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Epsilon Capital Management's First Quarter Asia Pacific (Emerging) Economic Round Up. This is Epsilon Capital Management's 2 Part Series on the Emerging Asia Pacific Economies for the 1st quarter of 2012. In the 1st part of our report we will look across the region as a whole and more specifically at China, India and South Korea.

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Data released between January and early April painted a mixed picture of how the German economy fared during the first quarter of 2012. Some of the reported figures, such as those related to industrial output and manufacturing activity, indicated that Europe's largest economy may have lost steam during the first three months of this year due to an unusually cold winter, rising oil prices, as well as weaker demand for its exports from Euro-zone trading partners and China. However, other statistics, like trade balance, gave a more optimistic view and hinted that the country likely averted "technical recession" in the first quarter. Germany's GDP contracted 0.2% in the fourth quarter of 2011 compared to the previous quarter. If the first quarter of 2012 too reports a fall in GDP, the two consecutive quarterly declines will mean Germany is now in "technical recession." Whether or not Germany avoided recession in the January-March period is a key topic of discussion for economists and the financial media, at least until the actual GDP figures for the period are reported later this quarter. This is because the country, which remains the primary driver of the Euro-zone economy, had, until December 2011, showed several signs of resilience despite the slowdown in the region. Unfortunately for Germany, some of those signs do not look as encouraging now.

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics. The company offers DVD (Digital Video Disc)

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics.

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics.

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics. The company offers DVD (Digital Video Disc)

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics. The company offers DVD (Digital Video Disc) players, Bluetooth

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Agreement with Epsilon Electronics for the development and introduction of consumer products employing the Company's patented HyperSound technology. The arrangement is non-exclusive except for after-market automobile products for which Epsilon retains two-year exclusivity rights subject to certain conditions. The license contemplates a six-month development term to create prototypes thereafter followed by a three-year manufacturing term. "This agreement underscores our commitment to executing strategic licensing deals to deploy our HyperSound technology," said Kenneth F. Potashner, executive chairman of Parametric Sound. "These partnerships will open the door for the integration of our patented audio solutions into next-generation consumer products." "We are excited about the opportunity to launch products that offer consumers a rich, immersive sound experience," said Jack Rochel, president of Epsilon Electronics. "Partnering with a technology innovator like Parametric is a key element of our strategy, and we anticipate this agreement will bring value to our company and the products we offer." About Parametric Sound Corporation Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam sound to target a specific listening area without the ambient noise of traditional speakers. Recent innovations produce a distinctive 3D audio image from just two speakers opening opportunities for 3D sound solutions for computers and entertainment. For more information, visitwww.parametricsound.com. About Epsilon Electronics Corporation Epsilon Electronics, Inc. manufactures and markets audio and video systems for automobiles through its subsidiaries. Its subsidiaries include Farenheit Technologies, Soundstream Technologies and Power Acoustik Electronics. The company offers DVD (Digital Video Disc) players, Bluetooth

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