Hard Rock Cafe Chooses Klipsch as Preferred Loudspeaker Brand

ORLANDO, Fla. (March 8, 2001) - A new strategic alliance that places Klipsch loudspeakers in Hard Rock Cafe restaurants and retail locations; Hard Rock Hotel and Casino "high roller" suites and Hard Rock live performance stages and other venues around the world was unveiled today in a joint announcement by Klipsch Audio Technologies and Hard Rock Cafe International. Chairman and Owner Fred Klipsch and Hard Rock Cafe International President and CEO Peter Beaudrault made the announcement together on opening day of the 2001 Systems Integration Expo, which is produced by the National Systems Contractors Association.

According to Fred Klipsch, the alliance could blossom into a multi-year, multi-million dollar business relationship that creates what he calls "ultimate entertainment-based experiences."

"Our relationship with Hard Rock Cafe is much broader than selling premium loudspeakers alone," Fred Klipsch said. "We are working together with Showorks Entertainment Group to offer Hard Rock Cafe and their 28 million annual customers more for their entertainment dollar. With our recent acquisition of Mondial Designs, the Acurus and Aragon brands, we expect to provide Hard Rock Cafe with complete systems solutions, too. From high end electronics to ultradynamic transducers, this is big, really big."

Hard Rock Cafe is celebrating its 30th anniversary in 2001. As the originator of theme restaurant dining, Hard Rock Cafe continues to be the dominant rock connection for music enthusiasts worldwide. Hard Rock Cafe is one of the most globally recognized brands known for rock music memorabilia as showcased throughout its signature cafes, live concerts, Hard Rock Live performance venues, collectible and fashion merchandise, hardrock.com, the Hard Rock Records music label and Hard Rock Hotels. Each Hard Rock Cafe facility is built around an entertainment principle that immerses guests in a fun, exciting audio/video environment that constantly stimulates the senses.

The Hard Rock Hotel and Casino in Las Vegas, which is operated by former Hard Rock Cafe co-founder Peter Morton under a licensing agreement with Hard Rock Cafe International, is already featuring surround sound systems using Klipsch Synergy Custom in-wall loudspeakers in its "celebrity" suites and Klipsch Synergy All-weather models with KSW-10 subwoofers in its "high roller" suites. Panasonic Corporate Systems chose Klipsch for this installation.

The original Hard Rock Cafe, established in London in 1971, is currently being remodeled. Showorks Entertainment Group is designing and installing the legendary nightspot's new state-of-the-art audio/video system, which includes Klipsch KI Series professional loudspeakers for its live performance stage and distributed sound. After London's renovation is complete, Hard Rock Cafes in Paris, France and additional European locations will undergo upgrades to Klipsch sound systems. Audio/Video retrofits are also planned for several U.S. properties, including Hard Rock Cafes in Washington D.C., New Orleans, Las Vegas, Orlando, Fla., Myrtle Beach, S.C. and Honolulu.

President and CEO Beaudrault said: "Hard Rock is undertaking an aggressive development program that will position us as the dominant music-centric brand in the areas of restaurants, cafes, hotels, casinos, retail stores, clubs and the Internet. By establishing Klipsch as the preferred loudspeaker brand of Hard Rock Cafe, we're telling our guests that we are serious about offering visitors the most dynamic entertainment experience available."

According to Lance Jones, senior vice president of corporate development for Klipsch, both companies are exploring independent and cross-promotional marketing opportunities that maximize Hard Rock's positioning as the "dominant music-centric brand" in all of its entertainment markets. He said the Internet will play a large role in how both Klipsch and Hard Rock leverage the new strategic alliance.

Hard Rock Cafe, one of the most globally recognized music and entertainment brands, has a network of 105 signature Hard Rock Cafes in 38 countries and a music memorabilia collection worth in excess of $31 million. Known for collectible and fashion merchandise, live concerts, Hard Rock Live performance venues, the Hard Rock Records music label, hardrock.com, and Hard Rock Hotels and Casinos, Hard Rock Cafe International, Inc. is a wholly owned subsidiary of London-based The Rank Group Plc (Nasdaq: RANKY).