Klipsch and GN Mobile Sign Strategic Alliance Agreement

INDIANAPOLIS (January 5, 2006) - GN Mobile, the world's leading provider of mobile audio accessories, and Klipsch Audio Technologies, the number one loudspeaker brand in the United States, today announced a strategic alliance agreement in which the two companies will collaborate in the development and marketing of cutting-edge audio accessories for the mobile music market. This alliance will enable both companies to leverage one another's brand and technological capabilities in order to maximize their market penetration into mobile music, specifically in the areas of speaker solutions, headphones and headsets.

"Headphones, headsets and speakers for mobile music, in particular for phones, are becoming increasingly important. The alliance with Klipsch will enable us to expand our share of the mobile music market and further strengthen our mobile music offering. With its exceptional engineering, design capabilities and respected brand name, Klipsch was the clear choice to bring enhanced music performance to our products. By coming together with Klipsch, we are able to combine both companies' voice and Bluetooth® capabilities along with acoustic expertise to provide customers with the absolute best in terms of design, quality and functionality in mobile music accessories," said Morten Steen Jørgensen, president, GN Mobile.

"We are delighted to work together with GN Mobile and are confident that GN Mobile's market position and heritage in voice and wireless Bluetooth technology combined with our experience in high-performance audio reproduction will produce the most advanced products available for this growing market segment," said Mike Klipsch, president, Klipsch Audio Technologies. "The partnership with GN Mobile not only facilitates our entry into the headphone and headset market, but it also gives us increased brand exposure in channels in which we do not currently compete."

With approximately 35 percent of the global Bluetooth headset market, GN Mobile is the leading provider of hands-free communication solutions, including its Jabra brand of products, and a global innovator in mobile personal communications. Jabra branded products, including industry-leading Bluetooth headsets, are available in more than 80,000 retail outlets worldwide making it one of the most successful brands of Bluetooth headsets on the market today. Several of GN Mobile's range of Jabra products has achieved international acclaim and numerous industry awards, including the Red Dot and IF Design Awards.

GN Mobile's mission is to provide customers with essential lifestyle-enabling mobile accessories that enhance the mobile experience. Most recently GN Mobile has concentrated its efforts on mobile headsets for the fashion and music market including the Jabra JX10 designer Bluetooth headset and the Jabra BT620s Bluetooth stereo headset, one of the world's first headsets to provide users with hi-fi stereo music direct from their Bluetooth stereo mobile phone, MP3 player or PC. In addition to Jabra, GN Mobile has a strong OEM business and designs and produces Bluetooth headsets and accessories for leading handset and mobile device manufacturers.

Some of the world's largest and best known brands use Klipsch technology including international names such as Hard Rock Cafe, Microsoft, Apple and Dell. One of America's very first speaker companies and celebrating its 60-year anniversary in 2006, Klipsch is committed to best-in-class audio solutions. The company boasts one of the most advanced professional audio research facilities in the world at its headquarters in Indianapolis.

The Klipsch brand is well known to music and movie lovers and gaming enthusiasts everywhere for its excellent two-channel and surround sound systems for home theaters, computers and game consoles. In addition, Klipsch has a long history as a provider of commercial cinema products. It develops audio products designed to create the most engaging, emotional and dynamic entertainment experiences.

The market for mobile music is experiencing considerable growth rates with convergence between mobile phones and digital music opening up new product categories and products such as MP3 Players and iPod helping to drive consumer demand. IMS Research predicts that the market for music phones will grow at a CAGR of over 100 percent to 2009. By 2008, around half of all handsets shipped will be music enabled (MP3 or other format). This equates to 475 million units. (Source: IMS Research 2005)