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D&M Holdings Inc. Names Bernie Sepaniak Chief Technology Officer

MAHWAH, NJ–December 12, 2006 — D&M Holdings Inc. (TSE I: 6735) today named Bernie Sepaniak the company’s chief technology officer. Mr. Sepaniak currently heads up the digital network business unit at D&M Holdings. In his new position, Mr. Sepaniak will manage the company’s intellectual property and patents on a global basis. He also will be responsible for sharing technology across the brands and identifying and evaluating new technologies, including potential acquisitions and partners.

“Bernie is uniquely qualified to develop his role into a value-creating asset of D&M Holdings,” said Vic Pacor, president and chief operating officer of D&M Holdings. “His strong background in networking, the Internet, metadata delivery services and digital audio/video is the right mix for leading the group charged with expanding our technology portfolio,” he added.

Reporting to Bernie will be the Technology Research Group in Japan, Intellectual Property Administration and the Advanced Center for Technologies (ACT).

D&M Holdings owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell Acoustics, D&M Professional, Denon DJ, ReplayTV and Escient brands. D&M Holdings is based in Kawasaki, Japan with North American headquarters in Mahwah, New Jersey.

“Our goal at D&M Holdings is to maintain the uniqueness of each brand while collaborating to make sure each company has access to our technologies,” Sepaniak said. “I look forward to working with teams around the globe to ensure that we deliver the best technology available for creating compelling entertainment products,” he said.

Mr. Sepaniak has served as president of Escient, ReplayTV and ACT and prior to D&M Holding’s acquisition of Escient, served as president and CEO of Escient and OpenGlobe, an Escient spin-off. Prior to Escient, Mr. Sepaniak was senior vice president of engineering and chief technology officer of NetFax, Inc., an industry pioneer in Internet facsimile technology. Earlier, Mr. Sepaniak served as director of the Video Business Unit and director of research and development for the Personal Communications Division for 3COM/U.S. Robotics, Inc. Mr. Sepaniak’s career includes engineering and management positions at CTS Datacomm and DataTrek, which he co-founded.

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Mr. Sepaniak earned a bachelor’s degree in electrical engineering from the University of Tennessee.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE I: 6735) is based in Kawasaki, Japan and owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell Acoustics, D&M Professional, Denon DJ, ReplayTVa and Escienta 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. Boston Acoustics, with its signature The Boston Sound, is a leader in premium loudspeakers for home and audio markets. Snell is a super premium speaker brand. The ReplayTV and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

Denon and Marantz are registered trademarks of D&M Holdings Inc.; McIntosh is a registered trademark of McIntosh Laboratory, Inc.; Boston Acoustics is a registered trademark of Boston Acoustics, Inc. and ReplayTV and Escient are registered trademarks of Digital Networks North America, Inc.

For further information, contact:

Adam Weissman
DBA Public Relations
aweissman@dba-pr.com
(212) 388-1400

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 the integration of the company’s acquisitions, competitive and industry conditions, targeted cost savings programs, market acceptance for the company’s products, technological changes, developing industry standards and other factors related to the company’s businesses
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