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CALIFORNIA CHIP PRODUCER EMPLOYS TECHNOLOGY LICENSING, STRONG CUSTOMER RELATIONS TO DO GOOD BUSINESS IN JAPAN

 CALIFORNIA CHIP PRODUCER EMPLOYS TECHNOLOGY LICENSING,
 STRONG CUSTOMER RELATIONS TO DO GOOD BUSINESS IN JAPAN
 HUNTINGTON BEACH, Calif., April 9 /PRNewswire/ -- While U.S. and Japanese trade negotiators squabble publicly over Japan's failure to boost semiconductor chip imports, a small California audio enhancement chip producer is outpacing its giant competitors in dealing with major Japanese consumer electronics manufacturers.
 According to John C. McLaren, chairman of BBE Sound Inc., Huntington Beach, his company's marketing strategy is based on more than the ability to create what audio engineers call "automatic focus for sound," in which BBE chips compensate for phase and amplitude distortion found in most loudspeakers.
 "We're different both in what we engineer and in how we market it to our Japanese customers," McLaren says. "That may be why we're doing more than our share to meet President Bush's export objectives for semiconductor chips."
 McLaren reports that BBE was helped in its Japanese market inroads when its long-time distributor, Yamano Music Company, sold BBE professional models to NHK, Japan's huge, government- owned broadcasting system.
 "We hear many big American companies complaining that you can't sell U.S. technology to big Japanese companies, especially to government-related institutions," McLaren says, "but NHK has purchased many BBE units over the few years.
 McLaren has turned to another device to help ensure a competitive advantage -- licensing.
 "We've compensated for our relatively small size by working out mutually beneficial licensing agreements with a number of major Japanese manufacturers to utilize our advanced technology," the BBE chairman stated.
 He adds that BBE has a powerful new weapon in its Pacific Rim and worldwide licensing arsenal. The BBE II chip, with field test performance significantly surpassing its successful predecessor, already is enabling the company to maintain its favored position in Japan with such recognized consumer electronics names as AIWA and TEAC.
 More and more consumer electronics companies are counting on the BBE technology to generate new excitement with the buying public to create a much-needed worldwide sales surge like those provided by earlier breakthroughs like high fidelity, stereo and compact disks.
 McLaren frequently has called on his experience and contacts as an old Asian hand, dating back to his days as an executive with Yamaha and CBS. He feels his good relations with Japanese firms are based on a simple premise that many American businessmen seem to continue to overlook.
 "Japanese business customs, traditions and methods are different," McLaren points out, adding that "if you want to sell your products in Japan, you must learn about their business culture and adapt to it."
 "The Japanese are uncomfortable doing business with somebody they don't know well because they can't predict how the other guy is going to behave," McLaren says.
 McLaren objects strongly to much of the criticism of Japan heard in the U.S. news media and from politicians. "Japanese businessmen are tough. They demand and expect high standards and they are uncompromising on quality," he affirms.
 "They also are the most reliable, cooperative and honorable people with whom to do business. Once an atmosphere of trust and mutual respect has been established with a Japanese company," he says, the business and personal relationships that develop can be the most rewarding in the world," McLaren added.
 McLaren's business with Japan seems to support his claim. "If General Motors, Ford and Chrysler could sell the same percentage of their production in Japan that we do, Japan would have the big trade deficit, not the United States," he concluded.
 -0- 4/9/92
 /CONTACT: John McLaren of BBE Sound, 714-897-6766; or Glenn Canary of The Nestor Group, 310-375-0828, for BBE Sound/ CO: BBE Sound Inc. ST: California IN: CPR SU:


CH -- LA018 -- 6853 04/09/92 14:03 EDT
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Date:Apr 9, 1992
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