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Denon Adds XM Satellite Readiness to AVR-4806 A/V Receiver

— Optional XM Radio “Connect-and Play” Antenna Provides AVR-4806 Users
With Access to XM Radio’s 130-Plus Digital Radio Channels —

Pine Brook, NJ, June 8, 2005 — Denon Electronics, the industry’s leading manufacturer of high-quality home theater receivers, is now shipping its new AVR-4806 multi-zone audio/video receiver. The receiver incorporates XM Satellite Radio’s new “Connect-and-Play” technology, which lets users add XM Satellite Radio functionality with the addition of an optional “Connect-and-Play” XM Satellite Radio antenna (SRP: $49.99).

XM Satellite Radio functionality in the AVR-4806 is made possible through the inclusion of XM Radio’s industry-leading chipset technology as well as a new proprietary chip and signaling protocol. With the addition of the optional “Connect-and-Play” antenna, AVR-4806 purchasers will be able to activate the XM Radio service, with access to all satellite and terrestrial signals, as well as channel tuning, decoding and audio transmission, with no additional accessories or installation required. XM Satellite Radio has over 4 million customers, and provides listeners with more than 150 digital channels, including 67 commercial-free music channels, 65 channels of premier sports, talk, comedy, children’s and entertainment programming, and 21 traffic and weather channels (XM monthly subscription fee: $12.95).

Jeff Talmadge, Marketing Manager for Denon USA noted, “In all our premium audio and video products, Denon’s goal is to provide consumers with the most choice in how they will enjoy the finest quality home entertainment. With the integration of XM Radio “Connect-and-Play” functionality, AVR-4806 purchasers will now have even more power to choose the type of entertainment they will bring into their home — with all the benefits and varied programming of the service that is leading the way in the satellite radio revolution. Satellite radio continues to gain in popularity among American consumers, and Denon looks forward to providing more home entertainment products in the future that feature this lifestyle-enhancing technology.”

The Denon AVR-4806 (SRP: $3,500), available in April, offers many of the industry’s most advanced surround sound and A/V distribution capabilities, including the groundbreaking MultEQxt (TM) technology from Audyssey Laboratories that provides listeners with a “sweet spot” in up to eight listening positions in a room. With its seven discrete amplifiers and multiple-channel output, the AVR-4806 provides independent audio and video processing capabilities and a configurable amplifier section that lets users enjoy a versatile multi-zone home entertainment experience from a single component. Users can enjoy three independent home entertainment zones, with three different audio/video sources running simultaneously. In addition, multi-zone preamplifier outputs provide independent power, source and volume control for each zone.

The AVR-4806 is compatible with every popular 6.1 and 5.1-channel surround sound format from Dolby and dts to THX Ultra2 Cinema and Music, as well as THX Surround EX decoding. It also features Dolby Headphone technology for private surround sound enjoyment. Its full complement of advanced audio and video processing capabilities includes not only HDMI/DVI digital video source switching but also provides the ultimate in connective flexibility allowing the receiver to upconvert all incoming analog video sources (composite, component and S-Video) to HDMI output. In addition, the AVR-4806 offers the most extensive complement of connection options of any receiver in the industry, including three high-bandwidth (100 MHz), HDTV-compatible component video inputs, Denon Link, IEEE-1394 and much more. For the ultimate in total home connectivity and future-readiness, the AVR-4806 also includes an Ethernet port for control and possible future upgrades.

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 XM Satellite Radio
XM Satellite Radio is America’s number one satellite radio service with more than 4 million subscribers. Broadcasting live daily from studios in Washington, DC, New York City and Nashville at the Country Music Hall of Fame, XM’s 2005 lineup includes more than 150 digital channels of choice from coast to coast: 67 commercial-free music channels, featuring hip hop to opera, classical to country, bluegrass to blues; 64 channels of premier sports, talk, comedy, children’s and entertainment programming; and 21 channels of the most advanced traffic and weather information for major metropolitan areas nationwide. XM, the leader in satellite-delivered entertainment and data services for the automobile market through partnerships with General Motors, Honda, Toyota, Hyundai, Nissan, Volkswagen/Audi, and Porsche, is available in more than 120 different vehicle models for 2005. For more information about XM hardware, programming and partnerships, please visit www.xmradio.com.

About D&M Holdings US Inc.
D&M Holdings US Inc. is a wholly owned subsidiary of D&M Holdings Inc. (TSE II: 6735), which 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.

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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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