MARANTZ INTRODUCES ITS FIRST THREE-CHIP VIDEO PROJECTOR WITH DLP™ TECHNOLOGY: THE EXTRAORDINARY VP-10S1

ITASCA, IL, September 5, 2003—In a move that heralds a major breakthrough in video display technology, Marantz America today announced the introduction of its VP-10S1 High-Definition projector with DLP™ technology-a three-chip DLP projector that achieves a remarkable new level of home theater image quality. Designed for unsurpassed performance in every respect, the VP-10S1 is the ultimate video display device for the finest high-end custom installation home theater systems.

A New Standard in High-Definition Video Projector Performance
The Marantz VP-10S1 is designed to deliver video quality that is nothing less than astonishing. It incorporates three Texas Instruments 16 x 9 high-definition HD2+ DMD chips, in conjunction with three 1280 x 720 pixel panels and state-of-the-art DMD technology including 12-bit processing for the DMD driver circuit, to deliver unprecedented picture quality in every respect, with standard-setting sharpness, resolution and clarity. The use of three chips-one for red, green and blue-also eliminates the need for a color wheel, yielding exceptionally natural and lifelike colors. In addition, the three-chip design enables individual fine-tuning of each color for the best-possible color accuracy.

Complementing this extraordinary three-chip technology, the VP-10S1 includes a host of additional image-enhancement features. The projector features a new, premium-quality 250-watt lamp that provides high, uniform brightness and long life. A choice of four lenses is available, to ensure maximum sharpness in any custom home theater installation and at any viewing distance. The VP-10S1 features Faroudja three-chip video processing, which incorporates patented DCDi™ Directional Correlational Deinterlacing technology, plus video decoding and enhancement technologies. The projector can operate in either native progressive scan mode or upconvert video sources, depending on the signal source, and displays and upconverts images as necessary.

Designed for compatibility with virtually every digital and analog video program source, the VP-10S1 offers an expanded complement of video inputs, including high-bandwidth dual component video inputs optimized for HDTV, as well as a DVI digital video input with HDCP (High-Definition Content Protection. In addition, the VP-10S1 provides HD component video, S-video, composite video and analog RGB connections.

Expanded Custom Installation Versatility
The Marantz VP-10S1 includes a host of features that offer exceptional custom installation flexibility, operating in conjunction with an expanded menu system that enables easy setup, yet provides extensive calibration facilities including a wider range of color temperature and gamma adjustments. The projector's advanced features include five color temperature settings, four picture modes (Standard, Theater, Dynamic and User) and 12 picture memories that enable the user to choose the preferred method of viewing for all video sources and viewing conditions. All functions can be accessed via the projector's easy to operate remote control.

The VP-10S1 can be optimized to display both 16:9 widescreen and standard 4:3 aspect ratios, using a choice of viewing modes. The VP-10S1's Lens Shift feature enables the image to be shifted up or down and projected through the upper or lower portion of the lens; this function and its horizontal keystone correction enable the VP-10S1 to achieve correct picture geometry if the projector is not mounted exactly parallel to the screen. The lens is fully motorized for focus, zoom and lens shift functions.

For integrated operation in a custom installation, the VP-10S1 includes remote in/out connections, an RS-232C control port and two DC trigger connections that can trigger two different operations-for example, the VP-10S1 can be set to reconfigure a dual-aspect ratio projection screen whenever the aspect ratio of the program source changes from 16:9 to 4:3.

The Marantz VP-10S1 will be available in November 2003 with suggested retail pricing to be announced.

Celebrating its 50th anniversary in 2003, Marantz America is committed to upholding the tradition of technological superiority initiated by founder Saul Marantz. In keeping with this emphasis on quality, Marantz audio and video components are carried only by the nation's premier independent audio/video specialty retailers. More information is available at www.marantz.com/en-us.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and is the parent company of wholly owned subsidiaries Denon Ltd., Marantz Japan, Inc. and McIntosh Laboratory, Inc. Denon, Marantz and McIntosh are global industry leaders in the specialist home theater, audio/video consumer electronics and professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. A wholly owned subsidiary of D&M Holdings U.S., Inc., Digital Networks North America, Inc. (DNNA), owns the ReplayTV®, Rio® and Escient® brands-all representing award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

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