KNOWLES ACOUSTICS REPRESENTATIVE: You are here at the AES stand for Knowles Acoustics. We are a manufacturer of acoustic components since over 50 years now, coming from the hearing aid market where we started to develop the small transducers which you'll see, for example, in this showcase, a high-end balanced armature speakers and miniature microphones.

As I said, we're coming from the hearing aid market and we expanded with our products and our expertise into other areas. What we focus here on this show are these balanced armature transducers, which we push more and more into consumer kind of applications like ear buds, which I want to show you in a second. If you can come over with a camera, we see here some of the prototypes which we introduce to our customers to get an idea how the balanced armature transducers perform. They have some major advantages versus standard dynamic types. They are more efficient so on mobile devices, better reach of your mobile devices, you get more and longer performance because of the kind of transducers in this small package they offer additional benefits like a good seal and noise cancellation around 25 to 28 dB if it's very good sealed, and you have an excellent reproduction of sound which make this kind of ear buds the preferred accessory for all devices from mobile phones or MP3 players to all kinds of mobile devices where music and sound is reproduced.

Coming to the other product showed here in this showcase, I want to point out the surface mountable MEMS microphones. We are the first manufacturer who came out with this product three years ago in high volume, and we sell now to mainly to mobile phone manufacturers. Around 20% of the market is covered by this microphone. All of the major headset manufacturers know this, and we also have some also users in quite a significant volume.

November last year, we announced the production of 300 millions of this component and we are further ramping up our production capacities in the Far East. These are the major product groups which we introduced now. Besides this , we have also some [PH] ACM's for other consumer-type of applications mainly headsets, bluetooth headsets, and we, of our customers, not only a wide range of excellent microphones and receivers but also we support them from the early step of development until finished product.