D&M Holdings Inc. Teams Up With PRCDirect, Ltd.
To Deliver China’s First-Ever Interactive TV Data and DVR Service

TOKYO and GUANGZHOU, CHINA—July 25, 2005 - D&M Holdings Inc. (TSE II:
6735) and PRCDirect, Ltd. today announced the signing of a licensing and service
agreement between the two companies to deliver interactive TV data and DVR services
in China accessed over the Internet. The agreement opens the door for China to
dramatically enhance the TV viewing experience for consumers with its first-ever
household delivery of advanced program information services, coupled with digital TV
recording capabilities and more.

PRCDirect is the leading provider of EPG (Electronic Program Guide) datafeed and
viewer data services to China’s Internet, broadcast and communications industries.
Under terms of the agreement, D&M Holdings will receive a minority equity position in
PRCDirect.

D&M, which owns Denon, Marantz, McIntosh Laboratory and the D&M Professional,
ReplayTV®, Rio® and Escient® brands, will provide PRCDirect with the interactive
program guide (iEPG) service technology and embedded device software from Replay
TV. ReplayTV has proven device management, content delivery infrastructure and
robust digital video recorder technology to support the delivery of interactive media
services.

The two companies plan interactive digital television information delivery and device
management services targeting China’s 700 million television viewers, 350 million
mobile subscribers and 100 million Internet users. The agreement includes delivery of
similar services to broadcast and communications companies in Hong Kong, Macau,
Singapore, and Taiwan. Unlike in the U.S., where cable and satellite provide digital
television technologies, television signals in China are delivered primarily in the analog
format, and the great majority of China’s 3000+ local cable operators in a highly
fragmented industry have yet to invest in a digital technology infrastructure. This
agreement between D&M and PRCDirect will create an IP-based interactive datafeed
delivery solution in the near future for China – one that does not require the TV industry
to make a huge infrastructure investment.

Bernie Sepaniak, president of D&M’s Rio, ReplayTV, Escient and ACT business units,
noted: “This agreement between D&M Holdings and PRCDirect has far-reaching
implications for the growing Chinese home entertainment industry. For the first time,
Chinese households will be able to enjoy access to digital TV programming
information, and with the support of our ReplayTV technologies, Chinese viewers will
finally be able to enjoy advanced DVR features and capabilities similar to those that are
already changing the TV landscape in the U.S. and Europe.”

Said Jim Miller, chairman and CEO of PRCDirect: “We are extremely pleased to work
with D&M Holdings. They are an entrepreneurial group with an excellent portfolio for
interactive technologies and home entertainment products. In partnership with our television, telecom, advertising and Internet customers in China, we can jointly
implement a wide variety of interactive digital media business models that create new
revenue streams from existing customer bases.”

Added Mr. Sepaniak: “PRCDirect is the ideal company to introduce our interactive
technologies in China, because it already has strong business relationships with
television, telecom and Internet operators in China. The company also has a solid track
record in bringing new services that increase client revenue.”

D&M Holdings’ Advanced Center for Technology (ACT) is the D&M business unit
responsible for external licensing and business relationships and has developed the
relationship with PRCDirect.

ReplayTV continues to offer DVRs and provide program guide services to users in the
U.S. ReplayTV can also support other companies needing device management and
delivery services for EPG, User data or content.

About D&M Holdings US 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 highperformance
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.

About PRCDirect Ltd.
PRCDirect has operations exclusively in the greater China market. China Telecom,
China Netcom, China Mobile, China Unicom, , Southern Media Group, Shanda,
Tencent Technologies, Liton, Mindshare China and Gallup China are among PRCDirect
clients for customer, viewer and EPG data services. The company launched EPG
datafeed services in China earlier this year, and plans to launch other enabling services
for interactive digital media markets in coming months. More information can be found
at http://www.prcdirect.com

FOR MORE INFORMATION:

D&M Holdings, Inc.
Naoyuki Honmura
+1 81 42 748 7700

For D&M Holdings in the US
Dobbin/Bolgla Associates
Sara Trujillo
+1 212 388 1400
strujillo@dba-pr.com

PRCDirect, Ltd.
Mary Owen
mary.owen@prcdirect.com
+1 510 843 0645

Statements in this news release regarding D&M Holdings Inc. and/or PRCDirect, Ltd.
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 the integration of the company’s acquisitions, competitive
and industry conditions, targeted cost savings programs, market acceptance for the
company’s products, technological changes, developing industry standards and other
factors related to the company’s businesses