Someone on the Sony forum found the solution:
1- Remove the battery and unplug from the power source
2- leave the radio without battery and power for a minute or two
3- while pressing the ALARM RESET button conect to the power souce but do not install the battery
4- keep pressing the ALARM RESET button for another minute after pluging to the power outlet
5- Release the button, wait 5 seconds then set the radio according to your preference
6- after you are done setting the radio, re-install the battery
7- (Optional) if step # 3 doesnt work, press ALARM RESET and SLEEP buttons at the same time (you will see all the LED's turning on in the screen, and wont turn off until you remove the power source), unplug the radio, then proced to step #3
you should be good to go if you follow these steps.
Here's the link to it:
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