PHITEK SYSTEMS JOINS CSR EXTENSION PROGRAMME ADDING V3D VIRTUAL SURROUND SOUND TO LATEST BLUETOOTH CHIPSET

Hanover, Germany – 15 March 2007 – Phitek Systems Limited announced today that its proprietary V3D® virtual surround sound technology is now available on CSR’s BlueCore5-Multimedia chipset.

Phitek’s V3D and LFX™ technologies allow wireless headset manufacturers to combine industry leading Bluetooth technology with high-quality virtual surround sound and psycho-acoustic Bass Enhancement. CSR’s choice to port Phitek’s advanced software to BlueCore5-Multimedia provides CSR’s customers with access to optimum performance for wireless headset applications, enabling manufacturers to develop high-quality Bluetooth headsets.

Phitek's V3D technology represents the world's most advanced, configurable and complete set of virtual surround sound algorithms. V3D employs patented reverberation techniques coupled with a highly efficient HRTF processing engine yielding a very powerful configuration. Capable of generating an accurate virtual surround sound experience, V3D not only creates the illusion of multi-speakers through headphones, but also synthesizes additional virtual surround sound channels.

Phitek’s LFX solution creates the psychoacoustic perception of missing fundamentals for the listener, which improves the apparent bass response of any speaker system.

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Due to the high-performance on-chip DSP, CSR’s BlueCore5-Multimedia platform is the only Bluetooth platform available which can support such third party audio enhancement software. In addition, BlueCore5-Multimedia offers superior sound quality with a best-in-class signal to noise ratio of -95dB. BlueCore5-Multimedia also leads the industry for power consumption and radio design.

Mark Donaldson, CEO, Phitek, commented, “Consumers now demand high-quality voice communication, which forces wireless headset manufacturers to implement the best technology on the market. Through comprehensive understanding of modern control theory and acoustics, Phitek has been able to bring two leading solutions to market. Partnering those with CSR’s industry leading Bluetooth silicon provides headset manufacturers with the most optimised and sophisticated solution on the market.

Anthony Murray, SVP of CSR's Wireless Audio Strategic Business Unit (SBU), commented, “CSR is committed to providing its customers with the very latest and most advanced technologies on the market. The BlueCore5-Multimedia platform enables CSR to work with the world’s leading third-party software vendors in order to bring to market the most complete wireless solutions.” Murray, continued, “Headset manufacturers are assured that when using CSR and Phitek technology that their devices will achieve the highest level of usability and sound quality.”

-Ends

About Phitek Systems

Phitek Systems Limited is involved in the research, development and sale of advanced audio enhancement technologies, audio products, integrated circuits and ancillary test and measurement software and apparatus. The Company has developed a range of effective audio enhancement solutions based around its

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proprietary Active Noise Rejection (ANR™), Virtual Surround Sound (V3D™),
and psycho-acoustic Low Frequency Extension (LFX™) technologies.
Phitek is focused on the commercial exploitation of its products and technologies
in a number of markets including, but not limited to, aviation, consumer
electronics, mobile telephony and software. More information can be found at
http://www.phitek.com.

About CSR

CSR is the leading global provider of personal wireless technology and its product portfolio covers Bluetooth, GPS, FM receivers and WiFi (IEEE802.11). CSR offers developed hardware/software solutions, based around its silicon platforms, that incorporate, fully integrated radio, baseband and microcontroller elements. CSR’s customers include industry leaders such as Apple, Dell, LG, Motorola, NEC, Nokia, Panasonic, RIM, Samsung, Sharp, Sony, TomTom and Toshiba. CSR has its headquarters and offices in Cambridge, UK, and offices in Japan, Korea, Taiwan, China, India, France, Denmark, Sweden and both Dallas and Detroit in the USA. More information can be found at www.csr.com