Boston Acoustics Reinvents Thin-Panel Speaker Technology to Deliver Slimline Digital Audio System - The BA7500.

PEABODY, Mass.--(BUSINESS WIRE)--Dec. 9, 1999--

Boston Acoustics and Gateway Team Up to

Distribute BA7500 to Consumers

Boston Acoustics, today announced the introduction of its revolutionary thin panel digital audio system - the BA7500(TM). Specially designed for desktop theater applications, such as DVDs and PC games, the BA7500 addresses the growing segment of consumers that demands full surround audio solutions for the desktop environment.

Employing Dolby(R) Digital Surround processing, the BA7500 provides the same high-fidelity audio quality found in Boston Acoustics' renowned home theater products. The BA7500 accommodates the gaming and multimedia enthusiast using four-channel sound cards to deliver multi-channel theater-like audio. This smart system automatically detects whether the user is operating Stereo, 4-channel gaming or Dolby Digital 5.1 software and switches instantly, eliminating the need for the consumer to have to consider this.

The BA7500 is the fifth Boston Acoustics multimedia audio product to be sold through Gateway's direct retail channel and is immediately available.

Developed with patent-pending Slimline Speaker Technology(TM) Satellites (SST(TM)), the BA7500 is comprised of four new, one-inch thick SST(TM) Speakers and a Boston Acoustics amplified subwoofer. Boston Acoustics new SST technology provides a significant breakthrough in thin panel speaker design. The primary speaker drivers in the satellite panels employ two separate flat diaphragms composed of rigid foams--typically used in helicopter rotor blades and other aircraft structural components - enabling rugged durability and smooth, accurate audio response.

By using advanced computer modeling programs such as Field Finite Element Analysis and Design Optimization, Boston Acoustics engineers were able to predict and control the resonant modes of the driver diaphragms to achieve exceptionally smooth response from a structure barely over one-half inch thick.

"Our engineers continue to maximize the placement of electronics to provide consumers with easy-to-use products with innovative designs," said Andy Kotsatos, CEO of Boston Acoustics. "The BA7500 houses all its electronics in the subwoofer and eliminates the need for cumbersome boxes. The consumer receives high-fidelity sound without adding extra equipment and cluttering up the desktop."

Product Features, Pricing and Specifications

Priced at $299 MSRP, the BA7500 is comprised of 1 amplified subwoofer, 2 front SST satellite speakers with captive cords, 2 rear SST satellite speakers with 20" captive cords, 3 satellite speaker desktop stands, 1 audio controls pod/stand with captive DIN cable, 1 digital input RCA cable, 1 unified stereo analog cable for front and rear input, 1 8" "Y" adapter cord for rear speaker output, 4 self-adhesive rubber feet for the subwoofer, 2 packs of self-adhesive rubber feet for the satellites and 1 transformer with a power cord.

The BA7500 offers desktop controls including Master Volume, Surround Volume, Surround Balance and Subwoofer Level. The satellites have a detachable base that stands them up at the precise angle for optimum audio reproduction when seated at the desktop. The controls are attached to the base of one of the speakers for desktop placement, and also detach from the speaker for wall-mount placement - allowing the controls to be places where they are most conveniently reached.

MagnaGuard(R) magnetic shielding, which eliminates interference with the video monitor or TV, allows the speakers to be placed practically anywhere.

In addition, the Dolby Digital signal processing architecture within the BA7500 has the ability to detect, and simultaneously mix inbound analog and digital signals. This process maintains the integrity of the audio source with no hierarchy or "switching" protocol affecting the developer's intended soundtrack.

Distribution

The BA7500 is currently available through Gateway and will be available through Boston Acoustics' retail distribution channels early next year. For more product information or the location of the nearest Boston dealer, please visit Boston Acoustics at http://www.bostonacoustics.com or call 978-538-5000.

About Gateway

Gateway (NYSE:GTW), a Fortune 250 company founded in 1985, focuses on building lifelong relationships with consumers and businesses through complete technology personalization. Gateway ranked number one in U.S. consumer PC revenue in the second quarter of 1999 and was rated among the top ten best corporate reputations in America according to a survey conducted in the fall of 1999 by The Wall Street Journal and Harris Interactive, Inc. Gateway employees worldwide serve clients with services and built-to-order computers that consistently win top awards from leading industry publications. Gateway had total global revenue of $7.5 billion in 1998 and shipped 3.54 million systems. For more information, visit our Web site at www.gateway.com.

About Boston Acoustics

Boston Acoustics, Inc. (NASDAQ:BOSA) is a leading manufacturer and marketer of innovative, high-performance consumer audio entertainment products for the home, automotive and computer environments. Corporate headquarters are at 300 Jubilee Drive, Peabody, MA 01960, USA. The company can be reached at 978-538-5000. Please visit www.bostonacoustics.com for more information.