DDX Amplifier IC Sales Exceed 5 Million Devices; Leading Solution in DVD Receiver Market.

Business Editors/High-Tech Writers

NORWOOD, Mass.--(BUSINESS WIRE)--Oct. 30, 2002

Collaboration between STMicroelectronics and Apogee Technology

Produces Winning Digital Amplifier Solutions for fast growing market

Apogee Technology, Inc. (NASDAQ: APGT) announced today that total shipments of DDX(R)-based digital amplifier integrated circuits have exceeded five million devices. The added value of DDX's all-digital design, high efficiency operation and numerous features has enabled the technology to become the leading amplifier solution for all-in-one home theater systems, commonly known as DVD Receivers. In September over one million DDX amplifier chips have been shipped to equip over 200,000 DVD receivers.

"With the success of the DVD player in the marketplace, consumers are now demanding products that provide a complete home theater experience," said David Meyers, Apogee's Chief Operating Officer. "A growing number of manufacturers are meeting this need by developing DVD receivers, which combine the DVD player, radio tuner and six channels of audio amplification. DDX is the perfect amplifier solution for this fast growing market because of its low cost, small size and superior quality."

Industry analysts expect the DVD system market to exceed 50 million units next year and DVD receivers are expected to become a growing percentage of this market. Leading manufacturers have adopted DDX amplifier chips for this application, and through the combined efforts of the two companies, ST and Apogee, expect to repeat this success in additional applications such as digital TVs, mini systems and powered speakers.

Apogee recently released the DDX-8000 developed specifically for the DVD market. The device includes eight channels of 24-bit DDX processing along with a full range of audio processing features. This gives designers more flexibility to develop custom solutions and results in reduced component count and lowered manufacturing costs.

The DDX-8000, when combined with the company's high efficiency DDX power devices, can provide a high quality, complete audio solution for applications requiring 10 to 100 watts per channel. For example, the DDX-8000 can meet the needs of inexpensive 2.1 channel (2x15+1x30 watts) DVD receiver products using a single DDX-2060 power device. For medium power systems three DDX-2060s can be used to deliver 6x35 watts, and for high end, 7.1 channel designs, eight DDX-2100 power devices can be utilized to provide 800 watts of total power at 100dB+ signal-to-noise and very low distortion.

"The unique benefits of DDX technology, combined with ST's power technology and packaging know-how, bring a solution that allows DVD player designers to build very compact all-in-one products using surface mount power ICs", said Riccardo Ferrari, Director of ST's Audio Business Unit. "We see a tremendous opportunity for DDX-based audio amplifier chipsets in the DVD receiver market which is today one of the fastest growing segments."

Apogee and ST began collaborating on DDX development in early 2001 under the terms of a technology licensing agreement. The companies expanded this relationship in March of 2002 with the signing of a joint development agreement. To date the companies have developed and released five DDX based ICs.

About Apogee

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 has released five DDX-based semiconductor products and expects to expand its product offerings by leveraging its power and digital processing expertise. The company operates a worldwide marketing and sales organization and sells to consumer electronic manufacturers producing audio products such as DVD receivers, digital TVs, Internet and portable audio players, digital speakers, game machines and compact audio systems. 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 may 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; the risks associated with market collaborations and the ability of strategic partners to achieve manufacturing and shipping schedules and deadlines; changes in the level of activity in the audio industry; changes in economic conditions; and an inability to obtain financing.

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