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Kenwood Technologies (USA), Inc.
Robert Selzler (408) 467-7916
Vice President of Marketing

Shotwell Public Relations, Inc.
Lyn Balistreri (408) 530-8081
Account Executive

Kenwood Technologies Expands Reach to Consumers, VARs, and System Integrators with New Retail and Distribution Agreements

Kenwood Award-Winning TrueX™ CD-ROM Drives and Computer Speakers Now Available in Retail Locations Nationwide

SAN JOSE, CA May 24, 1999 -- Further expanding the Kenwood consumer brand name into computer peripheral products nationwide, Kenwood Technologies has signed several major retail and distribution agreements. These new agreements will dramatically increase the availability of Kenwood's revolutionary TrueX' CD-ROM drives and computer speakers. New retail partners include: CompUSA, one of the nation's leading retailers with 211 locations across the country; and Micro Center, a large retailer with stores in 14 locations across the United States. Kenwood products are also available from mail order partners CDW and MicroWarehouse.

In addition to its major retail presence, Kenwood is also expanding into the VAR and system integrator markets. Building off of the recent success in signing up Compaq Computer as a PC OEM, Kenwood is pushing hard to reach other OEMs, VARs and system integrators. Today Kenwood announces that El-Segundo, Calif.-based Merisel, a leading distributor of computer products throughout North America, will join existing distributors D&H, CONSAN GATES/ARROW, and ICG in adding the Kenwood family of products to their list of available computer peripherals. Both the TrueX CD-ROM drives and the speakers will be sold through these retail and distribution channels under the Kenwood brand name.

"Kenwood's TrueX CD-ROM drives offer great value and high performance for our VARs and system integrators," states Jodi Honore, Merisel's vice president of peripherals. "Kenwood has leveraged its experience in consumer audio to build computer speakers that fill the need for great sound at a reasonable price."

"These agreements certainly help put Kenwood on its way to solidifying its position as a major player in the computer peripherals market," stated Tony Amico, senior analyst at International Data Corporation. "Kenwood seems to be gaining a certain momentum that is especially impressive given that the Kenwood name was virtually unknown for computer peripherals less than a year ago."

"Our new alliances will help us rise to the challenge of keeping up with the enormous consumer demand for Kenwood products," stated Robert Gronski, vice president of sales at Kenwood Technologies. "These agreements justify our desire to make the Kenwood name as well-known for computer peripherals as it has been for consumer electronics for over 50 years. It's very exciting to see so many doors opening up to allow us to provide products to our loyal customers."

To meet the increasing customer demand for Kenwood's computer peripheral products, Kenwood will continue to seek new partnerships with retailers, VARs, and system integrators.

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 award-winning high performance TrueX CD-ROM drives-- 42X TrueX 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.

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

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