Klipsch Named Exclusive Global Distributor for ZON Whole House Digital Audio System

"Reinventing the Audio Business Model" and "Leading with Passion" Stated as Key Components Driving New Partnership Agreement

INDIANAPOLIS - - Klipsch Audio Technologies has reached an agreement with Oxmoor Corporation LLC, a pioneer in digital audio technology, making Klipsch the exclusive global distributor of ZON Whole House Digital Audio products.


The announcement comes just before Klipsch debuts about 50 of its own new high -performance speaker products geared toward the custom installation market, 28 of which will be on display this week at the Custom Electronic Design and Installation Association (CEDIA) Expo in Indianapolis. Officials for both companies characterized the deal as a partnership that joins the most innovative, cutting -edge technology with the market leader in high performance sound solutions.

"The ZON Whole House Digital Audio System is easy to use, beautiful, powerful and, of course, it sounds great. Klipsch is proud to be the exclusive distributor for this industry changing line of products. This event marks the beginning of a completely new marketplace approach for us," said Klipsch President Paul Jacobs. "Klipsch has always been driven by passion and performance. The inclusion of ZON's revolutionary technology adds the latest digital audio innovation to our already strong loudspeaker offerings. ZON, coupled with the launch of 50 new Klipsch architectural speakers will separate our dealers from the pack."

Jacobs explained that Klipsch has experienced significant growth in retail, commercial, multimedia and professional cinema segments of the audio business over the past five years, and that with the ZON alliance, Klipsch is now poised to make an even larger impact on the residential contracting market.

"Klipsch is a great company with an outstanding track record. Their world -class sales team and dealer network is a great addition to the existing ZON family," said Lynn McCroskey, Oxmoor's chairman and CEO. "Their amazing loudspeakers will be perfect companions for the ZON system. I predict that the alliance between our companies will put ZON and Klipsch dealers solidly ahead of the competition and make the concept of whole -house audio even more accessible to consumers."

Oxmoor`s award -winning ZON Digital Whole House Audio System features a stylish easy -to -use control with 60 -Watt integrated amp, analog and digital audio inputs, IR routing, RS -232 control, source selection, EQ, balance, paging and other advanced features not found in any other system. These features were among the reasons ZON was honored by the Consumer Electronics Association (CEA) as the `Mark of Excellence Award Winner` in 2003 and by CE Pro Magazine with a `2003 High Impact Award`. In addition to the latter honor, and from among many leading technology companies under consideration, Oxmoor was accorded CE Pro`s `Innovator of the Year` in 2003 for its work in bringing ZON Audio to market.


About Oxmoor Corporation LLC
Internationally known for innovative high performance audio products, Oxmoor invented the first digital remote volume control in 1982. In 1986 the company was the first to deliver digital audio for motion picture theaters. In addition to the residential ZON product line, Oxmoor's professional audio products are found in hotels, theme parks, and IMAX Theatres worldwide. Oxmoor researchers also patented Personal Sound Environment® 3 -D audio technology that premiered in 1994 at Sony Theaters Lincoln Square in New York. Headquartered in Birmingham, Alabama, Oxmoor Corporation LLC is a leading manufacturer of digital remote volume controls, distribution and buffer amplifiers, mixing matrixes, infrared transmission hardware and room combining systems for commercial and residential audio applications.

About Klipsch Audio Technologies
For all complete months reported in 2004 (January -June), NPD Techworld ranks Klipsch as the number one speaker brand in all channels with a 12.1 percent market share. In 2003, one out of every two new and retrofitted movie theaters around the world chose Klipsch loudspeakers. The company has reported 20 percent sales growth each year for the past seven years.

A family -owned business since 1946, Chairman Fred Klipsch and Vice Chairman Judy Klipsch direct the vision and management of Klipsch Audio Technologies, one of America's first audio companies. Today, Klipsch is a leading global manufacturer of high -performance loudspeakers and other entertainment products for consumer and professional markets. The Klipsch Audio Engineering and Technology Center and worldwide headquarters are located in Indianapolis, manufacturing facilities in Hope, Arkansas, West Coast Distribution Center in Fullerton, CA, and wholly owned subsidiary Klipsch Europe BV in the Netherlands. The company and its employees are committed to developing products that create the most engaging, emotional and dynamic entertainment experiences.

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