RUSSOUND ADDS XM SATELLITE RADIO OPTION

New ST2 Dual Tuner Offers XM Entertainment and Convenience for Multi-Room

Newmarket, NH, December 30, 2003 - Russound, a leading manufacturer of a/v products for the residential systems and connectivity markets, announced a major enhancement to their new ST2 Dual AM/FM tuner. By March, 2004, XM Satellite Radio will be offered by Russound as an affordable option for their high performance modular tuner. When used in a Multi -Room system, the convenience, extensive choice of programming and near cd quality sound can be available from anywhere in the home, at the touch of a button. The Russound ST2 will still be available in its current standard configuration with two AM/FM modules for $699 (MAP). The new version will come supplied with one XM and one AM/FM module for $999 (MAP).


Russound also announced the addition of the ST -2KP, an optional Smart Tuner keypad that allows the user to view station feedback as well as the ability to select their favorite pre -set stations. This additional display feedback and local control of the new elegant keypad will be particularly desirable with XM on board.
The ST2KP will be shipping in March, 2004 and offered at $199 (MAP).

"I couldn't be more enthusiastic about this new partnership between Russound and XM," said Jeff Kussard, Russound's Director of Strategic Development. "Adding the XM option to our ST2 dual tuner not only enhances its functionality, but also establishes the ST2 as a complete, customizable source component.

Mr. Kussard went on to add, "Russound is proud to partner with a leading company such as XM and we look forward to bringing Russound/XM products into homes across the country."

XM is America's #1 Satellite Radio Service and provides it's listeners with 101 Digital Channels of Choice: 70 Music Channels and 31 Channels of Sports, Talk, Comedy, Kids and Entertainment Programming. XM Radio subscribers pay $9.99 a month per subscription for the enormous range of programming, crystal - clear sound, and coast to coast coverage that XM delivers. The user gets instant updates on song title, artist and station name on their UNO display in every listening room.

The ST2 is a high performance source component that can be easily integrated with virtually any amplifier or receiver for a wide variety of applications. The tuner is an ideal partner with Russound's award -winning CAV6.6 Controller Amplifier and UNO -S2 keypad, yet the modular tuner can be easily integrated with virtually any RS -232 or IR controlled application. The ST2 comes complete with rack ears and remote control at no charge and is now available for immediate shipment.

The ST2 leverages Russound's proprietary RNET™ platform to provide a smart tuner option for the UNO -S2 keypad. The UNO's twelve -character backlit display provides the user instant feedback for remarkably simple, intuitive operation. Right from the keypad, the end -user can have visible access to frequency, Station ID, preset or memory information - all in real time! If the user desires more than two radio choices in a Multi -Source system, they only need to add a second ST2 for added flexibility and convenience.

Typical of Russound engineering, the ST2 is a modular design to allow support for all future tuner technologies such as XM as they become available. In a compact size of only one rack unit high, the new ST2 is designed with an intuitive
display and buttons right on the front panel for easy user access or for programming. Mirroring the front panel functions, the ST2 -RC remote control, supplied at no extra charge, provides further convenience and flexibility. In addition, there is also complete IR control with direct IR inputs for each tuner.

About Russound
Russound is a leading designer, manufacturer and supplier of state of the art audio, video and connectivity products for the residential systems and a/v connectivity markets. Founded in 1967, the company is based in Newmarket, New Hampshire and markets their products throughout the world. Additional information on Russound and its products can be readily obtained at www.russound.com. The company can also be reached by e -mail at sales@russound.com, by phone at 603/659 -5170 and by fax at 603/659 -5388.

About XM Satellite Radio
XM is America's #1 satellite radio service. With over 1 million subscribers today, XM is on pace to exceed 1.2 million subscribers by year's end. Broadcasting live daily from studios in Washington, DC, New York City and Nashville, Tennessee at the Country Music Hall of Fame, XM provides its loyal listeners with 101 digital channels of choice: 70 music channels, more than 35 of them commercial -free, from hip hop to opera, classical to country, bluegrass to blues; and 31 channels of premiere sports, talk, comedy, kid's and entertainment programming. For more information about XM, visit www.xmradio.com

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