Klipsch Group, Inc. Acquires Audio Products International

INDIANAPOLIS (August 15, 2006) -- Klipsch Group, Inc., parent company of Klipsch Audio Technologies, announced today the acquisition of Audio Products International Corp. (API), one of the largest speaker manufacturers in the world and the makers of the Mirage®, Energy® and Athena® Technologies brands.

"The acquisition of API will assist Klipsch in our commitment to greatly improve business operations on a global level," said Fred Klipsch, chairman, Klipsch Group. "This purchase is another step in our strategic plan of adding unique and successful loudspeaker companies to our portfolio of products."

Klipsch Group is the parent company of Klipsch Audio Technologies, Jamo International and API brands, with companies remaining independently operated entities. The product design and engineering of the API brands will also remain separate to maintain their respective unique character and personality. Nonetheless, the Klipsch, Jamo and API brand teams will work in a cooperative fashion to develop global technology platforms and product strategies that leverage investments in R&D ensuring the Klipsch Group of brands stay on the cutting-edge of product, technology and brand development.

"API is world renowned for product design, particularly as it relates to speaker size, mobility and performance," added Klipsch. "The move allows us to enhance the way we develop innovative products and solutions that bring added-value offerings to all of our customers in the audio products industry."

The acquisition of API will also allow the Klipsch Group to expand its vision of offering and producing no-compromise, premium-quality audio products to multiple markets worldwide. As one of the first U.S. loudspeaker companies, Klipsch has continued to be the high-performance brand of choice for audiophiles and home theater aficionados around the world and this will only strengthen that relationship. In addition, each of the Klipsch Group brands will be featured at CEDIA EXPO 2006, held in Denver, Colo., September 13 through the 17.

About API

Founded in 1973 and headquartered in Toronto, Canada, Audio Products International Corp. (API) is one of the top manufacturers of high-performance loudspeakers in the world. API manufactures over 200 models of speakers and exports to over 50 countries under the company's three world-renowned brands: Energy Speaker Systems, Mirage and Athena Technologies. In 2006, API is entering the professional market with the launch of its Energy Pro division. The API headquarters includes a state-of-the-art research and design facility. Lead by Ian Paisley, API's VP of Engineering and world-renowned acoustic researcher, API was a pioneering member of the Canadian National Research Center's studies to determine the design characteristics of a great sounding loudspeaker. API's continued psycho-acoustic research along with their three anechoic test chambers, maintain the highest levels of engineering excellence and product performance.