Exhibit 99.1

Announcement from Boston Acoustics, Inc.

    PEABODY, Mass.--(BUSINESS WIRE)--March 12, 2004--Boston Acoustics,
Inc. (NASDAQ: BOSA) today announced that a customer, which accounted
for approximately 32% of the Company's consolidated net sales during
the first three quarters of the current fiscal year, has notified the
Company that beginning in May 2004 it will reduce its annual purchases
by approximately 50%. The Company expects that the loss of business
from this customer will be offset in significant part by expected
increases in sales to other customers. In addition, management will
continue its efforts to diversify its customer base for all products
in order to reduce dependence on any single customer.
    Management expects that, as a result of the decrease in business
with this customer, the Company will incur a net operating loss for
the June quarter of its 2005 fiscal year. However, it believes that,
as a result of anticipated increases in other business, the Company
will achieve profitability for the 2005 fiscal year.
    President & CEO Moses Gabbay stated, "Although we are
disappointed in this development, we remain focused and will continue
to invest in engineering, sales, and marketing, to ensure that our
product and brand continues to be cutting edge."
    The Company has lines of credit with two U.S. banking institutions
totaling $26,500,000, with no outstanding borrowings under either of
these credit facilities. Management believes that the Company has
ample liquidity to meet all of its requirements for the foreseeable
future.

    About Boston Acoustics

    Boston Acoustics, Inc. (NASDAQ: BOSA) is a manufacturer of
high-performance audio solutions for home entertainment, automobiles,
and personal computers. Founded in 1979, Boston Acoustics is located
in Peabody, Massachusetts. For more information on Boston Acoustics,
visit the company's Web site at www.bostonacoustics.com.

    Certain statements in this press release contain certain
forward-looking statements concerning Boston Acoustics' operations,
economic performance and financial condition. Such forward-looking
statements are based on a number of assumptions and involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Boston Acoustics to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Factors that could cause such differences include, but are not limited
to, those discussed in the Company's Annual Report on Form 10-K for
the fiscal year ended March 29, 2003. The words "believe," "expect,"
"anticipate," "intend," and "plan" and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made.

    CONTACT: Boston Acoustics, Inc.
             Moses A. Gabbay, 978-538-5000
             moses@bostona.com