TEAC ESOTERIC® COMPANY is the latest manufacturer to realize reference quality video scaling with Anchor Bay's video processing ASIC to be "Powered by ABT."

Campbell, CA - June 23, 2006 - Anchor Bay Technologies, Inc., a leading supplier of system and semiconductor video processing solutions is pleased to announce the use of its ABT1018 video scaling ASIC by TEAC ESOTERIC COMPANY in the new "P -03 Universal" Super Audio CD/CD/DVD player. The ABT1018 features select Video Reference Series (VRS) branded technologies including Precision Video Scaling™, RightRate™ frame rate conversion and aspect ratio control. The P -03 Universal represents the latest "design -win" for Anchor Bay as more manufacturers are realizing greater video performance with their flexible and easy -to -implement video processing ASICs.

The ABT1018 is Anchor Bay's second generation video scaling ASIC targeted at DVD player/recorder, HDTV set -top box, and A/V receiver applications requiring up -conversion from standard and high definition formats all the way up to 1080p. With the ABT1018, the P -03 Universal is able to supply high resolution images direct to the display using its HDMI output, completely bypassing the display's internal processing chip. The ABT1018 features a proprietary 10 -bit Precision Video Scaling™ engine that can independently scale an image horizontally and vertically to achieve outstanding picture quality for today's high resolution video displays.

"Anchor Bay's ABT1018 was a sensible choice for TEAC ESOTERIC and the P -03 Universal because of the reference quality scaling it delivers at such a remarkable value. The chip is easy to install, and when teamed with our boards, provides the dynamic scaling performance we expect. Furthermore, Anchor Bay always provides superior technical support, a factor that should not be overlooked," said Hiroyuki Hoshino R&D Manager TEAC ESOTERIC COMPANY.

The P -03 Universal shares many of the same design attributes as the original SA -CD/CD player P -03, featuring the heavy duty VRDS -NEO mechanism which provides a rigid and vibration -free, disc clamping system. The P -03 Universal integrates proven, high quality video processing technologies enhanced by ESOTERIC. Unlike other players using 10 bit or 12 bit video processing, the P -03 Universal is equipped with the latest 14 -bit/216 MHz video D/A converter chip as well as the ABT1018 video scaling chip from Anchor Bay. The D/A converter chip offers the finest analog output available for resolutions up to 480p/576p, while an HDMI output offers an artifact -free digital connection for resolutions up to and including 1080p.

"TEAC has a well -earned reputation of excellence in the industry and it is an honor to have our Precision Scaling technology and ABT1018 chip chosen for the P -03 Universal. Anchor Bay is growing through its new Video Reference Series brand of processing solutions and because the P -03 Universal will carry the 'Powered by ABT' logo, customers will associate Anchor Bay with TEAC ESOTERIC, a relationship we are proud to endorse," said Anchor Bay Technologies' Vice President of Technology, Mr. C. H. Chee.

Anchor Bay Technologies is engaged in the sale of its semiconductor technology to OEMs for design into new video products, and also maintains a global distribution and sales network for its system -level product line. Anchor Bay is the original creator of DVDO which developed and marketed the first single -chip video deinterlacing technology that supports 3:2 and 2:2 pull -down.

For more information on Anchor Bay Technologies, please visit www.anchorbaytech.com.

For more information on ESOTERIC, please visit http://www.teac.com/esoteric/index.html.

About Anchor Bay Technologies, Inc.
Anchor Bay Technologies Inc. (Anchor Bay) designs, manufactures, and markets semiconductor and system -level solutions for the next generation of Digital Television and Digital Video electronic products. Headquartered in Campbell, California, Anchor Bay is the parent to DVDO® Home Theater Products and the creator of the proprietary DVDO iScan™ line of video processing systems. Anchor Bay Technologies' Precision Video Scaling technology is based on Anchor Bay's proprietary video scaling engine that can independently scale an image horizontally and vertically to achieve an outstanding picture quality for today's high resolution video displays.

ESOTERIC has been delivering the finest audio components to the most discerning listeners for nearly 20 years. All the components used in building the VRDS - NEO mechanism, Digital to Analog converters, Super Audio CD players, universal DVD players and other electronics are hand selected, matched and graded to combine into a single synergistic audio component.

Press Contact:
Caster Communications, Inc. at 401.792.7080
Nicholas Brown nbrown@castercomm.com
For digital images: www.castercomm.com

The DVDO® and iScan™ trademarks are licensed exclusively to Anchor Bay Technologies Inc., and are registered trademarks of Silicon Image Inc. All products bearing the DVDO® and iScan™ trademarks are based upon technologies, architectures, and product designs originally created and developed by the Anchor Bay Team.

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