SON: Sony Corporation: Sony Corporation of America Announces Sale of 550 Madison Avenue Building

  SON: Sony Corporation: Sony Corporation of America Announces Sale of 550
  Madison Avenue Building

UK Regulatory Announcement

NEW YORK

Sony Corporation of America Announces Sale of 550 Madison Avenue Building

(NEW YORK, NY – January 18, 2013) - Sony Corporation of America (“SCA”), a
wholly-owned subsidiary of Sony Corporation (“Sony”), today announced that it
has entered into a contract to sell its U.S. headquarters building, located at
550 Madison Avenue in New York City, to a consortium led by The Chetrit Group,
a New York-based owner of commercial properties in New York City and other
major US real estate markets.

The sale price is $1.1 billion, and it is expected that the transaction will
close in March 2013. SCA and other Sony businesses (including Sony Music
Entertainment, Sony/ATV Music Publishing and Sony Pictures Entertainment,
among others) will remain in the building for up to three years under a
leaseback arrangement with the purchaser.

After repaying debt related to the building and other transaction costs, it is
expected that Sony will receive net cash proceeds of approximately $770
million. Sony expects to realize a gain on the sale of approximately $685
million to be recorded as operating income.

Sony is currently reevaluating its forecast of the consolidated financial
results for the current fiscal year ending March 31, 2013 to take into account
this sale and other factors that might affect such forecast.

Eastdil Secured advised Sony on this transaction.

1. Reasons for this sale

Sony is undertaking a range of initiatives to strengthen its financial
foundation and business competitiveness and for future growth. At the same
time, Sony is balancing cash inflows and outflows while working to improve its
cash flow by carefully selecting investments, selling assets and strengthening
control of working capital such as inventory. This sale is made as a part of
such initiatives.

2. Summary of assets to be sold

Assets /       SellingPrice   Book Value      Gain on Sale    Current
Location                                                               Status
Headquarters
building of
Sony
Corporation
of America
                                                     Expected to       Headquarters
(at 550          $1.1 billion      Approximately     be                of Sony
Madison                            $174 million      approximately     Corporation
Avenue in                                            $685 million      of America
New York
City, the
United
States of
America)

3. Summary of Sony Corporation of America

Trade name                        Sony Corporation of America
Address of head office             550 Madison Avenue, New York, NY 10022, the
                                   United States
Name and title of representative   Michael Lynton, CEO
Business                           Management of Sony Group’s businesses in
                                   the U.S.
Stated capital                     $11,316.7 million

4. Summary of Buyer

Trade name                       550 Madison Fifth LLC
                                  c/o The Chetrit Group, LLC, 512 Seventh
Address of head office            Avenue, New York, NY 10018, the United
                                  States
Contact Information               c/o The Chetrit Group, LLC, attention: Jacob
                                  Chetrit
Purpose of incorporation          Special purpose entity to own real estate
Jurisdictionoverincorporation   A limited liability company established
                                  under the law of the State of Delaware
Date of incorporation             January 15, 2013
                                  A consortium led by The Chetrit Group, a New
Summary of investors              York-based owner of commercial properties of
                                  various property types in New York City and
                                  other major US real estate markets
                                                   Sony is not an investor in
                                                   the Buyer. There is no
                                                   capital relationship
                                                   between the Buyer and Sony
                                  Capital          required to be referred to
                                  relationship     herein. There is no capital
                                                   relationship between
                                                   affiliates of the Buyer and
                                                   Sony required to be
                                                   referred to herein.
                                                   There is no personnel
                                                   relationship between the
                                                   Buyer and Sony required to
                                  Personnel        be referred to herein.
Relationship with Sony            relationship     There is no personnel
                                                   relationship between
Corporation                                        affiliates of the Buyer and
                                                   Sony required to be
                                                   referred to herein.
                                                   There is no transaction
                                                   relationship between the
                                                   Buyer and Sony required to
                                  Transaction      be referred to herein.
                                  relationship     There is no transaction
                                                   relationship between
                                                   affiliates of the Buyer and
                                                   Sony required to be
                                                   referred to herein.
                                  Status as a      Neither the Buyer nor its
                                  related party    affiliates are deemed to be
                                                   a related party of Sony.

5. Schedule

      Approval of the contract of sale
(1)                                     January 18, 2013 (Japan Time)
      (by the CEO of Sony Corporation)
(2)   Execution of the contract of sale   January 17, 2013 (EST)
(3)   Expected closing date of the sale   March 15, 2013

6. Outlook

As mentioned above, Sony is currently reevaluating its forecast of the
consolidated financial results for the current fiscal year ending March 31,
2013 to take into account this sale and other factors that might affect such
forecast.

(For reference) Sony’s consolidated financial forecast for the fiscal year
ending March 31, 2013, which was announced on November 1, 2012, and its
consolidated financial results for the fiscal year ended March 31, 2012

                                                         (Yen in
                                                             billions)
                                                                             
                                                   Income    Net income
                          Sales and    Operating   (loss)    (loss)
                                      income      before    attributable to
                          operating                income    Sony
                          revenue      (loss)      taxes     Corporation’s
                                                             stockholders
Consolidated financial
forecast for the fiscal   6,600        130         150       20
year ending March 31,
2013
Consolidated financial
results for the fiscal    6,493.2      (67.3)      (83.2)    (456.7)
year ended March 31,
2012

About Sony Corporation of America:

Sony Corporation of America, located in New York, NY, is the U.S. headquarters
of Sony Corporation, based in Tokyo, Japan. Sony's principal U.S. businesses
include Sony Electronics Inc., Sony Mobile Communications (USA) Inc., Sony
Computer Entertainment America LLC, Sony Network Entertainment Inc., Sony
Pictures Entertainment Inc., Sony Music Entertainment, Sony/ATV Music
Publishing LLC, and Sony Online Entertainment LLC. With some 900 million Sony
devices in hands and homes worldwide today, a vast array of Sony movies,
television shows and music, and the PlayStation Network and the Sony
Entertainment Network, Sony creates and delivers more entertainment
experiences to more people than anyone else on earth.

Sony recorded consolidated annual sales of approximately $79 billion for the
fiscal year ended March 31, 2012, and employs 162,700 people worldwide.

Contact:

Sony Corporation
 
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