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

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

Kenwood Technologies Propels Kenwood Corporation Into The Computer Peripherals Market

New Subsidiary's Product Offerings Include World's Fastest CD-ROM Drives and Computer Sound Systems

San Jose, CA. -- March 15, 1999 -- Kenwood Technologies has firmly incorporated the Kenwood brand into the computer peripherals market with the success of its first two product lines, including award winning TrueX™ CD-ROM drives and computer sound systems. Already a world-renowned manufacturer of consumer audio and communications equipment, Kenwood Corporation established Kenwood Technologies in 1997 to market its revolutionary CD-ROM drives using TrueX technology from Zen Research. In August 1998, Kenwood authorized Hi-Val, Inc. as their retail partner to sell the Kenwood MULTI BEAM 40X Plus CD-ROM drive under the Hi-Val label. During this same time frame Kenwood began building their VAR and System Integrator channel selling the 40X product as a white box and bulk solution. Since introduction, this product has quickly gained industry acceptance and has won numerous awards and reviews.

"Building upon the success of the MULTI BEAM 40X Plus, Kenwood is committed to expanding Kenwood Technologies' market presence in the United States by offering customers products under the Kenwood brand," stated Mr. Kunihiro Kondo, director of Kenwood Corporation. "Kenwood is an expert in the audio and communications markets and this expertise will be transferred to the computer peripheral products delivered by Kenwood Technologies."

"The Kenwood name is trusted by consumers for high-quality, reliability, and service," stated A.J. Hart, senior vice president at Kenwood Technologies. "Through technological innovation our line of high performance TrueX CD-ROM drives, have gained substantial momentum in the last year, surpassing the competition and setting the industry standard for performance. Consumers are also embracing our line of computer speakers, which has benefited greatly from Kenwood's many years in the consumer audio industry."

On February 2, 1999 Kenwood introduced the 52X TrueX CD-ROM drive which is faster, quieter and more reliable than conventional drives, delivering next-generation CD-ROM performance and operation. Further endorsement of Kenwood and TrueX technology is illustrated by Compaq Computer's announcement that they are offering Kenwood's 52X TrueX CD-ROM in their desktop computers across the Presario, Prosignia and Deskpro lines.

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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