-- Esteemed Loudspeaker Manufacturer and High-Tech Developer To Collaborate on Upcoming NHT Reference Line --

Venerated US speaker manufacturer NHT today announced its first alliance with a high tech developer of digital signal processing (DSP) technologies.

Australia-based ClarityEQ Pty Limited will develop exclusive processing circuitry and software specifically designed for the as-yet unnamed NHT reference speaker system that will be introduced in Q3 2002. ClarityEQ currently offers products that feature its proprietary EQCALIBRATED™ processing to correct and improve speaker/room "collaboration."

"For more than 15 years, NHT has designed and manufactured affordable high-end products that cater to demanding listeners who recognize and appreciate the benefits of precise imaging and neutral sound reproduction," said Chris Byrne, Vice President and General Manager, NHT.

"While I am certainly prejudiced, I believe we are the best at what we do. However, looking to the future, we see that loudspeakers will grow in numbers in the home and will necessarily need to be smaller. DSP is one important technology that will offer substantial improvements in loudspeaker performance going forward. As our core competency is loudspeaker design, we turned to ClarityEQ for the right expertise in the digital arena."

NHT's new system, which is still in the development stage, will be based around a two-way active speaker system, plus a three-way center channel and subwoofer system that makes up a complete surround package. It will feature a DSP engine designed by ClarityEQ to maximize driver performance dynamically, significantly reducing linear and non-linear distortion, while maintaining sonic neutrality at all power levels.

"We are very excited about this first project. DSP opens up a universe of new possibilities for better sounding loudspeakers," said Jack Hidley, NHT's Director of Engineering. "It is a research & development effort that may produce the world's most accurate loudspeaker to date, but, just as importantly, it will allow us to learn how to further develop more affordable and efficient speaker products in the future."

"EQCALIBRATED™ processing is proven to result in a striking enhancement of imaging, accuracy and transparency," said Paul Glendenning, Executive Director of ClarityEQ Pty Ltd. "Yet, as we point out time and again, it is essential to use a neutral, high quality speaker to fully appreciate the benefits of our technology. In working with NHT, we can safely say we're developing the ideal union between speaker and processor, with the outcome being products that maximize the enjoyment of stereo and multi-channel recordings."

Paul Glendenning and Fairlight co-founder, Kim Ryrie, founded ClarityEQ Pty Limited in 1997. The company has spent four years developing technology that was originally pioneered by Australia's CSIRO (Commonwealth Scientific and Industrial Research Organization). ClarityEQ's EQCALIBRATED™ PDC-2.6 stand-alone correction product has been developed to allow speaker correction research and development, as well as for professional and consumer correction applications. The OEM DSP product being developed for NHT is the first involving collaboration with a major speaker manufacturer, which allows the best possible price, performance and ease of access for consumers and professionals.

About NHT and Recoton

Now Hear This® is a brand name of Recoton Corporation, a subsidiary of Recoton Corporation. Recoton Corporation is a global leader in the development and marketing of consumer electronic accessories, audio products and gaming products. Recoton's more than 4,000 products include highly functional accessories for audio, video, car audio, camcorder, multi-media/computer, home office and cellular and standard telephone products, as well as 900MHz wireless technology products including headphones and speakers; loudspeakers and car and marine audio products including high fidelity loudspeakers, home theater speakers and car audio speakers and components; and accessories for video and computer games The Company products are marketed under three business segments: Accessory, Audio and Gaming. Accessory products are offered under the AAMP®, Ambico®, Ampersand®, AR®Acoustic Research®, Discwasher®, InterAct® Jensen®, Parsec®, Peripheral®, Recoton®, Rembrandt®, RossT ,SoleControl®, SoundQuest and Stinger brand names. Audio products are offered under the Advent®, AR®/Acoustic Research®, HECOT, Jensen® , MacAudio®, Magnat®, NHT® (Now Hear This), Phase Linear® and Recoton®, brand names. Gaming products are offered under the Game Shark®, InterAct® and Performance* brand names