yea for indiana!

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CONTACT: Joshua Ryan Hall
(317) 860-8708, hallj@klipsch.com

Klipsch Breaks Ground on One of the Midwest’s Most Advanced Consumer Audio Research Facilities
INDIANAPOLIS (November 1, 2001) — Fred Klipsch, CEO of Klipsch Audio Technologies, announced today that most of the company’s legendary Hope, Arkansas-based engineering operations will be relocated to Klipsch’s worldwide headquarters in Indianapolis and will occupy a new 27,000 square foot, state-of-the-art laboratory. According to company officials, Klipsch’s new engineering and technology center will be one of the most advanced consumer audio research facilities in the Midwest, possibly even in the U.S.

This news follows an announcement made last year by Indiana Governor Frank O’Bannon, Lieutenant Governor Joe Kernan, and Indianapolis Mayor Bart Peterson that the Indiana Department of Commerce and the City of Indianapolis offered Klipsch incentives worth a total of $1.4 million to keep and expand its worldwide headquarters in Indianapolis.

“The growth and expansion of Klipsch Audio Technologies is parallel to the growth and expansion of Indiana's technology sector and cutting-edge businesses," said Governor O'Bannon. “We are very pleased that Klipsch has chosen to grow its technology business here in Indiana."

According to Fred Klipsch, proximity to other critical departments, such as sales, marketing and product development, was the primary strategy behind the decision to move Klipsch engineering operations to Indianapolis. “Our new engineering and technology facility will be the epicenter of Klipsch innovation,” Fred Klipsch said. “Our engineers working along side sales, marketing and product development personnel will help streamline the process of getting new premium products and proprietary technologies to market. Speed, or the lack of speed, in today’s economy often determines the success or failure of a product. Klipsch is already fast and successful, and this move is one way we’re making sure we continue our progress.”

Paul Jacobs, executive vice president and COO for the Klipsch Worldwide Products Group, said plans for the new engineering and technology center include the construction of one hemi anechoic chamber and one full anechoic chamber, echo-free rooms that allow for precision acoustic measurement.

“In addition to the anechoic chambers, we’ll have digital electronics workstations, two plane wave tubes, a full-featured transducer lab, an engineering model shop and an industrial design lab,” Jacobs said. “Klipsch’s new engineering and technology center will be one of the most advanced audio research facility in the Midwest, possibly even in the U.S. The facility itself, along with the creation of additional engineering and technical positions will give the ‘silicon cornfield’ a big boost.”

Based on available information, Jacobs said there are only about 250 known full anechoic chambers in the U.S. He said Klipsch’s new full anechoic chamber will be doubly rare because it is being constructed with a unique revolving door based on the original patented designs of Klipsch’s founder Paul W. Klipsch.

“We are pleased that Klipsch has chosen to keep its headquarters in Indianapolis and to expand and create such a technologically advanced research facility," said Mayor Peterson. “The additional technology jobs created are good for Indianapolis as well as the State of Indiana.”

As part of the expansion and relocation announcement from last year, Klipsch made a commitment to hire 132 people over three years to fill newly created positions in various professional and support staff disciplines, including engineering and technical jobs. According to CEO Fred Klipsch, Klipsch is on target to fulfill that commitment, having hired 45 people for new positions to date.

“This company clearly believes in Indiana and the quality of its workforce,” said Lieutenant Governor Kernan, who serves as director of the state’s Department of Commerce. “With our outstanding universities and a dedication to lifelong learning, Klipsch will find plenty of Hoosier candidates who will be ready to step in and help the company move either further ahead in the audio research field. We’re pleased to be able to assist them in their efforts.”

Klipsch Audio Technologies is a privately held global corporation with worldwide corporate headquarters in Indianapolis and manufacturing facilities in Hope, Ark. and Orange, Calif. Klipsch makes and markets premium consumer, professional and multimedia loudspeakers under the Klipsch brand name, and high-end amplifiers, preamplifiers, processors and other electronics under the Mondial Designs, Acurus and Aragon brand names. Klipsch is the official loudspeaker brand of the Hard Rock Cafe and the only company in the world to have THX® certification in four audio categories.

SOURCE: Klipsch Audio Technologies

CONTACT: Joshua Ryan Hall of Klipsch Audio Technologies 317-860-8708, or hallj@klipsch.com

WEB SITE: www.klipsch.com

EDITOR’S NOTES: CEO Fred Klipsch and COO Paul Jacobs are available for interviews by contacting Joshua Ryan Hall of Klipsch Audio Technologies.



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