-- Compact 2.1-Channel System Uses Dolby's Latest Innovation to Deliver Unprecedented Virtual Surround Sound Realism --

Pine Brook, NJ, September 22, 2003 -Denon Electronics, an industry leader in home entertainment technology, announced it will begin shipping its D -M71DVSXP DVD Receiver System in October 2003. The innovative 2.1 -channel system is the world's first audio/video product to incorporate Dolby Laboratories' Virtual Speaker surround sound technology. Comprised of an integrated DVD/receiver unit, two satellite speakers and a subwoofer, the compact, elegantly designed system provides a remarkably realistic 5.1 -channel surround listening experience that is far superior to any previously available virtual surround process. The D -M71DVSXP is the perfect solution for smaller home listening rooms, apartments, dorm rooms, or anywhere great multichannel home entertainment is desired from a compact system.

The Denon D -M71DVSXP is elegantly designed to complement the décor of any room. The DVD/receiver unit features a metallic silver chassis with an aluminum faceplate; the satellite speakers are housed in real aluminum with wood -finish end caps and light gray grille cloths, while the subwoofer has a wood finish.

Key to the D -M71DVSXP's outstanding picture and sound reproduction quality is the inclusion of advanced video D/A converters and digital video processing, as well as the same advanced Analog Devices Hammerhead SHARC 32 -bit DSP audio processors used in Denon's acclaimed
AVR -2803 and AVR -3803 audio/video receivers.

A Breakthrough in Virtualized Surround Sound

Dolby Virtual Speaker technology is a practical alternative to multi -speaker systems, and utilizes breakthrough digital audio processing techniques to yield the most accurate and natural virtualized surround sound listening experience ever achieved. Using a proprietary process, it delivers a realistic 5.1 -channel surround sound experience using just two stereo speakers, and with the addition of Dolby Pro Logic II decoding -included in the D -M71DVSXP -the process can enhance the playback of any program material, from stereo music CDs and MP3 files to 5.1 -channel DVDs and broadcast content encoded in Dolby Digital.

Dolby Virtual Speaker utilizes a proprietary technique that re -creates, in their entirety, the multiple, complex sonic signatures that the listener would ordinarily hear from a properly positioned 5.1 -channel speaker setup. Most virtualizers on the market today limit their processing to the direct sound, overlooking a significant portion of the sonic signature essential for producing a convincing
5.1 -channel virtualized surround sound field. The result is often an "enhanced stereo"
listening environment.

Dolby Virtual Speaker ensures the integrity of the virtual 5.1 soundfield by reproducing the entire sonic signature, and its multiple reflection tails, which can often vary significantly in level and spectral balance from the direct sound. The further addition of crosstalk cancellation maintains the integrity of each processed signal, thereby insuring a highly realistic and natural sounding 360 -degree sonic environment.

The D -M71DVSXP: Stylish Design, Exceptional Performance

The Denon D -M71DVSXP combines true component -quality audio and video performance with stylish, space -saving design. Its single -chassis DVD player/receiver delivers superlative picture and sound quality, featuring a progressive scan DVD player that can play back DVD -Video, CD, CD -R/RW, VCD, as well as MP3 -encoded CDs. The integrated DVD player/receiver's advanced video D/A converters and digital video processing provide sharp, high -resolution images, and the leading edge Analog Devices Hammerhead SHARC DSP audio processors ensure the ultimate in refined audio performance. In addition to Dolby Virtual Speaker, the D -M71DVSXP also incorporates Dolby Headphone signal processing.

Dolby Headphone delivers a natural -sounding surround sound listening experience from any set of connected headphones. It is an ideal technology for late -night movie viewing, video game playing, or private listening to audio - or video -based entertainment.

The D -M71DVSXP includes a 20 -watt per channel stereo amplifier to deliver clear, room -filling sound, along with an FM/AM tuner with 40 -station preset memory tuning. The D -M71DVSXP provides a host of additional performance and convenience features, such as a clock with sleep timer, bass and treble tone controls, and much more. The system offers a full complement of digital and analog video and audio inputs and outputs, including progressive -scan component video outputs.

The D -M71DVSXP is supplied with two high -quality two -way speakers, each featuring dual 2 -inch mid -bass drivers and a half -inch dome tweeter for rich, dynamic sound quality with a detailed midrange and extended, open highs. The system's 100 -watt powered subwoofer rounds out the sonic spectrum with deep, articulate low -frequency performance. In conjunction with the D -M71DVSXP's Dolby Virtual Speaker function, the speakers and subwoofer deliver enveloping surround sound that draws listeners right into the on -screen action or musical performance.

The Denon D -M71DVSXP 2.1 DVD Receiver System is shipping next month at a suggested retail price of $999. In addition, a two -channel version without the subwoofer (D -M71DVS 2.0) will be available for $699 suggested retail. The DVD receiver unit (ADV -M71) will be available on its own at a price of $599.

Dolby Virtual Speaker technology and Dolby Headphone technology are both based on core algorithms developed by Lake Technology, Ltd., of Australia.

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. Additional information is available at

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

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

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