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GRACE DIGITAL INTRODUCES NEW LARS & IVAN LINE UP

Actively seeking dealers for their high performance iPod tube amplifier and speaker systems

San Diego, California, February 1, 2008 - Grace Digital Inc., a leading manufacturer of audio and telephony consumer electronics, announces the launch of their new line of high performance Lars & Ivan audio products into the growing iPod and computer centric digital audio market.

The new product line consists of 4 products including the

Hybrid PA-40Ti

, a high performance integrated iPod tube amplifier. This first of its kind integrated iPod amplifier provides superior sound with a cutting edge modern design. "Most products in this category are either extremely expensive, lack design appeal, or provide poor audio performance. At $449.99 MSRP, the Hybrid Amplifier model 40PaTi offers high end audio performance, unique design and build quality at an affordable price", according to Greg Fadul, Grace Digital's Chief Marketing Officer. To complement the Hybrid Integrated amp, Lars & Ivan is launching two complementary speaker options. The

Bobos

speaker's will retail at $299.99/pair and the

Cube S

speaker's at $499.99/pair. Both speakers redefine clarity with superior workmanship, digital audio performance and elegant design.

Rounding out the line is the new compact speaker system model

QQ2.1K

which mirrors the graceful lines of the acrylic and aluminum Bobo's. The QQ2.1K speaker system will retail for $199.99 and is designed for the discriminating consumer who desires superior audio performance and digital integration ( iPod, Mp3 players, computers etc) in an elegant industrial design.

The new product line will be available Mid March 2008. Grace Digital is currently adding direct dealers as well as dealers through our distribution partnerTeleDynamics.

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