Phitek Systems Announces Agreement with STMicroelectronics

STMicroelectronics selected as strategic development partner and supplier for state-of-the-art active ambient noise-cancellation device

LAUSANNE, Switzerland, April 12, 2010 - Phitek Systems Limited, the global leader in electro-acoustic
technologies, announced today that it has selected semiconductor heavyweight
STMicroelectronics (ST) as strategic partner in the design and supply of
next-generation ANR(TM) Controllers.

ANR(TM) Controllers connect to Phitek's ANR(TM) electro-acoustic capsules
to provide a complete and best-in-class active noise cancellation solution
for use in audio accessory products such as headphones, headsets and
earphones.

Mark Donaldson, CEO of Phitek Systems, says the company's thrilled to
partner with ST, a recognised leader in semiconductor technology, and sees
real benefits for its business and markets.

"In order to deliver world-first technology, Phitek needs to partner with
the right expertise and production systems. In ST, we have a partner with
long-term leadership in the design and production of high-performance
semiconductors - it's a perfect match."

The first programme concerns the development of Phitek's PH1026 ANR
Controller, an advanced digitally programmable device that provides
enthralling audio-reproduction combined with superior active noise
cancellation performance optimised for music and voice applications.

"Phitek's PH1026 ANR Controller represents a fully-integrated and
configurable platform for active noise cancellation. High levels of
integration allow us to deliver a feature-rich and compact solution with an
extremely low external part count. This platform can be used across the
complete range of audio accessories, offering faster time-to-market at
reduced cost," says Donaldson.

Phitek ANR(TM) uniquely offers a complete and simple-to-execute
semiconductor and electro-acoustic solution to active noise cancellation. ANR
Controller ASICs (Application Specific Integrated Circuits) connect directly
to Phitek's ANR(TM) Capsules, which encapsulate the electro-acoustic science
necessary to deliver pre-qualified performance out-of-the-box.

Raising the bar higher, the PH1026 is digitally-configurable, delivering
a single hardware platform applicable to a wide range of accessory products.
Additionally, the PH1026 integrates the peripheral circuitry required in
application, reducing part count and providing significant cost savings over
competitive solutions.

Phitek expects the new devices to be popular with leading Mobile Music
OEMs.

"Our customers require pre-qualified noise cancellation solutions that
simplify engineering, manufacturing and time-to-market. This single device
can be used with any of our headphone or earphone ANR Capsules to create a
noise cancellation accessory with guaranteed performance," says Dr Ben
Skelton, General Manager of Phitek's Component Technologies Business Unit.

Andrea Onetti, Audio Division General Manager at STMicroelectronics,
remarks on ST's contribution in silicon design and production.

"ST has developed an internationally recognised wealth of complex,
high-performance semiconductor design expertise. We're able to engineer this
into the PH1026 to deliver a highly integrated device with exceptional
quality, wide-band audio featuring high SNR, low THD and low noise within
lowest possible power consumption and package size constraints."

Phitek plans to provide key accounts with samples of the PH1026 in
September 2010, with first orders to ship in the new year.

Eager to maintain its reputation as the fast-time-to-market enabler,
Phitek is already working with mobile OEMs to prepare their teams to apply
this technology.

"We expect to hear a series of successful Mobile Music accessory,
PH1026-based product launches, in 2011," says Skelton.

About Phitek Systems

Phitek Systems is the world's leading supplier of electro-acoustic
technologies for audio enhancement and active noise cancellation. Focused on
innovation and invention, Phitek provides global customers with creative
solutions for effective reduction of ambient noise based on its patented
Active Noise Rejection (ANR(TM)) technology.

Phitek ANR(TM) was originally developed for use in commercial passenger
aircraft where background noise leads to hearing loss, fatigue and stress.
Today, Phitek ANR(TM) is used by more than 50 airlines worldwide, servicing
over 15 million passengers each year. The technology works by measuring noise
inside the ear and calculating an "antinoise" response, which is sent to the
headphone speaker. The noise and antinoise signals combine to yield near
silence. Phitek ANR(TM) is effective at reducing background noise, and unlike
alternatives, tunes its response to suit prevailing noise conditions.

Beyond aviation, Phitek ANR(TM) technology is utilized by leading brands
in audio and mobile music and has been recognised by leading publications
including Wired Magazine, PC Magazine and Macworld as "best-in-class."
Phitek's impressive portfolio of patented solutions spans commercial
aviation, consumer audio and mobile telephone segments in both in-ear, and
on-ear formats. The company is a member of CSR's eXtension partner programme
and is active in developing world first solutions for Bluetooth monaural and
binaural applications.

Phitek is headquartered in Auckland, New Zealand, with offices in Hong
Kong, Shenzhen, San Jose, Lausanne and Tokyo. For more information please
visit www.phitek.com

Phitek CTBU, Ben Skelton, General Manager, +86-139-2375-4892, ben.skelton at phitek.com, or Corporate, Mark Donaldson, CEO , +41-78-612-4479, mark.donaldson at phitek.com, or Media, Julien Leys, JML Communications, +64-21-655-598, julien at jmlcommunications.co.nz