Klipsch Forms Strategic Alliance with Upscale Krikorian Theatre Chain

BUENA PARK, Calif. (March 24, 2003) - A new strategic alliance between Klipsch Audio Technologies and Krikorian Premiere Theatres exclusively places Klipsch professional stage and screen loudspeakers in Krikorian's latest 18-screen Metroplex theater. Lance Jones, senior vice president of corporate development for Klipsch and George Krikorian, president and chief executive of Krikorian Premiere Theatres, believe this partnership unites "two best of class" companies and will result in the most elite movie-going experience in southern California.

The new Krikorian Metroplex, located in Buena Park, Calif., is a revolutionary design concept for movie theaters in the United States. According to Krikorian officials, the latest Metroplex model will not only offer its customers the best service in the industry but also allow them to watch movies in the most elegant and exciting atmosphere. The theater will feature custom designed Klipsch stage and screen loudspeakers, all stadium seating, digital equipment and virtually every amenity a patron could want.

The theater opens to the public in May 2003 and covers almost 100,000 square feet of prime commercial space. It will accommodate 5,000 seated patrons at one time.

The Metroplex will immerse guests into a luxurious environment by featuring custom designed, imported Italian crystal chandeliers, solid granite floors and two giant 30 feet-by-50 feet, hand-painted wall murals in the grand lobby, created by up-and-coming, Southern California artist Gregory Beylerian.

Each of the 18 large auditoriums will be equipped with ergonomically engineered high-back stadium seats, outfitted with "E-Z Back" recliner mechanisms, which were custom made for this project by Mobiliario Seating.

The theater's mix of auditorium sizes will house a variety of custom designed Klipsch speakers to achieve the highest level of audio performance for the space, and an ideal rotation of blockbuster films.

"We chose Klipsch as the exclusive audio provider on this project because of their supreme reputation and phenomenal products," said George Krikorian. "We want our guests to know we are serious about providing them with the ultimate movie-going experience both sound wise and visually."

In the four largest auditoriums, Klipsch KMX-4-T Grand speakers will be installed. These are customized versions of Klipsch's KPT-MCM-4-T Grand, the world's first and only fully horn-loaded, THX®-Approved four-way cinema system offering the ultimate in audio performance for the world's largest and finest theaters. The KMX-4-T Grand successfully passed a series of rigorous quality and performance tests that include low frequency, mid-bass frequency, mid-frequency and high frequency evaluations in order to receive the THX® Certification.

The Klipsch KMX-4-T Grand will deliver exceptional sound through no-compromise, high efficiency horns that further lower distortion levels and increase dialogue intelligibility. Klipsch cinema speakers offer lifelike sound, cost-effective design and rugged, handcrafted construction, making them one of the most comprehensive and dynamic lines of professional cinema systems available.

"The Klipsch sound experience is state-of-the-art, best of class audio solutions for the cinema industry," said Jones. "People who have never experienced Klipsch will witness the dynamic range and realistic reproduction from the quietest whisper to the most massive explosion."

According to Jones, Klipsch is very proud to be a valued partner of the Krikorian organization and believes the two companies make a wonderful team. "The new Metroplex is an extraordinary concept that will give its guests the movie experience of a lifetime," he said.

According to Chuck Mulhearn, director of corporate development for Klipsch, this exciting new alliance places Klipsch products into a premier exhibitor space that reaches a very upscale market.

About Krikorian Premiere Theatres:

Krikorian, one of the most progressive motion picture exhibitors in southern California, strives to provide state-of-the-art movie presentation to areas, which are under-screened and areas having tired and outdated theaters. The company currently operates Megaplexes in Chino, Redlands, Downey, San Clemente and Monrovia, Calif.