Phase Technology Welcomes New Investor and Business Partner

American Speaker Manufacturer Forms Partnership with MultiService Electronics to Accelerate Growth, New Product Development and Market Share

JACKSONVILLE, FL - July 8, 2004 - Phase Technology, pioneering leader in speaker design and engineering, today announced a strategic partnership with MultiService Electronics, a sister company of MultiService Inc. of Kansas City, which provides specialized credit card services to trucking companies, airlines and other industries worldwide. MultiService Electronics' brands include: AES, SoundTube, Solid Drive and Induction Dynamics.


"We're excited about our new partnership and having the added resources to accelerate our development and growth plans," said Roberta Lewis, vice president of sales and marketing of Phase Technology. "MultiService is the ideal business partner as our relationship has naturally evolved from having worked with them on an OEM basis for over two years."

This association will provide Phase Technology with the financial resources to boost the introduction of new products that already went into effect last year with the release of 14 new speaker models. This partnership will further augment Phase Technologies' ability to enter into new product categories and continue to develop leading -edge technologies for the evolving custom installation and home theater markets.

"Phase Technology's reputation for leadership in the field of home entertainment innovation precedes it" said Chris Combest, founder of MultiService Electronics. "Our resources, coupled with Phase Tech's engineering, manufacturing and marketing expertise, will lead us to new heights in the advancement of innovative speaker design and engineering."

Phase Technology will continue its tradition of excellence under the leadership of its current management team, and remain consistent with its existing marketing and distribution practices.

About MultiService

MultiService Inc. was established in 1978 to provide specialized credit card services to the trucking industry. By developing and applying the latest computer technology, MultiService enabled trucking companies to control purchasing across the country. In 1981, the firm applied this expertise and technology to the aviation industry and today the MultiService Card is the most widely used corporate aviation card in the world. MultiService has continued to grow and develop their unique combination of point of sale, service and large volume buyer support to also include unique card applications for e -commerce, parts and service programs, custom and private branded cards and even specialized card programs for toll roads and tunnel companies throughout Europe.

With its sister company, MultiService Electronics, MultiService Inc. continues to find new and innovative ways to broaden its service support focus and with that develop new markets and opportunities for mutual profitability. MultiService Inc. and MultiService Electronics are headquartered in Overland Park, Kansas, a suburb of Kansas City, and MultiService Inc. also has offices in Australia and the Netherlands.

For additional information on MultiService please consult the website at www.multiservice.com.

About Phase Technology

Phase Technology Corporation (toll -free at 888 -PHASE TK; website at www.phasetech.com) is one of the few fully -vertically integrated American speaker manufacturers. The company started as United Speaker Systems in 1955 as an original equipment manufacturer and still designs and produces its own sub -assemblies in -house. Phase Technology's speaker lines incorporate many proprietary innovations like the soft -dome tweeter, the industry's standard invented by Bill Hecht, founder of Phase Technology. Other patents cover the self -damping woofer voice coil, the manufacturing process for flat -piston midrange drivers and woofers, silicone -injected drivers for resonance damping, and the positive -clamping mounting system for the premier in -wall Model CI -110/II. The company also developed the Unicell™ Zero -Diffraction treatment that reduces acoustic reflections off cabinet and grille surfaces. Phase Technology manufactures its wood cabinets by hand and performs quality control tests at every step of the fabrication process.

Building on five decades of design and engineering innovation in the manufacture of high quality, yet affordable speakers, Phase Technology supports its products with a 10 -year warranty on speakers, while amplifiers are backed by a 3 -year warranty. Phase Technology's digital home theater, audiophile, outdoor, in -wall/in -ceiling custom installation speakers, as well as powered and in -wall subwoofers are constructed at the company's Jacksonville, Florida facility.

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