Pine Brook, NJ, January 27, 2005 - Denon Electronics, one of the world's premier manufacturers of high-quality home entertainment products, today announced that its proprietary Denon Link digital interface has been approved for transmission of Super Audio CD (SACD) signals by Sony and Philips, developers of the SACD format, under the new and upcoming SACD 2.0 specification. Sony and Philips will release an update to the current SACD 1.3 specification, approving the DENON Link digital interface. The acceptance and support of Denon Link by Sony and Philips marks a significant step forward in bringing the finest digital audio entertainment to today's most discriminating consumers in the easiest, most elegant manner possible. Products in accordance with the updated specification will be available in the near future.

Denon sought and received approval from the DVD Forum in 2003 for transmission of DVD-Audio signals, and with approval by SACD specification, the path is now clear for the Denon Link to provide a single high-resolution, multi-channel digital connection for all of today's high-performance digital audio signals, including SACD, DVD-Audio, DVD-Video, * linear PCM, packed PCM, Dolby Digital, DTS and MP3 digital audio data.

As one of the industry's first SACD licensees, Denon has been a strong supporter of the high-performance digital audio format since its inception and was in fact the first content provider to release a dual-layer "hybrid" title in 1999. * Denon Link will pass only the audio portion of DVD-Video titles.

ADDENDUM TO NEWS RELEASE REGARDING ADVANCE APPROVAL OF DENON LINK INTERFACE FOR THE UPCOMING 2.0 SACD SPECIFICATION

All SACD pl a yers currently in the m a rketpl a ce f a ll under the existing 1.3 SACD specific a tion, for which the Denon Link digit a l interf a ce h a s not yet been a pproved. Negoti a tions to obt a in 1.3 specific a tion a pprov a l for the Denon Link a re still underw a y. Me a nwhile, Sony a nd Philips, the developers of the SACD form a t, h a ve a nnounced th a t the next gener a tion of SACD products will f a ll under a new 2.0 specific a tion, for which the Denon Link interf a ce h a s been a pproved in a dv a nce.

Adv a nce a pprov a l of Denon Link for the 2.0 specific a tion me a ns th a t when products th a t meet this specific a tion begin to re a ch the m a rketpl a ce, which is expected within 12 to 24 months, the Denon Link will be a n immedi a te option for high-qu a lity digit a l sign a l tr a nsmission c a p a bility. The Denon Link will sh a re a pprov a l of the 2.0 SACD specific a tion with other digit a l tr a nsmission methods, a s well a s a more technic a lly robust DTCP (Digit a l Tr a nsmission copy protection) protocol.

At this time, Denon h a s no inform a tion a bout the upgr a d a bility of current 1.3 specific a tion SACD products to the upcoming 2.0 specific a tion. Inform a tion a bout upgr a d a bility is not yet a v a il a ble due to unknown technic a l requirements not yet fin a lized by Sony/Philips.

About Denon Electronics
From its beginning in the 1930s as a supplier of professional recording studio and broadcast equipment, Denon has become a world leader in the manufacture of the highest quality home theater, audio and software products. Denon is recognized internationally for innovative and groundbreaking products and has a long history of technical innovations, including the development and first commercialization of PCM digital audio. Denon Electronics is a wholly owned subsidiary of D & M Holdings Inc.

About D & M Holdings Inc.
D & M Holdings Inc. (TSE II: 6735) is based in Tokyo and owns the Denon, Marantz, McIntosh Laboratory, D & M Professional, ReplayTV®, Rio® and Escient® brands. Denon, Marantz, McIntosh and D & M Professional are global industry leaders in the specialist home theater, audiovideo consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. The ReplayTV, Rio and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.