Retail Top 10: By Keith Newman

RETAIL DIGEST
By ChannelMedia Staff

HP recently announced a broad initiative to expand digital color imaging and printing to all of its customers in the home and office. In order to reach customers in various stages of digital color adoption, HP plans to:

-- Work with industry leaders such as Adobe, Apple, Microsoft and Quark to deliver the best color experience - one that is both richer and easier - for businesses and consumers.

-- Deliver robust, affordable color printing products. For example, HP is launching the first color laser printer in North America introduced at a price below $500. At an estimated U.S. street price of $499, the HP Color LaserJet 2550 printer is priced to fit the budgets of micro businesses and small- to medium-size business (SMB) customers.

-- Continue to elevate and improve print quality. HP is introducing new papers - including laser specialty media, matte postcards and labels - to complement the complete color printing system, bringing customers professional print quality and reliability whether they are printing everyday general office documents or professional-looking marketing materials.

"Three vectors have come together allowing HP to bring a more holistic color experience to nearly every customer: digital photography is widespread, imaging devices are affordable, and technology now can provide rich, powerful color at prices customers can afford," said Vyomesh Joshi, Executive Vice President, Imaging and Printing Group, HP. "HP is harnessing these factors to make 2004 the year digital color goes mainstream." Already a $7.1 billion market, HP estimates office color printing will grow annually by 20 percent to $10.2 billion by 2006. Realizing the power of digital color, customers are turning to customized in-house marketing to increase marketing capabilities and reduce costs. According to HP, companies can save up to 50 percent of their current outsourced printing budget by going in-house. For example, largely due to an H in-house publishing solution, the Toronto Blue Jays have enjoyed a 54 percent reduction in season ticket production and fulfillment costs, and faster ticket processing for improved customer satisfaction.

Former Wiz marketing Tasso Koken was recently named VP/General Merchandise Manager of the struggling home electronics Division at Sears. Koken will report directly to Dan Laughlin, Senior VP and General Merchandise Manager of home appliances and electronics. John Schlenner, who had assumed Brown's duties on an interim basis, continues as Divisional Merchandise Manager. Koken is a 25-year veteran of CE retailing, more than half of which was with The Wiz until the CE chain was acquired by Cablevision.

Syntax, an emerging growth manufacturer of digital convergence consumer electronics products, today announced its strategic alliances with Chi Mei Optoelectronics (CMO), the world's leading TFT-LCD panel manufacturer, and Taiwan Kolin Company, Ltd., a leading manufacturer of consumer electronics (HDTVs) and home appliances. The combined alliances provide Syntax Groups with a vertically integrated, end-to-end supply chain that cements the company's position in the highly-competitive LCD-TV market. Under the terms of the alliance with CMO (www.cmo.com.tw), a public listed company in Taiwan (TSE stock code 3009.TW), the company has confirmed its commitment to support Syntax Groups with an ongoing supply of CMO's TFT-LCD panels required for manufacturing and marketing Syntax Groups' "Olevia™" branded high-definition LCD-TVs. As an integral partner in the production of Syntax Groups' Olevia branded LCD-TVs, CMO's high-grade LCD panels are provided to DigiMedia Technology Company, the joint venture company jointly owned by Syntax Groups, Taiwan Kolin Company, and Prokia Technology Company, Ltd. (www.prokia.com.tw), a world-renowned designer and manufacturer of LCD backlight modules and optical projector engines. Through the DigiMedia strategic alliance, Syntax Groups benefits from a unique and powerful integration of all essential supply chain elements, from R&D, manufacturing and quality control to sales, marketing and premium customer support. "The combination of Syntax Groups' business model and operational efficiency is very impressive, and we are pleased to grant our support and recognize them as a key business partner in the LCD-TV industry," said Dr. Cheng-Lung-Kuo, Associate Vice President of Chi Mei Optoelectronics Corporation. Through its letter of confirmation to Syntax Groups, Taiwan Kolin Company (www.kolin.com.tw), a public listed company in Taiwan (TSE stock code 1606.TW), has committed its unlimited support to the company through their DigiMedia joint venture factory in Taiwan, for inventory required to meet Syntax' Olevia LCD-TV and LCOS digital TV production schedules. "We are strongly committed to the success of our relationship with Syntax Groups and the DigiMedia joint venture, and view this promising alliance as our sole worldwide partner for marketing, sales and distribution of the growing Olevia brand of digital televisions," said Roger Kao, Vice President of Taiwan Kolin Company Limited. "The strength of the alliances with these renowned industry leaders tightly integrates all of the core manufacturing and business components that are essential for us to produce and bring to market volume quantities of quality LCOS and LCD-TVs, and gives us a competitive edge for achieving our goal to become a prominent industry contender," said James Li, Chief Executive Officer of Syntax Groups Corporation. The first two models of Syntax Groups' Olevia high definition LCD-TVs, 27-inch and 30-inch units are currently available from an increasing list of premier channel partners. The company will introduce its new Olevia 20-inch, 32-inch and 37-inch LCD-TVs, and its new flagship 50-inch LCOS-TV, beginning this month and continuing throughout 2004.

More from Best Buy: "Store employees continued their excellent execution in the first quarter, which we believe led to market share gains," said Brad Anderson, Vice Chairman and CEO of Best Buy. "In addition, our customer centricity test stores provided insights we can apply to all of our stores. I also was delighted to see ideas that could enrich a smaller group of stores, such as our new Magnolia Home Theater departments. They were introduced inside two U.S. Best Buy stores last month, and they have started out exceedingly well." The Company continues to expect sharp increase in first-quarter earnings. "Our comparable store sales gain was very strong for March and April, then slowed somewhat in May as we faced tougher comparisons with the prior year's period," said Darren Jackson, Executive Vice President and CFO of Best Buy. "Yet we finished the quarter on a high note, thanks to a very strong Memorial Day weekend."

"Previously, we had expected a first-quarter comparable store sales gain of 7 to 9 percent, so the actual gain was in the middle of our range," Jackson added. "We currently anticipate earnings from continuing operations for the first quarter also to be at the midpoint of our guidance, which was 30 to 35 cents per diluted share." He noted that such a performance would represent an earnings increase of approximately 55 percent, compared with earnings from continuing operations of 21 cents per share for the prior year's first quarter. Jackson continued, "Traffic in our stores and online sites increased significantly on a year-over-year basis. Given how our business has performed, we believe that neither the hike in gasoline prices nor forecasts for higher interest rates significantly affected our comparable store sales performance for the first quarter. However, we may be benefiting from the encouraging employment news and its impact on consumer confidence."

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First Quarter Ended
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Product Category		May 29, 2004		May 31, 2003
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Consumer Electronics		37%		37%
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Home Office		37%		37%
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Entertainment Software		20%		20%
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Appliances		6%		6%
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Total		100%		100%

The strongest-performing product category was entertainment software, which achieved a comparable store sales gain in the low double digits. Comparable store sales of DVDs rose by strong double digits, driven by popular new releases including Lord of the Rings -- The Return of the King, which surpassed the company's previous record for first-week sales of a new release. Other strong new releases in the first quarter were School of Rock, Matrix Revolutions and Master and Commander. Comparable store sales of CDs jumped by the mid-teens, amid continuing sales of titles by Usher, Connie West, Prince and Nora Jones, as well as popular new titles by Method Man, New-Found Glory and Slipknot. Video game hardware and software posted a decline in comparable store sales in the low double digits, due in part to a hardware price reduction. The consumer electronics category recorded a high-single-digit comparable store sales gain, as the appeal of advanced televisions (such as plasma, LCD and digital televisions) continued to increase. The strong growth in revenue from digital cameras and accessories reflected the growing popularity of digital imaging. These products led the video subcategory to a low-double-digit comparable store sales gain, which was moderated by a low-single-digit comparable store sales gain in the audio subcategory. The home office category also posted a comparable store sales gain in the high-single-digits, with comparable store sales of computers rising in line with the total category. Consumers continued to be attracted by the portability of notebook computers, while also recognizing the important role of the desktop computer as a media server. Comparable store sales of MP3 devices showed triple-digit growth. The company opened 11 U.S. Best Buy stores during its fiscal first quarter, including three of its 45,000-square-foot stores, five of its 30,000-square-foot stores and three of its 20,000-square-foot stores. It also opened one Future Shop store in Canada.

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RESEARCH

Trends in Web Shopping
By BizRate

More than half of online buyers (54%) started their shopping at an aggregator site while just 46 percent started at a merchant site, according to a recent March 2004 study of over 3,800 online buyers by shopping search and comparison site BizRate.com. In just 15 months, online consumer behavior has shifted by 8 percentage points, tipping the balance in favor of aggregators for shopping searches. By contrast, consumers typing in a merchant's URL had accounted for 54 percent of sales leads in a prior study of over 4,200 online buyers conducted in December 2002. In that study, aggregators, which include comparison-shopping sites, search engines, shopping portals and auction sites, had accounted for only 46 percent of sales leads. "This is a very large shift in consumer behavior within a very short time period," said Chuck Davis, President & CEO of BizRate.com. "We've seen consumers shift their behavior in other industries in favor of aggregators also. For example, magazines are bought mostly through subscription agents, and roughly half of online travel bookings occur mostly through aggregator sites like Expedia, Travelocity, and Orbitz. It was only a matter of time before online shopping followed the same trend. This trend will continue to accelerate in favor of shopping aggregators." The comparison shopping sites and shopping search engines provide product prices from many merchants. "The Internet created price competition which consumers love," Davis continued. "But merchants also love the role search engines and comparison sites have played in their businesses. The shopping search engines draw millions of customers to their sites. To get this same shopping traffic, individual Retailers would have to spend millions. But instead they save marketing expense and get great volumes of leads from the aggregators." BizRate.com this week, as an example, has over 11,000 flower product offers to select for Mother's Day gifts. Any one-flower site would struggle to have a number approaching that volume of products. In the last six months, BizRate.com has expanded the number of products found in its search engine from 7 million to 27 million. Moreover, the number of merchants featured at BizRate.com has grown from 4,000 to 43,000 over that same period. "We want consumers to have many choices of products, product prices, and merchants too," Davis concluded.

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Gamer Sales: Update
from NPD Group

According to leading marketing information provider, The NPD Group, total U.S. retail sales for console and portable video game accessories in 2003 remained flat over the previous year with $1.2 billion in sales, while first quarter (January - March) 2004 saw a 10 percent increase over the same period last year with revenues of over $278 million. Accessories, auxiliary devices that connect and operate in conjunction with a console or portable video game unit, include products such as controllers, memory cards and DVD remotes. Considerable increases in U.S. retail sales for 2003 and Q1 2004 were seen within the video games controller categories, bringing in totals of over $408 million and $92 million, respectively. In Q1 2004 alone, controller categories such as Gamepads, Steering Wheels, Stick Controllers and Specialty Controllers, saw dollar sales increases of 22 percent, 30 percent, 27 percent and 170 percent, respectively. The most significant decreases in dollar sales fell within accessory categories such as Vibration Feedback and Magnifier/Light, with 2003 U.S. retail sales down by 66 percent and 58 percent, respectively. The trend continued in Q1 2004, with sales of vibration feedback accessories seeing a 71 percent drop in revenue and Magnifier/Light accessories sales falling 62 percent vs. the same period last year. "The drop in sales of these categories don't come as a surprise, since many accessories that were once sold as separate units are now being integrated into others and offered as standard features," said Richard Ow, Senior Industry Analyst. "Vibration feedback and backlit displays are two perfect examples of this trend, with most controllers now being sold with vibration feedback capabilities and many portable devices offering pre-installed backlit displays." Internet Components, such as network adaptors and modems, saw the highest overall percentage increases in dollar sales in 2003 and Q1 2004 of 155 percent and 107 percent, respectively. "This is a win-win situation for both consumers and the video games industry," said Ow. "Online gaming provides consumers with the ability to experience entirely new ways of playing video games, while the industry continues to see increased revenues through this alternative to off-line gaming." DVD Remotes for video game consoles continue to see decreased revenue sales. In 2003, U.S. retail sales of DVD Remotes declined 30 percent over 2002, while DVD Remote sales fell an additional 18 percent in Q1 2004 over the same period last year. According to Ross Rubin, Director of Technology Industry Analysis for The NPD Group, when the PlayStation 2 and Xbox were first released, the inclusion of DVD video functionality was considered to be a breakthrough. Consumers who were considering the purchase of a DVD player saw that, for a small incremental premium, they could have the functionality of a device that cost well over $200 on its own. However, today, with the extensive installed base of DVD players in homes, most consumers don't take DVD-playback capabilities into consideration when purchasing a video games console. "As the consoles have aged, they've become less expensive, making a DVD remote accessory a proportionately greater share of the purchase," said Rubin. "In addition, consumers may be weighing the cost of that remote at the point of purchase against the enjoyment they'd get from an additional game."

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PVR Sales Update
By In-Stat/MDR

Despite a slow start with consumers, Personal Video Recorder (PVR) products are finally making headway, according to In-Stat/MDR. Despite an almost continuous stream of rave reviews from satisfied PVR users over the past five years, most consumers still failed to see why they needed to hook up yet another set top box to their TV set. However, according to the high-tech market research firm, the PVR market hit its stride in the past year, as worldwide annual unit shipments tripled and increasing numbers of consumers became aware of the benefits of time-shifting TV programming. According to Mike Paxton, a senior analyst with In-Stat/MDR, there are two primary reasons for the recent growth of PVR unit shipments. "First, the integration of PVR capabilities into DVD players and recorders has been a big success. Demand for these combination DVD-PVR products has proven to be especially strong in Japan, and it is likely that a growing percentage of DVD recorders shipped worldwide over the next few years will incorporate PVR functionality. The second reason for PVR growth has been the rising demand from satellite and cable TV operators for PVR-enabled set top boxes. Many pay-TV service providers, especially in North America, are rolling out PVR products to increase subscriber revenues and to keep their current customers from defecting to competitive service providers." In-Stat/MDR expects that these two market drivers will continue to spur growth for PVR products over the next several years.

In-Stat/MDR has also found that:

-- Worldwide unit shipments of PVR products grew from 1.5 million in 2002 to 4.6 million in 2003. In 2004, In-Stat/MDR projects that unit shipments will top 11 million.

-- Combination DVD-PVR products and PVR-enabled satellite set top boxes will continue to drive growth in 2004, accounting for almost 80 percent of total unit shipments.

-- PVR-enabled cable set top boxes are becoming increasingly popular in North America, and cable TV operators have already installed the products in over half a million households. The report, "Personal Video Recorders Expand Their Reach" (#IN0401238ME), discusses the functionality of today's PVR products and provides an in-depth look at key PVR manufacturers, leading service providers, and the important trends that are shaping the rapidly growing PVR market. The report provides worldwide PVR unit shipment and revenue forecasts, unit shipments to specific geographic regions, and unit shipment forecasts by PVR product segment, to include DBS set top boxes, stand-alone PVR products, cable set top boxes, DVD-PVR combination devices and other emerging PVR products.

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CEA Survey Reveals Growth Opportunities For Home Theater Furniture Industry. Boom in HDTV Sales Increases Likelihood of Home Theater Furniture Purchases.

More than one-third (37 percent) of television owners without high-definition TV (HDTV) say they'll buy an HDTV set in the next two years, according to the results of a Consumer Electronics Association (CEA) study released today. This trend has significant implications for the home theater furniture industry, as CEA's New Tech TVs and Furniture report showed. More than half (56 percent) of TV owners without high-tech sets would buy a TV stand, cabinet or entertainment center at the same time as (36 percent) or after (20 percent) purchasing the new tech TV. "The emergence of new television technologies has created both a challenge and an opportunity for accessory Vendors," said Paul Sabbah, Vice President of Business Development, Techcraft Manufacturing and chair of CEA's Accessories division home theater working group. "Plasma, liquid crystal display, digital light projection and widescreen televisions are selling well, and Vendors are adapting their products to meet the new demands of the marketplace. This CEA research helps manufacturers and Retailers understand where the profit opportunities are in this new marketplace." These survey results show the strong influence that the widespread adoption of new digital TV technologies is having on other segments of the industry, such as the home theatre furniture category," said Sean Wargo, Director of Industry Analysis, CEA. "As consumers rush out to purchase new technology TVs, it makes sense that key accessories, such as furniture stands and displays, would benefit from the increased television sales." Other key findings from the survey include feedback on where consumers plan to place the television. More than one-third (36 percent) of TV owners without high-tech sets would put the set in a cabinet or entertainment center if they bought a new technology TV. Another one-third (34 percent) would mount it on a wall or ceiling and 13 percent would place it on a TV stand. Nearly three-quarters (73 percent) of all TV owners prefer television furniture that matches the room's décor while 18 percent prefer furniture that matches the TV. Nearly half (48 percent) of TV owners express interest in customizable furniture for consumer electronics products. In addition, more than two-thirds (68 percent) of TV owners without high-tech sets say they would buy a flat panel display if they were to purchase a new tech TV. Some 19 percent say they would buy an LCD screen TV and 11 percent would purchase a rear-projection big screen TV.

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COMMUNITY

ChannelMedia Q&A
with Denis Karpeles, Sr. VP, Sales & Marketing, Syntax Groups Corporation

Q.	What is your current product focus?
A.	Syntax Groups is organized into two major divisions-Consumer Electronics and Personal Computers. Our key products are LCD-TVs, LCOS TVs, HD DVD players, DVD+/- RW players, a full range of notebook PCs and wireless accessories. We are heavily focusing our current efforts on the LCD and LCOS TV market with several models featuring robust functionality, stylish design and exceptional quality at very affordable prices.
Q.	What are your retail sales expectations? Are you looking for new partners?
A.	Syntax Groups is an agile and dynamic Tier II competitor using aggressive marketing campaigns and creative promotional programs, with a comprehensive distribution focus through consumer electronics e-tailers, retailers, distributors and wholesalers. Syntax offers its channel partners Tier I-like products at Tier II competitive prices to enable them to compete more favorably against Tier I companies. The typical profile of Syntax Groups' customers is the price-sensitive consumer in search of "value" products. In the initial phase of our three-tier distribution strategy, we have secured relationships with several consumer-direct Internet retailers and regional channel partners, and are in the process of serious negotiations with many nationwide CE retailers and distributors that will vastly extend the overall visibility of the Syntax Olevia brand. In our first full year of sales, we expect to generate approximately $110 million in total revenue.
Q.	What do you expect from your channel partners?
A.	We are establishing long-term relationships with channel partners who believe in our strategic direction and value proposition, and share our view of loyalty to the company's brand. We are not interested in merely dropping products into any channel player as a single-shot opportunity.
Q.	How is the Holiday Season starting to shape up?
A.	We are in the process of completing the development of a very exciting 2004 promotional calendar with our existing and new channel partners, and plan to release it this month. It will include promotional plans for the July 4 weekend, traditional back-to-school, the Thanksgiving weekend rush and Christmas buying season. We have received very favorable feedback from discussions with our channel partners regarding their various holiday promotional plans and how Syntax Groups' products will play a significant role.

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The Key to Data Longevity on CD, DVD Media
By G.A. "Andy" Marken
President, Marken Communications
Andy@markencom.com

In the early '80s when the first CD-R disc was introduced manufacturers said the media had a data life in excess of 40 years. In the 90s when the first DVDR discs appeared on the scene, producers proclaimed a data life of at least 100 years. Throughout that time and even today the press will "discover" that the media is susceptible to CD or DVD rot that will eat your information - audio, video or data - in as little as two years after it is written.

Because CD and DVD media - in 2003, more than 7,150 million CD-R discs and more than 400 million DVDR discs were made and sold -- is used to archive nearly everything today it does make you worry. Especially when these discs are the only place you have precious, irreplaceable family memories - photos and movies - as well as vital family, personal and company data/documents.

So where does the truth lie? Somewhere across the complete spectrum.

Most people who burn a disc without producing a coaster believe they have quality media. Unfortunately, that only tells you the disc will be compatible (able to be played) in the vast majority of CD or DVD players. More importantly, all better quality CD and DVD burners include technology called overburn/underburn protection making coaster production a thing of the past.

Test Options
There are only two foolproof ways of proving the data life of the discs you use:

1. Write a few CD or DVDRs, then wait about 25-50 years and check if they still hold the correct data.
2. Use a CD/DVD analyzer that is specially designed to retrieve very accurate information about your media and your data after accelerated aging in test chambers where the discs are subjected to excessive temperature and humidity tests.

The first is impractical. However, we have seen some of the first discs produced and written to in Japan and yes, the data is still intact. The second provides only theoretical limits and doesn't take into consideration how you use, handle and store the media. However, assuming proper handling, temperature and humidity can affect the data life of quality media. Between the CD-R discs produced in the early 80s to today's double layer DVD+R discs and throughout the brief optical industry, there has been considerable progress in write performance, capacity, quality and obviously price.

Following the test procedures of the International Standards Organization (ISO), quality media manufacturers have been able to document data life spans ranging from 50-200 years. But keep in mind, there are wide differences between low budget media operations and quality media firms. In addition, variations in manufacturing methods, materials and processes/procedures can dramatically affect the data life of the media you use.

Or as auto manufacturers say, "your mileage may vary."

Understanding Your Discs
It isn't vital that you understand the construction of CDR or DVDR media to produce a quality disc that can be read years from now anymore than you need to understand the internal combustion engine to drive. But understanding the difference between quality and cheap media may help you avoid lost family photos or videos later on.

Most people consider DVDR discs little more than overgrown CDR and while they are similar, they are also quite different.

Illustrations of typical CD-R & DVD-R discs, write micro views                       Writable CD and DVD discs start with a piece of polycarbonate substrate onto which very precise grooves are molded. A dye layer is then precisely applied to the substrate followed by a reflective layer and one or more protective layers. A few of the media leaders have initiated the policy of applying two very resistant layers for added data protection when the discs are used, handled and stored.

Because of the faster read/write performance users expect, the leading manufacturers have developed new stamper technology for optimum groove (storage area) shape and ultra-precise molding technology. The molding is critical because disc flatness is extremely important when the media must be rotated at extremely high speeds - 52x for CDR and 8x for DVDR (soon to be 16x).

Media Problems
The quality of your media is directly related with the time the media will last without losing the information. As you can see, there are a number of areas where manufacturers can shave a few cents in the overall cost of the media and areas where production can go amiss to dramatically shorten the data life of your stored information.

There are conflicting claims and consumer beliefs on which media is best for data retention of 30, 50, 100 years - green, gold, blue dye or gold/silver reflective layer. It is somewhat immaterial today. Firms like MKM and Verbatim have developed significantly improved, more sensitive and more stable dyes and reflective materials that virtually eliminate data loss during high-speed read/write processes and enhance long-term reliability.

CD and DVD rot is much more attention getting than delamination and oxidation. The truth is that unlike earlier LaserDisc rot, CD/DVD rot doesn't affect this media, which uses different dye technologies to store data.

Delamination and oxidation usually occur at the outer edge of the disc and are often the result of the adhesive not being properly applied and cured during the production process. This usually happens when price-oriented manufacturers use equipment that is 2-3 generations old and the least expensive materials possible.

When it does happen, the laser is unable to read the data on the reflected layer. It is usually caused by:

• Oxidation when air comes in contact with the reflective layer
• Galvanic reaction between the layers and coatings
• Chemical reaction caused by impurities in the disc's adhesive or aluminum coating

The Real Culprit                                                                                                                   If you have purchased quality media from a quality manufacturer, you are still not assured of 50-100 years of data life!

You are the greatest danger to the data longevity of your personal, family and business information that is stored on CD and DVD. Direct exposure to sunlight and intense heat can do dramatic damage. Rapid changes in temperature and humidity can stress the materials. Gravity can bend and stress the discs. Fingerprints and smudges can do more damage than scratches.

But, by following a few Do's and Don'ts you can ensure your precious family and friend pictures, movies, family records and business files have the maximum data life.

Do

• Handle discs by the outer edge or the center hole.
• Use a non solvent-based felt-tip permanent marker to mark the label side of the disc.
• Keep dirt or other foreign matter from the disc.
• Store discs upright (book style) in original jewel cases that are specified for CDs and DVDs.
• Return discs to their jewel cases immediately after use.
• Leave discs in their spindle or jewel case to minimize the effects of environmental changes.
• Remove the shrink wrap only when you are ready to record data on the disc.
• Store in a cool, dry, dark environment in which the air is clean -- relative humidity should be in the range 20% - 50% (RH) and temperature should be in the range 4°C - 20°C.
• Remove dirt, foreign material, fingerprints, smudges, and liquids by wiping with a clean cotton fabric in a straight line from the center of the disc toward the outer edge.
• Use deionized (best), distilled or soft tap water to clean your discs. For tough problems use diluted dish detergent or rubbing alcohol. Rinse and dry thoroughly with a lint-free cloth or photo lens tissue.
• Check the disc surface before recording.

Do not

• Touch the surface of the disc.
• Bend the disc.
• Store discs horizontally for a long time (years).
• Open a recordable optical disc package if you are not ready to record.
• Expose discs to extreme heat or high humidity.
• Expose discs to extreme rapid temperature or humidity changes.
• Expose recordable discs to prolonged sunlight or other sources of UV light.
• Write or mark in the data area of the disc (area where the laser "reads").
• Clean in a circular direction around the disc.

Reliable Medium
There is a lot of cheap CDR and DVDR media that has marginal quality. For some applications like games, quality isn't critical. For irreplaceable, vital data like family photos, special events, vacations and family/friends memories, quality does matter. If you are backing up mission critical data on your home or business computer, quality matters. Then it is important to select a brand of media that will keep your data safe, secure and available for years to come.

Quality and low prices just don't seem to mix!

The next step to long-term data reliability is to handle and store the media with the respect your data deserves.

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Top-Selling Software Week of May 16 – May 22, 2004
All Categories
1	Norton Antivirus 2004	Symantec	$41
2	Norton Internet Security 2004	Symantec	$68
3	MS Office 2003 Student/Teacher Ed	Microsoft	$137
4	MS Windows XP Home Ed Upgr	Microsoft	$97
5	Norton System Works 2004 Pro	Symantec	$73
6	Star Wars: Knights Of The Old Republic	LucasArts	$22
7	Norton Internet Security 2004 Pro	Symantec	$74
8	VirusScan 8.0	Network Associates	$49
9	Norton System Works 2004	Symantec	$69
10	Spy Sweeper	Webroot	$30
Games
1	Star Wars: Knights Of The Old Republic	LucasArts	$22
2	City Of Heroes	NCsoft	$47
3	Far Cry	Ubisoft	$38
4	Battlefield Vietnam	Electronic Arts	$37
5	Star Wars: Jedi Knight: Jedi Academy	LucasArts	$26
6	Rise Of Nations	Microsoft	$34
7	MS Age Of Mythology	Microsoft	$33
8	Rise Of Nations: Thrones & Patriots Expansion Pack	Microsoft	$26
9	Unreal Tournament 2004	Atari	$38
10	The Sims Deluxe	Electronic Arts	$27
Business
1	MS Office 2003 Student/Teacher Ed	Microsoft	$137
2	QuickBooks 2004 Pro	Intuit	$272
3	AD Guard	Valusoft (THQ)	$20
4	QuickBooks 2004	Intuit	$199
5	Act! 6.0	Interact Commerce	$220
6	MS Office 2003 Pro Upgr	Microsoft	$302
7	MS Office XP Student & Teacher Ed Acad	Microsoft	$125
8	MS Office XP Student & Teacher Ed	Microsoft	$143
9	Norton AntiSpam 2004	Symantec	$40
10	MS Office 2003	Microsoft	$391
Home Education
1	Shrek 2 Activity Center	Activision	$18
2	Instant Immersion Spanish JC	Topics Entertainment	$10
3	Dora The Explorer Animal Adventures	Atari	$20
4	Adventure Workshop 1st-3rd Grade	Riverdeep Interactive	$17
5	Snap! Typing JC	Individual Software	$5
6	Mavis Beacon Teaches Typing 15.0	Riverdeep Interactive	$18
7	Adventure Workshop 4th-6th Grade	Riverdeep Interactive	$18
8	Jumpstart Preschool Classic JC	Vivendi Universal Publishing	$10
9	Jumpstart Toddlers JC	Vivendi Universal Publishing	$10
10	Jumpstart Kindergarten JC	Individual Software	$11
List is based on units sold by twenty-three channel partners. For more information, please contact The NPD Group at (703) 376-6226.

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