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Denons Proprietary Denon Link Digital Interface Receives Approval From Sony And Philips For SACD Transmission

Pine Brook, NJ, January 27, 2005 — Denon Electronics, one of the world’s premier manufacturers of high-quality home entertainment products, today announced that its proprietary Denon Link digital interface has been approved for transmission of Super Audio CD (SACD) signals by Sony and Philips, developers of the SACD format, under the new and upcoming SACD 2.0 specification. Sony and Philips will release an update to the current SACD 1.3 specification, approving the DENON Link digital interface. The acceptance and support of Denon Link by Sony and Philips marks a significant step forward in bringing the finest digital audio entertainment to today’s most discriminating consumers in the easiest, most elegant manner possible. Products in accordance with the updated specification will be available in the near future.

Denon sought and received approval from the DVD Forum in 2003 for transmission of DVD-Audio signals, and with approval by SACD specification, the path is now clear for the Denon Link to provide a single high-resolution, multi-channel digital connection for all of today’s high-performance digital audio signals, including SACD, DVD-Audio, DVD-Video, * linear PCM, packed PCM, Dolby Digital, DTS and MP3 digital audio data.

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.

* Denon Link will pass only the audio portion of DVD-Video titles.

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.

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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.

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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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