DENON ANNOUNCES AGREEMENT WITH NET ENFORCERS TO HELP STAMP OUT UNAUTHORIZED INTERNET SALES ACTIVITY

September 08, 2005

Company Also Announces Strict New Enforcement Policy to Curtail Unauthorized Web Sales

Pine Brook, NJ, August 9, 2005—DENON ELECTRONICS, AN INDUSTRY LEADER IN HOME ENTERTAINMENT TECHNOLOGY, TODAY ANNOUNCED THAT IT HAS TEAMED UP WITH NETENFORCERS, THE LEADER IN COMPREHENSIVE BRAND PROTECTION SERVICES, TO STAMP OUT UNAUTHORIZED INTERNET SALES OF ITS PRODUCTS. Net Enforcers will utilize the latest new Internet search technologies and proven techniques to help ensure that Denon products are distributed only by the company’s authorized retailers, and that all Denon retailers follow the Internet sales guidelines agreed upon in their signed Dealer Agreements. In addition, Denon today announced implementation of a new Internet sales enforcement policy that calls for immediate evaluation and potential termination of any Denon retailer suspected of violating their Dealer Agreement by transshipping Denon goods or providing fulfillment for any unauthorized third-party Internet seller.
Under the agreement between Denon and NetEnforcers, the latter will use its sophisticated new scanning technologies and trained personnel to systematically monitor the Internet for sales of Denon products and use of the company's IP. Denon will be apprised of all suspicious Internet activity for immediate and strict enforcement action.

According to Denon President Stephen Baker: “Authorized sales activity through the Internet is an important source of business for Denon, as well as a tremendous service to our valued customers and a lucrative sales channel for our authorized dealers. We have always worked diligently to ensure that our Internet resellers meet the same rigorous standards for quality and customer service that have always defined the integrity of the Denon brand. Sadly, it has been our experience that some unauthorized resellers tamper with the merchandise, sometimes removing factory serial numbers to obfuscate the source of the goods, which voids the warranty. We believe that by any measure, these types of activities are unethical, represent a violation of trust and do a grave disservice to the consumer. We’re confident that the NetEnforcers service, combined with
implementation of our new strict enforcement policy, will help us to quickly discover the few dealers who are in violation of their Dealer Agreements, and put an immediate stop to all unauthorized Internet sales of our products.”

Noted Net Enforcer’s Joseph Loomis, Vice President, Sales and Marketing: “Denon is one of the most respected brands in the consumer electronics business, and we look forward to using all our resources to ensure that anyone making a Denon purchase over the Internet can be assured they are dealing with an authorized retailer during every step of the sales process. Our specialized staff will use our proprietary technology to Denon’s maximum advantage, examining millions of Internet home pages and web page source codes as well as visible and invisible instances in the page text.”

About Denon Electronics
Denon is a world leader in the manufacture of the highest quality home theater, audio and software products. Denon is recognized internationally for innovative and groundbreaking products and has a long history of technical innovations, including the development and first commercialization of PCM digital audio. Denon Electronics is owned by D&M Holdings Inc.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and owns the Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell, D&M Professional, ReplayTVâ, Rioâ and Escientâ brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. Boston Acoustics, with its signature Boston Sound,™ is a leader in premium loudspeakers for home and audio markets. Snell is a super premium speaker brand. The ReplayTV, Rio and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

About Net Enforcers
Based in Coral Springs, Fla., NetEnforcers is a pioneering provider of Internet-based, business-to-business brand and commerce protection services. Founded and operated by a skilled team of technology, legal, and enforcement specialists, Net Enforcers offers comprehensive, 24/7 Internet monitoring that identifies online brand, copyright, trademark infringement, channel and distribution abuse, software piracy, product counterfeiting, defamation and other threats to a company's valuable brand. Privately-owned NetEnforcers is retained by some of America's largest consumer products companies. For more information, visit www.NetEnforcers.com.


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DISCLAIMER
Statements in this news release that are not statements of historical fact may include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, market acceptance for the company's products, risks of litigation, technological changes, developing industry standards and other factors related to the company's businesses. The actions referred to in this press release are not an admission or acknowledgement of any claim or allegation. The Company reserves all of its rights.

For Immediate Release. Contact: Adam Weissman/Sara Trujillo at Dobbin/Bolgla Associates.
Tel. 1.212.388.1400 or E-mail: aweissman@dba-pr.com or strujillo@dba-pr.com