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DVD-Audio Adds Another Dimension to Enjoying Digital Home Entertainment

The ES6038F features the most advanced audio format, DVD-Audio, which offers high fidelity recordings with surround sound capability of up to 6 independent channels of 96-kHz/24 bit audio, with 2-channel resolution of 192 kHz/24 bits. It supports multi-channel Meridian Lossless Packing (MLP) audio decode, Linear Pulse Code Modulation (LPCM) audio decode, audio watermark detection, and Copy Protection for Prerecorded Media (CPPM). The quality far exceeds that of conventional CD's and audio on DVD-Video. In addition to audio, a DVD-Audio disc can contain a limited amount of video, and can be used to display text, such as lyrics or notes, or still images such as a photo album. Up to 16 graphic still images can be associated with each track and on-screen displays can be used for lyrics and disc navigation.

The DVD-9000 is Denon's latest product addressing the needs of consumers who seek the very best digital home entertainment experience. The DVD-9000 includes Denon's exclusive AL24 Processing Plus system that supports a sampling frequency of 192 kHz, a 24-bit 192-kHz audio D/A converter, and additional state-of-the art audio technologies that extract the maximum potential of DVD-Audio. For high-quality video output, the DVD-9000 is packed with PureProgressive(TM) Scan circuitry, by Silicon Image, for superior Interlace-to-Progressive video conversion, with six 14-bit, 108-MHz video D/A converters featuring Noise Shaped Video(TM), and a super sub-alias filter.

Ryo Okazeri, deputy manager of Denon Ltd. stated, ``Denon's ultimate goal is to provide our customers with the highest quality products. ESS's feature-rich DVD video and audio solution and their superior support helps us to achieve our goal.''

Patrick Ang, executive vice president and COO at ESS Technology stated, ``This project represents an opportunity to illustrate the impressive capability of ESS's Vibratto chip family. As the digital video market leader, our products satisfy a wide range of customer requirements and provide the highest possible level of sound and picture quality.''

DVD-9000 is scheduled to launch worldwide in March 2002.

About Denon, Ltd.

From its beginning in 1910 as a manufacturer of single-side disc records and gramophones, Denon has become a world leader in the manufacture of high quality audio and audio/video equipment and software products for the entertainment and information industries. Our professional-use and consumer-use equipment and software products are recognized internationally for their originality and standards of quality, durability and innovation. Denon is recognized internationally as Japan's leading manufacturer of high-quality audio and audio-visual products, and is the only company in the industry involved in the development and production of both hardware and software. Denon's web site address is: http://www.denon.com .

About ESS Technology

ESS Technology, Inc., is a leading supplier of high-performance feature-packed chips for the rapidly expanding DVD and digital entertainment markets. The company is also a leading provider of solutions for applications in the growing consumer entertainment market. ESS provides advanced products that enable the emergence of digital home systems that deliver and manage entertainment and information in the home. ESS, headquartered in Fremont, California, has R&D, sales, and technical support offices worldwide. ESS Technology's common stock is traded on the Nasdaq under the symbol ESST. ESS Technology's web site address is: http://www.esstech.com .

The matters discussed in this news release include certain forward-looking statements that involve risks and uncertainties, including, but not limited to, the possible reduction of consumer spending occasioned by terrorist activity and armed conflict, the timely availability and acceptance of the Company's new products, the impact of competitive products and pricing, the dependence on continued growth in demand for PC and consumer multimedia products, the fact that the initial determinations described herein are subject to further review and appeal, and the other risks detailed from time to time in the SEC reports of ESS, including the reports on Form 10-K and Form 10-Q. Actual results could differ materially from those projected in the forward-looking statements.

SOURCE: ESS Technology, Inc.