Klipsch Announces New Structure to Support Multiple Brands, Global Growth and Several Major Promotions

INDIANAPOLIS (January 5, 2006) - Klipsch, high-performance manufacturer of loudspeakers, today announced a major reorganization of the company's operations. Effective immediately, the parent company name will now be Klipsch Group, Inc., as the owner of two distinct brand management companies, Klipsch Audio Technologies and the recently purchased Jamo International. In addition, both Klipsch and Jamo products will be sold through three newly formed distribution management companies, Klipsch Group Americas, Klipsch Group Europe and Klipsch Group Asia Pacific. The reorganization supports the company's strategy of developing best in class, high performance products for home theater and other evolving sound related product categories for Klipsch products while accelerating global growth with multiple high quality brands for other channels of distribution.

"We are building a structure that allows us to support the company's current brands but also gives us the flexibility to support additional future expansion," said Fred Klipsch, chairman and chief executive officer, Klipsch Group Inc. "This reorganization gives us the opportunity to place the right products with the right retailers on a global level while keeping Klipsch's legacy of delivering quality branded products intact."

In support of this reorganization multiple promotions are announced. First, T. Paul Jacobs has been appointed president and chief operating officer of Klipsch Group, Inc. Previously Paul had been president of both Klipsch and Jamo. Prior to his promotion as president, Jacobs served as executive vice president and chief operating officer of the Klipsch Worldwide Products Group where he was responsible for overall direction of the company's sales, marketing, engineering and product development functions, as well as being a critical member of the senior management team.

The Klipsch Group also today announced the promotion of Michael F. Klipsch to president and chief operating officer of Klipsch Audio Technologies and the appointment of John Frank to managing director, Jamo International. Klipsch and Frank will be responsible for all operations including engineering, product development, marketing, sourcing and logistics for their respective brands. Both men will report to Paul Jacobs, president of the Klipsch Group. "We are confident that Mike and John will lead Klipsch and Jamo to continued global growth and expansion," said Jacobs. "Mike's knowledge of the audio industry combined with John's global product development management skills will be incredible assets in Klipsch's evolution."

Michael Klipsch, who most recently held the position of executive vice president and COO, Klipsch Audio Technologies, will be responsible for global brand management of Klipsch loudspeakers. As president, he will guide the company's strategic direction and manage day-to-day operations of the organization.

Since joining Klipsch in 1996, Michael Klipsch has held several leadership positions including chief counsel, senior vice president of operations, executive vice president and chief operating officer. Prior to joining Klipsch Audio Technologies, Klipsch was a partner with the law firm of Bingham, Summers, Welsh and Spilman. He has 10 years of law practice experience with specializations in complex business transactions, debt/equity offerings and business reorganizations

Managing director John Frank will be responsible for the Jamo brand worldwide for Jamo International. With his role, he will capitalize on the technological innovation and Danish design that has defined the company. John was previously at Kompan A/S (a subsidiary of Lego Holding Company) and brings with him over 20 years of experience in global product development. John has received numerous awards during his career including the prestigious Danish Design Award in 1997.