2004 Sales of Consumer Electronics to Set New Record

Las Vegas , Nev. , January 5, 2004 - Manufacturer-to-dealer sales of consumer electronics products will total a record $101 billion in 2004 - a five percent increase over 2003 - according to figures released today by the Consumer Electronics Association (CEA). These figures were issued as part of CEA Market Research's semi-annual U.S. Consumer Electronics Sales & Forecasts report.

CEA also announced that estimated year-end sales for 2003 total $96.3 billion, marking a modest increase of two percent over 2002 figures. The 2003 estimate for year-end sales exceeds the previous forecast CEA released in July 2003.

"Consumer electronics continue to win over American consumers by providing the tools to create, educate, entertain and connect," said Gary Shapiro, CEA president and CEO. "Be they digital imaging or electronic gaming products, new wireless devices or the next generation of in-car electronics, cutting-edge digital video or digital audio products - again and again, consumers have shown that they look to our industry to provide them with the tools to access information, culture, friends, family and the vast world of possibilities."

In the video category, total sales of digital television (DTV) products account for some $6.1 billion of industry revenues in 2003 on nearly 4 million units, representing an increase in dollar sales of 44 percent and an increase of 56 percent in units over 2002 figures. New display technologies have helped boost the tremendous growth in sales of DTV products, with sales of plasma television estimated to reach nearly $1.5 billion in revenues for 2003, up from $515 million just one year ago. LCD television sales during 2003 will total $651 million, compared to $246 million in 2002. In 2004, CEA projects another banner year for DTV product sales, with total shipments of more than 5.7 million units on dollar sales of $8 billion. Sales of plasma displays are expected to generate $2.2 billion in 2004 and revenues of LCD displays are projected to increase to more than $1 billion.

Sales of stand-alone DVD players continued to maintain its position as the fastest selling technology of all time during 2003 with factory-to-dealer shipments of some 22.1 million units on dollar sales of more than $3 billion for the year, up from 17 million units and $2.4 billion in revenues during 2002. Currently, 50 percent of U.S. households now own at least one DVD player - a figure that is expected to increase in 2004, as CEA projects DVD player unit sales to reach more than 23.8 million units by the year's end.

Manufacturer-to-dealer sales of direct-to-home satellite systems totaled 9.7 million units on dollar revenues of nearly $1.4 billion in 2003 and sales of personal video recorders (PVRs) skyrocketed with increases of more than 239 percent over 2002 to $193 million in revenues.

The audio category also is benefiting from rapid consumer adoption of digital products, in spite of facing declines across several products. MP3 players shot past all estimates for a record-setting year in 2003, despite continuing debates over home recording rights. Factory-to-dealer shipments of MP3 players totaled 3.8 million units during 2003, an increase of 121 percent compared to 2002, and are expected to rise again in 2004 to more than 5.1 million units. Dollar revenues of MP3 players for 2003 leapt to $556 million, a 171 percent increase over 2002. CEA projects dollar revenues of MP3 players to increase another 27 percent to $706 million for 2004.

In digital imaging, digital camera sales will total some $3.4 billion in revenues for 2003, up 22 percent from 2002, with unit sales of 12.5 million. With digital cameras in a strong growth mode, household penetration has quickly approached the one-third mark, with 33 percent of U.S. households now owning at least one digital camera.

Two categories once thought to have reached a plateau - PCs and wireless phones - saw growth in 2003. PC sales finally have returned to positive territory in 2003 as unit sales rose roughly 15 percent and dollar sales total $12.5 billion, with digital media and increasing PC specs helping drive a new upgrade cycle. Also in 2003, sales of wireless telephones increased by 20 percent to 70.5 million units on dollar sales of almost $9.2 billion.

Data cited in this release is included in the U.S. Consumer Electronics Sales & Forecasts: 1999-2004, available at no cost to CEA members. Non-member may purchase this report for $149 from CEA Market Research. For a list of available reports and purchasing information, visit www.CE.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 1,300 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, 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 $90 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

• International CES - Defining Tomorrow's Technology

January 8-11, 2004 , Las Vegas , NV

• CEA Winter Technology & Standards Forum

February 22-27, 2003 , Ft. Lauderdale , FL

• CEA Winter Summit

February 26-29, 2004 , Aspen , CO

• Spring Electronic House Expo (EHX)

March 11-13. 2004, Orlando , FL

• CEA HDTV Summit

March 29, 2004 , Washington , DC

• CONNECTIONS TM

May 5-7, 2004 , Dallas , TX

• Consumer Electronics CEO Summit

June 23-26, 2004 , Huntington Beach , CA