LINE 6 ANNOUNCES ACQUISITION OF X2, LEADER IN DIGITAL WIRELESS TECHNOLOGY FOR MUSICIANS
   


--Acquisition of X2 will enable Line 6 to deliver the finest digital wireless technology –

CALABASAS, CA—March 5, 2008—Line 6, Inc., the industry leader in modeling technology for music products, announced today it has acquired X2 Digital Wireless Systems, one of the leading manufacturers of digital wireless systems for musical applications. The acquisition gives Line 6 access to X2’s proprietary, patent-pending technology, its product line, as well as its vision for creating the finest digital wireless products for musicians, vocalists, and audio professionals.

“X2 is committed to becoming the world leader of digital wireless for live-performance applications,” said Guy Coker, founder of X2. “By coupling Line 6 and X2’s shared passion for uncompromised tone, creative inspiration and technological advances, the acquisition is the perfect blend of two visionary companies.”

In less than a year since it began shipping product, X2 has become the leader in the U.S. in digital systems for guitarists. The founder, Guy Coker, was behind the highly regarded digital wireless systems of the 1990’s and his pioneering work continues today with the constant development of new technology that will undoubtedly lead the way in digital wireless systems for musical applications.

X2’s products provide significant advantages over existing analog wireless systems, finally enabling artists to achieve freedom from cables without sacrificing tone. Digital wireless technology allows for greater dynamic range and frequency response matching that of high-quality audio cables and providing a "wired" feel to the musician. Digital technologies "lock-out" all other sources of outside RF interference to deliver clear, pristine sound. In addition, unlike leading analog systems, set-up and use is extremely intuitive.

“The addition of X2 enhances Line 6’s position of creating products that are intuitive, affordable and deliver unbelievable tone,” said Mike Muench, Line 6’s Chief Executive Officer. “As one of the leading manufacturers of music creation products, Line 6 can provide support and distribution to put the finest digital wireless technology into the hands of musicians everywhere.”

About X2 Digital Wireless
X2 Digital Wireless Systems, Inc. develops and manufactures a range of professional digital wireless products for instrument and microphone applications. Designed, engineered and manufactured in the USA for real-time applications, X2's digital wireless products utilize companderless patent-applied-for digital technology. For more information visit www.x2digitalwireless.com.

About Line 6, Inc.
Incorporated in 1996, Line 6 is world renowned for developing studio- and stage-standard gear, including the award-winning POD®. Headquartered in Calabasas, California, Line 6 currently has a presence in over 60 countries worldwide with offices in the U.S., China and U.K. For more information visit www.line6.com.



Frequently Asked Questions

What is X2 Digital Wireless Systems?

X2 is the pre-eminent supplier of digital wireless systems for musicians in the US. To go to X2’s website, click here.

X2’s products provide significant advantages over existing analog wireless systems, finally enabling artists to achieve freedom from cables without sacrificing tone. Digital wireless technology allows for greater dynamic range and frequency response matching that of high-quality audio cables and providing a "wired" feel to the musician. Digital technologies "lock-out" all other sources of outside RF interference to deliver clear, pristine sound. In addition, unlike leading analog systems, set-up and use is extremely intuitive.

Why did Line 6 decide to pursue this acquisition?
Line 6 is renowned for developing studio-and stage-standard audio gear. By acquiring X2, Line 6 will provide its worldwide customers with the benefits of the most advanced digital audio wireless technology and products. Line 6’s world-wide channel relationships will provide many more customers with the chance to experience X2’s exciting products. X2’s existing customers will ultimately benefit from access to Line 6 world-class technical support capabilities. Future customers will be happy to discover the performance and studio benefits of wireless digital audio married to Line 6’s award-winning products.

When will the acquisition be complete?
The acquisition was finalized on March 5, 2008.

How much did Line 6 pay for X2?
That information is confidential.

How will the combined company be structured?

The X2 Digital Wireless Systems employees will become Line 6 employees and will continue to work on the X2-branded product line from their current Northern California office.

Will Line 6 sell X2’s current line of products?
Yes.

What products can we expect from Line 6 and X2 and when?
Line 6 does not pre-announce products or development schedules.

Where do X2’s wireless products work?
X2’s wireless solutions work in the 900Mhz band, meaning they are perfect for use in the US, Canada and a few other countries.

How does this acquisition affect X2’s end-users?
For now technical support will continue to be provided out of X2’s offices with the same phone number as before the acquisition. Return authorizations will also continue to be taken care of via the X2 office.

With whom do current dealers of X2 products place orders?
For now X2’s retail partners should use the same sales contacts as they have in the past. On April 6th, 2008, retailers will be able to purchase X2 products from the Line 6 sales force.

With whom do current dealers ask questions about order status, credit, billing, etc.?
They will contact their current reps directly until April 6th. After that date they would contact Line 6 as they normally would for Line 6 products.

What about dealers who currently aren’t selling X2 but want to? Who should they contact?
They should contact Line 6 dealer services at 818-575-3768 or http://line6.com/company/contact/dealerForm/ to be directed to the appropriate sales representative.