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Onkyo Entertainment Technology Corporation Signs Deal with X-Digital Systems Inc.

San Diego, CA, – (1/14/2008) – X-Digital Systems Inc. announced today it has entered into an agreement with Onkyo Entertainment Technology Corporation of Japan to develop, license and deploy the new CS-O1N satellite/IP hybrid receiver. Tailored specifically for use in NTT’s NGN network, the creation of the new receiver is part of Onkyo’s ongoing effort to provide the most innovative products and services to its audio partners.

“Onkyo Entertainment Technology Corporation is known in the consumer audio market for creating new innovative products, services and delivery methods,” said Kenichi Emoto, Director of OEM Sales Department of Onkyo Entertainment Technology Corporation. “Today’s announcement is the result of collaborative development and vendor research. To deploy this system and share the benefits of these major innovations with our customers is very exciting.”

“The unparalleled capability enabled by X-Digital’s technology in both satellite and IP communications provides Onkyo with a strong competitive capability,” said Ian Lerner, President of X-Digital. “We’re very pleased to be working with Onkyo on this next generation network product.”

X-Digital Systems Inc. (XDS) designs, manufactures and sells satellite and terrestrial multimedia communication systems for the radio broadcast industry. X-Digital’s flagship line of receivers, the XDS-PRO series, specializes in advanced communications systems for both wireless and wired applications, and are designed for reliability, flexibility and quality. X-Digital is headquartered in San Diego, Calif., with sales offices in Tokyo, Japan. For more information on the company or its products, browse www.xdigital.com.

For more than half a century, the Onkyo brand has been associated with high-quality sound reproduction. Backed by a corporate philosophy that emphasizes new technological developments and a focused approach to product design. Onkyo maintains its hard-won reputation as a leading audio specialist manufacturer in the global market. Today's growing convergence of audio and visual technologies or "Sight and sound," presents opportunities to promote home audio, home theater and home network business on a worldwide basis.

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