Year-End 2006 Revenue at $145 Billion
   

ARLINGTON, Va.–(BUSINESS WIRE)–Factory-to-dealer sales of consumer electronics are projected to exceed
      $155 billion in 2007, or seven percent growth, according to the
      semi-annual industry forecast released today by the Consumer Electronics
      Association (CEA^®).
      The forecast comes on the eve of the 2007 International CES^®,
      the world’s largest consumer technology
      tradeshow.
   

      “The consumer electronics (CE) industry has
      outdone itself once again, with revenues totaling $145 billion in 2006,
      and we’re on track for another year of healthy
      growth,” said CEA President and CEO Gary
      Shapiro. “We surpassed original projections
      for the second year in a row, and the industry outlook is proof positive
      that Americans can’t do without their beloved
      consumer electronics. Consumers are benefiting from our industry’s
      innovations and only want to see more of them. I am excited to be
      witnessing this innovation first-hand on the show floor at the
      International CES.”
   

      Todd Thibodeaux, CEA’s senior vice president
      of industry relations, acknowledged 2006 industry growth far exceeded CEA’s
      conservative forecast at the beginning of the year. “We
      originally forecast eight percent growth, but when all was said and
      done, we saw an impressive 13 percent growth for the year. Consumers
      started the year investing in innovative consumer electronics products
      and seemingly never stopped. With the 2007 forecast, we see the consumer
      love affair with technology continuing at a healthy clip.”
   

      Thibodeaux said the display category will continue to fuel industry
      growth in 2007. “The TV market is setting
      all-time revenue records. CRT-based sets are giving way to flat panel
      displays. The successful ongoing transition to digital television is
      driving demand in this market space.”
   

      CEA projects that display technologies will continue to be the star
      category in the industry and account for $26 billion in revenues for
      2007. All television sets manufactured today with an analog tuner must
      also contain a digital tuner, which is largely responsible for the vast
      increase in digital television sales. Unprecedented price declines in
      plasma and LCD displays are also contributing to growth. For 2007, these
      flat panel displays are expected to ship a combined 19 million units.
   

      Next-generation consoles will make the video game market one to watch in
      2007. An analysis of year-end game console sales reports for 2006
      indicates that holiday sales will lift revenues in 2007 to $16 billion,
      a 23 percent increase.
   

      MP3 players continue to drive the audio market. CEA projects that MP3
      players will account for 90 percent of the $6 billion in revenues for
      the portable entertainment market. Thirty-four million MP3 players
      shipped in 2006 and an additional 41 million are expected to ship in
      2007.
   

      “One of the biggest drivers of both the audio
      and portable entertainment markets is the MP3 player. It continues to
      ship at large volumes and 2007 will be no different as the market shifts
      into a replacement mode. For example, many consumers will be replacing
      their first generation players with new players offering video playback
      capability,” said Thibodeaux.
   

      Driving the mobile electronics market are portable navigation and GPS
      devices, evidence that consumers are continually looking for products
      that will keep them safe and make their automotive travel easier. Two
      million units shipped in 2006, a 66 percent increase over 2005, and 2007
      shipment volumes will continue to propel the market with three million
      units projected to be shipped, generating $1 billion in revenues.
   

      Other product categories that will see substantial growth in 2007 are
      PCs, accessories and digital imaging devices. In 2006, shipment volumes
      of laptops eclipsed their desktop counterparts. CE accessory sales also
      will grow in 2007, to the tune of $11 billion, in large part due to an
      overall consumer emphasis on portability. Total digital imaging
      shipments are expected to exceed 32 million units, with revenues
      projected to reach $8 billion, making 2006 and 2007 the best revenue
      years for this category.
   

      “U.S. Consumer Electronics Sales and
      Forecasts 2002-2007” (January 2007) is
      published twice per year, in January and July. It was designed and
      formulated by CEA Market Research, the most comprehensive source of
      sales data, forecasts, consumer research and historical trends for the
      consumer electronics industry. Please cite any information to the
      Consumer Electronics Association (CEA®). The
      complete report is available free to CEA member companies. Non-members
      may purchase the study for $499 at http://www.ebrain.org.
   

      About CEA:
   

      The Consumer Electronics Association (CEA) is the preeminent trade
      association promoting growth in the consumer technology industry through
      technology policy, events, research, promotion and the fostering of
      business and strategic relationships. CEA represents more than 2,100
      corporate members involved in the design, development, manufacturing,
      distribution and integration of audio, video, mobile electronics,
      wireless and landline communications, information technology, digital
      imaging, home networking, multimedia and accessory products, as well as
      related services that are sold through consumer channels. Combined,
      CEA’s members account for more than $140 billion in annual sales. CEA’s
      resources are available online at www.CE.org,
      the definitive source for information about the consumer electronics
      industry.
   

      CEA also sponsors and manages the International CES –
      Defining Tomorrow’s Technology. All profits
      from CES are reinvested into industry services, including technical
      training and education, industry promotion, engineering standards
      development, market research and legislative advocacy.
   

UPCOMING EVENTS

--  2007 International CES
    January 8-11, 2007, Las Vegas, NV

--  CEA Winter Retreat
    February 26-28, 2007, Vail, CO

--  Digital Music Forum East
    February 27-28, 2007, New York, NY

--  EHX Spring 2007
    March 6-10, 2007, Orlando, FL

--  CEA Washington Forum
    March 26-28, 2007, Washington, DC

--  Digital Patriots Dinner
    March 27, 2007, Washington, DC

--  CONNECTIONSTM: The Digital Home Conference and Showcase
    May 1-3, 2007, Santa Clara, CA

--  Hometech Middle East 2007
    May 13-15, 2007, Dubai, UAE

--  SINOCES 2007
    July 6-9, 2007, Qingdao, China

--  CEA Industry Forum
    October 15 - 17, 2007, San Diego, CA
--  EHX Fall 2007
    November 6-9, 2007, Long Beach, CA