News Release from

KOBE STEEL,LTD.

SolidAudio network player to go on sale

TOKYO (May 12, 1999) -- KOBE STEEL, LTD. announces that the SolidAudio network player it has developed with NIPPON TELEGRAPH AND TELEPHONE CORPORATION (NTT) will go on sale in late July. SolidAudio is a credit card-size portable player that downloads music from the Internet for personal use.

The SolidAudio player will be marketed in Japan by computer peripheral manufacturer Hagiwara Sys-Com Co., Ltd. The audio player will be the first product made using the SolidAudio technology. A key feature is a digital distribution system bundled with the player tentatively called "InfoBind," which prevents the illegal reproduction of copyright material. The encoding software for InfoBind will also be compatible with both Windows and Macintosh PCs in the future. Digital contents are stored on SmartMedia flash memory cards that hold 8, 16, 32, 64, or 128 megabytes.

The players will be available in Japan at computer stores from late July. They will also be sold at NTT-ME Information Xing, Inc.'s "goo" portal site on the Internet. By the end of the year, roughly 40,000 units are anticipated to be sold.

SolidAudio is a new network audio technology that is aiming to gain the approval of the recording industry. Kobe Steel is actively looking for companies interested in testing downloader terminals, another method of distributing digital data. It is also seeking other licensees of the SolidAudio technology, which includes the player, downloader and core technology.

One of the world's smallest and lightest portable players

SolidAudio is small and light. The credit-card size player measures 86 mm in length, 54 mm in width and 10 mm in thickness. Including a lithium-ion polymer battery, the unit weighs 55 grams. SolidAudio will fit into a shirt pocket or can be worn as a pendant.

CD-quality sound

SolidAudio uses high sound quality compression technology developed by NTT called TwinVQ. Noted for its high compression ratio of 1:18, TwinVQ delivers CD-quality sound. The SolidAudio player's DSP processor is also capable of handling other varieties of compression technology.

Playback features

Three playback modes are available -- high quality, standard and long play (for voice recording). The players will have treble and bass functions. 3D sound is being considered for the future. The units will have repeat, fast forward, rewind and high-speed music search modes.

Protection against illegal copying

The Infobind digital distribution system is beneficial for both contents owners and end users since it protects audio contents from illegal copying by binding the contents with an unrewritable media ID. For the convenience of users, the flash memory cards can be used in other SolidAudio-compatible players. InfoBind was developed by Kobe Steel and NTT.

Media contact:

Gary I. Tsuchida, Publicity Group
Kobe Steel, Ltd.
9-12 Kitashinagawa 5-chome
Shinagawa-ku, Tokyo 141-8688 JAPAN
tel (03) 5739-6010
fax (03) 5739-5971
e-mail www-admin@kobelco.co.jp

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