NEWS

MONSTER’S LONG-RUNNING U.K. INVESTIGATION ON COUNTERFEIT PRODUCTS LEADS TO ARREST AND CONVICTION OF ROGUE INTERNET TRADER - SENTENCING SCHEDULED FOR APRIL 19th

Monster Played Lead Role in the Investigation Leading to Reeder’s Arrest and Conviction on 13 Offences; Multiple Investigations Still Underway Around the World as Part of Monster’s Global Fight to Halt Illegal Counterfeit Sales of Its High-Performanc

April 16, 2013

Monster, the world leader in high-performance personal audio, and Viacom, home to the world's premier entertainment brands, will officially debut the new Monster DNA™ White Tuxedo headphones backstage at the 2013 MTV Movie Awards (airing live on Sunday, April 14th at 9 p.m./ 8 p.m. Central). Reflecting leadership in today’s fusion of entertainment, technology and fashion, Monster DNA™ White Tuxedo headphones were created by Monster as part of a global alliance with Viacom. The elegant new Monster DNA™ White Tuxedo headphones will be available on Tuesday, April 16th at Apple Store® and monsterproducts.com worldwide (MSRP: $229.95). Largest Seizure Ever of Monster Products in the U.K. As a global leader in the battle against counterfeit sellers, Monster launched the initial investigation that led to the February 2011 raid resulting in Reeder’s arrest and conviction. The conviction follows the largest seizure ever of counterfeit Monster products in the U.K. and marks a major step forward in the fight to protect consumers from the economic injury – and the potential danger – of purchasing counterfeit, unregulated goods. February 2011 Raid Netted Over 2,000 Items Reeder’s arrest and conviction came as the direct result of Monster’s close cooperation with the United Kingdom Trading Standards Service (TSS) in an exclusive alliance to fight illegal counterfeiting and protect consumers. After receiving several consumer emails with complaints about Reeder’s “Odds and Pods” website in 2010, Monster initiated and drove the original investigation, in conjunction with the company’s investigative firm C3i Europe, Ltd. Once the original investigation had developed enough evidence, Monster engaged with the U.K. TSS and handed the case over to them to carry into the Court for prosecution. Steps Leading Up to the Arrest When council trading standards officers raided Reeder's business and his home in February 2011 they seized more than 2,000 items, including fake Monster items, as well as products from Speck, a leading California-based manufacturer of smartphone cases and other products. Other items found in the Reeder locations included counterfeit Sennheiser headphones and counterfeit Apple, Sony, Nintendo items as well. Reeder was already subject to a court enforcement order taken out by the council in 2009, imposed when he failed to supply purchases on time and give refunds. Leading up to the 2011 raid, customers of Reeder’s complained to the U.K. TSS and to Monster, with specific complaints about headphones bought from Reeder's Odds and Pods website. Customers noticed minor packaging discrepancies, and faults such as buzzing and poor quality sound. In August 2011 Reeder told TSS officers he had stopped trading, but a customs seizure of counterfeit Monster products at East Midlands Airport produced another lead. Officers discovered Reeder was still operating his illegal operation, with a new website called Nice Cans. Additional raids in September 2011 resulted in seizure of more than 1,500 items, including fake Monster, Sennheiser and Sony headphones, plus counterfeit Speck iPhone cases, PlayStation controllers and Wii accessories. Evidence showed that Reeder imported the products through a contact in China, who was not an authorized supplier. . David Tognotti, Monster’s General Manager & Vice President of Operations, noted: “Everyone at Monster is gratified that this long and complex investigation has finally reached such a favorable conclusion. The sale of counterfeit products literally hurts everyone, including manufacturers and retailers, but most especially honest consumers who might have no idea that the goods they purchase are not genuine. It’s a serious crime, and Monster would like to thank the TSS for their diligence in carrying out a successful operation and for protecting consumers by continuing to fight this insidious and damaging crime wave. Monster’s partnership with the TSS is a unique public-private effort that sets an example for law enforcement agencies and companies – demonstrating how we can all work together to fight the spreading cancer of counterfeit, which costs consumers and retailers literally billions of pounds. We need more organizations such as the TSS and Monster to join the fight against counterfeiters.” Vigorous and Ongoing Anti-Counterfeit and Diversion Program in U.K. The combination of the Monster’s Global Brand Protection team’s resources with those of the TSS encompasses a vigorous and ongoing anti-counterfeit and diversion program in the U.K. Prior to the announcement of the alliance between Monster and the TSS, Monster had already assisted the TSS in several investigations and will continue working with the Service on upcoming raids in the near future. Monster is currently working with federal and state law enforcement in the U.S., as well as the EU, China, and Australia to stop the illegal and divisive manufacture and trade of counterfeit Monster products globally. The company has been successful with several key raids and arrests both in China and the U.S. and has a number of robust anti-counterfeit investigations underway. Consumers with ANY information or questions regarding counterfeit products or diverted products are encouraged to contact: Camilla Herron, Brand Protection Manager – Monster Cable Products, Inc. at ipinfringement@monstercable.com or 415 330 4402.

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