Denon's AVR-3805 7-channel Receiver Shown at CES 2004

Pine Brook, NJ, January 8, 2004 - At CES 2004 Denon Electronics, the industry's leading manufacturer of high-quality home theater receivers, is breaking the surround sound price/performance barrier again with the introduction of its AVR-3805 A/V receiver (SRP: $1,200). The new ultimate-performance 7.1-channel surround sound receiver replaces the acclaimed AVR-3803 receiver, one of Denon's best-selling products of all time, and provides users with features and technologies traditionally found in receivers costing many hundreds of dollars more.

Jeff Talmadge, Denon Marketing Manager, noted: "Realistic, room-filling home theater surround sound has become the 'holy grail' of today's discriminating consumers, and the key to achieving it is an advanced multi-channel A/V receiver. With the introduction of our AVR-3805, Denon is once again setting a new industry price/performance benchmark, offering many of our most advanced digital audio technologies, plus the latest in-demand 'beyond 5.1' surround sound formats, in a high-value, high-performance product."

Compatibility With All Today's Advanced Home Theater Audio Formats
The Denon AVR-3805 accommodates the growing trend for all-in-one high-end home theater receivers with features and performance equal to or better than specialized separate components. The receiver provides seven built-in channels of amplification (120 watts per channel, 8 ohms, 20 -20kHz, < 0.05% THD) to drive all the main loudspeakers in a 7.1 home theater surround sound system. For compatibility with all of today's advanced home theater audio formats, it features 7.1-channel surround decoding of formats including Dolby Digital Surround EX, DTS, DTS 96/24 5.1 for DVD-Video, DTS ES Discrete 6/1, ES Matrix 6.1 and Neo: 6 Cinema & Music modes, as well as Dolby PL2x (for cinema, music and games). For added utility and flexibility, the AVR-3805 includes Dolby Pro Logic IIx decoding, the first technology to offer users the choice of processing traditional stereo music and movie content into a room-filling 6.1- or 7.1-channel listening experience. Dolby Pro Logic IIx also gives users a flexible upgrade path, allowing them to connect extra channels and speakers to their 5.1- or 6.1-channel systems in the future.

Denon's First-Ever Auto Set-Up Calibration, Plus Power Amp Assigned
The AVR-3805 marks the debut of a significant Denon first -- a new Auto Set-Up calibration and Room EQ feature that makes it easier to tailor the performance of the receiver for any home theater or music listening environment. The AVR-3805 Auto Set-Up analyzes and calibrates six critically important settings: speaker connection, phase, size and frequency response. Also the AVR-3805 adjusts channel level and time delay, while Room EQ corrects frequency response with an 8-band parametric equalizer and adjusts to the optimum soundfield, compensating for speaker and room capability issues. Denon's calibration feature also utilizes higher-performance DSP processors, along with the finest Digital to Analog converters, to define optimum sound quality. For best results, the company offers an optional, specially designed calibration microphone for the setup feature. Additionally, both the EQ and Auto Set-Up features can be disabled for consumers who prefer calibrating their receivers in the traditional manner.

Denon's Power Amp Assigned function adds to the AVR-3805's flexibility in providing high-quality surround sound solutions. The majority of home theater systems are 5.1-channel, this feature allows users to enjoy a fully-powered, discrete two-channel second zone.

Advanced Technologies For Unmatched Sonic Performance
The AVR-3805 delivers superlative sound quality, thanks to premium digital audio technologies such as Analog Devices SHARC 32-bit floating point DSP processing and Denon's proprietary advanced DDSC-D (Dynamic Discrete Surround Decoder-Digital) circuitry. For unmatched simplicity of video connectivity and switching, the AVR-3805 includes video-up conversion that converts composite and/or S-video sources to component video without compromising video quality.

The AVR-3805 features three assignable sets of component inputs and one set of monitor inputs (all with 100MHz Bandwidth). Like the company's flagship AVR-5803 receiver, the AVR-3805 also features the latest Denon Link 3, which allows the receiver to receive high-resolution, multi-channel digital audio data directly from the Denon DVD-5900 and DVD-9000 DVD players (and future Denon products) for the ultimate level of sonic performance. Denon Link 3 is compatible with all previously released Denon Link products, but is now ready to accept digital SACD data from future Denon source units, if and when formal approval is granted. The AVR-3805 also has an RS232 serial port for external controllers.

For added convenience, the AVR-3805 features a newly designed, multi-line front panel display that's easier to read and provides more information. In addition, Denon's new sleekly contoured programmable EL (Electro-Luminescence) remote control lets users command even the most sophisticated home entertainment systems from a single intuitive device.

AVR-5803: The World's Most Advanced A/V Receiver Is Getting Even Better
At CES 2004, Denon is also announcing an upgrade to its flagship 7.1-channel THX Ultra2-certified AVR-5803. In addition to its incorporation of the industry-leading Denon Link 3, the receiver now also features Dolby Pro Logic IIx and HDCD. All production models currently shipping have been upgraded with these new features, providing compatibility with every popular 6.1- and 5.1-channel surround sound format from Dolby and DTS to THX Ultra2 Cinema and Music, THX Surround EX decoding. The AVR-5803 also offers THX 4.0/5.1/6.1post processing, a Dolby Headphone output, plus many useful DSP modes. The receiver's remarkable surround sound capabilities are made possible by innovations such as advanced dual Analog Devices Hammerhead SHARC 32-bit floating point processors and Burr-Brown 24-bit/192kHz audio DACs, plus many additional leading edge technologies such as Denon's proprietary DDSC-D (Dynamic Discrete Surround Decoder-Digital) and AL24 Processing Plus circuitry to further enhance audio quality.

Denon's full A/V receiver lineup includes the flagship AVR-5803 (SRP: $4,400), AVR-3805 (SRP: $1,200), AVR-4802R (SRP: $2,500) and AVR-2803 (SRP: $799), as well as the 6.1-channel AVR-1804 ($499), AVR-1604 ($399) and 5.1-channel AVR-484 ($299), all combining superb sound quality with expanded audio/video control capabilities and support of multiple audio/video formats for maximum flexibility in custom and multi-room home entertainment installations.

About Denon
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. Additional information is available at www.usa.denon.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 .