1. 2006 Product Review Digital Mobility

2. Thomson Confidential +217% $1344 +100% 8,000 +210% 24,812 +215% $4229 +21% 30,000 +13% 34,000 +10% $4450 +10% $4482 44% 56% 57% 43% 67% 33% Source: CEA, Thomson 70% 30% DA Industry Information

3. Thomson Confidential Flash – H2 2005 HDD –H2 2005 Units Dollars DA Industry Information

4. Thomson Confidential DA Entertainment Universe Sports/Active Lifestyle Rugged Water-Resistant Stop Watch Calorie Counter Pulse Rate Monitor Pedometer Altimeter Barometer GPS Video Record from Source Schedule Recordings DIRECTV2Go Subscription Based Sharing Wifi Enabled Bluetooth Capable Device2Device Niche – “Counter Culture” Different ID styles/Racer X Sci-Fi Clamps/Spider Fringe Groups (Punk, Rock, Girly) Features and Styling out of the box Consumer Segment Opportunities Non-Apple Mainstream Customers wanting options not offered by Apple Differentiated ID’s Optional Features Better Feature to Cost Advantage Music Site Purchase Options

5. Thomson Confidential BlueTooth –Playback and Control –Wireless Home Docking –Accessory Options Bundling Add-on Sales Wifi –Playback and Control –Hotspot Downloading –Playlist / Song Trading Wireless Sharing VYRA A new form of device + service hybrid that aims to extend the Internet and its wealth of content to a portable device It is focused on two areas: Push Internet content delivery Self propagating user communities that help to find/create new content and spread it to each other DA Innovation Products/Services

6. Thomson Confidential 2006 Digital Audio Products

7. Thomson Confidential TH101 – Blue 256 MB - $49.99 Entry User (Young Adult) Simple Starter Package –mp3, WMA, WMA DRM, WAV Compatible –USB Cap to keep pocket lint out –Seven Color Backlit LCD Display with Icons –Built-in Voice Recorder –Multi-Language –Replaceable “AAA” Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones, Music Management Software TH101

8. Thomson Confidential TH102 – Red 256 MB - $49.99 Entry User (Young Adult) Simple Starter Package –mp3, WMA, WMA DRM, WAV Compatible –USB Cap to keep pocket lint out –Seven Color Backlit LCD Display with Icons –Built-in Voice Recorder –Multi-Language –Replaceable “AAA” Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones, Music Management Software TH102

9. Thomson Confidential TH103 – Silver 256 MB - $49.99 Entry User (Young Adult) Simple Starter Package –mp3, WMA, WMA DRM, WAV Compatible –USB Cap to keep pocket lint out –Seven Color Backlit LCD Display with Icons –Built-in Voice Recorder –Multi-Language –Replaceable “AAA” Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones, Music Management Software TH103

10. Thomson Confidential TH1010 – Black 512 MB - $69.99 Entry User (Young Adult) Simple Starter Package –mp3, WMA, WMA DRM, WAV Compatible –USB Cap to keep pocket lint out –Seven Color Backlit LCD Display with Icons –Built-in Voice Recorder –Multi-Language –Replaceable “AAA” Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones, Music Management Software TH1010 TH1011 – White 1 GB - $89.99

11. Thomson Confidential Entry User (Young Adult) PlaysFromDevice or Play To Device. –PlaysFromDevice Capability – Is able to be controlled and play through an external audio system –mp3, WMA, WMA DRM, Audible and Janus Compatible –Multi-line OLED (Organic Light Emitting Diode) is more colorful and brighter than normal displays –FM Tuner/Record –Flip USB direct connection –18-20 hrs on Rechargeable Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones TH1500 512 MB - $79.99

12. Thomson Confidential Entry User (Young Adult) PlaysFromDevice or Play To Device. –PlaysFromDevice Capability – Is able to be controlled and play through an external audio system –mp3, WMA, WMA DRM, Audible and Janus Compatible –Multi-line OLED (Organic Light Emitting Diode) is more colorful and brighter than normal displays –FM Tuner/Record –Flip USB direct connection –18-20 hrs on Rechargeable Battery –100 Free mp3s from RCA and emusic.com –Accessories included: Neck Strap, USB Cable, Earbud Headphones TH1501 1 GB - $99.99

13. Thomson Confidential Price-Conscious (Kid/Teen/Late Adopter) Easy on the Eyes and the Wallet! –Interchangeable Display and Battery Covers with different colors for personalization –PlaysFromDevice Capability – Play secure content on various devices such as Xbox 360. –mp3, WMA, WMA DRM, Audible and Janus Compatible for use on most download sites –Multi-line OLED is more colorful and brighter than normal displays –Expandable Memory Slot for more music –18 hrs. on “AAA” Battery –100 Free mp3s from RCA and emusic.com –Accessories included: USB Cable, Carrying Case, Belt Clip, Sports Armband, Earbud Headphones, Battery M20 Series M200 256 MB - $49.99 M2000 512 MB - $69.99

14. Thomson Confidential Price-Conscious (Kid/Teen/Late Adopter) Your Good Tune Charm –Multi-function Multi-Line Full Color 1" OLED Display - The multi- line alpha-numeric OLED (organic light-emitting diode) display is bright and clear compared to regular LCD display. –Video Playback (MOV, AVI) - Plays downloaded M-PEG videos. –Audio Playback (mp3 / WMA® / WMA® DRM / WAV / Audible) - Listen to several different formats of music and books. Compatible with most download internet services. –Photo Playback (JPEG, Bitmap, TIF, GIF, PNG) - View photos or images. You can also zoom and rotate as well as create slideshows. –Lyric Display Capability - Displays lyrics while music plays (song must have attached lyric file) –Dual Orientation Display - You can "flip" the display upside down depending on where you like to wear the device. –Digital FM Tuner with 20 Presets - Listen to your favorite radio stations while working out. –FM Record (mp3 / WAV), Voice Record, Audio Record – Voice Record, record your FM station or line in from another analog source to mp3 or WAV format. –Accessories included: USB Cable, Neck Strap, Line-In Cable, Earbud Headphones and 100 free downloads from emusic.com M2600 512 MB - $79.99

15. Thomson Confidential Price-Conscious (Kid/Teen/Late Adopter) Your Good Tune Charm –Multi-function Multi-Line Full Color 1" OLED Display - The multi- line alpha-numeric OLED (organic light-emitting diode) display is bright and clear compared to regular LCD display. –Video Playback (MOV, AVI) - Plays downloaded M-PEG videos. –Audio Playback (mp3 / WMA® / WMA® DRM / WAV / Audible) - Listen to several different formats of music and books. Compatible with most download internet services. –Photo Playback (JPEG, Bitmap, TIF, GIF, PNG) - View photos or images. You can also zoom and rotate as well as create slideshows. –Lyric Display Capability - Displays lyrics while music plays (song must have attached lyric file) –Dual Orientation Display - You can "flip" the display upside down depending on where you like to wear the device. –Digital FM Tuner with 20 Presets - Listen to your favorite radio stations while working out. –FM Record (mp3 / WAV), Voice Record, Audio Record – Voice Record, record your FM station or line in from another analog source to mp3 or WAV format. –Accessories included: USB Cable, Neck Strap, Line-In Cable, Earbud Headphones and 100 free downloads from emusic.com M2601 1 GB - $109.99

16. Thomson Confidential Active Lifestyle (Active Adult) Your Best Workout Partner –Water-Resistant, Pedometer, Stopwatch Ease of One-Hand Operation –PlaysFromDevice Capability – Secure content on your audio systems. –mp3, WMA, WMA DRM, Audible and Janus Compatible for use on most download sites –Multi-line Negative LCD is brighter and easier to read compared to normal displays –20 FM Presets with FM Recorder –“Flip” Display for Dual Orientation on either arm –100 Free mp3s from RCA and emusic.com –Accessories included: Belt Clip, Sports Armband, USB Cable, Neck Strap, Earbud Headphones, Battery S1000 512 MB - $79.99

17. Thomson Confidential Active Lifestyle (Active Adult) Your Best Workout Partner –Water-Resistant, Pedometer, Stopwatch Ease of One-Hand Operation –PlaysFromDevice Capability – Secure content on your audio systems. –mp3, WMA, WMA DRM, Audible and Janus Compatible for use on most download sites –Multi-line Negative LCD is brighter and easier to read compared to normal displays –20 FM Presets with FM Recorder –“Flip” Display for Dual Orientation on either arm –100 Free mp3s from RCA and emusic.com –Accessories included: Belt Clip, Sports Armband, USB Cable, Neck Strap, Earbud Headphones, Battery S1001 1 GB - $99.99

18. Thomson Confidential Entry User (Young Adult) Subtle Sophistication –6 GB Hard Disk Drive –PlaysFromDevice Capability – Secure content on your audio systems. –mp3, WMA, WMA DRM, Audible and Janus Compatible for use on most download and subscription sites –Bundled FM Transmitter –1.5” Negative LCD Display (White on Black) allows display to be read in direct sunlight –18-20 hrs on Rechargeable Battery –USB Power Charge (no AC/DC adapter needed) –100 Free mp3s from RCA and emusic.com –Accessories included: Belt Clip, USB Cable, Earbud Headphones H116 6 GB - $169.99

19. Thomson Confidential Flash Drive Thin Tunes –mp3, WMA, WMA DRM and Janus Compatible for use on most download sites –1.8” TFT High Color LCD Display –JPEG with Slideshow functionality –M-JPEG video playback –FM Radio/Record, Voice Record, Line-In Record to mp3 or WAV –SRS WOW Sound Effect –World Clock –Text Viewer and Lyric Synchronization –14 hrs on Rechargeable Battery –USB 2.0 Host – Capable of connection to other USB devices without a computer –100 free mp3s from RCA and emusic.com –Accessories included: USB Cable, Line-In Cable Carrying Case, Earbud Headphones M5001 1 GB - $149.99

20. Thomson Confidential Flash Drive Thin Tunes –mp3, WMA, WMA DRM and Janus Compatible for use on most download sites –1.8” TFT High Color LCD Display –JPEG with Slideshow functionality –M-JPEG video playback –FM Radio/Record, Voice Record, Line-In Record to mp3 or WAV –SRS WOW Sound Effect –World Clock –Text Viewer and Lyric Synchronization –14 hrs on Rechargeable Battery –USB 2.0 Host – Capable of connection to other USB devices without a computer –100 free mp3s from RCA and emusic.com –Accessories included: USB Cable, Line-In Cable Carrying Case, Earbud Headphones M5002 1 GB - $199.99

21. Thomson Confidential 1, 2, or 4 GB: 1 GB = 325 songs, 2 GB = 650 songs, 4 GB = 1300 songs. Display: 1.8” TFT High Color LCD Video Playback: M-JPEG Audio Playback: mp3, WMA, WMA DRM, Janus Compatible with subscription services and WAV Photo Viewer: JPEG, GIF, BMP Digital FM Tuner/Record: to mp3 or WAV Voice Record: to mp3 or WAV Line-In Record: to mp3 or WAV World Clock: Yes Text Viewer: Yes Lyric Synchronization: Yes SRS WOW Effect: Surround sound effect. USB 2.0 Host: Point-to-Point Communication with other USB enabled devices like cameras or mp3 players Battery Life: 14 hours on rechargeable battery Accessories Included: Earbud headphones, Line-In cable, Music Management Software, Carrying Case, and USB Cable. 1, 2, or 4 GB: 1 GB = 240 songs, 2 GB = 500 songs, 4 GB = 1000 songs. Display: 1.5” Color LCD Video Playback: None Audio Playback: ACC, Protected ACC from iTunes, mp3, NOT compatible with subscription service of any kind Photo Viewer: JPEG, GIF, BMP, TIFF, PNG Digital FM Tuner/Record: None Voice Record: None Line-In Record: None World Clock: Yes Text Viewer: None Lyric Synchronization: None SRS WOW Effect: None USB: Only through Dock (sold separately) Dock Connecter: Yes (dock sold separately) Battery Life: 14 hours on rechargeable battery Accessories Included: Earbud Headphones, iTunes Disc, USB Cable, and Dock Adapter (dock sold separately) 1 GB = $149.99 2 GB = $199.99 4 GB = $249.99 1 GB = $149.99 2 GB = $199.99 4 GB = $249.99 3.5 x 1.6 x 0.273.5 x 1.6 x 0.28 M50 vs. Apple Nano

22. Thomson Confidential R3000 512 MB - $79.99 Early Adopter (Young Adult) No headphones, no headaches. Let others enjoy your digital collection with the D100 series. Easy to Load – Easy to Play – Easy to Enjoy. R3000 mp3 for You and Me –512 MB mp3 player –mp3, WMA, WMA DRM, Audible and Janus Compatible for use on most download sites –FM Radio with Record –USB Direct Play Capability –Expandable Memory Slot for more music –Five Preset Graphic Equalizer –AC/DC Adapter so you can save your batteries –100 Free mp3s –Accessories included: USB Cable, AC/DC Adapter

23. Thomson Confidential Video Models

24. Thomson Confidential Video – User Created Set to Explode –3.5” TFT High Color Display –Compact Flash Drive Starter Kit Included with Unit –Up to One Hour of Video Included –Screen Cleaner Cloth –Removable Stand and Carry Strap –DivX Transcoding Software to make any video compatible with just a click of the mouse. –MPEG 1, 2,4, JPEG, mp3, WMA, WMA DRM, DivX –Records directly from source (DVD, TV, CD Player, etc…) to MPEG for video or WAV file for audio –100 Free mp3s from RCA and emusic.com –Built-in Speaker X2400 M5002 1 GB - $199.99

25. Thomson Confidential Video – Network Created You’ve Got To See It, To Believe It –3.6” TFT High Color Display with 20 GB HDD –Video (MPG 1,2,4/Divx Certified/WMV9), Audio (mp3, WMA, WMA DRM, Audible, Janus Compatible), Images (JPEG, Bitmap, TIF, GIF, PNG) Viewer/Slideshow with Audio Commentary –Records direct from source (Video to MPG4/Audio to mp3) with Timed Recording like a mini DVR –Built-in DivX Create for a one click video converter –Built-in Speaker –Video Out – DVD Quality output to display video and images on your TV –Accessories included: USB Cable, Carrying Case, Earbud Headphones, Universal Remote, Home Theatre Docking Base, AV Line out Cable –DIRECTV2Go direct transfer capability (other network providers pending) X3000 20 GB - $399.99 X3030 30 GB - $399.99 June Available

26. Thomson Confidential 2006 Digital Mobility Products

27. Thomson Confidential Up to 30 Minutes Of Video $129.99 Video – User Created Never Miss A Memory –Point and Shoot Digital Camcorder –30 Minutes worth of recording time –Easy to play and delete files on camcorder –3x Zoom –Records in Half VGA, MPEG4 AVI files (neutral format is easy to edit with video editing software) –Output direct to TV –Easy to Connect to Computer with Convenient USB Arm –Super Simple Software Embedded so you can download videos to any PC or Mac –Email software converts videos to WMV files for smaller file sizes –Runs on 2 “AA” Batteries –Easy dock connection so you can have DVD burnt at local CVS pharmacy or other retailers for $9.95 Where’s Your Camcorder? In the closet with a dead battery? No tapes? Well, your problems are over. Introducing the EZ101, a camcorder for the rest of the family. EZ101

28. Thomson Confidential 2006 Digital Audio Marketing

29. Thomson Confidential Reality of Speed –RCA is an associate Sponsor of Holigan Racing Team BooKoo –Reality TV Show –Airing on Speed Channel –Speed, Action, Power, Glory, and Conflict are the driving forces behind The Reality of Speed. The thirteen episodes of this hard-driving reality show chronicle the fast-paced lives of three professional motocross racers – David Vuillemin, Steve Boniface and Justin Keeney. –They live, train and work out together during the week, and then line up on Saturday night in front of 50,000 screaming fans to compete for money, fame and glory in the most physically demanding sport in the world. Digital Audio Marketing

30. Thomson Confidential Reality of Speed –RCA teamed up with local retailer for promotions –Local Radio Promotions featured the LYRA X3000 as well as promoting both the AMA Supercross and retailer –10 Giveaways of the LYRA X3000 on the radio all week leading up to Saturday race –An autograph signing with Holigan Racing Riders on Friday night at retailer –Radio Remote from local rock station to promote both the LYRA X3000 at retailer and the riders –Product giveaways both Friday night and Saturday Race Day

31. Thomson Confidential Stadium Sponsorships –X3000 Banners pushing sweepstakes –X3000 PA Announcements –Team BooKoo RCA autograph sessions with product –Reality of Speed filming all events Flyers –Flyers directing fans to web site to register for bike drawing –Promoting other products as well as specifically the X3000 Website –www.rca.com to be used for the Race Bike Promotionwww.rca.com –Contestants will get a chance to win the bike and view all the features of the LYRA X3000 –Survey opportunities and data collection of fan base TV and Radio –Reality of Speed show will display riders using RCA digital audio product –X3000 Radio Giveaways –Teamed up with local retailer to push products Page N°31 Sweepstakes

32. Thomson Confidential Packaging –New RCA packaging uses Reality of Speed marketing –Website coordinated with packaging Website –Website to be used for the Race Bike Promotion –Contestants will get a chance to win the bike and view all the features of the LYRA X3000 –Survey opportunities and data collection of fan base Page N°32 Digital Audio Marketing