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Technically, V3D comprises three audio enhancement layers which provide an accurate and natural sounding binaural audio reproduction for all audio content across all formats. Parametric equalization improves audio balance which will enable airlines to offer this audio enhancement using low-end headphones. V3D is an all software implementation which provided a significant enhancement without compromising payload. The result is a fully immersive sound for airline passengers to enjoy.

The selection of Phitek's V3D technology is consistent with Thales' strategy to enable a home theater experience in the cabin environment. Lori Salazar, Vice President of Product Management of Thales' Inflight Entertainment business commented, "After evaluating a number of potential companies, Phitek emerged as "best-in-class."

Phitek is a leading provider of advanced audio solutions who today provides a Smartjack^TM noise cancellation connector now installed on more than 200,000 airline seats. Mark Donaldson, CEO
of Phitek Systems commented that "the introduction of the V3D technology by Thales represents a significant opportunity for airlines to differentiate the passenger experience." Visit the Thales booth at WAEA for a live demonstration.

About Thales

Thales is a leading international electronics and systems group, addressing defence, aerospace and security markets worldwide. Thales's leading-edge technology is supported by 22,000 R&D engineers who offer a capability unmatched in Europe to develop and deploy field-proven mission-critical information systems. To this end, the group's civil and military businesses develop in parallel and share a common base of technologies to serve a single objective: the security of people, property and nations. The group builds its growth on its unique multi-domestic strategy based on trusted partnerships with national customers and market players, while leveraging its global expertise to
support local technology and industrial development. Thales employs 68,000 people in 50 countries with 2007 revenues of €12.3 billion.

For more information about Thales Inflight Entertainment Systems visit www.thales-ifs.com .

About Phitek Systems Ltd

Phitek Systems Ltd is the world's leading supplier of audio enhancement and noise rejection technologies. Focused on innovation and invention, Phitek provides its key global customers with creative advanced analogue and digital signal processing designs for audio enhancement and noise rejection. Phitek manufactures high quality and award winning premium noise cancellation headphones and ear buds for prestigious global brands. These products have been successfully sold to leading CE brand partners for global distribution. A leader in the commercial aviation market, Phitek proprietary Active Noise Rejection (ANR^TM) technologies including its remote-jack-unit SmartJack^TM ANR^TM platform have been installed on the aircraft of major airlines including, Singapore, Emirates, Qatar, Malaysian and Qantas.

The company's headquarters is located in Auckland New Zealand with operating offices production facilities, and worldwide sales locations in Hong Kong, San Jose - California, Canada, Yokohama - Japan, and Shenzhen - China.

For more information about Phitek Systems Limited please visit www.phitek.com .