DENON RAISES THE BAR IN PERFORMANCE AND FLEXIBILITY FOR UNDER -$500 A/V RECEIVERS

--Three New Models Complete Denon's Broad Range of Seven High-Performance A/V Receivers For Every Consumer Need and Budget --

Pine Brook, NJ, September 5, 2003 - Denon Electronics, the leading manufacturer of high -quality home theater receivers, once again sets new standards for audio/video receiver value and performance with three additions to its lineup, which now includes seven A/V receivers. The new arrivals, including the 6.1 -channel AVR -1804 ($499) and AVR -1604 ($399), and the 5.1 -channel AVR -484 ($299), significantly raise the bar in performance and installation flexibility in the under -$500 receiver category.


The three new A/V receivers, along with the company's flagship AVR -5803 (SRP: $4,300); AVR -4802R (SRP: $2,500); AVR -3803 (SRP: $1,199); and AVR -2803 (SRP: $799), combine superb sound quality with expanded audio/video control capabilities and support of multiple audio/video formats, providing maximum flexibility in custom home entertainment installations and multi -room systems. Key to the enhanced performance of all Denon receivers is the inclusion of high -quality audio circuitry and DSP processing, and the utilization of high -current discrete amplifier sections to deliver equal power output to all main channels. Power ratings per channel (into 8 ohms) for the new receivers are as follows: AVR -1804, 90 watts x 6; AVR -1604, 75 watts x 6; AVR -484, 75 watts x 5.

Advanced Denon Features Add To Use in Custom Installations

All Denon A/V receivers incorporate advanced features and performance characteristics that make them ideal for use in custom installation applications. Denon's acclaimed Customization feature, for example, lets users adjust delay times and other parameters in order to tailor the performance of the receiver for specific home theater environments or music listening environments.

Stephen Baker, Denon Vice President of Sales and Marketing pointed out: "Denon is committed to using all of its engineering and design expertise to provide quality home entertainment solutions for every customer need, from entry level to high -end. With the introduction of our new receivers, Denon now brings custom installation -friendly features, multi -room flexibility and outstanding sound quality to a wider range of price points than ever before."

Denon's AVR -1804 and AVR -1604: 6 Channels, Multi -Room Operation and More

Denon's new AVR -1804 and AVR -1604 A/V receivers provide many of the same features and benefits of receivers costing hundreds of dollars more. Both models are ideal for a wide variety of high -performance home theater systems, featuring six built -in channels of amplification, to drive all the main loudspeakers in a 6.1 -channel home theater surround sound system with superior sonic performance.

For maximum versatility and flexibility, both receivers offer multi -room operation and component video switching. In addition, the AVR -1804 also features S -Video/composite video conversion for easier connectivity, bass management with selectable crossover points and many additional advanced features. Both models feature Dolby EX and DTS ES 6.1 decoding, and a variety of DSP surround modes that make them ideal for all music and home theater applications, and both provide a generous complement of A/V inputs and outputs, along with performance and convenience features such as an easy to use on -screen menu, a precision AM/FM tuner, and full remote control operation.

Denon AVR -484: Great Performance, Great Value

Denon's new entry -level AVR -484 is designed to offer high -quality music and home theater performance, for a fraction of the normal cost. In addition to built -in Dolby Pro Logic II, Dolby Digital and DTS decoding capability, the AVR -484 features three S -Video inputs and dual
S -Video outputs, with a sleek front panel that matches the design of Denon's complete A/V receiver line, plus a full -featured, ergonomically designed remote control. Additional features, such as Denon's Virtual Surround Mode, add to the flexibility and performance of the
AVR -484, allowing listeners to surround themselves in an enveloping 3D soundfield using just two speakers with Dolby Digital 5.1 -encoded sources.

AVR -5803: The World's Most Advanced A/V Receiver

Denon's flagship 7.1 -channel THX Ultra2 -certified AVR -5803 has received numerous accolades from leading critics and enthusiast audio/video publications, hailing it as the best receiver in the world for its remarkable sonic performance and operational flexibility. The AVR -5803 is compatible with every popular 6.1 - and 5.1 -channel surround sound format from Dolby and DTS, and offers THX Ultra2 Cinema and Music decoding, THX Surround EX decoding, THX 4.0/5.1/6.1post processing, a Dolby Headphone output, plus many useful DSP modes. The
AVR -5803's remarkable surround sound capabilities are made possible by innovations such as advanced dual Analog Devices Hammerhead SHARC 32 -bit 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.

In addition, the AVR -5803 offers the most extensive complement of features and connection options of any receiver in the industry. Its many features include an Equal Power amplifier section that delivers a massive 170 watts of high -current power into each of its seven channels; three high -bandwidth, HDTV -compatible component video inputs; built -in video conversion that converts all composite or S -video sources to component video for simplified hookup and operation in high -end home theater systems; 11 assignable optical and coaxial digital inputs; three -zone audio and video capability, and much more.

AVR -3803 and AVR -2803: Heightened Surround Sound Realism

Designed for heightened surround sound realism, Denon's AVR -3803 features 7.1 -channel surround decoding of formats including Dolby Digital EX and Pro Logic II, DTS -ES Discrete and DTS Matrix 6.1, plus DTS Neo: 6 Cinema and DTS Music modes. The AVR -3803 features seven built -in channels of amplification, to drive all the main loudspeakers in a 7.1 home theater surround sound system, and delivers superlative sound quality, thanks to premium digital audio technologies such as Analog Devices SHARC 32 -bit DSP processing and Denon's proprietary DDSC -D (Dynamic Discrete Surround Decoder -Digital) circuitry.

Denon's 7.1 -channel AVR -2803 A/V receiver, featuring 90 watts x 7 power output, brings a host of custom installation features to the under -$800 price point. The AVR -2803 provides an unusually comprehensive selection of connection and control options, including multi -room operation with independent control of a second -room audio system. The receiver includes two assignable 100MHz -bandwidth component video inputs for full compatibility with multiple HDTV sources, numerous digital and analog audio and video inputs, outputs and switching facilities including an eight -channel input for multichannel audio sources such as Denon's DVD -2900 DVD -Audio/Video/Super Audio CD Player, and many additional connections to accommodate a sophisticated home entertainment installation.

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 markets, with a strong and long -standing heritage of manufacturing and marketing high -performance in the specialist home theater, audio/video consumer electronics and professional audio 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.

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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. The actions referred to in this press release are not an admission or acknowledgement of any claim or allegation. The Company reserves all of its rights.


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