Corporate Presentation

CES – Las VegasJanuary 2005

Page 1

Key Highlights:• TTE corporation was established in Aug

2004– 2003 revenues >$3 billion

– ~29,000 employees in 9 countries

• TTE is a joint venture between TCL and Thomson with TCL owning 67% shareand Thomson with 33% share

• TTE is the leading global television enterprise with annual production capacity of 20 million units +

Key Highlights:• TTE corporation was established in Aug

2004– 2003 revenues >$3 billion

– ~29,000 employees in 9 countries

• TTE is a joint venture between TCL and Thomson with TCL owning 67% shareand Thomson with 33% share

• TTE is the leading global television enterprise with annual production capacity of 20 million units +

Company Profile

Page 2

Europe Asia

NorthAmerica

Poland

Huizhou

Wuxi

Inner Mongolia

VietnamThailand

MexicoNanchang

Xixiang

9 manufacturing centers with presencein each key consumer market

Villingen / Angers

Singapore

Shenzhen

Strong capabilities in R&D and product developmentwith full coverage from analog to digital technology

Worldwide Manufacturing and R&D

Page 3

Indianapolis

CORE INNOVATION CORE INNOVATION TECHNOLOGYTECHNOLOGY

ANALOG DIGITAL ANALOG DIGITAL MICRODISPLAYMICRODISPLAY

Research & Development

Supply Chain

WW Brands

GlobalManufacturing

& Logistics

Advanced Display

Signal Processing

DigitalTechnology

RCA

Thomson

TCL

N.A.

Europe

Asia andROW

Tubes, OpticsLight engines

IC’s, Electronics

Materials

Core Competencies

Page 4

Uniquely Positioned to Compete EffectivelyUniquely Positioned to Compete Effectively

TTE Global StrategyFocus on television products (all categories)

Leverage scale, size, and reach

Increase Share/VolumeLeverage CRT strength… drive volume

Leverage Large Display strengths…Micro-display skills

Improve Flat-Panel position… seek Panel Partnerships

Leverage Brands/Distribution capabilities – RCA and RCA Scenium (NA), Thomson (Europe), TCL (China & rest-of-world)

OEM and private label business… confirms competitiveness

Take leadership position in advanced display technologies & digital transition

R&D effort tied to DLP, Digital solutions

Leverage China cost structure… Manufacturing, Technical Base, Procurement Advantages

Emphasis on total TTE-wide Quality (Consumer Focus, Products, People, Ethics Governance)

Page 5

TTE North America Market Expectations

Market Expectations:

2004-2005 is a year of transition – emerging technologies, emerging product categories, analog to digital transition

Significant market turmoil – price reduction in flat panel categories… supply chain management critical

CRT is a lower cost digital option… SDTV and HDTV provides cost effective digital solution for consumers

Critical mass will be reached for HD in 2005-06

Mainstream consumers are reached – content, delivery, products

Multiple market changes create an ideal opportunity for TTEMultiple market changes create an ideal opportunity for TTE

Page 6

Microdisplay3%Digital PTV CRT

7%

Analog CRT 25" and >31%

Plasma2%

LCD6%

Digital DV CRT4%

Analog CRT < 25"47%

2004 2005 2006

Sources: CEA, NPD, and TTE

Microdisplay6%Digital PTV CRT

6%

Analog CRT 25" and >23%

Plasma4%

LCD10%

Digital DV CRT10%

Analog CRT < 25"41% Analog CRT < 25"

35%

Digital DV CRT21%

LCD14%

Plasma6%

Analog CRT 25" and >13%

Digital PTV CRT3%

Microdisplay8%

Analog CRT still represents a healthy share of the industry (in unit volume)

Digital categories emerging rapidly and digital direct view poised to replace analog direct view

Analog CRT still represents a healthy share of the industry (in unit volume)

Digital categories emerging rapidly and digital direct view poised to replace analog direct view

US TV Industry Outlook (Units)

Page 7

2004 2005 2006

Sources: CEA, NPD, and TTE

Microdisplay17%

Digital PTV CRT19%

Analog CRT 25" and >19%

Plasma17%

LCD10%

Digital DV CRT7%

Analog CRT < 25"11%

Microdisplay21%

Digital PTV CRT10%

Analog CRT 25" and >12%

Plasma23%

LCD14%

Digital DV CRT12%

Analog CRT < 25"8%

Microdisplay23%

Digital PTV CRT4%

Analog CRT 25" and >6% Plasma

25%

LCD17%

Digital DV CRT19%

Analog CRT < 25"6%

TTE is well positioned to take advantage of the digital transition with SDTV and HDTV based on digital direct view and micro-display

TTE is well positioned to take advantage of the digital transition with SDTV and HDTV based on digital direct view and micro-display

US TV Industry Outlook (value)

Page 8

$5.5 $6.6

$4.2

$10.3

$3.4

$13.2

$2.3

$16.4

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

2003 2004 2005 2006

Analog Digital

25.2

4.1

23.8

6.9

20.1

10.9

14.8 16.3

-

5.0

10.0

15.0

20.0

25.0

30.0

2003 2004 2005 2006

Analog Digital

Analog Vs. Digital Sales Projection - Units Analog Vs. Digital Sales Projection - Dollars

Analog Vs. Digital Sales Projection - ASP

Units Value

+ =Good growth opportunitiesfor Retailers & Manufacturers

Source: CEA, June 2004 Forecast and TTE.

$220 $168$178 $156

$1,001

$1,217

$1,477$1,608

$600$536$471$416

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2003 2004 2005 2006

Total Analog Total Digital Total

Digital TV Transition Outlook

Page 9

99%

78%

22%13% 14%

70%80%

65%

71%

20%8% 7%

9%

7%

12%22%

0%

20%

40%

60%

80%

100%

< $500 $500 - $999 $1000 - $1499 $1500 - $1999 $2000 - $2499 $2500 and >

Plasma

LCD

Rear Projection

Direct View CRT

% of Industry Volume in this Price Segment

71% 11% 5% 5% 2% 6%

Source: NPD, YTD July 2004 Does NOT INCLUDE Mass Merchant Channels

Total TV Industry by Price Segment

TCL-Thomson Electronics (TTE) Confidential

Volume Zone

TTE product portfolio well positioned to play across the spectrumTTE product portfolio well positioned to play across the spectrum

Page 10

CRT DLP LCD

Good

Better

Best

2005 Product/Market Strategy

Analog: Great Value

+ Low Cost ATSC

=

• Seamless solution• Meets mandate• Cost effective: ~$100 premium

Great Value

Great Designs, Rich Features

The Ultimate

Great Value

174 Series 167 Series

263 Series

10 Series

Great Design

11 Series

31 Series

The Ultimate

62 Series

W59 SeriesAffordable HD

Page 11

2005 Marketing Revitalization Programs

New PlatformRefreshed “youthful” look

Synergistic LinksContent

Education1Q05

PromotionPrint Media

POSSports Marketing

In-Store Retail SupportTrainingDetailing

Demo DaysExpanded program:1Q05

CompetitivenessFeature/Benefit

Design DifferentiationRCA Brand Common “Look”

1Q05

2005 Integrated Marketingand

Communications Plan

Web

Advertising/PR

Retail Support

Packaging

Page 12

North American Turn-Around Perspective

Page 13

TTE’s already showing impact of TCL relationship (1/3 of CRT product sold in Q4 were TCL based)

TTE, a company focused on success in TV

TTE’s size/positioning brings attractive partnership opportunitiesfor large and growing retailers

TTE offers “full tool box” to play

Product Categories Multiplying

Market is Growing