FOR IMMEDIATE RELEASE -- January 8, 2002 -- Las Vegas, Nevada USA

KRELL UNVEILS THIRD GENERATION PREAMP/PROCESSOR--THE HOME THEATER STANDARD 7.1

Krell Industries, Inc., manufacturer of high-end audio and video equipment for music and home theater systems, is pleased to announce the introduction of the Home Theater Standard 7.1 at WCES 2002 in Las Vegas, Nevada. The Home Theater Standard 7.1 surround preamp/processor serves as the centerpiece in a Krell HEAT - High End Audio Theater - system, which applies the fundamental principles of Krell engineering to the creation of a fully integrated high-performance multi-channel sound system. The Home Theater Standard 7.1 delivers unparalleled music and cinema soundtrack reproduction through the use of a full complement of advanced Krell technologies including Krell Current Mode, discrete Class A, direct-coupled circuitry with balanced outputs, user-configurable input assignment and system macros, main and remote zone control capability, and broadcast-quality video circuitry.

Under the direction of CEO and chief designer Dan D'Agostino, the Home Theater Standard 7.1 incorporates the latest technological innovations from the audio, video, and home automation frontiers. Included are the following new innovations:

• Additional decoding modes: The HTS 7.1 is THX Ultra certified and includes THX 5.1, THX Surround EX, Dolby Pro Logic II, DTS 6.1 ES discrete and matrix, and DTS NEO:6 processing modes.
• Multi-Channel Pre-Amp Input: The HTS 7.1 has a Multi-Channel analog input for SACD and DVD-A software. This 7.1 channel input bypasses all digital circuitry and routes the signals directly to the analog output circuitry.
• Improved Video Circuitry: New video circuitry provides pristine pass-through of all progressive and HD component signals while still providing OSD for interlaced component video signals.
• New High Resolution DACs: The HTS 7.1 has Burr Brown 24 bit, 192KHz DACs for all channels.
• New Analog/Digital Converter: The HTS 7.1 uses a Crystal CS5360 128X over-sampling 24 Bit 105 dB dynamic range A/D.
• Zone 2 Volume Control: The HTS 7.1 has a volume control for Zone 2 for greater flexibility in multiroom systems.
• Adjustable Crossover Frequencies: The HTS 7.1 crossover is selectable and may be set at 40Hz, 60Hz, 80Hz, 100 Hz, or 120Hz to maximize the performance of a system's speaker/subwoofer combination.
• Field Upgrade Capability: The HTS 7.1 uses FLASH memory for its program memory. This means future software upgrades can be made via the RS232 Port.

The Home Theater Standard 7.1 is currently shipping to United States and worldwide markets. In the first quarter of 2002, Krell will offer an upgrade program for current owners of the Home Theater Standard to allow them to bring their processors up to the current level.

About Krell
Krell Industries, Inc., is America's premier manufacturer of high-end audio equipment featuring award-winning amplifiers, preamplifiers, compact disc players, surround sound processors, and loudspeaker systems for serious music lovers and home theater aficionados. CEO Dan D'Agostino designs all components.

The Krell mission continues to be the introduction of high-end audio components and integrated system solutions known for innovative engineering, perfection in build quality, exceptional value, exemplary service support, and outstanding audio reproduction--the authentic sound of music from Krell.

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