An audio apparatus comprising a modulator 12 for modulating a first ultrasonic signal 29 with an audio signal to provide a second ultrasonic signal 30; a transducer 15 for converting the second ultrasonic signal 30 into an ultrasonic pressure wave for transmission into a non-linear medium to allow demodulation of the ultrasonic pressure wave and thereby generate an audio pressure wave representative of the audio signal 29, processing means 11 for modifying the audio signal to compensate for the demodulating properties of the non-linear medium; and means 8 for modifying the audio signal to compensate for the conversion characteristics of the transducer 15.