Audiovox To Acquire Thomson's Consumer Electronics Accessory Business Including The Rights To The RCA Brand For Consumer Electronics Accessories

Purchase price is $50 million, plus a five-year fee related to the RCA brand in the consumer electronics accessories field.

December 28, 2006

Audiovox Corporation, announced today that it has entered into a definitive agreement with Thomson to acquire its Americas consumer electronics accessory business, which includes approximately 115 employees in locations in the United States, Canada, China (including Hong Kong) and Malaysia. The Company anticipates this transaction will close in early 2007. As a result of the acquisition, Audiovox will acquire the rights to the RCA brand for consumer electronics accessories. The acquisition also includes the Recoton, Spikemaster, Ambico and Discwasher brands for use on any products and the Jensen, Advent, Acoustic Research and Road Gear brands for accessory products. Audiovox already owns Jensen, Advent, Acoustic Research and Road Gear brands for electronics products as part of prior acquisitions. Proposed acquisition to add over $150 million in annual sales and should add to 2007 earnings. Patrick Lavelle, President and CEO of Audiovox stated, "The well respected RCA name further strengthens our brand portfolio in consumer electronics accessories and gives us greater flexibility at the distribution level. We believe the acquisition of this business will enhance both our top and bottom line performance and create powerful marketing synergies for our organization." Lavelle further stated, "This acquisition supports our growth strategy of acquiring companies in businesses that generally operate at higher margins than electronics. In addition, our primary acquisition targets include companies where we can utilize operating leverage to gain maximum efficiencies. Over the past year, we have worked to streamline our operations while maintaining a cost structure that supports additional sales. This acquisition is synergistic as its product lines move through existing channels where we share many of the same customers and have strong relationships in place today. Post closing, we will still have significant financial resources and will seek to continue to grow organically and through acquisition." 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 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.

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