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Contact: A&R Partners for Wave Industries Elena Frigeri (212) 905-6153 efrigeri@arpartners.com

Paul Lesinski (503) 293-8949 plesinski@arpartners.com

Olympia Soundbug Turns Any Hard Surface Into a Sounding Board for Music or Voice Underwater Sonar Technology Developed by U.S. Military Exclusively Patented for New Consumer Electronics Device PORTLAND, Ore., June 3, 2002 – Wave Industries Ltd., today announces the availability of the Olympia Soundbug, an innovative audio device that turns any hard, smooth surface – such as a tabletop, door or window – into a sounding board for music or voice. About the size of a small mobile phone, Soundbug is a portable alternative to headphones or loudspeakers for use with products such as portable CD, MP3, Minidisc and cassette players, hand-held game consoles, camcorders and laptop computers. Olympia Soundbug is available via the Web at www.soundbug-us.com for $49.95. Wave Industries’ Soundbug is the first in a series of consumer products the company plans to market under the Olympia brand name. Magnetostriction: The Technology Behind Soundbug For the Soundbug to work, it must be suctioned onto a flat, smooth surface. Then, revolutionary technology takes over to produce sound. Soundbug uses magnetostriction or magnetoelasticity, licensed exclusively for use in consumer products from Olympia and Wave, and a rare material called Terfenol-D, originally developed by the US military for underwater sonar applications. Terfenol-D is a combination of iron and rare earth metals grown into crystals and harvested in only two places worldwide – China and Iowa. Unlike traditional speakers that rely on a metal coil and a speaker cone moving rapidly like a piston to vibrate the air in front of the speaker to create sound waves, each Soundbug includes a sliver of magnetostrictive material – Terfenol-D. When activated by a magnetic field, the Terfenol-D expands and contracts at very high frequency and with dramatic force. Soundbug’s unique actuator harnesses this force and transfers it to the surface to which Soundbug is attached, creating vibrations and effectively turning that surface into a sounding board.

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Olympia Soundbug, page 2 of 2 “The Soundbug is just the first of many revolutionary audio products we plan to introduce under the Olympia brand name this year,” said Bruce Garfield, president of Wave Industries, Ltd. “Initially, Soundbug was developed as a portable alternative to headphones or speakers. We’re finding that people may be interested in the device for use with a laptop and then they find themselves using it with a range of devices they already own, such as MP3s and portable CD players.” Soundbug plugs into the standard 3.5mm headphone socket of any device. A suction cup push ring attaches Soundbug firmly to any smooth, hard surface such as glass or metal – from a filing cabinet or desktop a window or even a glass-framed picture. A single Soundbug can generate sound loud enough for a group of people to enjoy music together, or listen to the sound output from a laptop presentation or a camcorder video. Two Soundbug devices can be linked in parallel to generate stereo sound (from a stereo source) with a significantly increased sound output level. The device features a three-position switch – off, soft and loud – as well as a power sleep circuit to save battery power when no audio source is detected. Soundbug Technical Specifications Volume 75 dbm (peak) Battery Life 4 hour continuous play Frequency Response 8000 Hz Input Impedance 2.7K ohms Interface Input 3.5mm stereo jack Output 3.5mm stereo socket Power Consumption 3 AAA alkaline batteries Cable Length 6 feet Weight 8 ounces/180g including batteries Dimensions 4.1in x 1.9in x 1.5in / 105 mm x 50mm x 40mm Pricing & Availability Soundbug is available immediately at www.soundbug-us.com for $49.95 (includes three AAA batteries). About Wave Industries Ltd. Wave Industries Ltd. develops, markets and distributes innovative consumer telecommunications and audio products under the Olympia brand name. Wave Industries Ltd., based in Portland, Oregon, is a wholly owned subsidiary of Elite Industrial Holdings Ltd. ###

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