Introducing H2O Audio's New iN3: Plug in, paddle out and play. Apple iPod nano players are now free to roam the sea.

LAS VEGAS, NV – January 7, 2008 – H2O Audio (CES- Showstoppers #116), the leading water sports music company, is providing CES media and Showstopper attendees with an exclusive first look at its latest product release, the new iN3. Designed for surf and swim, the iN3 is a sleek case that follows the form of the new iPod nano. The iN3 will be highlighted at Showstoppers’ Monday evening CES product preview event at the Wynn Hotel and Casino in Las Vegas.

“The 3rd gen nano has added video capability to an enormous playlist capacity in an even sleeker package than its predecessors. Our new iN3 follows Apple’s lead, providing a waterproof case that complements the player's distinctive style, while providing users the opportunity to surf and swim with their music,” said Kristian Rauhala, CEO of H2O Audio.

When combined with the new H3 high-performance waterproof headphones (released in December 2007 and available on-line as well as through Apple stores), the iN3 provides the end-to-end music system for all water sports.

H2O Audio’s iN3 features include:

• Waterproof up to 10ft/3m when paired with H2O Audio waterproof headphones
• Commander^TMScroll Wheel : Enabling easy, full function control of the nano iPod click wheel and menu commands whether fully submerged in water or while wearing gloves
• LatchTight^TMLocking Closure : Proven patented technology designed to generate uniform compression for a waterproof seal that will not open on impact
• SealTight^TMConnector : Compatible with standard 3.5mm headphone plugs and providing complete watertight seal when used with H2O Audio waterproof headphones (sold separately)
• Package includes Sport Armband and Optional Belt/Gear clip
• Compatible with the H2O Audio Sport Integration System

Pricing and Availability:
MSRP for the iN3 waterproof case the iPod nano (3rd Generation) is USD $79.99. H2O Audio products are available at available at Apple stores, REI, and surf and sport specialty stores nationwide. To shop on-line or to find other retailers/dealers worldwide, please visit h2oaudio.com.

About H2O Audio:
H2O Audio is the leading brand of waterproof and ruggedized sports accessories including a complete line specifically designed for Apple iPods. H2O Audio created the “underwater” headphone category and continues to design innovative products that enhance the action sports experience.

APPLE, IPOD ARE REGISTERED TRADEMARKS OF APPLE, INC. H2O AUDIO IS A REGISTERED TRADEMARK OF H2O AUDIO, INC. ALL OTHER REGISTERED OR UNREGISTERED TRADEMARKS ARE THE SOLE PROPERTY OF THEIR RESPECTIVE OWNERS.