Sony MPK-THC Other

Integrated Circuit (IC) Card Business

Internet Service Provider

The Internet environ-

ment in Japan is chang-

ing rapidly. At the end

of March 2004, out of

more than 36 million

Internet users currently

in Japan, over 14 million are using a broadband

connection.

In this climate, Sony is taking steps, through

its Internet service business So-net, to offer a

comprehensive range of broadband connec-

tion and content services.

For example, in April 2004, as part of a

service that allows consumers to view Internet

web sites on their home television, So-net has

pioneered a new way to enjoy television view-

ing by launching a new service for the location

free television Airboard LF-X1. By connecting

the Airboard to the Internet, this service allows

users to conveniently view a variety of content,

including news, weather forecasts, program

listings and horoscopes—even while they are

watching television.

So-net also supports NetAV*, a distinctive

feature of Airboard, which allows users to

remotely view television programs and DVD

content broadcast from their homes, even

when they are overseas.

Other

FeliCa, Sony’s contactless IC card

technology, is becoming an essential part

of our everyday lives

FeliCa is a contactless IC card that, when placed

over an electronic reading device, facilitates the

smooth exchange of information. “FeliCa” stems

from the word “felicity,” which literally means

“great happiness.” As its name suggests, FeliCa

was designed to make daily activities more enjoy-

able and convenient. Because data on the card

can be overwritten many times, the card can be

used repeatedly. In addition, the card can store

distinct information for, and be accessed indepen-

dently by, various companies, making it a mul-

tiple-purpose card. It also boasts the fastest

processing speed in the IC card industry. Through

its mutual authentication and data encryption

technology, it provides a secure environment for

data transmission. Separate access rights can be

established for different companies in the card’s

memory, thus facilitating independent access by

multiple companies. As evidence of the high value

placed upon these features, FeliCa technology is

currently being utilized by a wide range of mass

transit systems in Japan, including the Suica

commuter pass of East Japan Railway Co., Ltd. (JR

East); the ICOCA commuter pass of West Japan

Railway Co., Ltd. (JR West); and local bus services.

FeliCa has also been adopted by public transpor-

tation systems in Hong Kong, Singapore, China

and India. In particular, in Hong Kong, which was

the first location worldwide to adopt FeliCa tech-

nology, cards based on FeliCa technology can be

used in public phones and convenience stores.

FeliCa technology has also been adopted for

use in electronic payment systems for the pur-

chase of food and beverages at stores and

shopping centers, as well as for ID and access

control for corporate offices and schools. In

Japan, FeliCa is being employed in the Edy elec-

tronic money service, which is operated by

bitWallet, Inc., and accepted at more than 9,000

convenience stores and other retail outlets na-

tionwide. Sony Finance International, Inc., also

uses FeliCa technology for its credit card, eLIO,

which was developed exclusively for Internet

shopping. Also, in summer 2004, NTT DoCoMo

Inc., will begin selling cellular phones embedded

with an IC chip based on FeliCa technology.

A web site service for Sony’s Airboard LF-X1 location free

television

Can be used on railway, subway, buses,

ferries and other public transportation, as

well as for the purchase of goods and as a

form of ID

Available in card or watch form

More than 10 million cards issued to date

* Octopus Card and Octopus Watch are registered

trademarks of Octopus Cards Limited.

Octopus Card (Hong Kong)

Octopus Watch (Hong Kong)

Suica* prepaid commuter pass, valid

on all JR East, Tokyo Monorail and

Tokyo Waterfront Area Rapid Transit

railway lines

Approximately 9 million cards issued

to date

*Suica is a registered trademark of JR East.

ICOCA* prepaid commuter

pass, valid on all JR West

railway lines

Approximately 1.3 million cards

issued to date

*ICOCA is a registered trademark of JR

West.

ez-link Card (Singapore)

Used on railway, subway and

buses in Singapore

Approximately 6 million cards

issued to date

ANA Mileage Club Card, Edy card

(All Nippon Airways Co., Ltd.)

Can be used to convert air miles

into Edy electronic money

*NetAV is a function made possible through So-net’s

Dynamic DNS service (recommended). Content viewed

through this service is intended for personal use only, and

any other use, unless permission is obtained from the

Contactless IC card FeliCa