LTEC LOUD Technologies Inc (CE)

LOUD Technologies Inc. (LOUD) (OTCBB:LTEC) announced today that has implemented a new direct distribution system in North America that it estimates will reduce selling costs by about $1 million in 2006 and by at least $2 million annually beginning in 2007. "We want LOUD to be easy to do business with, and we are confident that the changes we are making to our domestic distribution system will enable us to improve service for all of our customers at the same time that they sharply reduce costs," said Chairman and CEO Jamie Engen. "Our sales in Canada have increased since we migrated to direct sales there several months ago, and we expect to see similar results in the United States." LOUD has created a sales team focused exclusively on its largest customer, Guitar Center; a second team that will concentrate only on other national chains and large internet retailers; a third targeted at regional customers; and a fourth to service retailers of professional recording equipment. "LOUD's existing network of independent sales representatives will continue to sell our products to professional sound reinforcement retailers and permanent installation contractors, a high-growth market where we believe our reps are well-equipped to continue delivering strong results," Engen said. LOUD has established an office at its headquarters in Woodinville, Washington to provide overall corporate support for the direct sales organization, supplementing the trained technical and sales support personnel attached to each dedicated sales team. The Company also is assembling a corporate-level staff of Product Specialists located throughout the country to ensure that everyone in the distribution chain is equipped with the best sales tools in the industry. In addition, LOUD is developing a web-based system to facilitate on-line ordering. "Our new approach is an important step toward building the high-performance organization we are striving for, and delivering the revenue and earnings growth that will build long-term value for our shareholders," Engen concluded. About LOUD Technologies Inc. LOUD Technologies Inc. (www.loudtechinc.com) is one of the world's largest manufacturers and distributors of professional audio and music products. As the corporate parent for world-recognized brands including Alvarez, Ampeg, Crate, EAW, Knilling, Mackie, SIA and TAPCO, LOUD Technologies produces and distributes a wide range of digital recording products, loudspeakers, commercial audio systems, audio and music software, guitars, guitar and bass amplifiers, and orchestral string instruments. LOUD Technologies' brands can be found in professional and project recording studios, video and broadcast suites, post-production facilities, sound reinforcement applications including churches and nightclubs, and retail locations and on major musical tours. Forward Looking Statements Certain statements contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words -- "believe," "expect," "anticipate," "intend," "will" and similar expressions are examples of words that identify forward-looking statements. These forward-looking statements are based on current expectations and assumptions based on information currently available to us. These forward-looking statements may be affected by the risks and uncertainties associated with our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2004. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements to conform them to actual results or changes in the Company's expectations.