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Advanced Denon A/V Receivers and DVD Players Now Feature DENON LINK 3rd Edition Digital Interface, Fully Supporting All Digital Audio Transmission Specifications, Including SACD

— Owners of Select High-Performance Denon DVD Players May Upgrade to DENON LINK 3rd —

Pine Brook, NJ, — May 13, 2005 — Denon Electronics, one of the world’s premier manufacturers of high-quality home entertainment products, today announced that its new DENON LINK* 3rd Edition digital interface has been officially approved for transmission of Super Audio CD (SACD) signals by Sony and Philips, developers of the SACD format. DENON LINK 3rd now fully supports all digital audio transmission specifications, including SACD as well as CD and DVD-Audio. Currently the AVR-3805 and AVR-5805 support DENON LINK 3rd as well as the upcoming AVR-4806 and any future receivers/processors released with DENON LINK connectivity.

An upgrade for DENON LINK 3rd is currently also available for Denon’s critically acclaimed
AVR-5803 audio/video receiver (DENON LINK 3rd was factory-installed in some units). This approval now permits Denon to offer DENON LINK 3rd on the company’s high-performance DVD-5910, DVD-3910 and DVD-5900 universal DVD players as these players had previously only supported DENON LINK SE (Second Edition), which did not permit SACD digital transmission. This advanced digital connection gives consumers a simple, unprecedented way to enjoy optimum sound quality and full-specification transmission capabilities from all sources, from CD and DVD-Video** to the multi-channel signals of SACD and DVD-Audio. With DENON LINK 3rd, the ultimate performance potential of a DVD player and an audio/video surround sound amplifier can now be fully realized by connecting a single dedicated cable.

Information on how to obtain an upgrade for the DVD-5910, DVD-5900 and DVD-3910 will be available at the company’s website (www.usa.denon.com) within the next couple of weeks.

DENON LINK: High-speed, High-grade Digital Signal Transmission and Playback
DENON LINK is a digital interface that uses high-speed transfer elements made possible with balanced transmission to achieve high-speed, high-grade digital transmission in real time and with negligible signal degradation. DENON LINK enables direct transmission of PCM 24-bit, 192-kHz digital signals, jitter-free and with high S/N, from DVD-Audio, Super Audio CD, and other sources featuring high speed and high sound quality. In addition to maximizing the high-quality sound reproduction capabilities of amplifiers and DVD players, DENON LINK set-up is as easy as connecting a cable.

As one of the industry’s first SACD licensees, Denon has been a strong supporter of the high-performance digital audio format since its inception and was in fact the first content provider to release a dual-layer “hybrid” title in 1999.

About Denon Electronics
From its beginning in the 1930s as a supplier of professional recording studio and broadcast equipment, Denon has become a world leader in the manufacture of the highest quality home theater, audio and software products. Denon is recognized internationally for innovative and groundbreaking products and has a long history of technical innovations, including the development and first commercialization of PCM digital audio. Denon Electronics is a wholly owned subsidiary of D&M Holdings Inc.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and owns the Denon, Marantz, McIntosh Laboratory, D&M Professional, ReplayTV, Rio and Escient brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. The ReplayTV, Rio and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

# # #

DISCLAIMER
Statements in this news release that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, market acceptance for the company’s products, risks of litigation, technological changes, developing industry standards and other factors related to the company’s businesses. The actions referred to in this press release are not an admission or acknowledgement of any claim or allegation. The Company reserves all of its rights.

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