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Mackie Designs Inc. Announces Two Acquisitions

June 29, 1998 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq: MKIE) today announced its decision to enter the compact high-performance speaker market with the acquisition of Radio Cine Forniture (R.C.F.) S.p.A. of Reggio Emilia, Italy, and Fussion Audio Inc. of Costa Mesa, California. Subsequent to the development of related technologies over the past two years, the Board of Directors approved the expansion of Mackie's core business into the sound delivery market.

"Following the introduction of the HR824 studio monitor (Mackie's first speaker product) the market has confirmed that it will support Mackie's entry into new product categories. Providing we stick to the goal of providing the best available technology for the lowest possible price, I believe that users will continue to buy our products," noted company founder and CEO, Greg Mackie. "The pro-audio market knows quality when they hear it. If you deliver quality at an affordable price, you will always get the market's attention."

"RCF is a company with a long tradition in speaker technology. In business for almost fifty years, the company and its highly skilled workforce represents the upper-end of the pro-audio speaker market, with very strong engineering and manufacturing. These, combined with the electronics design, manufacturing and marketing capabilities of Mackie, present a winning combination," Chief Operating Officer Roy Wemyss stated.

"Fussion is a start-up formed by ex-RCF acoustic engineers. They have developed significant proprietary active loudspeaker technology and maintain close ties with RCF," Wemyss continued. "With Fussion's technology, design flair and know-how added to RCF's expertise, Mackie has the potential to move quickly and effectively on this new strategy. We look forward to the efforts the combined team will bring." added Wemyss.

"Started in 1949, RCF has focused on the development and production of high quality sound delivery products. The marriage of this accumulated knowledge with Mackie, well known as a leader in electronics, will create an entity with great potential. The synergies of the combined operations and the opportunity for growth and innovation are very compelling," commented Arturo Vicari, Managing Director of RCF. "Equally important to both companies is RCF's established presence in the European market, which should benefit from the acceleration of European unification," added Vicari.

Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

About Mackie
Mackie Designs Inc. is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs Inc. products are marketed by 54 distributors to more than 100 countries around the world.

"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.

 
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