WELCOME WELCOME PSB INTERNATIONAL DISTRIBUTORS Sydney, Australia February 2003

We are pleased to have the following countries represented: Australia Canada Indonesia Italy South Korea Malaysia Slovakia South Africa Switzerland Thailand United Kingdom United States of America

AGENDA  PSB Business Update  Product Development Priorities  Paul Barton on PSB’s Platinum Series  Spring Promotions  Distributor Planning Guide  Close

PSB Product Development Priority #1 PSB Platinum Series  A product family designed to reach today’s discriminating home theatre and music lovers  A product designed to attract attention from critical press for the rest of the PSB line

M2 -$1,700 pr Monitors S2 -$2,400 pr Surrounds C4 -$2,000 ea Center T8 -$6,500 pr Towers Platinum Series Phase I Launch Date – June 2003

Platinum Series Phase II International Launch Date – August 2003 T6 - $4,700 pr Towers C2 - $1,200 ea Center SubSonic 10 - $2,200 ea Subwoofer

PSB Product Development Priority #2 SubSonic 10 2x12” 600 watts SubZero I 1X8” 100 watts SubSonic 5 i 1x10” 150 watts SubSonic 9 2x12” 450 watts SubSonic 8 2x10” 350 watts SubSonic 6 i 1x12” 250 watts A MAJOR EMPHASIS ON A COMPLETE SUBWOOFER LINE

Briefing on our PSB SubSonic Features

No PSB Baby Super Subs

BASH - What is it?

PSB Limit Circuitry: Dynamic Signal Restoration

PSB Product Development Priority #3 Custom Sound Series STRENGTHENING PSB IN THE HIGHEST UNIT GROWTH CATEGORY

PSB Custom Sound Series Delivery – July 2003 US Target RetailModel M180RC$350 ea 8x1” Round Coaxial M280C$550 ea 8x8 with 1” Coaxial - Rectangular M380$750 ea 8x4x1” 3-way - Rectangular Description

PSB Product Development Priority #4 Evolving the Next Generation of the Image Series Market Introduction - November 2003

Next Generation of the Stratus Series Market Introduction - January 2004 PSB Product Development Priority #5

PSB Product Development Priority #6 Improving PSB’s Position With Products to Match Today’s Video Systems  Short Term  Mid Term  Long Term

PSB Alpha Intro HT Blonde (with Titanium Trim) Available June 2003 Short Term

Mid Term PSB Alpha Titanium System Available November 2003 Target US Retail Price = $1,199.00

Long Term 2 PSB Systems being designed to introduce PSB acoustic performance to higher-end flat panel video display based systems Available – Spring 2004

Spring Promotion!

PSB Platinum Series OVERVIEW & PHILOSOPHY Paul Barton Founder & Chief Designer PSB Speakers

 Lenbrook  Beginnings  Milestones  NRC  Philosophy 30 YEARS

Why PSB Platinum Series?  Custom Growth  New Technology  PSB Customers Moving Up  Merge Technology  Is it a Revolution or Evolution?

- Computer crossover optimization New Design Tools - Driver soft parts and motor Finite Element Analysis (FEA) - Scanning Laser Vibrometer (SLV)

 Super tweeter 40KHz Bandwidth  Why?  Consistent Throughout Series  Timbre Matching  Aluminum Dome Tweeter

TWEETER

 Rear Tweeter on T8  Super tweeter 40K Hz Bandwidth  Why?  Consistent Throughout Series  Timbre Matching  Aluminum Dome  Low Resonant Frequency (990 Hz, Low Fs) Tweeter

Mids & Woofers Fiberglass Cones

MIDS AND WOOFERS

 Fiberglass Cones  Low Distortion Magnet Structures Mids & Woofers

Mids & Woofer

 Fiberglass Cones  Low Distortion Magnet Structures  High Power Construction Mids & Woofers

 Fiberglass Cones  Low Distortion Magnet Structures  High Power Construction  All Drivers Magnetically Shielded  Wide/Large Surround Long Throw Designs Mids & Woofers

 Window Braces CABINET CONSTRUCTION AND FINISH

CABINET CONSTRUCTION AND FINISH

 Window Braces  1” Thick MDF  Damping  Cast Aluminum Tops and Bottoms  Aluminum Laminate Baffles CABINET CONSTRUCTION AND FINISH

 AES Preprint D’Appolito Array

D’Appolito Array

 AES Preprint  Proper Implementation  What Does it Offer?  Horizontal and Vertical Dispersion D’Appolito Array

Port Design  Ellipse

Port Design

Port Design  Ellipse  Very Low Port Noise  Port Entrance and Exit

Port Design

Port Design  Ellipse  Very Low Port Noise  Port Entrance and Exit  Internal Treatment  Why Rectangle?

PSB Distributor Planning Guide Season 2003 Nina Hussey Sales Admin Manager

PSB SPEAKERS INTERNATIONAL DISTRIBUTOR PLANNING GUIDE SEASON 2003

Season 2003 Pricing  Effective May 1 st, 2003  Same as new NAD structure as described by Neil Wilson

Product Development Program  2003 Season Product Introduction Schedule  Preliminary Data Sheets

Marketing Services Program  Literature Program – Sales Collateral Material Price List  Advertising & Reviews  PSB Website  Graphics Resources

Fiscal 2003 Forecast Template

Technical Services  Service Price List

PSB Spare Parts Policy  In Effect since October 1, 2000  PSB Distributors are rebated 1% of their net finished goods purchases in each fiscal year (May to April)

PSB Distributor List

THANK YOU! THANK YOU! PSB INTERNATIONAL DISTRIBUTORS Sydney, Australia February 2003