Kenwood and Boston Acoustics in First Collaboration Offer `Unity' All in One DVD Home Theater System

Business Wire, April 30, 2001

Business Editors

LONG BEACH, Calif.--(BUSINESS WIRE)--April 30, 2001

Co-Branded System Features Integrated Receiver/DVD Player

With Matched Boston Acoustics Speakers

Boston Acoustics, Inc. (NASDAQ: BOSA), the well-known maker of home audio loudspeakers, and Kenwood USA Corporation, America's largest audio specialty company, announced they have co-developed an all-in-one DVD home theater system that will be in stores in September 2001.

It is the first partnership effort between the two companies.

Called Unity, the new ensemble consists of a high-performance integrated receiver/DVD player manufactured by Kenwood and six-matched surround sound loudspeakers, including a powered subwoofer, manufactured by Boston Acoustics. The receiver has built-in Dolby Digital(R), DTS(R) and new Dolby Pro Logic(R) II decoding, a five-channel amplifier and equalization circuitry designed specifically for the Boston

Acoustics speakers, including Boston's exclusive BassTrac(TM) subwoofer circuitry. The integrated DVD plays MP3 files as well as DVD-Video/Audio and CD format recordings.

"From the start our companies agreed the goal was to create an integrated product, not simply to package existing components," said Bob Law, Kenwood vice president of sales and marketing. "This partnership allows dealers to offer an exclusive system with very compelling consumer benefits in terms of performance, ease of use, and affordability. The combination of our brands, both leaders in the home theater category, will be very powerful at retail."

"Today, consumers are looking for home entertainment solutions that are easy to buy, easy to set-up and easy to use," said Bob Spaner, Boston executive vice president of sales and marketing. "Unity is a unique collaboration that delivers high-performance audio, ease of use and elegant styling."

Unity's front panel has an eye-catching "sterling" finish and is accented with clear glass trim. Small and compact, Unity is a sleek, one-body home theater system that is easy to set up, connect and control. The speaker package is designed to compliment the majority of today's televisions. The front and rear satellites and center channel speaker have a unique shape that is both compact and attractive. The use of a subwoofer/satellite arrangement provides the greatest placement flexibility.

Unity also has a full array of inputs for other audio and video applications. The receiver can be connected directly to your TV or through a VCR and accommodates a satellite or cable signal. Component, S-video and composite connections are provided.

The front panel has several easily accessible connections including digital connections, which accommodate extra units such as a game station or portable mini-disc player.

The receiver offers AM/FM stereo tuning, station presets, a full-function universal remote control, and internal switching that automatically selects the analog or digital connections depending on the signal received.

All necessary cables come with the unit, including the speaker connections, which use a special "keyed" connector and are color-coded for ease of installation The `Boston Sound'

Boston Acoustics speakers are engineered to deliver what is known as the "Boston Sound"-- a performance measure characterized by smooth octave-to-octave tonal balance and naturalness in presentation -- and this is no different in the Unity speaker package.

Unity's front and rear speakers are identical to get the most out of today's digital sources. They feature a new 3" woofer and a 3/4" tweeter. The speakers' performance is maximized by the use of active equalization and electronic crossovers. The system's center channel speaker is acoustically identical to the rest, but its horizontal orientation makes it suitable for placement on top of a television. The front and rear speakers can be hung directly on the wall using their integrated keyhole, or may be used in conjunction with any of the widely available aftermarket mounts and stands.

The Unity's subwoofer uses a down-firing 8" design with a built-in 100-watt amplifier. The combination will deliver outstanding bass performance in virtually any size room. Boston Acoustics' patented BassTrac subwoofer circuitry insures that the system's low frequency output will remain clear and undistorted at all volume levels.

The Unity system will be available in September at authorized Kenwood and Boston Acoustics dealers at a manufacturer's suggested retail price of $1,000. Corporate Information Kenwood -- Founded in 1961, Kenwood USA Corporation is celebrating its 40th year and continues to be the largest audio specialty company in the United States. Offering more than 250 home, car, and personal audio products, Kenwood is recognized by consumers and the consumer electronics industry for developing products that provide superior sound quality, reliability and value. Kenwood USA Corporation, based in Long Beach, Calif., is the largest subsidiary of Kenwood Corporation (Japan).

Further information can be obtained by contacting Kenwood USA Corporation, P.O. Box 22745, Long Beach, CA 90801, by calling 1-800-Kenwood, or by visiting www.kenwoodusa.com.