RIO Carbon Wins 2005 World Class Award From PC World

SANTA CLARA, Calif., July 1, 2005 – The Rio Carbon 5GB has been honored by PC World with a 2005 World Class Award in the mid-capacity MP3 Player category. The World Class Award winners were announced in the July 2005 issue of PC World (online now and available on newsstands June 14).

The stylish, slim and compact Rio Carbon is the ultimate MP3 player for music lovers who want to easily take their favorite tunes everywhere they go. The Rio Carbon is capable of holding up to 80 hours of MP3 (160 hours WMA) music and boasts up to 20 hours battery life on a single charge. Supporting USB 2.0 and a host of file formats; users can download music efficiently and easily from a number of online music sites.

“Receiving the World Class Award from PC World is an honor for us,” said Dan Torres, vice president of marketing for Rio. “We know the rigorous testing and process all products are put through by PC World to be considered for this award, and coming out on top is a testament to the hard work everyone at Rio has put in to making this player stand out from the pack.”

Celebrating its 23 rd year, the respected World Class Awards honor products that meld practical features with innovation and reflect the rapidly changing technology marketplace. To select the winners, PC World ’s editors examined hundreds of products, including those that have appeared in the magazine over the past 12 months. The winning products were selected for their exemplary design and usability, features, performance, innovation, and price.

“The ultimate buyers guide, World Class Awards set the standard for excellence in the high-tech and consumer electronics industries ,” stated Harry McCracken, editor in chief of PC World . “From desktop publishers to travel routers to satellite radio and video instant messenger services, the editors reward the finest products and most outstanding performers in this annual award program. Congratulations to Rio.”

About Rio

Rio, a division of D&M Holdings US, is the inventor of the MP3 player and pioneered portable digital audio technology with the launch of the Rio PMP300 in 1998. Since then, Rio has become a leading brand of portable MP3 players by developing a host of award-winning products that let music lovers take their music with them wherever they go. For more information regarding Rio, or to purchase a Rio digital audio player, please visit www.rioaudio.com.

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®, Rio® and Escient® 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.