ARCHOS Offers Hundreds of Dollars in Savings on Award-Winning Portable Video Players and Recorders.

DENVER -- New Prices Come as ARCHOS Nears Introduction of its 2006 Product Line-up, While the Company Brings on Three New Executives and Moves U.S. Operations to Denver

ARCHOS, Inc., a global consumer electronics manufacturer and leader in portable digital entertainment, announced today new pricing across its line of award-winning portable video players and recorders. Effective today, the new prices include $200 off the popular 100GB AV 700 Mobile Digital Video Recorder (DVR). ARCHOS also announces the relocation of its U.S. operations from Irvine, Calif. to Denver, Colo. and three new executives joining the U.S. team.

As ARCHOS nears the release of its 2006 products - to include further innovations unseen in today's portable video player market - the company reduced prices on its popular AV 700 and AV 500 Mobile DVRs, and Gmini 402 Camcorder, the industry's first portable audio and video player with built-in digital camera and camcorder. New prices are as follows:

--AV 700: $499.95 (40GB, previously $599.95) and $599.95 (100GB, previously $799.95)

--AV 500: $449.95 (30GB, previously $499.95) and $549.95 (100GB, previously $699.95)

--Gmini 402 Camcorder: $299.95 (20GB, previously $360.99)

ARCHOS is also pleased to announce its expanding U.S. team with Vice President of Sales and Marketing Ron Ferguson, Vice President of Finance Suzanne DeYoung, and Director of Marketing Frederic Balay. The new executives bring deep experience in their fields from top consumer brands and digital entertainment companies such as Mattel, PepsiCo, Vivendi Universal and On Command Corporation.

Mr. Ferguson is a results-oriented sales executive with more than 20 years experience managing the sales teams for some of the country's top consumer brands. Most recently, he was the vice president of sales for Pinnacle Foods, where he achieved significant growth across the Albertsons team, and previously was a director of sales for Mattel, where he oversaw the successful growth across the company's top retail channels. Mr. Ferguson spent more than five years with PepsiCo, most recently as vice president - customer team leader where he managed the national sales and marketing teams. He has a proven track record in cultivating successful senior level relationships and leading multi-functional sales and marketing teams, which he will continue to apply in his role with ARCHOS.

Ms. DeYoung is a seasoned finance executive with nearly 10 years overseeing the financial management and analysis for both publicly traded and privately held enterprises. She is a catalyst in creating new business opportunities through strategic partnerships, managing complex contract negotiations and identifying financial opportunities across the business. Most recently, Ms. DeYoung managed the financial teams for FBO, parent company to several digital entertainment stores and services, and On Command Corporation, a global provider of interactive in-room entertainment. She will work closely with ARCHOS COO Larry Smith to establish new strategic relationships in the digital entertainment industry and identify new financial opportunities for the company.

Mr. Balay comes to ARCHOS U.S. from the company's headquarters in France, where he was responsible for central marketing, global product management and sales support. Prior to ARCHOS, Mr. Balay managed sales and marketing for various telecom and Internet properties for ACC Telecom in France. He previously was business development manager with Vivendi Universal in France and brand manager with Atari in the U.S. Mr. Balay will oversee ARCHOS' aggressive marketing efforts across the Americas, including forging new business partnerships, expanding the advertising and public relations programs and implementing broad consumer promotions.

"This is a tremendously exciting time for ARCHOS, with the company building the products and teams for even more aggressive growth across the U.S.," said Larry Smith, ARCHOS chief operating officer. "Ron, Suzanne and Frederic all bring such a mix of talent, success in their careers and passion for digital entertainment, and we're thrilled to have them on board. We're looking forward to an extremely busy 2006, with significant enhancements to our product line, new content partnerships, and retail partners that will extend our visibility across the Americas."

About ARCHOS

ARCHOS is a global consumer electronics hardware manufacturer and is technology leader in portable digital entertainment solutions. Committed to the most innovative technologies, ARCHOS offers award-winning, pocket-sized digital products that feature audio and video recording, photo viewing and other multimedia applications, for the enjoyment of the most exciting entertainment anywhere, anytime. ARCHOS has offices in the U.S., Europe and Asia. More information is online at www.archos.com.

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