In 1979, a music shop in Romford, Essex, UK, called Soundwave was building and hiring out PA systems to local musicians.

The owner of Soundwave, Fred Friedlein, and staff which included Alan Morgan (sales) and Stuart Watson (design engineer) realised the potential market and developed a range of products that incorporated MOSFET output stages driving large cabinets, including 15” drivers, and also the world's first bass-dedicated 4 x 10” cabinet, now an industry standard for all bass amp lines.

Trace Elliot, as the brand came to be called, gained a reputation for themselves; rumour has it that early users were John Paul Jones of Led Zeppelin, Andy Rourke of The Smiths and Brian Helicopter of punk band The Shapes.

In late 1986, Stuart Watson, technical director and designer of the Trace Elliot range up to the Mark 5 series, left the company.

That same year Fred Friedlein (then sole owner of Trace Elliot) employed the services of freelance electronics designer Clive Button.