Apogee Technology, Inc. Reports Fourth Quarter and 2002 Financial Results.

Business Editors/High-Tech Writers

NORWOOD, Mass.--(BUSINESS WIRE)--April 1, 2003

Apogee Technology, Inc. (NASDAQ: APGT), a leading provider of digital audio amplification technology, today reported the results of its fourth quarter and fiscal year ended December 31, 2002. Total revenue for fiscal year 2002 increased by 132% to $5,061,000 compared to revenue of $2,181,000 for fiscal year 2001. The company reported a net loss for 2002 of $1,065,000 or ($.20) per share on a basic and fully diluted basis compared to a net loss of $895,000 or ($.18) per share for the previous fiscal year.

Revenues for the three months ended December 31, 2002 were $1,644,000 with a net loss of $106,000 or ($0.02) per share compared to revenue of $375,000 with a net loss of $684,000 or ($0.13) per share for the same period in 2001. Revenue growth in the fourth quarter was affected by an inadequate supply of DDX-based ICs due to production capacity limitations. Additional manufacturing capacity has been added and now the company expects to have a sufficient supply of chips to support greater sequential revenue growth during 2003.

"In 2002, we established DDX as the leading digital amplifier solution with over six million DDX-based ICs shipped to customers," said David Meyers, Apogee's Chief Operating Officer. "We achieved revenue growth of over 130% for the year with only a 25% growth in annual operating expense compared to 2002. The company plans to release several new DDX-based ICs in 2003 and to commercialize its new power supply technology. With these products and our proven relationships with leading consumer electronic manufacturers, we expect 2003 to exceed our 2002 growth rate. The company is also taking steps to develop partnerships with leading technology companies in complementary business areas to further diversify our product portfolio and ensure continued growth in 2004."

As a result of the company's customer focused marketing and sales effort, over 20 DDX-based products are being produced, including: DVD receivers, A/V receivers, plasma TVs, professional car audio systems, audio/video equipment, commercial audio systems and communication equipment. Some of the consumer electronic brands that are using DDX technology include Daewoo, Fujitsu, Harman Kardon, Hitachi, JBL, LG, Magnavox, Malata, Marantz, Mustek, Philips, Polaroid, Vestel and Zenith.

Recent company highlights include:

   Released DDX-8228 Controller IC
   Shipped engineering samples of new power supply technology
   Hitachi selected DDX for its new Total Home Cinema
   Harman Kardon selected DDX for its new Digital Path Receiver
   Retained a new sales representative for the US, Canada and India
   markets
   Expanded sales and applications organization in Hong Kong
   Added director of worldwide sales

The company is extending its competitive advantage in the marketplace by developing new DDX products and technologies. Apogee released the DDX-8000 Controller in the second half of 2002 and recently released the DDX-8228 Controller. The DDX-8000 includes a full range of digital audio functions, providing manufacturers with a one-chip processing solution for multi-channel audio applications, including DVD home theater systems. The DDX-8228 provides a cost effective solution for low power home theater systems and two to four channel audio applications. The company plans to release additional DDX-based ICs this year.

In 2002, Apogee developed a novel switched mode power supply technology for high powered audio applications and applied for a provisional patent for that technology. The company believes that its power supply technology increases performance and conversion efficiency at a lower cost compared to existing switched mode designs. The company began shipping prototypes using this technology to customers for evaluation and expects product sales in the second half of 2003.

About Apogee Technology, Inc.

Apogee Technology, Inc. designs, develops and markets integrated circuits that incorporate the company's patented Direct Digital Amplification (DDX(R)) technology. This all-digital, high efficiency audio amplifier technology has significant commercial benefits that include reduced product size, lower manufacturing costs, increased quality and expanded functionality compared to traditional analog amplifier solutions. The company is planning to expand its product offerings by leveraging its power and digital processing expertise. Apogee operates a worldwide marketing and sales organization and sells its products to consumer electronic manufacturers. For more information please visit our 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" "intend" "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. Reference to risk factors is detailed in the company's filings with the Securities and Exchange Commission, including its reports on Form 10-KSB and 10-QSB.

APOGEE TECHNOLOGY, INC AND SUBSIDIARY

Condensed Consolidated Statements of Operations
and Accumulated Deficit

                     THREE MONTHS ENDED             YEAR ENDED
                        DECEMBER 31,                DECEMBER 31,
                     2002          2001          2002          2001

Revenues
Product sales    $1,248,396      $122,055    $3,618,536      $269,328
License fee              --            --            --     1,420,000
Royalties           288,505        62,500     1,182,015       250,000
Consulting          107,516       190,063       260,387       242,063
                 $1,644,417      $374,618    $5,060,938    $2,181,391

Cost and expenses
Product sales       833,230        86,040     2,471,783       203,797
Research and
 development        459,344       325,245     1,741,348     1,142,364
Selling,
 general and
 administrative     460,056       654,879     1,934,599     1,777,022
                  1,752,630     1,066,164     6,147,730     3,123,183

Income (loss) before
other income       (108,213)     (691,546)   (1,086,792)     (941,792)

Other income (expense)
Interest expense       (670)       (2,513)       (5,515)      (11,424)
Interest income       3,328        10,369        26,968        58,630
                      2,658         7,856        21,453        47,206

Net income (loss)  (105,555)     (683,690)   (1,065,339)     (894,586)

Accumulated
 deficit        (11,069,122)   (9,425,648)  (10,109,338)   (9,214,752)
Beginning of period
Accumulated
 deficit       ($11,174,677) ($10,109,338) ($11,174,677) ($10,109,338)
End of period
Basic and diluted
 income (loss) per
 common share        ($0.02)       ($0.14)       ($0.20)       ($0.18)

Weighted average
 common shares
 outstanding -
 basic and
 diluted          5,254,952     5,019,507     5,254,952     5,019,507


APOGEE TECHNOLOGY, INC. AND SUBSIDIARY
Condensed Consolidated Balance Sheet

                                            DECEMBER 31, DECEMBER 31,
                                                 2002         2001

ASSETS

Current assets
Cash and cash equivalents                      $994,296   $2,387,178
Accounts receivable, net                      2,030,492      232,555
Inventories                                     138,702      420,047
Prepaid expenses                                102,772       51,870
Total current assets                          3,266,262    3,091,650

Property and equipment, net                     139,332      177,650

Other assets
Digital amplifier patents, net                   93,256       55,451

                                             $3,498,850   $3,324,751

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities
Accounts payable and accrued expenses          $999,919     $529,709
Current maturities of capital lease
 obligations                                     16,514       33,128
Total current liabilities                     1,016,433      562,837

Capitalized lease obligations                     3,462       19,976
Total liabilities                             1,019,895      582,813

Stockholders' equity
Common stock                                     53,706       52,130
Additional paid-in capital                   13,599,926   12,799,146
Accumulated deficit                         (11,174,677) (10,109,338)
Total stockholders' equity                    2,478,955    2,741,938

                                             $3,498,850   $3,324,751