Funai Creates Combo-TVs with Built-In Blu-Ray Players

North American Launch Planned

<August 13, 2008><Nikkei-TOKYO>The Nikkei reported today that Funai Electric Co. will launch LCD flat panel television sets with built-in Blu-Ray disc players in the North American market next summer. The sets are expected to be mid- or large-sized screens with the integrated disc player located under the screen.

Funai believes that by next summer, the U.S. market demand will ramp up for a second flat panel set in consumer homes. It also hopes to grow profits…and sidestep brutal price competition…by offering value-added technologies like Blu-Ray in its combination television sets.

The company believes that it has an advantage over competitors due to its in-house Blu-Ray technology capability and its expertise in the combo-TV concept. At one time, 40% of Funai’s North American TV sales came from this type of combination product.

The North American market currently accounts for 80 percent of Funai’s LCD television sales, while 20 percent of sales are television units with built-in DVD players.

Funai anticipates selling the upscale combination sets at Wal-Mart Stores, as well as at other specialty electronics stores throughout the country. Funai anticipates that a 42-inch TV/Blu-Ray DVD combo unit will sell for approximately $1,100 to $1,300 at retail.