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PRESS RELEASE

Console Manufacturer Euphonix to Work Closely with Steinberg

October 9, 2002

Euphonix Inc and Steinberg Media Technologies AG announced a strategic relationship between the two companies, to develop integrated professional audio products for the music and audio post-production markets. Euphonix, manufacturer of digital mixing console solutions, and Steinberg, with the Nuendo and Cubase SX native processor workstation software programs, have been discussing such an alliance for some time. From these discussions has emerged a common business strategy to allow the two companies to combine forces in certain areas of development.

Martin Kloiber, EVP of Technology for Euphonix outlined the reasons behind the relationship; "The music and post markets are going through some rapid changes right now and we feel that by combining forces we will be better equipped to provide advanced professional solutions that address the needs of these markets. We have a very good relationship with the people at Steinberg, both companies have some of the strongest product development talent in the industry, we are looking forward to a bright future working closely together."

Kloiber also commented "We are acutely aware that for music and audio post applications there is a need for integration between the audio console and the workstation. We believe that between Euphonix and Steinberg we have the best of both worlds; a professional control surface with high quality hardware I/O and a world-class workstation software package that can also addresses the economic realities of the industry."

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Manfred Ruerup, CEO of Steinberg adds, "We are very excited about working closely with Euphonix on a number of projects, that we believe will allow us both to address needs in the post and music markets. In a digitally networked world, I think it is very important for different products to be able to talk and integrate with each other over high-speed networks. Distributed processing and new control protocols are essential for this to happen. In every respect our technologies complement each other, so I am convinced that we can achieve great results from our collaboration in the near future."

News of the alliance follows an earlier announcement that Oscar winning, film scoring composer and entrepenure, Hans Zimmer, a board member of Steinberg, has recently joined the Euphonix board.

For more information, visit their web site at www.euphonix.com.

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