Creates World’s Strongest Portfolio of Premium Audio Brands

Vista, Calif(May 14, 2019)—Sound United LLC, parent company to Denon, Polk Audio, Marantz, Definitive Technology, HEOS, Classé, and Boston Acoustics, today announced that it has entered into a term sheet agreement to acquire Onkyo Corporation’s consumer audio division, including the Onkyo, Pioneer, Pioneer Elite, and Integra brands. The preliminary agreement will enable both companies to quickly proceed with negotiations of definitive terms and agreements. Kevin Duffy, current CEO for Sound United, will be CEO of the newly combined businesses. The transaction reflects a continued focus by Sound United to meet consumer demand for the best - sounding and most technologically advanced audio products available. The expanded brand portfolio will allow Sound United to better serve consumers with premium products tailored to their specific needs.

“We are thrilled by the opportunity to add the venerable Onkyo and Pioneer brands to our portfolio. Sound United is one of the leading dedicated provider s of premium audio/video products, and we believe the combined businesses will bring unrivaled innovation and sound performance to our consumers and channel partners,” said Kevin Duffy.“ Upon completion of the transaction, we will work tirelessly with the consumer audio division of Onkyo Corporation to ensure a seamless transition into the Sound United family so that all employees, customers and channel partners benefit from the enhanced breadth and depth of the new organization.”

Investing in additional brands enables Sound United to better innovate across product categories, feature sets, technology partners, and consumer targets. As a leader in the fast - growing wireless, voice - enabled speaker and sound bar categories, Sound United is eager to invest in the development of new products with the added benefit of Onkyo and Pioneer’s extensive legacy of innovation. By pairing the world’s best electrical and acoustical engineering talent , Sound United will have the capacity to continue a history of unparalleled product development. This expanded scope will also offer manufacturing efficiencies, expedited development cycles and a combined business better positioned to invest in the future of the premium audio category.

The Onkyo Corporation’s consumer audio division include s product categories such as: AV receivers, HiFi equipment, Mini - systems, smart speakers, turn tables, sound bars, home theater systems, optical disc players and many others. Onkyo Corporation will retain the rights to the Pioneer and Onkyo brands for the purposes of their Digital Life and Embedded Audio businesses. As part of the planned acquisition, Sound United will be acquiring all worldwide third - party distribution agreements under which the premium audio product s are currently sold.

The completion of the transaction is subject to various normal - course conditions precedent, including, but not limited to, execution of the Definitive Agreement, the completion of satisfactory due diligence, committed financing, and approvals from regulators and the Onkyo Corporation’s shareholders at the Annual General Meeting, expected to be held on or about June 26, 2019.

About Sound United

Sound United is a DEI Holdings company with an award - winning portfolio of audio brands that deliver industry - leading home theater and personal audio listening experiences for a wide - range of consumers. Sound United is a subsidiary of DEI Holdings, a portfolio company of Boston - based private equity firm Charlesbank Capital Partners, LLC. Each brand provides an expansive array of audio products that includes high - end and custom installation audio, to mid - tier markets that cover loudspeakers, sound bars, AV receivers, wireless multi - room music systems, Bluetooth® speakers, amplifiers, turntables and headphones.

Dedicated to artfully reproducing audio for listeners and enthusiasts around the world, Sound United is comprised of Denon®, Marantz®, Polk Audio, Classé, Definitive Technology, Polk BOOM, HE OS®, and Boston Acoustics®. Each brand offers a unique approach to bringing home theatre and music to life. Whether it’s through the legendary heritage of Denon, the classic sound of Polk Audio, the premium performance of Definitive Technology, the highly - sought - after amplification of Marantz, the action - inspired form factors of Polk BOOM, the wireless home audio solutions of HEOS, or the accessible performance of Boston Acoustics, Sound United is your sound — so listen. For more information on Sound United, please visit www.soundunited.com.

About Onkyo Corporation

Since 1946 Onkyo has been passionately committed to developing audio products that deliver uncommon performance, quality and value. Bundling proprietary technologies and innovations with other sound - enhancing exclusives, Onkyo continues to create award winning products that are lauded by industry leading audio publications. The company’s philosophy is to deliver products and services that are superbly designed and built to a consistently outstanding standard of excellence. Today, Onkyo is at the forefront of the home theat er and digital revolutions. For more information, visit www.onkyo.com.

Disclaimer

Statements in this news release that are not statements of historical fact 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 t hat actual events or results may differ materially. Forward - looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, regulatory approvals, shareholder approvals of any transaction, market impacts of th e proposed acquisition, supply chain and distributor impacts of the proposed acquisition, the ability to launch products on time and enable new features sets, market acceptance for the combined organization’s products and distribution plans , risks of litigation, technological changes, developing industry standards and other factors related to the company’s businesses. The Company reserves all of its rights.