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BMW Purchases Andrea Electronics' Microphone Array

11 December 2000

BMW of North America Purchases Andrea Electronics' Microphone Array For Use With Hands-Free Digital Phone Application in BMW Z8 Sports Car

            Announcement Marks First Automotive OEM Purchase Order

    MELVILLE, N.Y., Dec. 11 Andrea Electronics Corporation
(Amex: AND), a leading developer of hardware and software audio input
technologies, announced today that BMW of North America, Inc. has selected
Andrea Electronics to be the microphone supplier for its BMW Z8 sports car.
Beginning early next year, Andrea Electronics' digital microphone array will
be included in the BMW Z8 sports cars in North America for use with an updated
integrated digital portable phone.  The BMW Z8's integrated digital portable
phone system will rely upon Andrea Electronics' high performance digital
microphone system to enable the clearest voice communications in a noisy
mobile environment.  Andrea Electronics' digital microphone array,
incorporating Digital Super Directional Array (DSDA(R)) 2.0 and PureAudio(TM)
2.0 software algorithms, significantly reduces automotive inherent noises such
as tire, engine and wind noise, as well as other passenger voices.
    "BMW selected Andrea Electronics' microphone array to address the audio
intelligibility issues common in high noise environments such as an open
topped sports car," said Hans Duenzl, Vice President, Aftersales & Engineering
at BMW North of America, Inc.  "BMW remains committed to delivering to its
customers the finest driving experience.  As part of that commitment, by
utilizing Andrea's digital microphone array technology as the interface for
in-vehicle cellular communications, BMW is ensuring that drivers of the Z8
enjoy safe and accurate mobile communications."
    "A high performance, noise canceling microphone solution is critical to
the successful operation of speech-enabled telematics applications," said John
N. Andrea, Co-Chairman and Co-Chief Executive Officer at Andrea Electronics
Corporation.  "Today's announcement with BMW of North America further
validates our digital microphone technology and represents a significant
achievement for Andrea in meeting its strategic goal of becoming a leading
provider of audio input solutions for the automotive OEM marketplace."
    Today's purchase order announcement marks disclosure of the automotive
original equipment manufacturer (OEM) which was referred to in Andrea
Electronics' third quarter 2000 results release issued on November 2, 2000.

    About the BMW Z8 Sports Car
    The limited-production BMW Z8 sports car boasts classic styling inspired
by the timeless BMW 507 from the 1950s.  It's 394 horsepower V8 engine and
aluminum space-frame chassis ensure modern performance of the highest order.
Drivers benefit from a wealth of luxury and safety features including a fully
integrated digital phone system which affords hands-free mobile communication.