DVD Production Process & Key Factors for Quality Discs

1. DVD Production Process &Key Factors for Quality Discs Verbatim, Product MarketingMar., 2005Ronan Ryan/Satoshi Wakabayashi

2. Revenue $18 billion (March 2004) 33,500 employees (1,500 in USA) Performance Chemicals, Pharmaceuticals, Petrochemicals 100% Subsidiary of Mitsubishi Chemical Co. Total Revenue $650 million Optical Disc, Magnetic Media, Flash Memory 100% Subsidiary of Mitsubishi Kagaku Media CO.,LTD.

3. Verbatim / Mitsubishi Kagaku Media Group Vision & Mission Verbatim / MKM is an international sales, marketing and optical technology development organization known as the innovative market leader in removable storage media and related accessories providing reliable, unique technologies and products that are highly sought after and broadly distributed world-wide. Our mission is to develop and market high quality products that users want for storing, moving and using digital content. January 2004 MKM Executive Committee

4. Global Supply Chain Sunnyvale, CA MFD/Tape Coating Frankfurt, Germany Verbatim European DC Tokyo , Japan Mitsubishi Chemical Corp. Egham, UK Verbatim EUMEA HQ Odawara , Japan VAP DC Toronto Canada Canada DC India DVDR, DVDRW CD-R Mizushima, Japan MO, UDO, Stampers Charlotte NC Verbatim USA HQ USA DC Taipei, Taiwan Floppy, CD-R/RW DVDR, DVDRW Shenzhen, China VAP DC Hong Kong VAP DC Tijuana, Mexico Floppy/CD-R Singapore DVDR, DVDR DL DVDRW Uruguay Verbatim South America DC Headquarters Distribution Manufacturing Melbourne, Australia VAP DC

5. MKM Core Competencies Fast Dry Printable

6. Products are designed and manufactured for the highest compatibility and reliability Technology is co-developed with hardware OEMs (designed into hardware) Unique manufacturing partnerships Specify & qualify manufacturing lines Tighter than industry specifications On site Quality Assurance and Engineering support Unique ID codes that insures the highest level of compatibility in the industry Continuallyexpandingour product offering Latest in core optical technology products Speeds (16X DVDR, 8X DVDRW) Layers (DVD+R and DVD-R DL) Surfaces (Ink-jet and thermal printable, Hardcoat) Blue laser (UDO, Blu-Ray, HD DVD) Continue to broaden our non-optical lines (imaging, USB, accessories) Always differentiated from the competition Technology and quality (AZO, SERL, Crystal, etc..) Product marketing (Digital Vinyl, Gold and Platinum, DigitalMovie, VideoGard, etc.) Verbatim Product Direction

7. Well established brand (35 years) Clearly recognized as a quality brand Extremely well known & distributed brand throughout the world #1 World-wide market share for DVD +/- R #1 World-wide market share for CD-R #2 World-wide market share for DVD +/- RW #2 World-wide market share for CD-RW Verbatim Brand Source: Santa Clara Consulting Q4 2004

8. Major Cause of Problem Recording layer (Dye) has problem Good dye, good media shape and optimized write strategy Effect of bad media shape

9. Mastering Stamper Plastic Substrate with grooves Injection Cooling Substrate with dye recording layer Dye Coating Reflective layer is added Dry up Sputtering Injection Cooling Bonding Dummy substrate Glue attached both side Production Process of R-DVD (Recording Side) (Dummy Side) Inspection

10. Key process - to attain flat media shape - avoid micro crack - form uniformed groove shape to prevent recording/reading problem InjectionMachine InjectionMold Injection Process • Key factors - quality stamper - quality mold - high grade polycarbonate - optimization of injection condition (pressure, timing, temperature)

11. Mastering Process & Design of Mold • Mastering is the key process - for making quality stamper • Key factor - sophisticated operation of the cutting machine - deep knowledge/experience of polycarbonate and injection process • Mold is the key material - for injection process - for attaining higher production cycle time • Key factor - deep knowledge/experience of polycarbonate and injection machines

12. Dye coating Baking Oven Dye Coating & Drying Process • Key process - to attain good recording performance - to achieve superior archival performance • Key factor - quality dye material (ability to develop quality dye) - optimization of spin coater condition (rotation speed, speed control, temperature, humidity) - optimization of the baking condition

13. Spec =8% We should develop the dye which can- absorb laser of 650 to 660 nm wavelength- yet, reflect enough for playback- have good margin against the variation of wavelength Dye is Important! Even though you optimize the process condition, you have no chance to producequality discs using wrong dye.

14. Sputtering Machine Sputtering Process • Key process - to attain stable recoding/reading performance - to achieve superior archival performance • Key factor - deep knowledge of forming thin metal film - optimization of the sputtering condition - material

15. Bonding Machine Bonding Process • Key process - to attain flat media shape - to achieve superior archival performance • Key factor - quality bonding glue in terms of both media shape and durability - optimized process condition Aging Test Result for Selection of the Glue

16. Inline 100% Defect InspectionMachine Off lineCompatibilityTest Inspection Process • Key process - to attain consistent quality among production lots - to confirm expected compatibility among major writers • Key factor - Appropriate setting of defect criteria - tight communication with major writer manufactures

17. Recording with optimized WS Recording with default WS Time: X Time: X-a Power on Power on Power on Power on Power: Y Power: Y-b Power off Power off Power off Power off Also Problem! Dye Layer A Dye Layer B Writing Strategy Every dye material has its own recording characteristics, so recoding power and laser exposing timeshould be optimized separately for the quality recording . (Writing Strategy: WS) 00100000100.. 00100001000..

18. Summary of Key Factors for Quality Discs • Material- Stamper, Mold, Polycarbonate, Dye, Bonding Glue- Capability of developing these materials and deep chemical knowledge are required • Process Control- Optimization of the process condition of Injection, Dye coating/drying, Sputtering, Bonding process- Capability of designing each process and ample experience of the production of optical discs are necessary • Quality Control- In-process control should be carefully designed and feedback procedure should be consistently implemented to all of the production lines for quality consistency among production lots- Strict engineering change control should be taken place • Writing Strategy- Ideally, optimized writing strategy should be implemented in all of major writers before the shipment of the discs- Tight communication with major writer manufacture from the development stage is crucial

19. Verbatim (MKM) • Material- one of the leading developing company of key materials like dye, stamper and polycarbonate, and have designated chemical engineers for each material development- also a major supplier of those materials • Process Control- years of experience of producing all type of optical discs. (CD-R, CD-RW, DVD+/-R, DVD+/-RW, MO and UDO)- capable of designing each process • Quality Control- possesses an established quality control procedure which has been refined through OEM business with major PC, writer and other disc manufactures • Writing Strategy- has been in good communication with all of major writer manufactures from the development stage of high speed (8X, 16X), high capacity (double layer) or unique (UDO or LightScribe) writers/discs- member of the key industry organization like DVD-Forum or DVD+RW Alliance

20. Bottom Line • We are convinced that we are supplying quality discs in terms of complete compliance with industry specification (DVD forum, DVD+RW alliance) and superior compatibility with all of major writers • We are developing discs and materials very carefully with paying attention to both recording performance and durability • We are supporting the efforts by NIST to better define archival test methods. Thank you for your time!