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i)

Press Release regarding Sony Corporation’s Consolidated Financial Results for the Third Quarter ended December 31, 2002.

ii)

Press Release regarding Sony Communication Network Corporation’s Financial Results for the Third Quarter and the Nine-month Period ended December 31, 2002.

iii)

Press Release regarding Sony and Telefonaktiebolaget LM Ericsson’s Announcement of a Eur 300 Million Capital Injection to Sony Ericsson Mobile Communications and Report of Said Company’s Results for the Fourth Quarter ended December 31, 2002.

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For the three months ended December 31, 2002, consolidated sales increased slightly year on year to achieve a quarterly record for Sony of ¥2,307.7 billion ($19.2 billion). Operating income increased ¥40.9 billion year on year to ¥199.5 billion ($1.7 billion). Net income reached ¥125.4 billion ($1.05 billion), the highest quarterly net income Sony has ever recorded. The depreciation of the yen against the euro had a positive impact on results.

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In the Pictures business, strong home entertainment sales of motion pictures, including Spider-Man and Men in Black II, that had strong theatrical performances earlier in the year, resulted in a significant increase in sales and operating income.

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In the Electronics segment, although sales decreased due to the severe operating environment, the strong performance of components, semiconductors and consumer audio-visual products, which resulted from an improvement in profit structure, resulted in an increase in total operating income.

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In the Game segment, the market penetration of hardware continued to expand as hardware unit sales, primarily in the U.S. and Europe, increased significantly during the quarter. As a result, software sales worldwide increased, and this enabled the segment to again achieve the high level of sales and operating income recorded in the same quarter of the previous year.

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Cash flow was positive throughout the nine months ended December 31, 2002, a significant improvement over the same period of the previous year. This was due to an increase in the operating income of the Electronics, Game, and Pictures businesses. Total interest-bearing debt on December 31, 2002 was lower than as of December 31, 2001 and as of March 31, 2002.

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Based on management’s belief that uncertain market conditions and the implementation of additional restructuring initiatives will make the fourth quarter a difficult one, Sony has not changed its forecast for the fiscal year ending March 31, 2003, which was announced in October 2002.

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U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120=U.S.$1, the approximate Tokyo foreign exchange market rate as of December 30, 2002.

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Although sales in the Pictures segment increased by ¥98.0 billion, sales to external customers in the Electronics segment decreased by ¥59.7 billion.

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Operating income in the Pictures segment increased ¥31.4 billion due to the contribution of record home entertainment sales mainly from summer 2002 theatrical releases. The Electronics segment achieved a ¥10.1 billion increase in operating income due to the depreciation of the yen against the euro and further cost reductions. Operating income in the Game segment increased ¥5.3 billion because of the strength of software sales, the depreciation of the yen against the euro, and continuing reductions in the cost of manufacturing hardware.

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Selling, general and administrative expenses increased ¥24.1 billion mainly as a result of an increase in advertising and marketing expenses in the Pictures segment in support of increased sales.

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Income before income taxes increased because operating income increased ¥40.9 billion, other income increased ¥6.2 billion and other expenses decreased ¥35.5 billion.

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Other income increased due to a ¥2.8 billion ($24 million) foreign exchange gain.

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Other expenses decreased because of the absence of the ¥30.7 billion foreign exchange loss recorded in the same quarter of the previous year, and because interest expense decreased by ¥3.2 billion due to lower interest rates and reduced outstanding debt.

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The significant improvement occurred as a result of the increase in income before income taxes discussed above and a decrease in losses from affiliates accounted for under the equity method.

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Equity in net losses of affiliated companies decreased ¥6.9 billion to ¥10.0 billion ($83 million).

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This decrease was mainly due to a reduction in losses at Sony Ericsson Mobile Communications, AB (“SEMC”) and at American Video Glass Company (“AVGC”), a joint venture in the U.S. which produces glass components for televisions. Losses at SEMC decreased ¥3.2 billion to ¥4.2 billion ($35 million). Compared with a loss in the same quarter of the previous year, AVGC improved ¥1.9 billion to record a small profit.

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Partially offsetting the improvement was a ¥26.5 billion increase to ¥65.5 billion yen ($546 million) in income taxes due to the increase in income before taxes mentioned above.

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On a product category basis, sales increased in “Semiconductors” by 33.5%, in “Components” by 7.5%, and in “Video” by 3.0%.

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Sales decreased in “Information and Communications” by 18.2% and “Audio” by 9.6%.

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On a local currency basis:

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Products with significant increases in sales were digital still cameras (“Cybershot”), semiconductors (especially CCDs and LCDs, which increased due to higher demand for digital still cameras and personal digital assistants), projection televisions, plasma televisions and personal digital assistants (“CLIÉ”).

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Products with significant decreases in sales were VAIO PCs, CRT computer displays and CRT televisions.

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On a geographic basis, sales in Other areas increased, while sales in the U.S., Europe and Japan decreased.

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Despite the negative impact of the decrease in sales, the following factors led to the increase in profit:

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The depreciation of the yen against the euro.

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An improvement in the profitability of such business as CRTs for computer displays, where a reduction in fixed costs led to greater financial viability, and semiconductors, where utilization at manufacturing facilities increased.

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The following product categories achieved an increase in profitability: “Components,” in which CRTs for computer displays, recording media and battery businesses benefited from structural changes, “Audio” in which home theatre products performed well, and “Televisions” in which large screen televisions performed well. “Semiconductors” changed from loss to profit, mainly due to the strong performance of CCDs. However, “Information and Communications” turned from profit to loss due to the deterioration of the profit performance of PCs.

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Hardware sales decreased, but software sales increased, compared with the same quarter of the previous year.

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Unit sales of both PlayStation 2 and PS one hardware decreased in Japan, but increased significantly in other areas, particularly the U.S. and Europe. Strategic price reductions in all major regions led to a year on year decrease in sales revenue in the U.S. and Japan, although sales revenue increased in Europe.

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Software sales increased worldwide due to an increase in PlayStation 2 software unit sales resulting from the continuing market penetration of PlayStation 2 hardware. (Worldwide hardware production shipments of PlayStation 2 were 49.59 million units as of December 31, 2002 on a cumulative basis.)

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Worldwide hardware production shipments:*

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PS 2: 8.03 million units (an increase of 2.61 million units)

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PS one: 3.02 million units (an increase of 1.99 million units)

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Worldwide software production shipments:*

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PS 2: 79.00 million units (an increase of 26.30 million units)

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PlayStation: 22.00 million units (a decrease of 16.00 million units)

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Strong software sales worldwide led to an overall increase in operating income. Although hardware sales decreased due to strategic price reductions in all major regions, the positive impact of the depreciation of the yen against the euro, in addition to continued reduction of manufacturing costs, resulted in only a slight negative impact on operating income.

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SMEI’s sales (on a U.S. dollar basis) decreased 1%.

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Sales decreased because continuing difficult market conditions caused a decline in record sales in many regions worldwide.

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Partially offsetting this decline was increased DVD software manufacturing sales to the Pictures and Game segments.

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Titles that contributed the most to sales were Jennifer Lopez’s This is Me…Then and Dixie Chicks’ Home.

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SMEJ’s sales decreased 8%.

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Sales decreased because of the continued contraction of the record industry.

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Titles that contributed the most to sales were Chemistry’s Second to None and The Gospellers’ aCappella.

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SMEI’s operating income (on a U.S. dollar basis) decreased 10% as compared to the same quarter of the prior year.

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Operating income declined as a result of the decrease in record sales, higher talent-related expenses, and increased costs recorded for ongoing restructuring activities, including continuing worldwide headcount reductions.

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Partially offsetting this decrease was a decrease in advertising and promotion expenses, increased income generated by the increased DVD software manufacturing activity, and savings realized from SMEI’s previously implemented cost savings initiatives.

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SMEJ’s operating income decreased 6% as compared to the same quarter of the prior year.

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Although a reduction in advertising and promotion expenses led to a decrease in selling, general and administrative expenses, the drop in record sales resulted in a decline in operating income.

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The reasons for the substantial increase in sales (on a U.S. dollar basis) were:

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Record SPE home entertainment sales as a result of the releases of Spider-Man, Men in Black II, xXx, Stuart Little 2, and Mr. Deeds.

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Over 40 million initial DVD and VHS units of Spider-Man were shipped worldwide during the quarter.

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Higher television revenues primarily from a library sale to a cable channel of the television program The Nanny and higher advertising revenues from Wheel of Fortune.

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The reasons for the increase in profitability were:

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Substantially higher home entertainment revenues, as noted above, driven by SPE’s successful summer 2002 theatrical release slate.

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Higher television operating income from the increased revenues noted above.

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The absence of a television restructuring charge recorded in the prior year.

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Partially offsetting the increase in profitability was:

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The disappointing theatrical performance of I Spy.

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Revenue increased primarily due to an increase in revenue at Sony Life Insurance Co., Ltd. (“Sony Life”).

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Revenue increased because valuation gains and losses from investments in the general account improved compared to a loss recorded on Argentine government bonds in the same quarter of the previous year, and because insurance revenue rose due to an increase in insurance-in-force.

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The above revenue gains were partially offset by an increase in valuation losses from investments in the separate account, which resulted from the stock market downturn. Valuation gains and losses from investments in the separate account accrue directly to the account of policyholders and, therefore, do not affect operating income.

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In addition, the following factors affected Financial Services segment revenue:

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Revenue at Sony Assurance Inc. increased due to higher insurance revenue brought about by an expansion in insurance-in-force.

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Revenue at Sony Finance International, Inc. (“Sony Finance”) was almost flat year on year.

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Revenue at Sony Bank increased only slightly reflecting the severe market environment though the total balance of deposited funds increased.

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Operating income increased primarily due to the improvement in valuation gains and losses from investments in the general account and increase in insurance revenue.

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In addition, the following factors affected Financial Services segment operating income:

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Losses at Sony Assurance Inc. decreased due to an increase in insurance revenue and a decrease in payments for insurance benefits.

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Operating income at Sony Finance was almost flat year on year.

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Sony Bank, which began operations in June 2001, recorded a loss similar to that of the same quarter in the previous year.

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Sales of NACS-related businesses (see Note II on page 8) and sales at an advertising agency business subsidiary in Japan increased.

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Losses increased at NACS-related businesses in the aggregate, mainly because of losses incurred in connection with the creation of a platform business for the networked era, although operating income was recorded at Sony Communication Network Corporation.

($4,192

million), an increase of ¥172.3 billion.

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While cash was used for an increase in notes and accounts receivable during the nine months, the contribution to profit of the Electronics, Game and Pictures businesses and an increase in notes and accounts payable caused cash generated from operating activities to exceed expenditures.

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Although the amount of increase in notes and accounts receivable increased and inventories changed from a decrease to an increase, leading to a decrease in cash provided by operating activities, an increase in the operating income of the Electronics, Game and Pictures businesses, and a change from a decrease to an increase in notes and accounts payable contributed to the increase in cash provided by operating activities compared with the same period of the previous year.

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The use of cash derived primarily from the fact that, reflecting an increase in assets under management in the life insurance and banking businesses, investments and advances of ¥686.8 billion ($5,723 million) exceeded sales and maturities of securities investments and collections of advances of ¥386.0 billion ($3,216 million) in the Financial Services business.

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In addition, ¥203.6 billion ($1,696 million) was used to purchase fixed assets, primarily in the Electronics business but, as a result of the prioritization of investments, the figure decreased by ¥89.6 billion compared with the same nine months of the previous fiscal year. Cash proceeds of ¥127.4 billion ($1,062 million) were also generated from the sales of securities investments and collections of advances, including ¥88.4 billion* from the sale of equity in Telemundo Communications Group, Inc. and its subsidiaries, a U.S. based television network and station group.

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Although cash was used during the nine months to pay down borrowings of the Sony group as a whole and ¥23.0 billion ($191 million) in dividends were paid, cash was provided by a ¥106.5 billion ($887 million) increase in deposits from customers in the banking business.

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Including amortization of intangible assets and amortization of deferred insurance acquisition costs.

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1.

U.S. dollar amounts have been translated from yen, for convenience only, at the rate of ¥120 = U.S.$1, the approximate Tokyo foreign exchange market rate as of December 30, 2002.

2.

As of December 31, 2002, Sony had 1,050 consolidated subsidiaries. It has applied the equity accounting method in respect to its 83 affiliated companies.

3.

Sony calculates and presents per share data separately for Sony’s Common stock and for the subsidiary tracking stock which is linked to the economic value of Sony Communication Network Corporation, based on Statement of Financial Accounting Standards (“FAS”) No.128, “Earnings per Share”. The holders of the tracking stock have the right to participate in earnings, together with common stock holders. Accordingly, Sony calculates per share data by the “two-class” method based on FAS No.128. Under this method, basic net income per share for each class of stock is calculated based on the earnings allocated to each class of stock for the applicable period, divided by the weighted-average number of outstanding shares in each class during the applicable period. The earnings allocated to the subsidiary tracking stock are determined based on the subsidiary tracking stockholders’ economic interest in the targeted subsidiary’s earnings available for dividends. The earnings allocated to Common stock are calculated by subtracting the earnings allocated to the subsidiary tracking stock from Sony’s net income for the period.

Weighted-average shares used for computation of earnings per share of Common stock are as follows. The dilutive effect mainly resulted from convertible bonds. In accordance with FAS No.128, the computation of diluted net income per share for the nine months ended December 31, 2001 uses the same weighted-average shares used for the computation of diluted income before cumulative effect of accounting changes per share, and reflects the effect of the assumed conversion of convertible bonds in diluted net income.

Weighted-average shares used for computation of earnings per share of the subsidiary tracking stock for the three months and nine months ended December 31, 2001 and 2002 are 3,072 thousand shares. There were no potentially dilutive securities for the subsidiary tracking stock outstanding at December 31, 2001 and 2002.

4.

Sony’s comprehensive income is comprised of net income and other comprehensive income. Other comprehensive income includes changes in unrealized gains or losses on securities, unrealized gains or losses on derivative instruments, minimum pension liability adjustment and foreign currency translation adjustments. Net income, other comprehensive income (loss) and comprehensive income for the three months and nine months ended December 31, 2001 and 2002 were as follows:

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5.

On April 1, 2001, Sony adopted FAS No.133, “Accounting for Derivative Instruments and Hedging Activities” as amended by FAS No.138, “Accounting for Certain Derivative Instruments and Certain Hedging Activities—an Amendment of FASB Statement No.133”. As a result of the adoption of the new standard, Sony recorded a one-time non-cash after-tax unrealized gain of ¥1,089 million in accumulated other comprehensive income in the consolidated balance sheet, as well as an after-tax gain of ¥5,978 million in the cumulative effect of accounting changes in the consolidated statement of income.

6.

In the fourth quarter of the year ended March 31, 2002, Sony adopted Emerging Issues Task Force Issue No. 01-09, “Accounting for Consideration Given by a Vendor to a Customer or Reseller of the Vendor’s Products”, retroactive to April 1, 2001. As a result of the adoption of new statement, certain cooperative advertising and product placement costs previously classified as selling, general and administrative expenses for the three months and nine months ended December 31, 2001 have been reclassified as a reduction of revenues to conform to the presentation for the three months and nine months ended December 31, 2002.

7.

Adoption of New Accounting Standards

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Including amortization expenses for intangible assets and for deferred insurance acquisition costs.

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1.

Consolidated Financial statements of the SCN Group are based on the Generally Accepted Accounting Principles in Japan.

2.

As of December 31, 2002, the SCN Group included five consolidated subsidiaries and two affiliated companies accounted for by the equity method. On January 1, 2003, SCN merged with one of the consolidated subsidiaries, So-net Be Media Corp.

3.

While the cash previously deposited in Sony Corp. was recorded under “Deposit in parent company” on the Consolidated Balance Sheet, it is recorded as “Deposit in Sony group company” in this fiscal year because the cash is deposited in Sony Corp’s treasury subsidiary company from December 1.2002.

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*

Including extraordinary depreciation of fixed assets

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