$10 Million in New Funding Propels D2Audio's New IC Business Model as Second-Generation Intelligent Digital Amplifiers Attract Consumer Brands

AUSTIN, Texas--June 5, 2006--D2Audio(R), the world's only manufacturer of Intelligent Digital Amplifiers(TM), today announced the closing of its $10 million Series D financing led by CenterPoint Venture Partners, with Austin Ventures, Lightspeed Venture Partners, and Sevin Rosen Funds participating in the round. The $10 million will be used for development of new ICs and expansion of customer support. This latest funding brings D2Audio's total capitalization to $50 million.

The growing family of D2Audio audio amplifier products now addresses applications in Home Audio, including Home Theater and iPod Docking Stations, Advanced Digital Television, Automotive, and Multimedia/Entertainment PCs.

"We have been impressed with D2Audio's recent success in consumer markets, as well as the strength of their continuing technology developments," said Bob Paluck, General Partner, CenterPoint Venture Partners. "We look forward to accelerating business performance as the company transitions to an IC model."

While consumers enjoy the superb sound of D2Audio's Intelligent Digital Audio(TM), manufacturers of consumer electronics benefit by D2Audio products delivering:

-- Full-featured Digital Audio Engine(TM) (DAE) IC platforms and complete audio solutions

-- An advanced immersive sound experience under the D2Audio(R) SoundSuite(TM) audio processing brand

-- An extensive series of highly integrated reference designs with complete system firmware solutions

-- Small, light-weight, and power-efficient Class-D audio amplifier technology with integrated DSP system customization and "one-button, ease-of-use" features

"With this round of financing we will increase our geographically diverse customer support team to bring our existing DAE family of ICs and firmware into volume production, and to develop new audio ICs and firmware for further market penetration. We've had good success with our distinctive D2Audio sound quality to deliver premium sound in unexpected places," said Brian Wong, D2Audio CEO and President. "We have secured new business with key brands in the advanced television segment and we are now beginning to penetrate the automotive amplifier market through the system advantages afforded by D2Audio's proprietary all-digital feedback integrated into our DAE-2 family."

About D2Audio Corporation

The D2Audio Corporation, maker of the world's only intelligent digital audio amplifiers, supplies a full line of cost-efficient, powerful, multi-channel platforms including ICs and firmware with market-leading performance and superior sound quality for digital media applications in consumer, professional, and automotive industries. The patented D2Audio Intelligent Digital Amplifier technologies, now with D2Audio SoundSuite(TM), deliver an immersive audio experience on the D2Audio(R) Digital Audio Engine(TM) (DAE) IC platforms. For more information on D2Audio and its products, please visit www.d2audio.com.