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RCA Press Release for June 11, 1981

INDIANAPOLIS, June 11 -- A major expansion of RCA's video disc manufacturing capacity was announced today some 11 weeks following the introduction of the company's "SelectaVision" VideoDisc system.

Roy H. Pollack, RCA executive vice president, said the accelerated expansion of the video disc facility here will enable RCA to respond more quickly to strong video disc demand from both RCA and others supporting the company's "CED" system.

The expansion will lead to an eventual annual capacity of 30 million discs, with a near-term capacity goal of 10 million discs in 1982. RCA had earlier forecast sales of two million discs in 1981, along with the sale of 200,000 video disc players of its own brand.

Highlights of the video disc expansion program announced today by Mr. Pollack include:

-- The building of a separate compounding facility adjacent to the present Rockville Road disc manufacturing plant here. The facility will have the capability of supplying the critical compound material to disc manufacturers worldwide.

-- A further acceleration of disc pressing capability so that output will reach three million discs by the end of 1981, with further expansion planned to support a 10 million capacity level in 1982.

-- A new power plant at the Rockville Road facility is under construction with a planned capability of handling energy requirements for 60 presses.

Mr. Pollack said the successful introduction of the "CED" system and the clear emergence of video discs manufacturing as a separate business opportunity has prompted RCA to restructure "SelectaVision" VideoDisc Operations, elevating it to divisional status. Dr. Jay J. Brandinger, who has headed VideoDisc Operations since January, 1979 has been appointed Division Vice President and General Manager. Dr. Brandinger and the Division will now report to James M. Alic, RCA vice president for electronic services and VideoDisc operations.

At the same time, responsibility for VideoDisc player manufacturing has been formally placed with the RCA Consumer Electronics Division, headed by Jack K. Sauter, RCA group vice president. The VideoDisc players are manufactured in RCA's color television plant in nearby Bloomington, Ind.

RCA introduced the VideoDisc system to the public on March 22 in a national introduction. Since that time, the company estimates that more than 28,000 players and some 250,000 discs have already been sold to consumers, the most successful introduction of any electronic product in history.

"RCA is convinced there is a potential multi-billion dollar business in video discs and players and today we are taking another major step towards assuring the success of our participation in this formative industry," Mr. Pollack said.