$12.5 Million New Funding to Propel D2Audio into the Next Era of Digital Convergence

Armed with Third Generation of Intelligent Digital Amplifiers

AUSTIN (Texas) - April 4, 2005 - - - D2Audio, the world's only manufacturer of intelligent digital amplifiersTM, today announced the closing of its $12.5 million series "C" financing with a new investor, CenterPoint Ventures joining Sevin Rosen Funds, Austin Ventures and Lightspeed Venture Partners in the round. The $12.5 million will be used to bring third generation products to market and to expand the customer facing team. The "C" round funding brings D2Audio's total capitalization to $40 million.

"We see D2Audio as an excellent investment because its intelligent digital amplifiers address the huge audio market, while offering manufacturers the industry's best performance along with significant cost advantages," said Bob Paluck, General Partner, CenterPoint Ventures.

Customers benefit from D2Audio's intelligent digital audio by enjoying superb sound in products that are:

* Cost efficient - the patented digital intelligence reduces system cost
* Easier to use and design
* Slimmer form factors due to Class D efficiency, which enables amplification in space constrained applications

D2Audio is currently shipping first and second generation products to the leading consumer electronic brands in Home Theater & Audio Video Receivers (AVRs); Home Automation & Distributed Audio and Powered Loud Speakers & Subwoofers.

The upcoming third generation of D2Audio intelligent digital amplifiers will address existing markets, as well as emerging markets, where there is a convergence of digital media such as the entertainment PC.

"Our intelligent digital amplifiers have established performance and technology leadership, and we are shipping products into key market segments today," said Brian Wong, D2Audio CEO and President. "This round of financing will allow us to expand our product offerings into the high growth markets defined by convergence of digital media and entertainment."

D2Audio Intelligent Digital Amplifiers
The D2Audio Corporation, maker of the world's only intelligent digital amplifiers, supplies a full line of cost efficient, powerful, multi -channel amplifier modules to the manufacturers of high quality audio equipment in the consumer, commercial, and automotive industries. The patented intelligent technology and custom digital audio processor IC gives D2Audio's digital amplifiers market leading performance and superior sound quality, along with a wide range of customization features. For more information on D2Audio and its products, visit www.d2audio.com.

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