Thomson Digital Audio And Video Lineup Promotes Mobility, Flexibility, And Personalization

Las Vegas, January 5, 2006 — To support the growing consumer trend for personal customization and content viewing, Thomson today unveils a line of audio and video products that deliver portable entertainment in a variety of environments. Among the products being showcased at the 2006 Consumer Electronics Show this week are a new portable media player with DIRECTV2GO compatibility, a micro audio system compatible with SIRIUS Satellite Radio that also transfers
music from the CD to an mp3 player without a PC, flash mp3 players with customizable designs, an innovative dual screen portable DVD player, and a Wi-Fi digital audio adapter to easily play music from the PC on the home audio system.

“Consumers are strongly embracing the ability to share content between home and portable devices and Thomson is aggressively creating solutions that accomplish this,” said Dan Collishaw, Chief Operating Officer of Thomson’s, Audio/Video and Accessories businesses. “Our strategy is being validated by our relationship with key distribution leaders — to bring content to entertainment devices.”

LYRA Personal Multimedia Recorder: Portable Video, Audio, Photos, and Music:
Thomson’s next generation personal audio/video device, the LYRA X3000 by RCA, enables high-speed transfer of content from most video sources, including compatible DIRECTV digital video recorders. As an added benefit of the DIRECTV2Go functionality, program information is also transferred along with the content for simple navigation of the stored video. All a consumer will need to access this DIRECTV content is a next-generation DIRECTV DVR, scheduled for deployment in 2006, as well as a downloadable software upgrade for the X3000, available online at no extra cost. Additionally, the included Home Theater Docking Base allows for timed recordings of a variety of video sources.

With a 20GB capacity, consumers can store up to 80 hours of pre-recorded TV shows, feature films or home movies, as well as mp3 and Windows Media Audio (WMA) music files, and thousands of digital photos. The X3000 is even compatible with WMA secure music download and subscription services, allowing users to load up on their favorite songs. Additionally, users can create slideshows with zoom and photo rotation, with the photos enhanced by the X3000’s 3.6″ full color ultra-bright TFT display.

The suggested retail price of the X3000 LYRA by RCA is $399 and it is available now.

What’s Your Style? — RCA Flash Players
When it comes to portable mp3 players, style is essential. The new RCA mp3 flash players can be customized by the user with bundled decals and interchangeable covers. The 256MB model m200256, and 512MB model m200512, feature a bright OLED display, feature an SD memory card expansion slot, and can deliver up to 18 hours of playback on a single AAA battery. The m200256 and m200512 are available this month, with suggested retail prices of $59.99 and $79.99 respectively.

New RCA Portable DVD Player for Two
Not just your average portable DVD player, the DRC630N features two 7-inch screens that provide hours of backseat entertainment. Ideal for long car rides with the kids, the DVD functionality is housed in the main unit that connects to the second screen via a single cable. The DVD player also doubles as a game console, featuring 30 8-bit games and includes a game controller. In addition, each screen has its own headphone jack, for private listening, and the screens can be attached to the back of car headrests with an included mounting accessory. The DRC630N will be available this spring at a suggested retail price of $229.

One Touch “Ripping” Without a PC – New RCA Bookshelf Systems
Following the successful launch of the first generation RCA Rip & Go Digital Music Studio, Thomson is introducing an entire line of bookshelf audio systems featuring the ability to transfer CD audio content (without using a PC) directly to a USB mp3/mass storage class device. Thomson is adding even more functionality in one of its new systems, model RS2100, that features SIRIUS Satellite Radio compatibility and wireless streaming capability for transmitting music wirelessly from a PC to the system. This model will be available in spring with a suggested retail price of $299.99.

Other new products with “Rip & Go” capability are:
• RS2046 — 10-Watt System, with single CD and mp3/WMA compatibility. Available in spring with suggested retail price of $69.99.
• RS2047 — 80-Watt System, with five-disc Neo-5 changer, digital AM/FM tuner mp3/WMA compatibility. Available in spring with suggested retail price of $99.99.
• RS2054 — 100-Watt System, bundles 128MB RCA flash mp3 player, single CD and mp3/WMA. Available in the spring with suggested retail price of $129.99.
• RS2058 — 160-Watt System includes bundled 256MB RCA flash mp3 player and 2X ripping speed. Features five-disc Neo-5 CD changer, and an SD card slot. Available in the spring with a suggested retail price of $179.99.

LYRA Wireless Audio Link Streams Wi-Fi Music from PC to Home Stereo
The ability to move audio from the PC to a home stereo system continues to be of high interest to those with large music collections on their computers. Thomson is introducing its latest solution — the LYRA Wireless Audio Link Wi-Fi digital music adapter, a device that enables streaming of digital music from a PC to a home stereo using an existing Wi-Fi connection. Simple to operate, Wireless Audio Link plugs into the auxiliary inputs of a home stereo setup and is capable of playing mp3/WMA files, streaming audio, as well as Internet radio broadcasts that can be accessed even if the computer is turned off. Supporting Microsoft “Plays For Sure” initiative, the LYRA Wireless Audio Link also allows consumers to play protected mp3/WMA files from all major subscription download services that use Microsoft’s digital rights management software. An LCD display shows ID3 information for mp3 music and key information about the Internet radio station. Available this spring, the LYRA Wireless Audio Link has a suggested retail price of $99.

Certain statements in this press release, including any discussion of management expectations for future periods, constitute “forward-looking statements” within the meaning of the “safe harbor” of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements due to changes in global economic, business, competitive market and regulatory
factors. More detailed information on the potential factors that could affect the financial results of Thomson is contained
in Thomson’s filings with the U.S. Securities and Exchange Commission.

About Thomson – Partner to the Media & Entertainment Industries
Thomson (Euronext Paris: 18453; NYSE: TMS) provides services, systems and technology to help its Media & Entertainment clients — content creators, content distributors and users of its technology — realize their business goals and optimize their performance in a rapidly changing technology environment. The Group is the preferred partner to the Media & Entertainment Industries through its Technicolor, Grass Valley, RCA and Thomson brands. For more information: www.thomson.net.

Press Contacts

James Harper
Telephone: (317) 587-4450

Chris Cotter
Golden Loder Associates
Telephone: (908) 889-8300 x105
E-Mail: ccotter@goldenloder.com

Doug Wright
Golden Loder Associates
Telephone: (908) 889-8300 x106
E-Mail: dwright@goldenloder.com