at least that's what they say...
"Experience your MP3 music beyond studio quality
* Restore the details and vibrance that your music lost during MP3 compression
* Enjoy all your music and movies in surround sound on any stereo speaker system or headphones
* Connect in seconds to your notebook, PC or Mac to create an Xtreme Fidelity sound system"
source: x-fi.com
"Experience your MP3 music beyond studio quality
* Restore the details and vibrance that your music lost during MP3 compression
* Enjoy all your music and movies in surround sound on any stereo speaker system or headphones
* Connect in seconds to your notebook, PC or Mac to create an Xtreme Fidelity sound system"
source: x-fi.com