Warner Home Video have just announced how phenomenally DVD has fueled their
business. The company’s 1998 DVD wholesale domestic gross sales exceeded
$170 million — a more than 240-percent increase over DVD sales of
approximately $50 million in 1997.

“DVD’s performance has exceeded expectations, and our numbers prove it, ” said Warren Lieberfarb, president, Warner Home Video. “DVD was a breakout
hit during the holiday season, and we expect consumer and retailer enthusiasm to experience continued growth in 1999.”

Demonstrating further evidence of strong demand for DVD, manufacturers shipped more than 1.4 million DVD players since the spring 1997 launch. The 1
millionth player was shipped in early November, with an additional 400,000 shipped through the remainder of the year, illustrating DVD’s breakout success in the
holiday season.