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KENWOOD and SOTEC Form a Partnership

Working together to create exciting new opportunities in the IT industry

KENWOOD Corporation
(President: Kaku Sakaida; Headquarters: Tokyo, Japan)

SOTEC Corporation
(President: Soichi Obe; Headquarters: Yokohama, Japan)

June 21, 2000 -- Progressive and dynamic, these two companies have entered into a partnership to develop new products that will promote further growth in the rapidly expanding IT industry.

1. Partnership Stipulations

Under the terms of the contract, KENWOOD and SOTEC will develop a mutually supportive partnership while focusing independently on their primary business operations. Both companies will make use of their resources to plan and develop innovative audio, communications, and personal computer products that will help to expand the existing market within the IT industry.

2. Partnership Objectives

Moving beyond their respective fields of audio products and personal computers, both KENWOOD and SOTEC will cooperate in developing new technologies, products and marketing techniques. This synergic relationship will help to strengthen both companies, making them more productive and ensure success in the creation of new IT markets.

The use of music and other forms of communication (e.g. mobile phones) will add to the tremendous growth seen in personal computing and the Internet in recent years. By customizing audio components and mobile phones to match PC performance and meet user expectations, a great business opportunity awaits for both companies in this partnership. New products and technologies appealing to this idea are scheduled for release in the fall of 2000.

3. Advantages for KENWOOD

As a leading manufacturer of home and car audio components, car navigation systems, mobile phones, and communications systems, KENWOOD is boundless in its exploration of the information technology era. With its newly developed digital products, KENWOOD readily accommodates today's PC-oriented lifestyles to satisfy users around the world.

As manifested by its remarkable growth in the PC-related market, KENWOOD has a lot to gain from its partnership with SOTEC in terms of cost-performance research, development, production, and sales. By working in close cooperation with SOTEC, KENWOOD believes it can better contribute to improved productivity in the audio and communications industries.

4. Advantages for SOTEC

A primary reason for SOTEC's success is its global alliance with top-flight manufacturers in Japan, Korea, Taiwan, and the US. As an independent manufacturer of personal computers, SOTEC believes that this new partnership with KENWOOD will be an important step in expanding its business operations.

As the PC industry grows tremendously, SOTEC is pursuing new opportunities in multimedia and information-related entertainment. By taking advantage of KENWOOD technology and marketing expertise, SOTEC recognizes that a brand-new dimension in personal computing commerce can be achieved.

Updated 00/07/04 (C) 2001 KENWOOD Corporation