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AUDIO DESIGN ASSOCIATES INTRODUCES

THE CINEMA REFERENCE SURROUND SOUND DECODER/PREAMPLIFIER

Upgraded Home Theater Processor Is Designed For The Next Millennium

WHITE PLAINS, New York (January 7, 1999) - Audio Design Associates, Inc. (ADA) announced that it has released the latest software and hardware upgrade to their highly acclaimed home theater processor, the Cinema Reference. The new upgrades include THX™ capability, Auto-Detect for all modes (including DTS), and additional modes for stereo and mono sources.

The Cinema Reference, designed to be a powerful home theater component for the digital revolution and convergence arena, was conceived to act as the heart of a high-end home theater system. As a sophisticated preamp/decoder combination, it has a unique ability to meet the demands of the many new digital innovations, including those on the horizon.

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CINEMA REFERENCE UPGRADE, Page 2.

Combining every type of input imaginable, devices of any type can be connected to the Cinema Reference. The preamp features connectors for eight standard stereo analog components (radios, cassette players, CD players, etc.), seven digital audio components (DVD players, mini-disc, CD, DSS, HDTV, etc.), and two Dolby Digital

(AC-3) laser disc players. It can also switch standard composite video, super video, and HDTV (or RGB) video. With over fifteen input connectors, individuals can choose to route regular audio components, video components including camcorders, as well as computers (web surfing), video games, and new digital video components such as DVD players, digital video cassette recorders, and HDTV receivers.

While switching and routing are critical design issues, the Cinema Reference is able to process the many encoding formats that are employed in the film and music industries. Not only can the Cinema Reference decode Dolby Digital (AC-3) used on many DVDs and laser discs, it will also decode DTS from CDs, laser discs, and DVDs, as well as standard Dolby Pro Logic from video tapes, TV, and satellite broadcasts.

Additionally, the Cinema Reference assures a realistic cinematic experience when viewing movies. Enhanced with Lucasfilm THX, the preamp/decoder provides THX processing to all modes including DTS. The Cinema Reference, bearing the exclusive THX Ultra logo, is also the world’s only preamplifier that lets the user engage all three major THX enhancements, individually, as desired.

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CINEMA REFERENCE UPGRADE, Page 3.

Especially noteworthy is the operational simplicity. Void of confusing buttons, the Cinema Reference sports five control knobs -- Input, Mode, Volume, Channel and Record – to dial in the desired setting.

The Cinema Reference’s sophisticated software allows for hands-free operation. One unique aspect is its ability to Auto-Detect the incoming source components signal to automatically engage the right decoding mode without the user’s ever turning a knob.

The Cinema Reference has several control options available. The “Thing,” a two-way wireless infrared remote control with a single knob and five buttons. These buttons determine which of the five front selectors its knob will control. It also features a two-line display that reads the same information that is displayed on the Cinema Reference. The Cinema Reference can also be controlled from an ADA keypad or touch screen, and its ADA Bus™ data port allows it to be controlled from computers and other touch screen systems. As with all other ADA components, the Cinema Reference is fully ungradable to ensure the value of an owner’s investment.

Headquartered in White Plains, New York, ADA has been the undisputed leader in the fields of high-end home theater and multi-room technology since 1977.

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