Denon to Offer Dolby Pro Logic IIx Upgrade for Flagship AVR-5803 Receiver

Pine Brook, NJ, September 5, 2003 - Denon Electronics today announced it will offer an upgrade to its flagship AVR-5803 audio/video receiver that will add Dolby Pro Logic IIx surround sound processing capability to the AVR-5803. The upgrade will be available in the near future, with details and pricing to be announced.

Dolby Pro Logic IIx surround sound processing is a new technology introduced by Dolby Laboratories at CEDIA 2003. Dolby Pro Logic IIx provides a natural, immersing, full-range 7.1-channel listening experience from stereo and 5.1-channel-encoded sources, thanks to proprietary processing algorithms that deliver highly a realistic, seamless and expansive 7.1-channel sonic environment. Stereo sources can be processed to either 6.1 or 7.1, while any 5.1-channel program source can be processed to deliver 7.1-channel sound. Dolby Pro Logic IIx is also fully compatible with Dolby Surround Pro Logic technology, and can optimally decode Dolby Surround-encoded videocassettes and television programs with enhanced depth and spatiality.

Stephen Baker, Denon Senior Vice President of Sales and Marketing pointed out: "Denon is committed to providing our customers with products that incorporate the most advanced home entertainment technologies. Our flagship AVR-5803 receiver, hailed by reviewers as the finest audio/video receiver in the world, is a perfect example. With the addition of Dolby Pro Logic IIx as a soon to be available upgrade, the AVR-5803 will be even more desirable as an ultimate-performance component that offers consumers the most versatile selection of surround sound listening options for movies and music."

For information about the AVR-5803 Dolby Pro Logic IIx upgrade, customers may contact their authorized Denon dealer or visit the company's web site, www.usa.denon.com .

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 audio, audio/video, 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.

About Dolby Laboratories
Dolby Laboratories creates technologies that intensify and enhance the entertainment experience. For nearly four decades, Dolby has been instrumental in defining high-quality audio and surround sound in cinema, broadcast, home audio systems, cars, DVDs, headphones, games, televisions, and personal computers. Based in San Francisco with European headquarters in England, the privately held company has entertainment industry liaison offices in New York and Los Angeles, and licensing liaison offices in Hong Kong, Shanghai, Beijing, and Tokyo. For more information about Dolby Laboratories or Dolby technologies, please visit www.dolby.com.

About D & M Holdings Inc.
D & M Holdings Inc. (TSE II: 6735) is based in Tokyo and is the parent company of wholly owned subsidiaries Denon Ltd., Marantz Japan, Inc. and McIntosh Laboratory, Inc. Denon, Marantz and McIntosh are global industry leaders in the specialist home theater, audio/video consumer electronics and professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. A wholly owned subsidiary of D & M Holdings U.S., Inc., Digital Networks North America, Inc. (DNNA), owns the ReplayTV®, Rio®, and Escient® brands-all representing award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.