Multimedia News Release - Tweeter Unveils New Store Concept During CES 2005

LAS VEGAS, Jan. 5 /PRNewswire/ -- Tweeter Home Entertainment Group, the nation's premier specialty retailer of entertaining consumer electronics solutions, unveiled its new prototype store in Las Vegas with an invitation-only open house today. Media in Las Vegas for the 2005 Consumer Electronics Show (CES) were able to enjoy an exclusive preview of Tweeter's newest home entertainment retail concept.

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Open to the public January 17, the Las Vegas Tweeter store is the first of its kind in the consumer electronics industry. Representing the future of the Tweeter brand, this new retail concept allows consumers to interact with a team of highly trained "Entertainment Architects" to develop personalized entertainment solutions in a unique in-store design studio. Designed in a home-like setting, the store's showroom allows consumers to experience entertainment in a notional living room, kitchen, bedroom, bathroom, sports bar, home theater, office and outdoor settings, featuring systems specially designed and configured for enjoying sports, movies and music at home or on- the-go.

"The Las Vegas store represents the future of the Tweeter brand," says Jeffrey Stone, President and CEO of Tweeter Home Entertainment Group. "After months of research and planning, we are pleased to be able to launch our new Tweeter Entertainment Architects prototype store during CES. This store offers discerning home and mobile entertainment buyers a new way to shop and provides an entirely new array of solutions and services from industry partners like HP and Microsoft that share our vision for the future."

The Tweeter Entertainment Architects store features a number of exciting technologies designed to complete the personalized entertainment experience for the consumer, including HP's Digital Entertainment Center. Built on the powerful Windows(R) Media Center PC platform, the HP Digital Entertainment Center provides easy access to music, movies, TV shows, and digital photos from a single component that fits within your entertainment system. The Tweeter prototype store provides a living demonstration of this technology, as it has never been seen before in a retail setting, connecting HP's Digital Entertainment Center to the notional rooms of Tweeter's showroom.

In addition to the HP Digital Entertainment Center, the new Tweeter Entertainment Architects store features a number of new industry partners including: Cabinet Tronix, Control4, D-BOX, Kaleidescape, Niveus, Salton/Icebox LLC, SENSIO, Sound Advance, and Vision Art, as well as new products from existing Tweeter partners including JBL and Sony.

Further cutting-edge technologies available at Tweeter Entertainment Architects store include SENSIO 3-D, a three-dimensional video processing system consumers can experience by plugging into a DVD player, compatible with most front or rear-projection televisions. The store features a top-of-the- line JBL Premier Performance 7.1-channel in-wall speaker system in the notional home theater room, including high-end audio/video source components and large-screen high-definition video, providing the most state-of-the-art sound and picture quality.

About Tweeter

Tweeter Home Entertainment Group, Inc. was founded in 1972 by current Chairman Sandy Bloomberg. Based in Canton, Massachusetts, the company is a national specialty consumer electronics retailer, providing entertaining consumer electronics solutions.

The company's fiscal 2004 revenues were $778 million. Tweeter has been named a "Consumer Electronics Retailer of the Year" by Audio-Video International every year since 1979 and was named one of the "100 Fastest Growing Companies" by Fortune in 2002. Tweeter Home Entertainment Group, Inc. now operates 177 stores under the Tweeter, Tweeter Entertainment Architects, hifi buys, Sound Advice, Showcase Home Entertainment and Hillcrest High Fidelity names in the New England, Las Vegas, Texas, Southern California, Mid- Atlantic, Chicago, Southeast, Florida and Phoenix markets. The company employs more than 3,600 associates. Further information on the Tweeter Home Entertainment Group can be found on the company's web sites at http://www.twtr.com/ and http://www.tweeter.com/.

Certain statements contained in this press release, including, without limitation, statements containing the words "expects," "anticipates," "believes," "plans," and words of similar import, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements and projections are subject to various risks and uncertainties, including the risk that the Las Vegas store will open in mid January, risks that the Las Vegas store concept will be tested, refined and integrated into the other Tweeter markets, risks that the Las Vegas store will feature a new Tweeter logo, design approach, guest experience and new Entertainment Architect dress code that will be tested and rolled out to the rest of the Tweeter chain, risks that Tweeter will consolidate its five brands into one national brand, risks that Tweeter will spend half of its fiscal 2005 advertising budget on radio and television, risks associated with management of growth, the risks of economic downturns generally, and in Tweeter's industry specifically, the risks associated with competitive pricing pressure and seasonal fluctuations, the risks associated with the potential failure by Tweeter to anticipate and react to changes in consumer demand and preferences, Tweeter's dependence on key personnel, the risks associated with obtaining financing for our business model, and those risks referred to in Tweeter's Annual Report on Form 10-K filed on December 12, 2003 (copies of which may be accessed through the SEC's web site at http://www.sec.gov/), that could cause actual future results and events to differ materially from those currently anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements and financial projections.