23/06/05: MKM/Verbatim Named No.1 in Global Recordable DVD and CD Media Markets

Mitsubishi Kagaku Media (MKM)/Verbatim, world-leading optical media developer and marketer, announced today that Santa Clara Consulting Group (SCCG), an independent research firm, has identified MKM/Verbatim as the leading supplier of recordable CD and DVD media worldwide. The SCCG report on 2004 global unit shipments shows MKM/Verbatim achieved its Number One worldwide position with 12.1 percent of the CD-R market and 14.6 percent of the recordable DVD market. Mitsubishi and Verbatim brand media is marketed in Australia , Japan , North America, Europe and other areas of the world.

MKM/Verbatim's worldwide dominance in the recordable CD and DVD media markets can be attributed to a number of factors, including the ability to combine high reliability, stability and longevity with high performance and broad compatibility.

To achieve these characteristics, MKM and Verbatim pioneered the development of a patented AZO dye for the recording layer of optical media. AZO technology maintains the best recording compatibility with drives from all the leading hardware suppliers over a wide range of recording speeds.

"The Mitsubishi Kagaku Media Group is committed to setting the pace for technical advancements in the CD and DVD industries, not just keeping pace with them," said Dr. Yoshimitsu Kobayashi, CEO of Mitsubishi Kagaku Media Group. "And with each increase in performance, CD/DVD burners have become less tolerant to media imperfections and quality media has taken on a whole new level of importance. MKM's extensive R&D capabilities, our strong relationships with hardware makers and Verbatim's stringent quality/performance testing procedures have helped Verbatim maintain its reputation for being first with new disc technologies that rank first in quality. These are also the key reasons we're asked to provide drive manufacturers with benchmark media for their testing and certification," he noted.

The market for recordable CD and DVD media is being driven by the growing demand for DVD burners that write to both CD and DVD media. With CDs playing a vital role for recording personal music, photos and home videos, analysts expect the market for CD media to be fairly stable for the next two years, if not longer. However, with the price difference between DVD recorders and DVD players declining and data volume doubling every year, analysts see worldwide shipments of recordable DVD media increasing from 1.35 billion in 2004 to over 3 billion units in 2005.

"The demand for DVD burners and recorders is being fueled by more affordable digital cameras, MP3 players, and camcorders as well as the growing number of consumers that want to share their personal memories and enjoy timeshifting and archiving their favorite TV programs," said Dr. Jon Peddie, president of the Tiburon, Calif. multimedia market research firm Jon Peddie Research. "Verbatim has contributed to the increased adoption rate by developing technologies that enhance media reliability. Mainstream blue laser-based products are still a few years away, so we expect DVD-based CE devices to continue stimulating DVD disc sales for years to come."

MKM/Verbatim has consistently been first to market with new technologies such as higher-speed media, double-layer discs and product differentiators such as DigitalMovie(TM) DVDs with a movie reel look and VideoGard(TM) hard coat technology (called HardCoat ScratchGuard in Europe). To maintain its leadership position, MKM/ Verbatim/continues to develop advanced and innovative storage solutions for the future, including Blu-ray and High-Definition DVD (HD-DVD) media technology.

Availability

Mitsubishi-brand CD and DVD media is marketed in Australia and New Zealand and other areas of the world. The complete line of Mitsubishi CD and DVD media encompasses all media formats (CD-R, CD-RW, DVD-R, +R, -RW, +RW and -RAM) and is available through leading retailers, Internet resellers and distributors around the world.

About Mitsubishi Chemical

Mitsubishi Chemical Group's Vision is Good Chemistry for Tomorrow. This expresses the fact that MCC will continue to respond to the needs of industry and society, thus creating a good 'Chemistry' between people, society and nature.

Our Principles:

• We will continue to be a preferred solution partner to our customers by constantly advancing our skills and technologies
• We will continually change and innovate, creating value and contributing to sustainable growth throughout the world
• We will fulfil our social responsibilities including our commitment to health and safety, and harmony with the environment
• Our corporate culture of openness, fairness and mutual respect enables us to actively pursue and realise our dreams