AIWA UNVEILS HOME AUDIO SYSTEM WITH PC CONNECTIVITY

Stylish BMZ-K1 Model Features Interactive USB Port, MP3 Playback and Premium Sound

SAN DIEGO, Calif., June 17, 2003 - Aiwa Strategic Accounts Partnership Inc. (ASAP) announced today that it is releasing a new concept in audio - the innovative BMZ-K1 home audio system featuring MP3/ CD-R/RW playback and an interactive USB port. With the new Aiwa BMZ-K1 model, consumers can now easily connect their personal computer to a home audio system and listen to MP3s in high-fidelity stereo sound.

"Easily connected to a user's PC by a USB port, the BMZ-K1 allows people to enjoy their favorite MP3's in premium sound," said ASAP President Hiro Takahashi. "Aiwa products are all about providing an easy solution for keeping people connected with their music, their PC and their lives. The BMZ-K1 is the latest example of that."

With Aiwa's new BMZ-K1, audiophiles no longer need to settle for listening to their MP3s through tiny desktop speakers. The unit's three-way speaker system -- featuring a dual woofer (5.5-inch) and I-Bass technology -- allows music enthusiasts to easily connect their BMZ-K1 to their PC, utilizing the unit's interactive USB port, and experience true stereo sound. Equipped with an A/V input, users can also connect a gaming console to the BMZ-K1 and by employing the unit's speaker system experience virtual stereo surround sound intensifying the gaming experience.

"People can transform their desktop into a personal home entertainment system," Takahashi said. "Whether listening to their favorite MP3's or playing the latest videogame the BMZ-K1 intensifies an individual's entertainment experience."

Sporting an extreme design, Aiwa's BMZ-K1 features 280 watts of total output power to maximize its MP3/ CD-R/RW playback, as well as a five-CD slot-in changer and an AM/ FM tuner with 32-station random memory preset. Further, the unit comes with a remote control so users can easily adjust the graphic equalizer or pull up the name of an artist or song title on the unit's front display, all without having to get up from their computer. Aiwa's BMZ-K1 home audio system carries a suggested retail price of $249 and can be purchased at select Sears retail stores nationwide beginning in August.

About Aiwa Strategic Accounts Partnership (ASAP):
Headquartered in San Diego, ASAP is the U.S. sales and marketing organization for Aiwa products. A world leader in consumer electronics and PC-related products, Aiwa has thrived by identifying and satisfying the market's needs. This commitment explains Aiwa's history of industry firsts, including Japan's first cassette tape recorder, since the Aiwa brand was founded in 1951. Today Aiwa offers a wide range of PC-centric entertainment products, designed for personal usage with easy-to-use features, all delivering outstanding performance and value.