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Niles Shields Authorized Dealers and Their Customers From Unauthorized Websites and Auctions

Vigilante policy pursues transshippers of Niles products to cut off source of supply

MIAMI, FLORIDA, OCTOBER 2, 2006 — Niles Audio Corporation, the First Name in Custom Installation, today announced a vigilant policy to protect its dealers and their customers from fraudulent online selling of Niles products. Simplified website construction tools and a growing number of online auction sites have led to the emergence of unauthorized selling in which products of leading brands such as Niles are sold by entities and individuals that are neither authorized to represent the Niles brand nor are able to offer Niles factory warranty, post sale support or service.

These online sellers may make themselves appear as if they are an authorized dealer, misleading and defrauding consumers in the process. Niles vigilant policy identifies unauthorized websites, then investigates and tracks their source of supply so that the fullest possible action can be taken to stop it in a timely fashion.

“We are stopping at nothing to protect the Niles reputation for quality that our dealers and their customers rely upon,” said Frank K. Sterns, president of Niles. “With relentless energy and focus, Niles will seek out and thwart unauthorized websites and auctions selling Niles products.”

Niles’ policy is designed to stop unauthorized online sales, which mislead customers and damage the Niles brand. It does not interfere with authorized Niles internet resellers, of which there are only six total, and it does not interfere with authorized Niles dealers from using Niles logos, trademarks and approved images to make customers aware of Niles products and to promote their services. Additionally, it reinforces the Niles Dealer Agreement, which prohibits dealers from selling Niles branded products via the internet or transshipping Niles products to anyone who might intend to resell the products on the internet. Authorized Niles dealers who violate this policy may be subject to immediate termination and/or other any measures the company deems fit.

“We take Niles’ Seven Keys To Success very seriously,” Sterns added. “And one of those keys is exemplary customer service and strong dealer relationships. To ensure that happens, we owe it to our dealers and customers to protect the integrity of the Niles brand and business processes.”

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Talking Points
• Niles Audio Corporation announced a vigilant policy to stop unauthorized websites and auctions from selling Niles products via the internet.
• Individuals responsible for unauthorized internet sales will be stopped.
• Authorized dealers who violate the Niles Dealer Agreement by transshipping Niles products to anyone who resells the product on the internet are subject to termination.

Corporate Information
Niles Audio Corporation, based in Miami, is a 28-year-old company recognized as The First Name in Custom Installation. As a leading designer, manufacturer and marketer of audio/video custom installation products, Niles Audio is guided by seven principles: a commitment to reliable, high-performance, application-specific, product design, a complete and up-to-date product assortment with just-in-time delivery, extensive training and technical support, exemplary customer service and strong dealer relationships. Niles is a brand based on strength, reliability and outstanding performance with a wide range of award-winning, innovative products.
Additional information may be obtained by contacting Mike Detmer at Niles Audio Corporation, 12331 SW 130th Street, Miami, FL 33186 (1-800-BUY-HIFI; ext. 197) or by visiting: www.nilesaudio.com.

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Niles, The First Name In Custom Installation, and Blending High Fidelity And Architecture are registered trademarks of Niles Audio Corporation in the United States and/or other countries. All other trademarks are property of their respective owners.

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