AVC Technology Opens U.S. Office Under the SOUL Brand Name; OEM Manufacturer of Over Two Million MP3 Players Plans Sales Expansion

Business Wire, August 25, 2003

Business & Entertainment Editors/High-Tech Writers

BOCA RATON, Fla.--(BUSINESS WIRE)--Aug. 25, 2003

AVC Technology Limited, a subsidiary of Hong-Kong based AV Concept Holdings, today announced the opening of its North American headquarters in Boca Raton, Florida. AVC's SOUL(R) branded product line of MP3 digital audio players and storage devices uses advanced compression technology to offer competitive prices for today's music fans.

"AVC has a proven track record in producing lightweight, high fidelity audio devices for top brands such as D-Link, RIO (SONICblue) and iRiver," said Keith Kravitz, Vice President of U.S. Operations for AVC Technology. "The explosive growth in MP3 music players, expected to reach 9 million units in 2006, creates the market opportunity for AVC to introduce the SOUL(R) product line while continuing to serve as OEM supplier to leading consumer electronics distributors."

"AVC is recognized worldwide for its innovative engineering and marketing services," said Billy So, AVC's Hong Kong based Technology Director of Operations. "The popularity of this music format has enabled AVC to introduce a new line of lighter, more powerful players using flash memory to store hundreds of consumers' favorite songs."

U.S. retail channels for the SOUL(R) line of MP3 players include CompUSA and Circuit City. Online sales are available at http://www.Soulplayers.com and http://www.Instantdrive.com.

MP3 technology has revolutionized the entertainment industry. Now consumers can easily download literally an entire collection of their favorite songs in digital format to a lightweight, portable device using a simple USB computer connection. The new SOUL(R) player is about the size of a pack of chewing gum and can store many hours of music for easy listening any time, any place. An FM tuner and voice recorder are conveniently included in the SOUL(R) players.

About AVC Technology

AVC Technology, a wholly-owned subsidiary of Hong Kong based AV Concept Holdings Limited, manufactures portable MP3 players and related devices. The firm also offers a full range of marketing and engineering services to resellers, with a successful production record of over two million MP3 players packaged for leading consumer electronics distributors. AV Concept Holdings is publicly listed on the Hong Kong Stock Exchange. For more information visit the company's website at http://www.avconcept.com/

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