S. adults. The margin of error for the entire sample is +/- three
percentage points.

(2) Paid monthly subscription required for satellite radio. Service
available only in the 48 contiguous United States. Other fees and
taxes may apply, including a one-time activation fee. Products,
programming, services and fees are subject to change without notice.
The ability to receive satellite radio depends on the signal strength
in your location and the ability of the antenna to receive a signal.
The signal may be unavailable if obstructed (e.g., by buildings,
mountains, trees, bridges, bad weather, etc.).

(3) Refers to interactive features encoded on the Blu-ray Disc.
Currently available players do not support direct connection to the
Internet or the retrieval of content through the Internet. Pioneer
provides a Limited Firmware Warranty for firmware updates in the event
of playability issues with some commercially pre-recorded discs;
however, firmware updates will not include upgrades for Internet
access or retrieval of content. A copy of the Firmware Limited
Warranty is available on Pioneer's website at pioneerelectronics.com.
Please contact Pioneer's customer service center for more information
at 800-421-1404.

(4) Optional GEX-P10XMT (sold separately) required for traffic
information integration. Also requires XM Radio and XM NavTraffic(TM),
powered by NAVTEQ Traffic(TM), service subscription (sold separately).
XM NavTraffic(TM) service will be available in 31 major cities in 2006
with coverage to be expanded in the future. Visit xmradio.com for full
details of traffic coverage, pricing and XM service subscription. XM
NavTraffic(TM) data may be unavailable or not current if the signal is
unavailable/obstructed, if the original data source is not providing
data (e.g., scheduled or unscheduled downtime) or has not been updated
itself, or if there is a time lag between the time the original data
source is updated and when you receive the updated XM NavTraffic(TM)
data.

PIONEER and PUREVISION are registered trademarks of Pioneer Corporation.

BLUETOOTH is a registered trademark of Bluetooth SIG, Inc.

IPOD is a trademark of Apple Computer, Inc., registered in the U.S. and other countries.

XM and NAVTRAFFIC are registered trademarks of XM Satellite Radio Inc.

SIRIUS is a registered trademark of Sirius Satellite Radio Inc.

NAVTEQ is a registered trademark of NAVTEQ Corporation.