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2005 International CES Opening Day Showcases Worlds Coolest Ce Products And Personalities

World’s Largest Annual Consumer Technology Showcase Exceeds 1.5 Million Square Feet and 2,400 Exhibitors

Las Vegas, Nev., January 7, 2005 — Powerful and exciting displays of the hottest consumer electronics products, technologies and trends were unleashed on the opening day of the 2005 International CES. With heavy hitting keynote speakers and conference sessions featuring the industry’s most pressing topics, the 2005 International CES is shaping up to be the biggest and best in history. The 2005 International CES runs January 6-9 in Las Vegas, Nevada.

On the opening morning of, Gary Shapiro president and CEO of the Consumer Electronics Association (CEA) delivered an inspiring and exciting State of the Industry Address. Shapiro announced plans for the 2005 SINOCES, which will take place in Qingdao, China in July. “Our mission here is simple,” Shapiro said, “to grow the CE industry.” Shapiro noted that consumer electronics products and technologies are changing the world. In 2004, U.S. sales growth of consumer electronics rose more than 11 percent. And for 2005, CEA projects sales will climb 11 percent pushing the CE industry to $127 billion.

CEA Executive Board Chairman, Loyd Ivey, detailed his first participation in the International CES in 1974 and compared the changes and positive growth in CEA and in the International CES since then. He also praised CEA and its immediate past chairman Kathy Gornik of Thiel Audio for the formation of the Small Business Council, which provides essential mentoring services to small businesses. Ivey also commended all of CEA’s volunteer leadership and urged the audience to get involved with the CE industry via CEA and its many programs and divisions.

Craig Barrett, CEO of Intel Corporation kicked off the show with a visionary opening keynote address. Barrett focused on the growth of global technology and advancements in the digital home. The entertainment PC, which Barrett called “the bedrock of a digital home,” took center stage with sophisticated demonstrations of audio and video applications that showed simpler interfaces and a more quality user experience than ever before.

Barrett’s keynote included appearances from Aerosmith’s Steven Tyler, who demonstrated music mixing software for consumers and actor Robert Redford, who related the importance of technology to the world of filmmaking. eBay CEO Meg Whittman also joined Barrett on stage to discuss a new recycling effort to aid in the disposal of consumer electronics devices that are no longer in use.

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For the fourth consecutive year, Federal Communications Commission (FCC) Chairman Michael Powell delivered his insight on the top public policy issues facing the technology industry during a riveting one-on-one conversation with CEA’s Shapiro. Topics ranged from copyright protection to the HDTV transition to broadband deployment. Powell stated, “Convergence is here. Now, the vision of the future is dependent on the free flow of content.” Powell later complimented the complex HDTV transition and acknowledged that the move to HD has been the correct decision.

Continuing on the subject of HDTV, Powell stated everyone will benefit from a hard cut-off date and consumers need to continue to be educated about the issues — especially at the retailer level. On the important issue of broadband, Powell noted the triple-digit growth rate the U.S. is experiencing, but said he would like to see broadband over all platforms. In 2005, the FCC foresees its agenda will include wireless activity, spectrum policy, Internet protocol issues and a wide range of unexpected issues due to the quickly transitioning industry.

Edward E. Whitacre Jr., chairman and CEO of SBC Communications Inc., offered a glimpse of the exciting products and services to be launched this year, during his “Industry Insider” on Opening Day. Products and services highlighted included: SBC U-Verse, a new set of IP-based products and services to be launched this year and a new consumer-based VOIP service that will be unveiled in the first quarter of 2005.

Whitacre also discussed the formation of a joint venture with 2Wire, Inc. to deliver a home entertainment service that integrates satellite television programming, digital video recording, video on demand, and Internet content that links them together in an easy-to- use SBC Yahoo! Interface.

Adding another Industry Insider of the day, MTV’s chairman and CEO, Judy McGrath discussed the three critical elements that her company provides to their audiences- relevance, trust and fun. McGrath expressed MTV Networks vision which continues to reach and entice over one billion users through its 400 million networks worldwide by converging with new technology because “creativity is in everyone’s soul and technology is the force for unleashing it.”

McGrath also discussed MTV’s newly announced relationship with Microsoft, which Bill Gates announced during yesterday’s keynote address. The two companies will be working together on a digital media strategy taskforce that will be focused on media centers and PCs. An upcoming announcement about MTV’s new partnership with Verizon to enter the mobile category will be announced in more detail tomorrow.

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A late afternoon keynote from Ron Garriques, Motorola executive vice president topped off Day One of the 2005 International CES. Garriques spoke in place of Motorola Chairman and CEO, Ed Zander’s, stead Zander was unable to attend the show due to a death in the family.

Garriques delivered an address centered on the concept of “seamless mobility,” which he explained offers great opportunities, but also great risks. “Technology has converged around the person; the people who use it,” he said. Seamless mobility 1.0 is evident in applications such as the delivery of home security alerts to a home owner’s cell phone while they are out of town. Seamless mobility 2.0 is all about “power to the person” and will be reached when the Internet is no longer visibile to the user.

Garriques also demonstrated “Liquid Media” – an application that allows content to follow its user as it morphs itself to fit the environment. Using an RFID tag developed by Motorola, the user can move from the home, to the car, to the office and the live content seamlessly will follow the user from device to device. Finally, Garriques announced that the Motorola partnership with Apple continues as the first handset that features the iTunes client will be released later this year. “Tech is back,” Garriques said, “and tech is personal.”

For more news on CES during and after the show, visit www.CESweb.org, the interactive source for CES information.

About CEA:
The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 1,850 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA’s members account for more than $110 billion in annual sales. CEA’s resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES — Defining Tomorrow’s Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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