Thomson announced a $50 million expansion of its Memphis North American Distribution center for DVD and other packaged media. This Technicolor Home Entertainment Services' facility, located in Memphis, Tennessee is now the world's largest distribution center for DVD and other packaged media.

Part of Thomson's Digital Content Solutions division, Technicolor Home Entertainment Services has an approximate 35% market share position in DVD and VHS packaged media orders both in North American and European markets. With planned DVD expansion initiatives now underway, the Company will have the capacity to produce over 1.5 billion DVDs annually by 4th quarter 2004. With DVD growth rates expected to reach 30% in 2004 and double-digit annual growth rates projected through 2006, Thomson expects to continue to capture its share of the growing worldwide demand for packaged media.

"In keeping with our strategic vision to further strengthen our North American DVD packaging and distribution capabilities, this new facility will allow us to distribute more DVD and other packaged media quickly and efficiently," said Quentin Lilly, President, Technicolor Home Entertainment Services. "Thanks to this highly automated facility, we will be able to meet current and future demand for these products for literally thousands of retailers."