CUBASE 4 TO FEATURE MP3 SURROUND

CUBASE 4 TO FEATURE MP3 SURROUND

Leading Media and Consumer Electronics Companies

Embrace Thomson's Multi-Channel Distribution Technology

Burbank, CA – October 12, 2006— Cubase, the premiere music production software, is featuring mp3 Surround capabilities for the first time, it was announced today by global technology corporation and mp3 Surround licensor Thomson (Euronext 18453; NYSE: TMS). Cubase 4, from audio software leader Steinberg Media Technologies GmbH, includes tools for encoding multi-channel content in mp3 Surround, the surround sound solution with the convenience of mp3. Steinberg joins eMusic, DivX, Sony Corporation and Samsung on the list of top-tier media and consumer electronics companies that have recently licensed mp3 Surround.

"A pioneer in digital audio technologies, Steinberg helps set the course for the entire music industry," said Rocky Caldwell, general manager, mp3 Licensing, Thomson IP and Licensing. "Now with Cubase 4, artists will see how easy it is to output and distribute music using mp3 Surround and how much it elevates the listening experience."

"Surround functionality is of increasing importance to many audio professionals," said Kazunori Kobayashi, Steinberg's managing director. "Our support for this exciting new cross-platform codec complements the surround functionality in Cubase 4, and looks set to accelerate the expansion of surround in both professional and consumer environments."

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Developed by Fraunhofer Institute for Integrated Circuits IIS, Germany in conjunction with U.S-based Agere Systems, mp3 Surround is a high quality audio compression technology for music recorded in 5.1 channels and is the only backwards compatible, multiplatform solution of its kind today. A recent Consumer Electronics Association study (Audio Purchasing: The Continued Quest for Quality, January, 2006) revealed that surround sound quality surpasses watts of power as the top issue for audio consumers worldwide.

Mp3 Surround produces efficient, multi-channel files that are less than half the size of competitive software and comparable to those encoded by standard mp3. Mp3 Surround is ideal for music production software, broadband media distribution, consumer electronics, PC and handheld video games and automotive systems.

"A rising number of Internet sites like MySpace and Amazon.com are choosing mp3 as their distribution standard because only mp3 plays everywhere and that is what our customer's expect," said Bernhard Grill, one of mp3's inventors and head of the audio department at Fraunhofer IIS. "Mp3 Surround is the natural next step and will enable the proliferation of surround music. Thanks to Cubase, mp3 Surround is now easily available for professional music production."

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Cubase 4 is the latest version of Steinberg's world-renowned Cubase music production system, which provides next-generation audio and MIDI tools for composing, recording, editing and mixing. Used by Oscar® and Grammy®-winning composers and producers, Cubase forms the center of countless music production environments worldwide.

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 and business conditions, consumer electronics markets, 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 — World Leader in Video Technologies
Thomson provides technology, services, and systems and equipment 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: http://www.thomson.net.

About Thomson's Technology Division

Thomson's Technology division develops and supplies advanced products, services and technologies to entertainment and media companies. One of three divisions of Thomson, S.A., it has four business units: Corporate Research; Intellectual Property & Licensing, which has a portfolio of more than 50,000 patents; Silicon Solutions, which develops advanced integrated circuits; and Software & Technology Solutions, which focuses on content security, image quality and user interface.

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