DENON SETS A NEW STANDARD IN UNIVERSAL DVD PLAYER PERFORMANCE WITH INTRODUCTION OF FLAGSHIP DVD -5900

-- Extraordinary Video and Audio Quality, DVI Output, Plus Extensive Control and Connection Options Make All-Format DVD-5900 Ideal For Custom Installations --

Pine Brook, NJ, September 5, 2003 -At CEDIA 2003, Denon is demonstrating clear leadership in ultimate -performance home entertainment with the debut of its flagship DVD -5900, a state -of -the -art universal player (DVD -Audio/Video/Super Audio CD) that sets new industry standards for audio/video performance, innovative engineering and overall build quality. Like the previously introduced Denon DVD -2900, the new DVD -5900 offers both DVD -Audio and Super Audio Compact Disc (SACD) playback, plus CD, CD -R/RW, DVD+ and -R/RW and MP3 -CD playback. In addition, the DVD -5900 provides compatible playback of WMA (Windows Media Audio) -encoded CDs, as well as JPEG, Kodak and Fuji Picture CD discs.


The Ultimate All -in -One Source Component for Custom Installation

The Denon DVD -5900 is the ultimate all -in -one source component for a high -performance custom installation home entertainment system. For total installation flexibility, it features a full selection of audio and video connections, including a DVI digital video output, two component video outputs (BNC and RCA), S -video and two composite video outputs, plus coaxial and optical digital outputs, and multi -channel analog audio outputs.

In addition, the player's RS -232 port and remote in/out ports allow for two -way integrated system control, facilitating its use with third -party system controllers such as AMX and Crestron, and in whole -house multi -room audio/video applications. For added flexibility, all functions can be operated by the DVD -5900's supplied remote control and on -screen menu system, and an intuitive front -panel control layout also provides access to most -used functions.

Adding yet another level of utility and convenience, the DVD -5900 provides two IEEE 1394 ports, and incorporates proprietary Denon Link technology. When the DVD -5900 is connected to a Denon receiver with Denon Link functionality, such as the AVR -5803, the receiver can accept digital audio data directly from the DVD -5900's transport section for the ultimate level of sonic performance. The data can then be decoded and processed by the receiver's digital electronics for the absolute highest level of audio quality available today -with full digital bass management.

Stephen Baker, Denon Senior Vice President of Sales and Marketing pointed out: "As the home entertainment marketplace continues to evolve, there is increasing demand for DVD players that function as high -end audio components as well as superior video playback devices. Because the DVD -5900 is a universal disc player, with unsurpassed audio and video playback capabilities no matter what the disc format, it is the perfect solution for custom installers who want to give their customers the very best option in an all -in -one home entertainment component."

A Significant Advancement in the State -of -the -Art

The Denon DVD -5900 is designed to deliver the finest -quality video and audio performance of any DVD or SACD player ever designed, and significantly advances the state of the art. Viewers will immediately recognize a spectacular new level of digital video image quality, thanks to its dual leading -edge Analog Devices ADV -7310 12 -bit/216MHz video D/A converters -one for the progressive scan video circuit and one for the interlaced circuit.

The DVD -5900 is also the first Denon component to incorporate the new Faroudja FLI2310 DCDi chipset, which takes the company's renowned digital video processing to spectacular new levels. The FLI2310 offers a host of leading -edge image -enhancement technologies, such as new, improved Film Mode 3:2 pulldown detection and deinterlacing, and five Progressive Mode memory settings that enable viewers to fine -tune picture quality to their particular preference. Together, these advanced digital video technologies deliver remarkably clear, high -resolution image quality that is free from picture artifacts.

The DVD -5900's DVI -D (HDCP)* digital video output eliminates the digital -to -analog conversions required by other types of video connections and provides for the finest picture quality for today's newer displays, which support DVI. Furthermore, the DVI output's selectable scaling, to provide 480p, 720p or 1080i output, enables users to best match the characteristics of a video display device. In addition, the player provides a much more comprehensive range of picture adjustments than typical DVD players, allowing users to precisely calibrate a much wider range of functions such as chroma delay, black level, white level and other adjustments.

Along with a new level of video performance, the DVD -5900 delivers equally superlative audio performance, with full digital bass management for DVD -Video, DVD -Audio and Super Audio CD discs provided by dual Analog Devices Hammerhead SHARC processors, along with
built -in Dolby Digital and DTS surround sound decoding. The player features leading -edge 192kHz/24 -bit audio D/A converters, along with the latest version of the company's exclusive AL24 Processing Plus circuit, which now operates in 24 -bit/192kHz on all channels, using sophisticated interpolation algorithms and digital filtering to improve low -level resolution and dynamic range. The DVD -5900 also features High Definition Compatible Digital (HDCD) processing to provide the best sound quality from HDCD -encoded and standard CDs. These technologies and many additional refinements yield remarkably transparent, detailed and musically natural sound quality.

Total Ease of Operation

The Denon DVD -5900 is designed for total ease of operation. All functions can be easily controlled via its multi -language on -screen menu, remote control and intuitive front -panel layout. Once the player is set up, using the one -time on -screen set -up menu and the remote, operation is virtually automatic -simply insert a disc, and the DVD -5900 will automatically play it back in the proper format (DVD -Video, SACD, etc.). All remote control functions are logically laid -out and easy to use with minimal "button -pushing."

The player provides a wealth of additional performance and convenience functions, making it the ultimate source component for the most sophisticated custom installations and home entertainment systems.

The Denon DVD -5900 Universal DVD -Audio/Video/Super Audio CD Player will be available in September 2003 at a suggested retail price of $2,000.

* As of this press release, DVI -D (HDCP) has not been approved by the DVD Forum. Therefore this output is non -functioning; however, pending approval a firmware upgrade will be made available to activate the DVI output.

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. More 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.

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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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