NEWS

D&M Holdings Comments On SONICblue Negotiations

2-Apr-03

D&M Holdings, Inc. (TSE II: 6735), parent company of Denon, Ltd. and Marantz Japan, Inc., announced that it did not enter into a definitive agreement to acquire the assets comprising SONICblue Incorporated's digital video recorder (ReplayTV) and MP3 (Rio) business units prior to the deadline imposed by the U.S. bankruptcy court. By order of the bankruptcy court, an auction to sell the Rio and ReplayTV business units is scheduled for April 15, 2003 in San Jose, California. A spokesperson for D&M Holdings said, ""D&M and SONICblue were unable to finalize the terms of a transaction before the deadline expired. D&M remains interested in these businesses and is evaluating the best way to proceed through the court auction process."" For more information about D&M Holdings, Inc., visit www.dm-holdings.com.

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