Audiovox Announces the Acquisition of Incaar, Ltd.


HAUPPAUGE, N.Y., Oct. 1 / -- Audiovox Corporation (NASDAQ:VOXX) today announced that its wholly-owned subsidiary, Audiovox German Holdings GmbH, has acquired Incaar, Ltd., a premium multimedia systems company based in the United Kingdom for approximately $402,000, in addition to a maximum contingent earn out payment of $400,000 if certain earnings targets are met.

Incaar concentrates its marketing efforts on the Original Equipment (OE) segment where it develops and markets a diverse line of multimedia and mobile video systems and components for the European automotive industry. Among the products offered are HDD Multimedia, Wi-Fi Technology, GPS/GSM Modules, DVD Loaders/Changers as well as a complete line of electronic accessories to support these systems. Incaar's products are RoHS (Restriction of Hazardous Substances) compliant and meet with all regional environmental directives.

Patrick Lavelle, President and CEO of Audiovox stated, "The acquisition of Incaar adds the OE component to our international mobile multi-media efforts. While Incaar has a limited operating history, it has a strong brand presence in the OE marketplace including programs with BMW and Toyota among others."

Lavelle continued, "We see this acquisition as a win/win for Audiovox in Europe receiving the additional revenues in the OE business channel and Incaar adding resources that we can provide to help grow their business."

Although the Company expects this acquisition to be accretive in FY08 with seven months of the fiscal year completed the effect on our financials will be minimal. However, with new programs underway and new products scheduled for introduction, the Company believes it will add approximately $10-$13 million of sales (U.S.) to our European subsidiary in fiscal 2009.

About Audiovox
Audiovox Corporation is a leading international supplier and value added service provider in the consumer electronics industry. The Company conducts its business through subsidiaries and markets mobile and consumer electronics and accessories products both domestically and internationally under several of its own brands. It also functions as an OEM (Original Equipment Manufacturer) supplier to a wide variety of customers, through several distinct distribution channels. For additional information, please visit Audiovox on the Web at http://www.audiovox.com/.

Company Contact:
Glenn Wiener
GW Communications for Audiovox
Tel: 212-786-6011
Email: gwiener@GWCco.com

Source: Audiovox Corporation

Web site: http://www.audiovox.com/

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