Rio® Announces Compatibility with PlaysForSure Subscription-Based Services

SANTA CLARA, Calif., July 12, 2005 -- Rio ® today announced its Rio Carbon and Rio ce2100 product lines now add subscription-service capability with PlaysForSure subscription services, using Windows Media Digital Rights Management 10 (formerly code-named “Janus”). The compatibility is made available as a user downloadable firmware upgrade from the Rio website.

Subscription service support now allows current and future Rio customers to download music via a monthly subscription, as well as downloading and paying for each individual song. Rio customers can now enjoy using services such as Napster’s Napster-To-Go and F.Y.E.’s Download Zone. By the end of th e summer, Rio expects additional online music sites to offer subscription services, making Rio a significant addition to the compatible device list for these online music service providers.

“We are pleased to provide our customers with the ultimate digital music solution through the portable music subscription model,” says Dan Torres, Vice President of Product Marketing at Rio. “ For the customer who wants freedom of choice in where or how they legally explore, discover, and purchase music, the Rio Carbon and Rio ce2100 product lines with the choice of size, from 2.5GB 1 to 6GB, are the best solutions, offering a sleek and stylish design, long-lasting battery life, plenty of memory capacity and the promise of being subscription service upgradeable.”

In addition to offering subscription service compatibility, Rio today is also announcing that it is now shipping the Rio Carbon 6GB pearl, with 17% more storage space than the award-winning Carbon “silver”. The Rio Carbon 6GB pearl is capable of holding up to 100 hours 2 of MP3 music (200 hours WMA) or 1500 songs with up to 20 hours of battery life on a single charge. The Rio Carbon 6GB pearl also ships with a premium carrying case, designed for durability, carrying ease and access to controls while in the case. The increase in capacity, in conjunction with the player’s current features, makes the Rio Carbon 6GB pearl a highly competitive offering from Rio.

Availability and Pricing

The Rio Carbon 6GB pearl is currently shipping and is available through retail outlets in both the U.S. and Europe, and at www.rioaudio.com. Estimated manufacturers suggested retail price for the new Rio Carbon 6GB pearl player is $229. Additionally, the subscription-service downloadable firmware upgrade for the Rio Carbon and Rio ce2100 product lines is available immediately via the Rio website.

About D&M Holdings Inc.

D&M Holdings Inc. (TSE II: 6735) is based in Tokyo and owns the Denon, Marantz, McIntosh Laboratory, D&M Professional, ReplayTV â , Rio â and Escient â brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. The ReplayTV, Rio and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

DISCLAIMER

Statements in this release that are not statements of historical fact may include forward-looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, product changes or delays, market acceptance for the company’s products, risks of litigation, technological changes, developing industry standards and other factors related to the company’s businesses.

Rio is a registered trademark of Digital Networks North America, Inc.