LOUD Technologies Inc.  
 
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LOUD Technologies Implements New Direct Distribution System For North America
Lower Costs and Enhanced Customer Service Will Support Long-Term Growth

April 3, 2006 – Woodinville, Wash. - 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 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
Statements in this release that are "forward-looking statements" are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as: market acceptance of new products; continued acceptance of existing products; delays in product development and related product release schedules; product price discounts; reliance on third party manufacturers and reliance on sole or limited source suppliers for key components that could result in component shortages and delays in product delivery, any of which may cause revenues and income to fall short of anticipated levels; obsolete inventory or product returns by distributors, resellers and retailers; warranty and other claims on products; changes or delays in product shipments; technological shifts; the availability of competitive products at lower prices; the continued ability to protect the company's intellectual property rights; changes in product mix; maturing product life cycles; product sale terms and conditions; the financial condition of our customers and vendors; adverse results in litigation; the effects of terrorist activity and armed conflict such as disruptions in general economic activity and changes in our operations and security arrangements; continued softness in retail spending or other changes in general economic conditions that affect demand for our products; currency fluctuations; and vigorous competition. For further information regarding risks and uncertainties associated with LOUD's business, please refer to the "Management's Discussion and Analysis of Results of Operations and Financial Condition" section of LOUD's SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting LOUD's investor relations department at 1-866-858-LTEC (5832) or 425-892-6500, or on LOUD's website at www.loudtechinc.com/invest/index.html.

Mackie, EAW, and EAW Commercial are registered trademarks of LOUD Technologies Inc. in the United States and other countries. All other trademarks are the property of their respective owners.

For more information please contact: LOUD Technologies Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: (425) 487-4333 – Fax: (425) 487-4337 – Internet: www.loudtechinc.com

 
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