HARMAN KARDON® EXPANDS LINEUP OF TOTAL HOME ENTERTAINMENT SYSTEM SOLUTIONS WITH INTRODUCTION OF DPR 2001 DIGITAL PATH RECEIVER AT CES 2003

WOODBURY, NY - At CES 2003, Harman Kardon will continue to expand its position as a complete home entertainment system solutions provider with the introduction of its DPR 2001 Digital Path Receiver, the second receiver offered by the company to feature a full digital signal path from input to output. In addition, Harman Kardon will showcase its full lineup of high-performance components and systems for home theater and music listening, from the industry's most advanced digital source components and audio/video receivers to complete multichannel home theater packages.

Tom McLoughlin, Harman Kardon President, noted: "Today more than ever, consumers are seeking home entertainment systems that work together to provide the highest levels of audio and video quality, and match aesthetically for an integrated and attractive appearance. They want to be assured of maximum performance, especially in sophisticated home entertainment installations with HDTV, progressive scan DVD and high-resolution audio formats."

McLoughlin concluded, "Providing no-compromise, best-in-class design aesthetics and easy-to-use solutions has always been Harman Kardon's mandate. To this end, in addition to offering separate components, we've created a number of recommended Harman Kardon System Solutions packages, to accommodate every home entertainment requirement, from stereo music listening to complete 7.1-channel home theater setups. Consumers can view these System Solutions on our Web site and experience them at authorized dealers."

Following are highlights of selected Harman Kardon products and technologies showcased at CES 2003 at the Las Vegas Convention Center, Booth 12407, January 9-12, 2003.

Harman Kardon DPR 2001 Digital Path Receiver: Enhanced Power and Performance

The 7.1-channel Harman Kardon DPR 2001 Digital Path Receiver retains all the groundbreaking features and technologies of the company's recently introduced DPR 1001, while delivering a higher power output of 100 watts (into 8 ohms, 20Hz - 20kHz, <0.15% THD) of digital amplifier power into each of its seven main channels. Harman Kardon's digital path receivers totally redefine audio/video receiver design. In common with the DPR 1001, the DPR 2001 implements a full digital signal path from input to output, and incorporates a host of technological innovations that provides exceptional sound and control flexibility.

The DPR 2001 utilizes PWM (Pulse Width Modulation) digital-amplifier technology so that digital audio signals from sources such as DVD players and CD players remain completely in the digital domain, from input to the final amplifier output stage. Used for the first time in component-quality A/V receivers by Harman Kardon, this circuit design maintains maximum signal purity by eliminating multiple stages of A/D and D/A conversion. The high efficiency of the DPR 2001's design, including a switched-mode power supply, enables it to operate at full power without cooling fans or large heat sinks. This, in turn, makes it possible to greatly reduce the DPR 2001's size, enabling it to fit in places where some traditional high-power A/V receivers could not be used.

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The full digital-signal path of the DPR 2001 incorporates a sophisticated bass-management system with a Triple Crossover Bass-Manager on every input, including the 8-channel inputs for use with DVD-Audio or SACD players. Unlike the simple filters used on competitive products, the DPR 2001's digital bass manager includes both crossover settings and low-frequency redirection, enabling the user to fine-tune the settings to match virtually any speaker configuration. Listeners may select three different bass crossover frequencies for the front, center and surround speakers, so that all the loudspeakers in a multichannel system can deliver their optimum frequency response and performance.

Along with advanced digital-signal-path engineering, the DPR 2001 includes innovative performance and operational features. In common with the DPR 1001, it includes Harman Kardon's LCD A/V remote control with patented ™ (patent no. 5,386,478) automatic speaker-level calibration - a versatile preprogrammed and learning remote control featuring a backlit LCD-display panel that provides at-a-glance indication and status of the source being controlled. Along with the capability of programming the remote directly using product brand names rather than confusing code numbers, the remote also allows device keys to be renamed for ease of use.

The Harman Kardon DPR 2001 is compatible with all popular surround sound formats, including Dolby* Digital EX and DTS-ES®. The receiver incorporates two Harman proprietary audio technologies, Logic 7® and VMAx®, which deliver enveloping, multichannel sound spaces and heightened sonic realism from surround-encoded or stereo audio source material. Dolby Pro Logic* II and DTS Neo:6® are also available for use with matrix-encoded and two-channel soundtracks. In addition, the DPR 2001 offers sophisticated MP3-decoding capability when used with compatible computers or with Harman Kardon's award-winning DAL 150 Computer-to-Home-Audio Link. In addition, the DPR 2001 includes High Definition Compatible Digital® (HDCD®) processing, to deliver the best possible sound quality from both HDCD-encoded and standard CDs.

The DPR 2001 provides extensive connectivity and control capabilities, including multiroom/multisource operation with independent, simultaneous operation of two program sources and assignable amplifier configuration. The DPR 2001 offers an exceptionally comprehensive array of rear- and front-panel digital and analog audio and video connections, including wide-bandwidth component video switching to pass the full bandwidth of HDTV signals with virtually no loss of resolution and superior HDTV image quality.

The Harman Kardon DPR 2001 will be available spring 2003 with pricing to be announced. The DPR 1001 is currently available at a suggested retail price of $1,499.

Harman Kardon Audio/Video Receivers: Exceptional Performance and Multiroom Flexibility

All Harman Kardon A/V receivers, including the 7.1-channel AVR 7200, AVR 525, AVR 325 and the 5.1-channel AVR 225 and AVR 125, in addition to the DPR 2001 and DPR 1001, offer features, connectivity and performance that clearly distinguish them as best-in-class in their respective categories. Harman Kardon offers the widest available range of 7.1-channel receivers in the industry, all with a complete complement of seven amplifiers to fully reproduce today's "beyond 5.1-channel" 7.1- and 6.1-channel movie and music formats, rather than the six-channel amplifiers on many competitors' products. Every Harman Kardon AVR and DPR model provides an exceptionally comprehensive array of digital and analog inputs, outputs and switching facilities. Front-panel digital and analog inputs are featured on all models, and all models except the AVR 225 and AVR 125 provide wide-bandwidth component video switching for full compatibility with HDTV signals with virtually no loss of resolution, as well as multiroom, multisource operation, with independent simultaneous operation using two program sources. To this end, Harman Kardon receivers provide a choice of multiroom connection options, including A-BUS Ready® operation in selected models (AVR 7200, AVR 525 and AVR 325) utilizing a single, standard Cat.5 Ethernet cable to connect the receiver to Harman Kardon's AB 1 in-wall keypad/stereo amplifier/control module located in the second room, which will be available from Harman Kardon in early 2003. All Harman Kardon multiroom-capable receivers are shipped with a separate Zone II remote to operate a second-room audio system, as well as a remote control for a main system.

For increased multiroom flexibility, all new Harman Kardon seven-channel receivers offer a configurable amplifier section, which can be used in full 7.1-channel mode or switched to 5.1-channel operation to power a main-room system, with the remaining two channels used to drive the stereo audio channels in a second-room system. To facilitate setup and installation, all Harman Kardon audio/video receivers feature the CEA standards for color-coding of speaker terminals and input/output jacks for all channels, and include 5-way, binding-post speaker terminals.

Harman Kardon audio/video receivers offer a host of additional performance and convenience features for maximum sonic performance and home theater flexibility, such as advanced 24-bit, 192kHz D/A converters, precision FM/AM tuner sections, 6/8-channel or 6-channel direct inputs to accommodate multichannel DVD-Audio and SACD players, advanced bass-management facilities, and much more. All Harman Kardon A/V receivers utilize high-current, ultrawide-bandwidth amplification to deliver clear, effortless reproduction of movie soundtracks and high-resolution music sources.

Harman Kardon receivers, as well as audio/video components, complement each other visually with elegant black and silver finishes, and many components and loudspeakers feature a sleek, compact form to unobtrusively blend into installations where a large-screen video display is the primary focus of the home entertainment system.

Suggested retail prices for the Harman Kardon A/V receivers are as follows: AVR 7200, $1,999; AVR 525, $1,199; AVR 325, $899; AVR 225, $549; AVR 125, $449. The AVR 7200 will begin shipping spring 2003; all other A/V receiver models are currently available.

HK 3475 and HK 3375 Stereo Receivers: Legendary Harman Kardon Sound Quality

Along with its standard-setting multichannel audio/video receivers, Harman Kardon offers two stereo receivers designed to satisfy the most discriminating music lovers. The HK 3475 and HK 3375 combine superb sound quality with versatile control flexibility and elegant appearance. The HK 3475 (110 watts x 2 into 8 ohms, 20Hz - 20kHz,< 0.08% THD) and HK 3375 (75 watts x 2 into 8 ohms, 20Hz - 20kHz,< 0.08% THD) incorporate Harman Kardon's renowned high-current, ultrawide-bandwidth-amplifier stages and are engineered to deliver true audiophile sound quality; the HK 3475 includes VMAx® audio processing to provide a realistic surround sound environment using just two loudspeakers.

Both models offer ample inputs to accommodate a wide variety of program sources, including turntables, along with convenience features such as a separate subwoofer output, preamp-out/main-in jacks, remote-controlled speaker system 1 and 2 switching, and many additional functions.

The Harman Kardon HK 3475 and HK 3375 stereo receivers are available at suggested retail prices of $449 and $349, respectively.

HKL Series and HKTS Series Speaker Systems: The Perfect Match to Harman Kardon's A/V Components

Harman Kardon's line of component loudspeakers consists of five models that combine outstanding sonic performance and high value with an elegant, understated design that perfectly complements Harman Kardon's audio/video receivers and source components. The HKL Series and HKTS Series include models to complement every system and living environment - two bookshelf monitors, a slim tower loudspeaker, a dedicated center channel loudspeaker and a powered subwoofer.

Harman Kardon loudspeakers incorporate a number of advanced technologies to deliver exceptional sonic performance in home theater and music systems. All of the loudspeakers (except the HKSUB 12 subwoofer) feature titanium-laminate-dome tweeters mounted in specially designed waveguides, polymer-coated, proprietary treated-cone woofers, premium internal components, rigidly braced, tuned-port cabinets and other refinements to deliver detailed, dynamic, and refined sound quality. All loudspeakers (except the HKSUB 12 subwoofer) are video-shielded and are available in an elegant black-maple finish, accented by acoustically transparent silver-metal grilles that are mounted slightly forward from the front baffles to create a unique "floating" look and improve sound quality by eliminating wave diffraction.

Prices for Harman Kardon's HK loudspeakers are as follows: HKB 4 2-way bookshelf (3/4-inch tweeter, 4-inch woofer), $249/pair; HKB 6 2-way bookshelf (3/4-inch tweeter, 6-inch woofer), $349/pair; HKTW 6 2-way floorstanding (3/4-inch tweeter, 6-inch woofer), $249/each; HKC 2-way center channel speaker (3/4-inch tweeter, dual 5-inch woofers), $249/each; HKSUB 12 subwoofer (12-inch woofer, 150-watt built-in amplifier), $399/each.

Harman Kardon also offers its HKTS 12 and HKTS 6 complete multichannel home theater loudspeaker solutions, designed to match the appearance of Harman Kardon's 2003 A/V component lineup.

The Harman Kardon HKTS 12 and HKTS 6 systems are available at suggested retail prices of $649 and $449, respectively. In addition, the HKTS 12 satellite speakers may be purchased in pairs (model HKS 2), at $99 suggested retail per pair, for use as the surround back channels in 7.1-channel systems and for other applications.

The DVD 101: High-End Progressive Scan Video and Audio Playback

Harman Kardon's DVD 101 is a single-play, progressive-scan DVD player engineered for exceptional video and audio quality. The DVD 101 offers a host of advanced features that makes it an ideal all-in-one digital video and audio source component, such as progressive-scan component video output, built-in MP3 decoding, CD-R and CD-RW playback, and many additional refinements.

The DVD 101 features precision digital-video circuitry that reconstructs the 3/2 pull-down process for the ultimate in DVD-Video picture quality, when used with a compatible video-display device. The DVD 101 also includes component video, S-Video and composite video connections. In addition, the DVD 101 features a built-in video test pattern to aid in system setup, so that a TV or display device's video settings may easily be calibrated to take advantage of the DVD 101's video quality. The DVD 101 employs a high-resolution 24-bit/192kHz audio D/A converter for sonic accuracy to complement its superlative video performance, and to provide compatible playback of high-resolution 96/24 audio discs.

The Harman Kardon DVD 101 is available at a suggested retail price of $349. The CDR 26: Outstanding CD-Recording Performance and Value

Harman Kardon CD recorders have been acclaimed for their outstanding sound quality and recording flexibility, and the CDR 26 dual-tray CD recorder continues the company's leadership in this category with features such as CD-R and CD-RW recording capability, 4x-speed CD dubbing with a finalization countdown clock, and direct digital-to-digital recording from any digital source using its built-in sampling- rate converter.

The CDR 26 provides users with the ability to easily create custom CDs from a variety of digital and analog sources and MP3 music files, and it incorporates premium 24-bit D/A converters for the highest fidelity CD recording and playback. The CDR 26 includes both rear- and front-panel digital and analog inputs to accommodate virtually any music source, with a front/rear input-select function that makes it more convenient to connect and switch between two source components. In addition, the CDR 26 offers an extensive array of convenience features, including dual-tray CD-to-CD dubbing and full remote-control operation.

The Harman Kardon CDR 26 is available at a suggested retail price of $449.

The Harman Consumer Systems Group (HCSG) is a leading designer, manufacturer and marketer of a wide range of high-fidelity loudspeakers, audio and video components and multimedia systems for use in homes and automobiles, and with computers. The Group's brands include JBL, Infinity, Harman Kardon, Mark Levinson, Revel, Proceed, Audioaccess and Lexicon.

HCSG is a division of Harman International Industries, Inc. Harman International ( www.harman.com ) is a leading manufacturer of high-quality, high-fidelity audio products and electronic systems for the consumer and professional markets. The Company's stock is traded on the New York Stock Exchange under the symbol: HAR.