Pine Brook, NJ, May 28, 2004 - Denon, a world leader in advanced home entertainment products, today introduced the 7.1 -channel AVR -2805 A/V receiver, bringing discriminating home theater enthusiasts and custom installation professionals the ideal high -performance, high -value home theater audio solution. With a suggested retail price of $899, the AVR -2805 features 100 watts x 7 power output, Analog Devices Hammerhead SHARC 32 -bit floating point DSP processing, 16 high -resolution D/A converters for all channels, 100MHz -bandwidth component video switching, extensive connectivity options, multi -room operation and much more. The AVR -2805 also features two -way RS -232 connectivity for maximum control flexibility in integrated system applications, plus Denon's Auto Set -Up Calibration/Room EQ feature with the added value of a high -performance microphone.

Denon's Unique Auto Set -Up Calibration
To make it easier to tailor the performance of the receiver for any home theater or music listening environment, the AVR -2805 features Denon's advanced Auto Set -Up Calibration and Room EQ feature. The AVR -2805 Auto Set -Up analyzes and calibrates six critically important settings: speaker connection, phase, size and
frequency response.

It also adjusts channel level and time delay, while Room EQ corrects frequency response with an 8 -band parametric equalizer and adjusts to the optimum sound field, compensating for speaker and room capability issues. Denon's calibration feature also utilizes higher -performance DSP processors, along with the finest Digital to Analog converters, to define optimum sound quality. A specially designed calibration microphone ensures optimum results with the setup feature. Additionally, both the EQ and Auto Set -Up features can be disabled for consumers who prefer calibrating their receivers in the traditional manner.

Multiple Connectivity Solutions for Total Flexibility
The AVR -2805 provides an unusually comprehensive selection of connection and control options, including multi -room operation with independent control of a second -room audio system. The receiver includes assignable digital inputs for full compatibility with multiple HDTV sources, numerous digital and analog audio and video inputs, outputs and switching facilities including an eight -channel input for multichannel audio sources such as Denon's acclaimed DVD -Audio/Video/Super Audio CD Players. For unmatched simplicity of video connectivity and switching, the AVR -2805 includes video -up conversion that converts composite and/or S -video sources to component video without compromising video quality.

Its many additional performance and convenience features include a serial port for RS -232C protocol control and IR remote in/out terminals for integrated system control, assignable 12V trigger controls, and assignable amplifier configuration for either 7.1 -channel surround operation or 5.1 surround with amplified second zone. Other versatile features include a high -quality AM/FM tuner with preset memory tuning, second zone speaker outputs with independent volume control, and much more.

Compatibility With All Popular Surround Sound Audio Formats
The AVR -2805 is engineered for superlative sound quality, and is compatible with every popular surround sound audio format including Dolby Digital 6.1, DTS -ES Discrete, DTS -ES Matrix and DTS -Neo: 6 Stereo -to -Surround Cinema and Music Modes.

For added utility and flexibility, the AVR -2805 includes Dolby Pro Logic IIx decoding, the first technology to offer users the choice of processing traditional stereo music and movie content into a room -filling 6.1 - or 7.1 -channel listening experience. Dolby Pro Logic IIx also gives users a flexible upgrade path, allowing them to connect extra channels and speakers to their 5.1 - or 6.1 -channel systems in the future.

For exceptional resolution and dynamic range, the receiver utilizes premium Analog Devices AD -1835 24 -bit, 96 kHz audio D/A converters on all channels in a differential configuration with true 24/96 digital input capability. The AVR -2805's 7 -Channel Equal Power amplifier section incorporates a discrete power amplifier for each of its seven main channels and delivers a generous 100 watts (into 8 ohms, from 20Hz - 20kHz) into each channel -plenty of power for clear, authoritative reproduction of movie soundtracks and high -resolution DVD -Audio and Super Audio CD music discs.

The receiver includes extremely flexible bass management and sound tailoring capabilities, to optimize audio quality with any digital or analog program source, in any system and room. The AVR -2805 provides 40, 60, 80, 100,120, 150, 200, and 250Hz subwoofer crossover points for maximum performance with any small or large speaker configuration and listening room. In addition, the receiver features a Direct Stereo mode with an all -analog signal path, yielding the best sound quality when listening to stereo audio sources.

The Denon AVR -2805 is also distinguished by its elegant aesthetic, featuring a luxurious gun -metal gray finish (also available in black) and streamlined design that complements any home entertainment system.

The Denon AVR -2805 is currently available at a suggested retail price of $899.

About Denon Electronics
From its beginning in the 1930s as a supplier of professional recording studio and broadcast equipment, Denon has become a world leader in the manufacture of the highest quality home theater, audio and software products. Denon is recognized internationally for innovative and groundbreaking products and has a long history of technical innovations, including the development and first commercialization of PCM digital audio. Denon Electronics is a wholly owned subsidiary of D&M Holdings Inc.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and is the parent company of wholly owned subsidiaries Denon Ltd., Marantz Japan, Inc. and McIntosh Laboratory, Inc. Denon, Marantz and McIntosh are global industry leaders in the specialist home theater, audio/video consumer electronics and professional audio markets, with a strong and long -standing heritage of manufacturing and marketing high -performance audio and video components. A wholly owned subsidiary of D&M Holdings U.S., Inc., Digital Networks North America, Inc. (DNNA), owns the ReplayTV®, Rio® and Escient® brands - all representing award -winning technologies in digital home entertainment. Additional information is available at

Statements in this news release that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, market acceptance for the company`s products, risks of litigation, technological changes, developing industry standards and other factors related to the company`s businesses. The actions referred to in this press release are not an admission or acknowledgement of any claim or allegation. The Company reserves all of its rights.

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