Apogee Announces Major Design Win - Direct Digital Amplification --DDX-- Technology Helps Altec Lansing Pack Superior Sound into Micro-Speaker Package.

Business/Technology Editors

CES 2001

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 2001

New Digital Amplifier Chip Set Drives First All-Digital Sound

Systems

Apogee Technology, Inc. (NASDAQ:APGT), leading developer of digital audio amplification technology, has announced a major design win for its patented Direct Digital Amplification (DDX(R)) technology. Altec Lansing Technologies, Inc., leading developer of PC audio products, is using Apogee's DDX all-digital, high efficiency amplifier technology as a core component in the company's new line of all-digital sound systems. Designed for all types of digital audio in the personal computer and home theater markets, Altec Lansing's All-Digital Personal and All-Digital Classic speaker systems are ideal for playing CDs, MP3s, DVDs, and streaming audio. The new speaker systems couple Apogee's high efficiency amplifier technology, packaged as an chip set, with Altec Lansing's micro-driver loudspeakers to deliver clear, crisp sound at a fraction of the cost and size of traditional audio technology.

"Using Apogee's DDX technology, the beauty and excitement of pure digital sound is now a reality," said Tommy Freadman, President and Chief Technology Officer, Altec Lansing Technologies, Inc. "This revolutionary digital amplifier technology will allow us to deliver compact, high quality speaker systems at price points that consumers will appreciate."

Direct Digital Amplification (DDX)

Apogee's patented Direct Digital Amplification (DDX(R)) technology enables Altec Lansing to produce a new generation of audio products that deliver pure digital sound. DDX directly amplifies the digital audio, eliminating the need for and cost of a Digital to Analog Converter (DAC). This approach removes potential analog signal corruption and quality losses that occur in traditional audio systems, thus enabling true digital audio production.

In addition to superb sound, DDX amplifier solutions provide Altec Lansing with nearly twice the efficiency of comparable analog amplifiers. This eliminates the need for external heat sinks, thus reducing space and manufacturing costs. Together with their proprietary micro-driver loudspeaker technology, the system allows for a much smaller speaker enclosure with very low power requirements.

"The market demands high quality, compact audio designs and Altec Lansing is seizing the opportunity," said David Meyers, Apogee's Vice President Business Development. "Combining Apogee's DDX digital amplifiers with Altec's unique micro-speaker technology establishes the next generation of all-digital speaker systems, with universal applications in the home and workplace."

The core of the Altec Lansing speaker design is a new DDX digital amplifier chip set. This was developed under a licensing agreement with the ALST Technical Excellence Center with design and manufacturing provided by STMicroelectronics. Designed for consumer electronics companies developing digital-powered speakers or other digital audio playback products, this solution integrates multiple digital audio interfaces, specialized audio signal processing and preamplification functions, and provides up to five channels of DDX amplifier outputs.

Altec Lansing Technologies, Inc.

Altec Lansing Technologies, Inc., based in Milford, PA, USA, is a leader in the design, manufacture, marketing, and support of high quality multimedia personal computer and home entertainment sound systems, and is developing a series of solutions for emerging digital and business technologies. The company employs about 1500 people worldwide. In addition to the company's headquarters, Altec Lansing has offices in San Diego, CA, Austin, TX, Houston, TX, Seattle, WA, Hyram, UT, Cary, NC, Hong Kong, and Tokyo. The company also has an ISO 9002 and SA 8000 certified manufacturing facilities in The People's Republic of China. For more information, visit http://www.altecmm.com.

Apogee Technology, Inc.

Apogee Technology (NASDAQ: APGT) develops and markets state-of-the-art digital amplifier products that incorporate the company's patented Direct Digital Amplification (DDX) technology. The company provides DDX amplification solutions to audio manufacturers as semiconductor products, OEM board products, and through technology licensing. Apogee is continually developing new products and technologies to leverage its power and digital processing expertise. Additional information about Apogee and DDX products can be found at the company's web site at http://www.apogeeddx.com.

DDX(R) is a registered trademark of Apogee Technology, Inc. All other product names noted herein may be trademarks of their respective holders. Certain statements made herein that use the words "estimate" "project" "intended" "expect" "believe" and similar expressions are intended to identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve known and unknown risks and uncertainties which could cause the actual results, performance or achievements of the Company to be materially different from those which may be expressed or implied. Factors that cause or contribute to such differences include, but are not limited to, the Company's limited operating history; unpredictability of operating results; inability to build market share and pressure on prices from competition in various aspects of its business; the risks of rapid growth; the Company's dependence on key personnel; uncertainty of product acceptance; inability to timely develop and introduce new technologies, products and applications; changes in the level of activity in the audio industry; changes in economic conditions; and an inability to obtain financing.

EDITORS: Photography available on request

For further information, contact:
David Meyers, VP Business Development
Apogee Technology, Inc.
129 Morgan Drive
Norwood, MA 02062  USA
[phone] x 117
Fax: [phone]
Email: [e-mail]
Web: http://www.apogeeddx.com

PR Office:
Shari Worthington, President
Telesian Technology
49 Midgley Lane
Worcester, MA 01604  USA
+1 508.755.5242
Fax: [phone]
Email: [e-mail]