Denon Expands HDCD Product Line; High-Quality Five-Disc Changer Is the Industry's First Under $300 HDCD Player.

LAS VEGAS--(BUSINESS WIRE)--Jan. 8, 1999--At the Consumer Electronics Show in Las Vegas, Pacific Microsonics announced today that Denon Electronics, a world leader in digital audio technology and Japan's oldest manufacturer of audio products, has introduced its third HDCD(R) product, the high-fidelity DCM-370 five-disc Compact Disc changer.

In 1998, Denon introduced its first two HDCD-equipped products, the DVD-5000 DVD player and DCM-5000 100-disc CD changer system. With a suggested retail price of $299, the DCM-370 sets a new benchmark for HDCD affordability.

The DCM-370 features Pacific Microsonics' PMD-100 chip which includes both HDCD decoding and HDCD precision filtering. When playing HDCD encoded CDs, the PMD-100 produces true 20-bit dynamic range and resolution from the 16-bit CD format.

For conventional CDs, the HDCD precision filter produces significantly better sound quality by eliminating many of the distortions caused by conventional digital filters. The PMD-100 is mated to a high-resolution Burr-Brown multi-bit DAC to create a high-fidelity digital-to-analog conversion system typically found only in high-end audiophile CD players.

"HDCD is an important feature for any high-fidelity audio product, especially with the large increase in the number of HDCD encoded CDs over the last 12 months," said Stephen Baker, Vice President of Marketing and Sales for Denon. "The 370 provides sonic excellence at an affordable price, and now with the added benefits of HDCD, we believe it will become one of our best-selling products."

Additional features of the DCM-370 include Denon's extremely quiet bi-directional drive mechanism for easier disc loading and access, 32-track programming, and a coaxial digital output for CD recording and MiniDisc recording. A remote control is also included.

The DCM-370 will be available in March 1999.

About Pacific Microsonics and HDCD

Developed by Pacific Microsonics, HDCD(R) (High Definition Compatible Digital(R)) is a patented process for delivering on Compact Disc and DVD-Audio the full richness and details of the original microphone feed. By correcting distortions found in current digital recording technology, HDCD provides more dynamic range, a focused 3D sound stage, and extremely natural musical timbre. HDCD recordings offer improved sound quality on any CD player, and when reproduced on HDCD equipped players, they provide the ultimate in sonic fidelity.

Over 2,000 different HDCD encoded CDs have been made and over 100 million HDCD CDs have been sold. Over 100 HDCD-equipped CD players and DVD players are now available from the world's leading consumer electronics companies including Arcam, Denon, Harman Kardon, Linn, Madrigal, Rotel, Sansui and Toshiba.

Note to Editors: This release is also available at www.hdcd.com under "What's New."

HDCD and High Definition Compatible Digital are registered trademarks of Pacific Microsonics Inc. All other trademarks are properties of their respective holders.