Kenwood and PhatNoise Announce Partnership to Deliver New In-car MP3 System; Kenwood's ``Powered by PhatNoise'' System to Work With Company's Existing Car Stereos

Business Wire, Nov 12, 2001

Business Editors & High-Tech/Audio Writers

LOS ANGELES--(BUSINESS WIRE)--Nov. 12, 2001

PhatNoise, Inc., developer of the first complete automotive digital media jukebox system, and Kenwood USA Corporation, premier manufacturer of car audio products, today announced that the two companies have signed an agreement to bring to market a "Powered by PhatNoise" car audio system under the Kenwood Excelon(TM) brand. The PhatNoise Car Audio System (CAS), which enables consumers to listen to MP3 and WMA music tracks using their existing Kenwood head unit, will be distributed by Kenwood through retail outlets in the United States, Canada and Mexico in the first quarter of 2002.

The award-winning PhatNoise CAS allows consumers to easily transfer and enjoy high-fidelity playback of music in their vehicles without having to record files onto CDs or replace their existing car stereo head unit. The system is comprised of an in-car audio player that can be installed in the trunk, glovebox or under the seat and a computer docking station for uploading and storing of thousands of music files onto an included high-capacity, removable storage cartridge. The system's powerful music management software with patented Dynamic Playlist Generation Technology(TM) enables easy uploading and organization of tracks into personalized playlists using simple queries. Since the CAS is natively compatible to in-car stereo systems, consumers can utilize existing stereo CD changer controls and accessories to play their music.

"Our relationship with PhatNoise continues our strategy to partner with the best U.S. technology companies to develop high-quality, innovative products targeted for our market and deliver them quickly," said Bob Law, vice president of sales and marketing for Kenwood. "The CAS, combined with a Kenwood in-dash receiver, gives consumers an easily installed and fully integrated solution for storing and accessing hundreds of hours of their favorite music entertainment in their vehicle."

"We are delighted to forge this long-term partnership with Kenwood, which has established itself as an early leader in bringing compelling new MP3 products to the automotive environment," said Dannie Lau, co-founder and executive vice president of business and new product development at PhatNoise, Inc. "Through our new partnership with Kenwood, we look forward to developing a range of product designs that will be brought to market under this highly respected consumer audio brand."

About PhatNoise, Inc.

Based in Los Angeles, Calif., PhatNoise, Inc. is a leading-edge, privately-funded developer of next-generation hardware, software and Web integration technologies for digital media. The company's technology takes consumers beyond current concepts in digital music and media by introducing easy and efficient ways to locate, manage, play and interact with digital content across multiple devices and environments. PhatNoise licenses its technology platforms to strategic partners to develop next-generation multimedia products. For more information, visit www.phatnoise.com.

About Kenwood

Founded in 1961, Kenwood USA Corporation is 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.

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.