Coding Technologies, Matsushita Electric (Panasonic) and NEC partner to bring MPEG-4 aacPlus to more mobile and portable device applications

Companies deliver low-power processor implementation of SBR (Spectral Band Replication) technology for aacPlus

Mountain View, CA/Tokio, December 12, 2002 - Coding Technologies, Matsushita Electric Industrial (Panasonic) and NEC announced today that the three companies have introduced a new low-power decoder version for the upcoming MPEG-4 AAC-plus-SBR (aacPlus) standard, which achieves CD-quality audio at low bitrates. Requiring 40% less processing power, this low-power SBR decoding method is officially recognized by MPEG and is bitstream compliant with the MPEG-4 aacPlus standard. The availability of both low-power and high-quality MPEG-4 aacPlus implementations enables the standard to run on the widest possible range of processors for mobile and portable device applications. Such a range is critical in the adoption of MPEG-4 aacPlus in 2.5G and 3G audio distribution markets.

"The work of Panasonic, NEC and Coding Technologies has significantly increased the reach of aacPlus," said Martin Dietz, President and CEO of Coding Technologies. "Although processor power is increasing rapidly, power consumption is still a key factor in mobile markets. The efficiency afforded by low-power aacPlus will give an early boost to the new standard."

"Since it works with any codec, we see SBR as a very important technology going forward," said Hiroshi Nishikawa, Director, Multimedia Development Center, Matsushita Electric Industrial Co., Ltd. "Since this decoder implementation of SBR requires less computational resources, the MPEG-4 standard can be deployed on more entertainment services including digital broadcasting."

"The mobile market relies on open standards," said Dr. Takao Nishitani, General Manager, Multimedia Research Laboratories, NEC Corporation. "Low-power is always the key to mobile and portable device markets. This low-power SBR standard paves the way for these markets such as network audio distribution, digital broadcasting services, and silicon players.

Technology and intellectual property for low-power SBR was contributed by all three companies. Coding Technologies is the licensing agent for low-power SBR in aacPlus, creating a onestop-shop for SBR patents and software in MPEG-4.

aacPlus is the combination of MPEG AAC and Coding Technologies' SBR (Spectral Band Replication) technology. SBR is a unique bandwidth extension technique, which enables audio codecs to deliver the same quality at half the bit rate. SBR is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. As a result, aacPlus delivers streaming and download CD-quality stereo at 48 kbps and excellent quality stereo at 32 kbps. This level of efficiency fundamentally enables new applications in the markets of mobile and digital broadcast. aacPlus is on track to become a core component of MPEG-4 Audio. For more information, visit http://www.codingtechnologies.com/.

About Coding Technologies
Coding Technologies provides the best audio compression for mobile, broadcasting, and Internet. SBR(tm) (Spectral Band Replication) from Coding Technologies is a backward and forward compatible method to enhance the efficiency of any audio codec; putting the "PRO" in mp3PRO and the "Plus" in aacPlus. SBR is a fundamental enabler of the Digital Radio Mondiale open standard and is on track to become a core component of MPEG-4 Audio. Coding Technologies is a privately held company with offices in Sweden, Germany, and Silicon Valley. Founded in 1997 in Stockholm, the company later merged with a spinoff of the renowned Fraunhofer Institute in Germany, the inventor of MP3. Coding Technologies customers include XM Radio, Thomson Multimedia, MusicMatch, and Texas Instruments.

About Matsushita Electric Industrial Co., Ltd.
Matsushita Electric Industrial Co., Ltd., best known for its Panasonic, National, Technics, and Quasar brand names, is a worldwide leader in the development and manufacture of electronics products for a wide range of consumer, business, and industrial needs. Based in Osaka, Japan, the company recorded consolidated sales of US$51.70 billion for the fiscal year ended March 31, 2002. In addition to the Tokyo and other Japanese stock exchanges, Matsushita's shares are also listed on the Amsterdam, Dusseldorf, Frankfurt, New York, Pacific, and Paris stock exchanges. For more information, please visit Matsushita web site at http://www.panasonic.co.jp/global/top.htm

About NEC
NEC Corporation (NASDAQ: NIPNY, FTSE: 6701q.l, TSE: 6701) is one of the world's leading providers of broadband and mobile Internet solutions dedicated to meeting the specialized needs of its diverse and global base of customers. Ranked as a Global Fortune 500(r) company and one of the world's top patent-producing companies, the NEC group delivers tailored solutions in the core technologies and services required in a networked world, ranging from advanced semiconductor solutions, to high-speed, large-capacity mission critical systems, system integration, and broadband and mobile technologies. The NEC group employs more than 140,000 people worldwide and had net sales of approximately $39 billion in the fiscal year ended March 2002. For additional information, please visit the NEC home page at http://www.nec.com.

For more information, visit http://www.codingtechnologies.com.