EXHIBIT 99.1

INDEX TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


	Page
Condensed Consolidated Statements of Profit and Loss of Martin Audio Limited for the six months ended December 31, 2006 and 2005		1
Condensed Consolidated Balance Sheets of Martin Audio Limited as of December 31, 2006 and June 30, 2006		2
Condensed Consolidated Statements of Cash Flows of Martin Audio Limited for the six months ended December 31, 2006 and 2005		3
Notes to Condensed Consolidated Financial Statements of Martin Audio Limited		4

Profit and loss account
for the six month periods ended 31 December


	2006			2005
	£			£
Turnover		8,592,944			6,802,051
Cost of sales		(5,230,040	)		(4,056,457	)

Gross profit		3,362,904			2,745,594
Distribution expenses		(582,010	)		(541,000	)
Administrative expenses		(1,277,868	)		(823,472	)

Operating profit		1,503,026			1,381,122

Other interest receivable and similar income		80,951			31,755
Interest payable and similar charges		(165,234	)		(163,129	)

Profit on ordinary activities before taxation		1,418,743			1,249,748
Tax on profit on ordinary activities		(466,743	)		(412,383	)

Profit on ordinary activities after taxation		952,000			837,365
Dividends		—			—

Retained profit for the year		952,000			837,365

All results relate to acquired and therefore continuing operations. The company had no recognised gains or losses other than the results for the above financial period.

There is no difference between the results stated above and those calculated on unmodified historical cost basis.

Balance sheets


			31
			December
	Note		2006			30 June 2006
			£			£
Fixed assets
Intangible assets		2		2,796,717			2,918,780
Tangible assets				322,272			377,277

				3,118,989			3,296,057


Current assets
Stocks		3		2,215,024			2,137,809
Debtors				2,660,699			2,256,501
Cash at bank and in hand				4,078,926			3,380,211

				8,954,649			7,774,521
Creditors: amounts falling due within one year				(4,564,296	)		(4,316,975	)

Net current assets				4,390,353			3,457,546

Total assets less current liabilities				7,509,342			6,753,603
Creditors: amounts falling due after more than one year		4		(3,101,199	)		(3,297,460	)

Net assets				4,408,143			3,456,143


Capital and reserves
Called up share capital				50,062			50,062
Share premium account				468,019			468,019
Profit and loss account				3,890,062			2,938,062

Shareholders’ funds				4,408,143			3,456,143

Cash flow statements
for the six months ended 31 December


	Note		2006						2005
			£			£			£			£
Cash flow from operating activities		5					997,652						913,636

Returns on investments and servicing of finance
Interest received				80,951						31,755
Interest paid				(135,909	)					(149,323	)
Preference share dividend paid				(3	)					(5	)

Net cash outflow from returns on investments and servicing of finance							(54,961	)					(117,573	)

Capital expenditure and financial investment
Purchase of fixed assets							(16,698	)					(92,610	)

Cash inflow before use of liquid resources and financing							925,993						703,453

Financing							(227,278	)					(687,140	)

Increase in cash in the year							698,715						16,313

Reconciliation of net cash flow to movement in net debt, six months ended 31 December:


	2006			2005
	£			£
Increase in cash in the period		698,715			16,313
Cash outflow from change in net debt		227,279			227,140

Change in net debt resulting from cash flows		925,994			243,453
Amortisation of loan costs		(17,424	)		(17,424	)

Movement in net debt in the period		908,570			226,029
Net debt at the start of the period		(198,015	)		(1,564,080	)

Net debt at the end of the period		710,555			(1,338,051	)

Notes

(forming part of the financial statements)

1 Accounting policies

The following accounting policies have been applied consistently in dealing with items which are considered material in relation to the financial statements except as noted below.

Basis of preparation

The financial statements have been prepared in accordance with applicable accounting standards, and under the historical cost accounting rules.

The information set out in these accounts does not constitute the company’s statutory accounts under the U.K. Companies Acts for the years ended 30 June 2006 and 2005.

Goodwill

Purchased goodwill (representing the excess of the fair value of the consideration given over the fair value of the separable net assets acquired) arising on business combinations in respect of acquisitions is capitalised. Positive goodwill is amortised to nil by equal annual instalments over its estimated useful life, which is estimated to be 15 years.

Fixed assets and depreciation

Depreciation is provided by the Company to write off the cost less the estimated residual value of tangible fixed assets by equal instalments over their estimated useful economic lives as follows:


Leasehold property improvements	-	over remaining period of lease
Computers (including software)	-	33-50% straight line
Motor vehicles	-	25% straight line
Other plant and equipment	-	20-33% straight line

Foreign currencies

Transactions in foreign currencies are recorded using the rate of exchange ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated using the rate of exchange ruling at the balance sheet date and the gains or losses on translation are included in the profit and loss account.

Leases

Assets acquired under finance leases are capitalised and the outstanding future lease obligations are shown in creditors. Operating lease rentals are charged to the profit and loss account on a straight line basis over the period of the lease.

Post-retirement benefits

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund.

Notes (continued)

1 Accounting policies (continued)

The pension costs charged in the financial statements represent the contributions payable to the scheme by the company during the year.

Stocks

Stocks are stated at the lower of cost and net realisable value. In determining the cost of raw materials, consumables and goods purchased for resale, the weighted average purchase price is used. For work in progress and finished goods cost is taken as production cost, which includes an appropriate proportion of attributable overheads.

Research and development

Expenditure on research and development is written off to the profit and loss account in the year in which it is incurred.

Taxation

The charge for taxation is based on the profit for the period and takes into account taxation deferred because of timing differences between the treatment of certain items for taxation and accounting purposes.

Deferred tax is recognised, without discounting, in respect of all timing differences between the treatment of certain items for taxation and accounting purposes which have arisen but not reversed by the balance sheet date, except as otherwise required by FRS 19.

Turnover

Turnover represents the amounts (excluding value added tax) derived from the manufacture and distribution of audio equipment to customers and is recognised on despatch.

Cash and liquid resources

Cash, for the purpose of the cash flow statement, comprises cash in hand and deposits repayable on demand, less overdrafts payable on demand. Liquid resources are current asset investments which are disposable without curtailing or disrupting the business and are either readily convertible into known amounts of cash at or close to their carrying values or traded in an active market.

2 Intangible fixed assets


	Goodwill
	£
*Cost*		3,605,445


*Amortisation*
At 1 July 2006		686,665
Charge for the six months ended 31 December 2006		122,063

At 31 December 2006		808,728

*Net book value*
At 31 December 2006		2,796,717

At 30 June 2006		2,918,780

3 Stocks


	31 December
	2006		30 June 2006
	£		£
Raw materials		916,096		1,105,194
Work in progress		529		3,969
Finished goods and goods for resale		1,298,399		1,028,646

		2,215,024		2,137,809

4 Creditors: amounts falling due after more than one year


	31 December
	2006		30 June 2006
	£		£
Bank loans		421,594		653,651
Obligations under finance leases and hire purchase contracts		2,541		4,940
Loan notes		2,489,487		2,479,238
Premium on redemption of loan stock		187,577		159,631

		3,101,199		3,297,460

Analysis of debt:


	£		£
Debt can be analysed as falling due:
In one year or less, or on demand		435,768		435,768
Between one and two years		435,768		435,768
Between two and five years		2,306,887		2,697,121

		3,178,423		3,568,657

The average interest rate applicable to the bank loans and overdrafts is 6.6% and a fixed rate of 8% on the loan notes. The bank overdraft and bank loans are secured with a fixed and floating charge over the assets of the company.

Notes (continued)

4 Creditors: amounts falling due after more than one year (continued)

The maturity of obligations under finance leases and hire purchase contracts is as follows:


	31 December
	2006			30 June 2006
	£			£
Within one year		5,081			5,081
In the second to fifth years		2,541			5,081

		7,622			10,162
Less future finance charges		(331	)		(592	)

		7,291			9,570

5 Reconciliation of operating profit to net cash inflow from operating activities, six months ended:


	31 December
	2006			31 December 2005
	£			£
Operating profit		1,503,026			1,381,122
Depreciation and amortisation		193,766			177,199
Increase in stocks		(77,215	)		(181,316	)
Increase in debtors		(404,198	)		(181,857	)
Increase in creditors within one year		(217,727	)		(281,512	)

Net cash inflow from operating activities		997,652			913,636

6 Commitments

(a)

At 31 December 2006 capital commitments for expenditure contracted but not provided amounted to £Nil (30 June 2006: £Nil).

(b)

The Company had annual commitments under non-cancellable operating leases as follows:


	31 December 2006				30 June 2006
	Land and				Land and
	buildings		Other		buildings		Other
	£		£		£		£
Operating leases which expire:
Within one year		—		14,677		—		3,143
In the second to fifth years inclusive		—		54,406		—		70,776
In over five years		261,725		—		261,725		—

		261,725		69,083		261,725		73.919

7 Subsequent event

On 11 April 2007 all of the outstanding capital stock of Martin Audio, Ltd. was acquired by Loud Technologies Inc., a US based manufacturer of professional audio and music products. The sale price was £17.25 million cash.

FRS 21: Events after the balance sheet requires the disclosure of changes in the tax rate either enacted or announced after the balance sheet date that significantly affect current and deferred tax assets and liabilities. The announcement of a change in the tax rate from 30% to 28%, effective from 1 April 2008, will impact upon the deferred tax balances set out in these accounts. This change is a non adjusting event.

LOUD TECHNOLOGIES INC 8-K/A