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FOR IMMEDIATE RELEASE

Company Contact:
Kenwood Technologies (USA), Inc.
Robert Selzler 408-467-7916
selzler@kenwoodtech.com

Kenwood Editorial Contact:
Shotwell Public Relations, Inc.
Lyn Balistreri 408-530-8081
Lyn@shotwellpr.com


Kenwood Technolgies to Supply Compaq Computer Corporation with World's Fastest CD-ROM Drive

San Jose, CA. -- March 15, 1999 -- Kenwood Technologies today announced that it has signed an OEM Agreement that will enable Compaq Computer Corporation (NYSE: CPQ), the world's largest PC manufacturer, to offer Kenwood's 52X TrueX™ CD-ROM drive in their Presario, Prosignia, and Deskpro PC lines. The 52X TrueX is the world's fastest CD-ROM drive. Unlike so-called "max" CD-ROM drives that reach top performance only on the outermost tracks of the disc, the Kenwood 52X TrueX CD-ROM, based on TrueX technology from Zen Research, delivers an unprecedented typical transfer rate ranging from 6750 KB to 7800 KB per second across the entire disc.

Compaq PCs with Kenwood's 52X TrueX drives will be available on March 15, 1999. Customers can purchase Compaq computers with Kenwood's 52X TrueX CD-ROM either directly online from the Compaq web site, from their local Compaq Authorized Reseller, or from their Compaq sales representative.

"As a technology leader, Compaq is always searching for new and useful innovation," said Jeri Callaway, Vice President, Commercial Desktop Configurable Modules. "The 52X TrueX CD ROM Drive is the highest-performing industry standard optical drive available today. It is a perfect addition to our Compaq Deskpro option portfolio."

According to Robert Abraham, vice president at Freeman Associates, a market research firm specializing in data storage, "Compaq's selection of Kenwood's TrueX drives is a major endorsement for Kenwood as an OEM peripheral supplier and for Zen's TrueX technology. Compaq recognizes the significant performance differentiation available from Kenwood CD-ROM drives based on Zen's TrueX technology. TrueX technology has the potential to become the defacto performance standard for optical drives."

"Compaq demands the highest quality from their industry partners, which was evident in their demanding evaluation and testing process," said A.J. Hart, senior vice president of Kenwood Technologies. "Compaq's commitment to offering leading edge technologies and products to their customers not only has made Kenwood a world-class OEM supplier, but also delivers Zen's revolutionary TrueX technology to the world."

About Kenwood Technologies

Kenwood Corporation was established in 1946, and is a world-renowned manufacturer of consumer audio and communications equipment with annual revenues of more than 3 billion dollars. In 1997, Kenwood Corporation established Kenwood Technologies (USA), Inc., with headquarters in San Jose, California, as a new division to launch Kenwood into the computer and technology sector. Products include a line of revolutionary high performance TrueX CD-ROM drives - MULTI BEAM 40X Plus and 52X TrueX - as well as the CL-501 and CL-701 multimedia speaker systems. Additional information about Kenwood Technologies is available on the World Wide Web at http://www.kenwoodtech.com.

Zen, TrueX and Multibeam are trademarks of Zen Research N.V. and its affiliates in the United States and other countries.

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