MELVILLE, N.Y., Dec. 11 /PRNewswire/ -- Andrea Electronics Corporation (Amex: AND), a leading developer of hardware and software audio input technologies, announced today that BMW of North America, Inc. has selected Andrea Electronics to be the microphone supplier for its BMW Z8 sports car. Beginning early next year, Andrea Electronics' digital microphone array will be included in the BMW Z8 sports cars in North America for use with an updated integrated digital portable phone. The BMW Z8's integrated digital portable phone system will rely upon Andrea Electronics' high performance digital microphone system to enable the clearest voice communications in a noisy mobile environment. Andrea Electronics' digital microphone array, incorporating Digital Super Directional Array (DSDA(R)) 2.0 and PureAudio(TM) 2.0 software algorithms, significantly reduces automotive inherent noises such as tire, engine and wind noise, as well as other passenger voices.

"BMW selected Andrea Electronics' microphone array to address the audio intelligibility issues common in high noise environments such as an open topped sports car," said Hans Duenzl, Vice President, Aftersales & Engineering at BMW North of America, Inc. "BMW remains committed to delivering to its customers the finest driving experience. As part of that commitment, by utilizing Andrea's digital microphone array technology as the interface for in-vehicle cellular communications, BMW is ensuring that drivers of the Z8 enjoy safe and accurate mobile communications."

"A high performance, noise canceling microphone solution is critical to the successful operation of speech-enabled telematics applications," said John N. Andrea, Co-Chairman and Co-Chief Executive Officer at Andrea Electronics Corporation. "Today's announcement with BMW of North America further validates our digital microphone technology and represents a significant achievement for Andrea in meeting its strategic goal of becoming a leading provider of audio input solutions for the automotive OEM marketplace."

Today's purchase order announcement marks disclosure of the automotive original equipment manufacturer (OEM) which was referred to in Andrea Electronics' third quarter 2000 results release issued on November 2, 2000.

About the BMW Z8 Sports Car

The limited-production BMW Z8 sports car boasts classic styling inspired by the timeless BMW 507 from the 1950s. It's 394 horsepower V8 engine and aluminum space-frame chassis ensure modern performance of the highest order. Drivers benefit from a wealth of luxury and safety features including a fully integrated digital phone system which affords hands-free mobile communication.

About Andrea Electronics' Digital Audio Software

Andrea Electronics' DSDA 2.0 array technology solution offers greater sensitivity and a superior solution for clear voice recognition. The system is optimized to run on any digital signal processor (DSP) or host processor and offers a flexible array structure which can be customized to suit a particular application or hardware configuration, such as a rear view mirror, headliner or steering column.

About Andrea Electronics

Andrea Electronics Corporation designs, develops and manufactures audio technologies and equipment for enhancing applications that require high performance and high quality voice input. The Company's patented Active Noise Reduction (ANR READY(R)) earphone, Active Noise Cancellation (ANC) near-field microphone, patented Digital Super Directional Array (DSDA(R)) and patent- pending Directional Finding and Tracking Array (DFTA(TM)) far-field microphone technologies enhance a wide range of audio products to eliminate background noise and ensure the optimum performance of voice applications. Applications for the Company's technologies include: speech recognition programs, Internet telephony, video/audio conferencing, automobile PCs, home automation systems, hand-held devices and multiplayer online games, among others. OEM and software publisher customers and strategic partners of Andrea Electronics' include: IBM Corporation, Intel Corporation, Donnelly Corporation, Symbol Technologies, Inc., BMW of North America, Inc., Clarion Corporation of America, Microsoft Corporation, Lernout & Hauspie, ScreenFriends Corporation, Audio-Technica, U.S., Inc., DeltaThree.com, Lotus Development Corporation, Fonix Corporation, Centra Software, Inc., Logitech, Inc., Net2Phone, Inc., Voyetra Turtle Beach, Inc. and ZeroPlus.com, among others. Visit Andrea Electronics' websites at http://www.AndreaElectronics.com and http://www.AudioCommander.com or call 1-800-707-5779.

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," variations of such words, and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and involve matters that are subject to certain risks, uncertainties and assumptions that are difficult to predict, including economic, competitive, governmental, technological and other factors, that may affect the business and prospects of Andrea Electronics Corporation (the "Company"). The Company cautions investors about the following significant factors, which, among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's actual results and could cause them to differ materially from those expressed in any forward- looking statements: the rate at which Andrea Anti-Noise, DSDA, DFTA and other Andrea technologies are accepted in the marketplace; the competitiveness of Andrea Anti-Noise, DSDA, DFTA and other Andrea products in terms of technical specifications, quality, price, reliability and service; the sufficiency of the Company's funds for research and development, marketing and general and administrative expenses; infringement and other disputes relating to patents and other intellectual property rights held or licensed by the Company or third parties; and the Company's continuing ability to enter and maintain collaborative relationships with other manufacturers, software authoring and publishing companies, and distributors. No assurance can be given that the Company will achieve any material sales or profits from the products introduced in this release. These and other similar factors are discussed under the heading "Cautionary Statement Regarding Forward-looking statements" included in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the Company's Annual Report on Form 10-K and in the Company's Annual Report to shareholders, and in documents subsequently filed by the Company with the Securities and Exchange Commission.

"Andrea Anti-Noise," "ANR Ready," "DSDA," DSDA-PRO," "DFTA," "SuperBeam," "EchoStop," "PureAudio" and "Desktop Array" are trademarks of Andrea Electronics Corporation or an Andrea Electronics Corporation subsidiary.

SOURCE: Andrea Electronics Corporation

CONTACT: At Andrea Electronics - Richard A. Maue, Chief Financial Officer, or Lauren Smith, Marketing Communications Manager, 800-442-7787/