Polk Audio, Inc. Announces Delisting of Shares From AMEX

Business Wire, May 18, 1999

BALTIMORE--(BUSINESS WIRE)--May 18, 1999--

Polk Audio, Inc. (AMEX:PKA) announced today that its common stock will be delisted from trading on the American Stock Exchange (AMEX) due to the fact that the Company's common stock no longer meets the distribution requirements for continued listing on AMEX.

AMEX has informed the Company that the last day for trading of the Company's common stock on AMEX will be Friday, May 21, 1999. Following the AMEX delisting, Polk Audio intends to terminate the registration of its common stock under the Securities Exchange Act of 1934 and to no longer be a public reporting company.

Polk Audio recently completed a tender offer pursuant to which it purchased 574,967 shares of its common stock for $12.00 per share. Following the delisting and deregistration of the common stock, the Company reserves the right to engage in a subsequent merger, reverse stock split or other corporate transaction that will result in certain shares that were not tendered being converted into cash.

Polk Audio, Inc. is a manufacturer of high-quality loudspeaker systems based in Baltimore.

This release contains forward-looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (the Act). Statements contained herein that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Act.

Forward-looking statements may include, but are not limited to, projections of revenue, income, or loss and capital expenditures, statements regarding future operations, financing needs, and plans relating to products of the Company, assessments of materiality, and predictions of future events, as well as assumptions relating to the foregoing.

Forward-looking statements are inherently subject to risks and uncertainties, and the Company's actual results could differ materially from those set forth in or underlying the forward-looking statements contained in this release as a result of various factors including, without limitation, consumer acceptance of new technology and new products, competition, pricing, borrowing costs, foreign manufacturing, sourcing, and sales, and other risk factors.