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2-way means that there are separate drivers that cover all of the sounds that the speakers can reproduce. The AM-1 features a separate Tweeter for high frequencies and a MidBass driver for middle and lower frequencies. The benefit of this approach is that the drivers specialize in reproducing the range of sounds that they have been designed for rather than one driver trying to do everything. Additionally, there is a passive bass radiator that helps to fill out the bottom end for better bass.
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