1. 2006 Panasonic Blu-ray Player

2. Blu-ray & HD-DVD

3. Capacity will win the warDVD HD DVD BLU-RAY Single Layer 4.7 GB 15 GB 25 GB Dual Layer 8.5 GB 30 GB 50 GB More capacity leads to longer format life!

4. 4 Play time Bit Rate Super high definition Required Capacity x= Bit Rate Super-high sound quality (Main sound) ( Secondary sound no. x+ 135 min 18 Mbps (MPEG2) 6.75 Mbps (LPCM6ch) 0 Tracks 25 GB Average length movie x+x=  BD is the standard for realizing ambience of movie theater at home  Super-high quality sound (LPCM) as well as HD picture quality is requirement Why Large Capacity is Needed? + + Bit Rate Normal quality 0.48 Mbps ) 135 min 16 Mbps (MPEG-4 AVC) 6.75 Mbps (LPCM6ch) 3 Tracks 24 GB x+x=+ 0.48 Mbps Long movie ： ex. Lawrence of Arabia 227 min 18 Mbps (MPEG2) 6.75 Mbps (LPCM6ch) 3 Tracks 46 GB x+x=+ 0.48 Mbps 227 min 16 Mbps (MPEG-4 AVC) 6.75 Mbps (LPCM6ch) 3 Tracks 40 GB x+x=+ 0.48 Mbps ( ) ( ) ( ) ( ) High-capacity BD can offer extra space to store bonus contents and games as well as movie contents with high-quality sound and picture

5. Comparison Blu-ray and HD DVD Disc Structure Capacity Mass productivity Cover layer thickness 0.1mm 0.1 mm Laser beam Blu-ray Disc Cover layer thickness 0.6mm HD DVD Disc 0.6 mm Laser beam Single layer 25GB Dual layer 50GB Single layer 15GB Dual layer 30GB ○ △ Possibility of Multilayer Disc Up to eight layers → 200GB Up to three layers → 45GB △ Production startup is easy by using latest DVD’s manufacturing system. Lower cost mass production has been proved by Panasonic spin coat method. ○○ ○

6. Overwhelming support HD-DVDBlu-ray CE IT Movies Music & Gaming

7. Walt Disney Sony Pictures & MGM Lionsgate 20 Century Fox Paramount & DreamWorks Universal Warner Bros. Studios Supporting Blu-ray Studios Supporting HD DVD DVD sales 49.1% (81.0%) 12.3% (44.2%) Others Studios Supporting Both 31.9% Comparison in Hollywood Movie Titles  Titles only available on Blu-ray: 49.1% (approx. half of all titles)  Blu-ray covers 81% titles, while HD DVD covers 44%  Titles only available on HD DVD: 12% Source: Blink Digital (November 2005)

8. Over 85 Titles At Launch (HD DVD Movies: 44 Titles) BD Movie Titles announced: 85 Titles

9. Capacity BDHD DVD Single Layer25 GB15 GB Dual Layer50 GB30 GB In Development100 GB 4 layer 200 GB 45 GB Triple Layer BDHD DVD CE Sony, Panasonic, Philips, Hitachi, LG, Mitsubishi, Pioneer, Samsung, Sharp, TDK, Thomson/RCA, JVC Toshiba, Sanyo IT Dell, Apple, HP PC Drives: Panasonic, Pioneer, Philips, Sony NEC, MS, Intel, HP Studios Disney, Fox, Sony, MGM, Lions Gate, Warner, Paramount Warner, Paramount, Universal Videogame Sony, Electronic Arts, Vivendi Universal None (as the option* of XBOX) *Playback function only Music Sony BMG, Universal MusicWarner 13 2 3 4 73 40 2 1 BD vs. HD-DVD

10. Panasonic Strength  Panasonic makes Blu-ray titles in Hollywood, so we can realize Ultra Fine Tuning Picture Quality for both Blu-ray Titles and Players Bran new user experience (New interactivities and services) Interoperability on new and rich Interactive Features Blu-ray Player developed in Osaka  Ultimate Image quality  Interoperability Joint effort makes New User Experience and Highest Quality & Reliability Blu-ray Authoring at Panasonic Hollywood Lab.  Actual Blu-ray title Creation  Create new experience

11. 11 MPEG-4 AVC Encoder for BD in Hollywood  High-definition encoder for BD is being developed at Panasonic Hollywood Laboratory (PHL) in Universal city with film studio experts “golden eyes” PHL BD Authoring room BD Encoding room BD Q&A room BD Image evaluation room

12. Panasonic Blu-ray ROM Replication Technology  Dual layer Blu-ray ROM disc replication system with Spin coat method is in operation in Torrance, California Spin coating process Overall view Panasonic has already made both Blu-ray ROM and R/RE (recordable) discs by using this Spin coat method

13. Panasonic BD Product World Upcoming Panasonic’s BD Product Lineup BD Player DMP-BD10 Projector AE1000 Receiver XR700 Speaker TP1000 VIERA 65” Full HD

14. BD ROM Player (DMP-BD10) 192KHz-24bit Audio DAC Audio Re-master Virtual Battery Operation & High Quality Sound Parts HIGH QUALITY SOUND INTELLIGENT CONTROL HIGH QUALITY PICTURE Advanced I/P Conversion with P 4 HD* (Pixel Precision Progressive Processor for HD) 1080P Up-convert Playback for All Disc 297MHz/14bit Video DAC HDAVI Control for Panasonic BD Product Lineup * P4HD is tentative name

15. HIGH QUALITY PICTURE 1 P 4 HD* (Pixel Precision Progressive Processing for HD) Featured High-Speed-Video-Processor with the capability of over 15 Billion Pixel/Sec operations. Achieving industry- leading levels of performance HIGH QUALITY PICTURE Motion detection 16 level interpolation by 16 level Pixel Based Motion Adaptive Diagonal Processing 3:2/2:2 detection and processing High Quality I/P Conversion Technology Conventional processing P 4 HD Processing :Source Pixel :Created Pixel 15 Billion Pixel Per Sec High Performance Processor for Delivering Ultimate Picture Quality. BD10 generates 1 pixel from 60 pixels of information. Conventional CPUs generated 1 pixel from 16 pixels of information. P 4 HD makes High Quality IP Conversion over 15 Billion Pixel/Sec operations * P4HD is tentative name

16. HIGH QUALITY PICTURE 1-2 HIGH QUALITY PICTURE 16 level interpolation by 16 level Motion detection for Delivering Ultimate Picture Quality. Depending on the level of movement, each pixel has 16 distinguishable phases in still and moving image processing. Image data is generated for every level. Fine processing even with conventional 4 times over sampling yields very clean boundaries between moving and still images during playback. << slight motion <<large motion << no motion Still Image Moving Level Fast moving image Conventional processing P 4 HD Processing Miss motion detection is expanded to the entire block and causes visible noise on horizontal line. Detect motion/no-motion, on pixel by pixel gives sharp and smooth horizontal line. Block Based Motion Adaptive Pixel Based Motion Adaptive Panasonic Famous “F” Chip Advanced Pixel Based Motion Adaptive

17. HIGH QUALITY PICTURE 1-3 Diagonal Processing Panasonic’s unique HQ IP convert circuit is used for interlaced signal conversion. Conventional Faroudja circuits convert signals block-by-block, but Panasonic’s new conversion circuit uses a progressive system to detect and interpolate contoured angles pixel-by-pixel to reproduce images with sharp, clean edges. It also works for moving pictures. R, G and B colors are processed pixel-by-pixel. HIGH QUALITY PICTURE 1080P Up-convert Playback for All Disc This processor up-converts a variety of video signals, such as those from BD-ROM (1080i) Soft, DVD soft and recorded discs of analogue broadcasts, to provide a level of image quality that approaches high density. The resulting images have sharper details and more life-like realism. BD-ROM 1080i DVD Up-converting various video signals into signals of higher image quality Full HD Resolution

18. HIGH QUALITY PICTURE 2-1 297MHz-14bit Video DAC We led the industry in incorporating the 297-MHz, 14-bit Video HQ DAC from Analog Device Co. Ltd. for 4x over sampling to improve the quality of digital/analog conversion. NSV (noise shaping video) processing was used to shift the noise component to an unused band to achieve an excellent signal- to-noise ratio. And finally, extremely fine 14-bit signal processing was added to render ultrafine images with smooth gradation. RGB Light Dark 16,384 equivalent gradations Maximum 14-bit video signal processing makes it possible to achieve 16,384 gradations. 4,398 Billion Color [16384 x 16384 x 16384] HIGH QUALITY PICTURE 14-bit Signal Processing Captures Fine Nuances Maximum 14-bit video signal processing makes it possible to achieve 16,384 steps of gradation. 14 bit = 2 14 = 16,384-shades R 16,384 x G 16,384 x B 16,384 = 4,398 billion colors

19. 297MHz-14bit Video DAC No Over sampling 2 Times OverSampling (Conventional DA converter) 4 Times OverSampling ( 297MHz DAC: New DA converter) 74. 25 MHz 148. 5 MHz 297MHz NOISE Low pass filter Video Signal Video Signal Video Signal Low pass filter Signal level Frequency Loss Noise Broader low pass filter applicable as the aliasing noise goes high-frequency. Gives less loss and phase distortion (Group Delay). Results in sharp and clean picture. HIGH QUALITY PICTURE 4 times sampling to reduce noise to a minimum NOISE Reduce noise to a minimum The highly acclaimed NSV system found in high-end models is used to extract clearer signals from signals already 4 times over sampled to reduce noise. WHAT’S MORE 1 2 3 4 1 2 3 4 Normal Noise Conditions Shift Noise Factor Away From Using Zone (like cyclone separator) Eliminated Noise Factor Residual Noise Factor HIGH QUALITY PICTURE 2-2 74. 25 MHz 148. 5 MHz 74. 25 MHz

20. 192KHz-24bit Audio DAC Balance of Multibit DAC Power and 1-bit DAC Polishing The 192-kHz, 24-bit Advanced Segment DAC was used to achieve a industry highest level of high quality sound. This successfully extracts fine nuances and subtle elements to reach the full potential of digital sources. The newly developed Advanced Segment system eliminates the noise problems and disadvantages of purely digital sound quality found in conventional delta/sigma systems to reproduce high-quality sound on a par with that of analog sources. Merits of Advanced Segment Technology Audio HQ DAC adopts Advanced Segment D-A processing that applies multibit processing to the significant 6 bits that establish the audio reference and 1-bit processing to the insignificant 18 bits that render delicate nuances. By taking advantage of the merits of both, users enjoy a high quality sound that has both “power” and “polish”. Converts insignificant bits into 3rd-order 5-level ΔΣ-modulated signals. Because low signal area is ΔΣ-modulated, noise level is low across entire band. Converts signals of significant 6 bits (64 levels) into 63-level signals (IC0B code) without crossing zero. Converts differential current segments on 67 levels into low THD, low noise analog signals. Adds ICOB output and 5-level ΔΣ output in digital range and outputs ΔΣ -modulated signals on 67 levels. Dynamic Weighted Averaging Circuit for reducing matching errors in current-segments Advanced Segment ＤＡ Converter Industry’s Highest Level of 2CH / Multibit Output Balance of Multibit DAC Power and 1-bit DAC Polishing Noise floor Noise Characteristics of General ∆  DAC 1kHz, -60dB, Fundamental Wave Representative Audio Characteristic: Low Signal FFT (PCM) 1kHz, -60dB, 20KHz Band Advanced Segments DAC Architecture 1kHz, -60dB, 10KHz Band Representative Audio Characteristic: Low Signal Reproduced Waveform (PCM) 1kHz, -60dB1kHz, -120dB f - frequency - kHz Burr-Blown Brand PCM1796 HIGH QUALITY SOUND 1 HIGH QUALITY SOUND = Hybrid DAC

21. HIGH QUALITY SOUND 2 HIGH QUALITY SOUND CD Audio Re-mastering Yields High-Quality Sound Approaching that of 2-Channel DVD Audio Audio Re-master DVD-Audio Advanced Digital Re-master Processing Superb matching with the new 192-kHz/24-bit DAC 192kHz 24bit DAC Precision Re-master Processing High Audio Quality 176.4kHz/24bit 96kHz/24bit 88.2kHz/24bit 44.1kHz/16bit 48kHz/16bit 176.4kHz 192kHz 88.2kHz 96kHz DVD CD Roles Played by Double Digital Re-master The effect of audio re-mastering is dramatic with linear PCM audio on DVD or CD discs, compressed signals on DVD- RAM or CD-RW/R discs, and multi-channel audio on DVD discs. Audio is significantly improved regardless of the type of disc. Incorporates the functioning demanded by quality CD playback. CD Remaster Lost audio signal

22. High Quality Sound Parts Virtual Battery Operation from Power Supply to Amplifier Reference Voltage Reference Voltage to Amplifier Conventional Circuitry NOISE Virtual Battery Operation NOISE “Capacitor” = “Battery” ■Honeycomb chassis Greatly increased casing strength ■ Shock Absorb Rubber Sheet For creating an enjoyable audio environment HIGH QUALITY SOUND 3 It provides clean power by shutting out noise from electric source. ■Copper-foil film capacitors Low impedance for high-quality sound Conventionally used Aluminum ■Gold-plated thin-film chip resistors Extended, high-quality sound. Conventionally used Tin ■Polyolefin capacitor Sharp, crisp audio Conventionally used Chloride Vinyl, PET ■Gold-plated terminals Minimum aging effects for precision input and output from Power Supply

23. HDAVI Control for Panasonic BD Product Lineup INTELIGENT CONTROL Panasonic home theater pursues minimal-step operation from a single remote control. HDAVI Control Digital Video Signal Digital Audio Signal HDMI ＋ Digital Control Signal In addition to simple one-cable connection and high quality audio/visual signal transmission through HDMI, Panasonic has added proprietary technology to realize interlinked operation among all system components. ⇒ Now it is just one remote with less than 1/2 the steps. All you have to do to enjoy a new level of operation convenience is to hook up to a VIERA or home theater system with HDAVI Control compatibility. When you want home theater entertainment, for example, just press a button on the remote. Power to all the components switches on, TV input and other settings are automatically adjusted, and the show’s ready to begin. It’s that easy! Current operation requires 3 different remote controls. INTELLIGENT CONTROL

24. 24Matsushita Electric Industrial Co., Ltd. Confidential THANK YOU VERY MUCH FOR YOUR ATTENTION !!!

25. 25Matsushita Electric Industrial Co., Ltd. Confidential Imaging Photos 1

26. 26Matsushita Electric Industrial Co., Ltd. Confidential Imaging Photos 2