ReplayTV Announces Service Discount

SANTA CLARA, CA., September 16, 2004 - ReplayTV®, the inventor and creator of personal television recorders, today announced a new discounted pricing structure for customers with multiple ReplayTV units. ReplayTV will now offer the ReplayTV Service Guide at a discounted rate of $6.95 per month for customers who purchase a second ReplayTV Digital Video Recorder (DVR). In addition, consumers with multiple active ReplayTV DVR units who currently subscribe via the monthly service will also be eligible for this new discounted price (on up to five additional units).

"ReplayTV offers the world's most powerful DVR at a great value, and now we are proud to offer our customers an even greater value," said ReplayTV President, Bernie Sepaniak. "Our discounted monthly subscription rate provides an added incentive to take advantage of our room-to-room video streaming and many other advanced networking features, in addition to providing a discount to our loyal customers."

Under this new discounted plan, service for the first ReplayTV DVR is $12.95 per month or $299 for lifetime activation while each additional ReplayTV service subscription will be eligible for the discounted $6.95 per month. The discounted subscription structure is also applicable for existing customers who already have multiple activated ReplayTV DVRs and are currently paying the monthly subscription fee on one or more of those units. Their monthly service fee will automatically be reduced to $6.95.

The discount is applicable to all models of ReplayTV DVRs. Multiple unit accounts will be verified if the payment information is the same for each unit. In the event that a household reduces their number to one active unit, billing rates will automatically return to the rates received prior to the multi-unit discount.

In other news, ReplayTV also announced that its rebates for ReplayTV DVRs have been extended for all models: 40-hour Model RTV5504 ($99.99 after rebate); 80-hour RTV5508 ($199.99 after rebate); 160-hour RTV5516 ($349.99 after rebate); and 320-hour RTV5532 ($599.99 after rebate).

ReplayTV can be found at these major retailers: Amazon.com, Buy.com, Circuit City, CompUSA, The Good Guys, Fry's, J & R Music World, Magnolia, Tweeter and other authorized ReplayTV dealers.

About ReplayTV
ReplayTVâ is the inventor and creator of personal television and offers the most powerful DVRs on the planet. ReplayTV has earned over 20 prestigious awards including CNET's Editors Choice Award and is the winner of an Emmy award for technological achievement. The company leads the DVR industry in groundbreaking innovations aimed at providing consumers with unmatched power and control in maximizing their TV viewing experience with the best performance and best value. Founded in 1997, ReplayTV is headquartered in Santa Clara, California. The ReplayTV® brand is owned by D & M Holdings U.S., Inc., through its wholly owned subsidiary Digital Networks North America, Inc.

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 .

DISCLAIMER
Statements in this news release that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, market acceptance for the company's products, risks of litigation, technological changes, developing industry standards and other factors related to the company's businesses.

ReplayTV is a registered trademark and the ReplayTV circled "r" logo is a trademark of Digital Networks North America, Inc.