Klipsch announced its new high-performance 2.1ch system which simulates the effects of a 5.1ch setup.

With just two satellites, a subwoofer and an A/V center, the compact CS-500 system uses digital processing circuitry to simulate the effect of a larger, six-speaker home theater system. Each satellite employs dual magnetically shielded 2.5-inch high output medium and a 0.75-inch magnetically shielded tweeter, the subwoofer employs a 6.5-inch woofer.

The A/V center features a built-in Class-D amplifier that distributes 35 watts of power to each satellite and 100 watts of power to the subwoofer. It also includes Dolby Virtual Speaker technology along with a progressive scan DVD player, an AM/FM tuner with 20 station presets, an universal IR remote control and three auxiliary inputs.

The Klipsch CS-500 begins shipping early next month for a price of $999.99.