Due to irregularity in parts installation in the models VSA-D7EX and VSA-D6TX, AV amplifiers, released to the Japanese domestic market at the beginning of November 2000, the power switch turns off under certain conditions in some units.

Furthermore, there is a possibility that the resistors and capacitors mounted on the circuit-board inside such unit might break down to cause smoke to appear, when the power switch is repeatedly turned on and off.

Although Pioneer tests have confirmed that this problem does not result in fire, the Company has decided to check and repair the subject models free of charge.

Pioneer will publicize a free-check and repair notice in various nation-wide newspapers in Japan, requesting those customers who purchased the models in question to contact the Company for return and repair of their units.

(1) Subject models: VSA-D7EX (Suggested Retail Price: 125,000 yen)

VSA-D6TX (Suggested Retail Price: 88,000 yen)

(2) Period where subject models were sold:

November 2000 through January 2001 (both models)

(3) Number of units: Total of 2,964 units in Japan

Total of 2,964 units in Japan

(VSA-D7EX: 1,290 units / VSA-D6TX: 1,674 units)

Equivalent overseas models sold outside Japan will be repaired accordingly. The number of equivalent models sold in overseas market is as follows:

North America: 8,241 units, Europe: 4,686 units, Other regions: 185 units

The financial impact of this free inspection and repair service will be immaterial, and the forecast of consolidated financial results for the full year, ending March 31, 2001, remains unchanged as announced on November 1, 2000.