Parent of Denon & Marantz Buying McIntosh

[Jiri]

Parent of Denon & Marantz Buying McIntosh

D&M Holdings Inc. have announced that it has agreed to acquire McIntosh Laboratory, Inc., from Clarion Corporation of America, a subsidiary of Clarion Co. Ltd., a manufacturer of car audio and electronics.

Financial terms of the acquisition were not disclosed.

McIntosh, a 53-year-old company based in Binghamton, N.Y., designs and manufactures high-end audio, home theater and car audio products and has annual revenue of approximately $25 million. The financial impact on D&M Holdings is not expected to be material in fiscal 2002 ending on March 31, 2003, but it is expected to be accretive in fiscal 2003.

Tatsuo Kabumoto, president and chief executive officer of D&M Holdings, said: "McIntosh is one of the most highly acclaimed brands in the world. The company is revered by audiophiles and has a loyal customer base. In addition, McIntosh brings to D&M an exclusive worldwide dealer network that will yield synergies with our current distribution channels." This acquisition is consistent with the company's strategy to consolidate the audio/video industry through acquisitions.

The McIntosh brand, along with its sales and marketing operations, will be maintained as a stand-alone operation, following the same strategy employed by D&M Holdings with Denon and Marantz.

Commenting on the transaction, McIntosh Laboratory President Charles M. Randall said: "We are extremely excited about the opportunity to join forces with Denon and Marantz—two of the industry's premier audio/video brands. Both companies have long and well-respected records in the industry, and all three brands will continue to deliver the highest-quality products in their respective niches."

[J.A.F._Doorhof]