Notice of the Establishment of JVC KENWOOD Holdings, Inc.

Tokyo (ots) - On October 1, 2008 Victor Company of Japan, Limited
(JVC) and Kenwood Corporation (KENWOOD) announced that they
integrated management by establishing JVC KENWOOD Holdings, Inc. (JVC
KENWOOD HD) as of the same day through a share transfer.

Outline of the JVC KENWOOD Group

As a result of integrating management of JVC and KENWOOD
(collectively, "both companies"), JVC KENWOOD HD was established as
the joint holding company and listed as of October 1, 2008 on the
First Section of the Tokyo Stock Exchange. JVC KENWOOD HD became the
wholly owning parent that holds 100% of JVC and KENWOOD shares, both
of which have become unlisted operating companies. As of October 1,
2008, both companies implemented a company split (simplified
absorption-type split or kan'i-kyushu-bunkatsu). The purpose is to
pass on part of the rights and obligations of their Car Electronics
business and of their equities administration business for several
subsidiaries to J&K Technologies Corp. (J&K Technologies), a joint
venture of both companies. The goal is to quickly maximize synergies
in the Car Electronics business, from which JVC KENWOOD HD expects
the greatest synergies in this management integration. As a result,
J&K Technologies expanded operations to full-fledged development,
design, procurement and production without limitation to joint
technological development. The six Car Electronics related
development and production subsidiaries of both companies became
subsidiaries of J&K Technologies. JVC KENWOOD Group now consists,
therefore, of JVC KENWOOD HD as the joint holding company with JVC,
KENWOOD and J&K Technologies as operating companies. It intends this
group structure to reinforce its competitive edge and earnings
creating capability by developing both companies' established
corporate foundations into a new, sustainable business infrastructure
to succeed in the digital era down the road. The Group will also use
synergies from management integration to create and increase its
corporate value to establish a solid position as a world-leading,
dedicated manufacturer-based group.

KENWOOD Holdings, Inc.

Representative: Haruo Kawahara, Chairman (Representative Director
of the Board) and CEO (Code: 6632; First Section of the Tokyo Stock
Exchange)

Originaltext: JVC Kenwood Holdings, Inc.
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Contact:
Hiroshi Odaka, Executive Vice President and CFO
Tel: +81-45-444-5232

GolinHarris Deutschland, Jan-Hendrik Eickmeier
Tel: +49-69/913043-37
eickmeier@golinharris.de