You can go one better if you want.
I have just installed an Apple Time Capsule which is effectively an Airport Extreme 11n wifi/cablemodem/repeater combined with a 500 Gb storage - great value if you need storage and a wifi hub. My Mac and Airport Express, plus 3 x notebooks, use this as their hub.
So far I have connected the Air Express to my stereo in the lounge room and used the analogue feed plugged into my amp - sounds great when straight from CD being played on the MAC or a lossless file.
Next step is to buy a DAC and use the digital feed from the Express as I have heard that is a big step up in sound. Biggest problem is working which one to buy.
Next step is to get another express and use it to drive a pair of active speakers in the kitchen/sunroom.
I plan to scan my CD's using EAC (Exact Copy) and then store as lossless files in iTunes on the Time Capsule.
Cheers