Sony Makes Online Acquisition

CULVER CITY, August 23: Sony Pictures Entertainment (SPE) is
shelling out $65 million for Grouper, a user-generated video website.

Under the terms of the deal, the Sausalito-based site, which
enables its members to watch, share and create video online, will retain its
current management, working closely with a team at Sony Pictures.

"Consumers are spending more and more time on sites
like Grouper, and as one of the world's largest creators of entertainment, we
want to be where the audiences are," said Michael Lynton, the chairman and
CEO of SPE. "This acquisition demonstrates the breadth of involvement of
Sony Corporation in the field of digital online entertainment. Many people in
the Grouper community use Sony cameras to create videos and Sony VAIO computers
and mobile devices to store and view them. It makes sense to complete the circle by having Grouper be a
part of Sony Pictures Entertainment, which itself creates so much content for
people around the world."

Grouper CEO and co-founder Josh Felser added, "When you
pair Grouper's innovative video sharing platform on the web and the desktop
with Sony's connected devices and copyrighted media, you create a dynamic and
exciting environment for consumers. We have an opportunity, as part of the Sony
family, to bring together user-generated and copyrighted content across
platforms and devices for the first time."

Grouper users can browse videos and post them on third-party
websites, with the site’s peer-to-peer video sharing network facilitating fast downloads
of high-quality uncut original video. Its users can also download from
Grouper.com to mobile devices like the PSP and iPod.