Audiovox Corporation Reports Fourth Quarter and Fiscal 1998 Results.

HAUPPAUGE, NY--(BUSINESS WIRE)--January 25, 1999--

-- Q4'98 Sales up 22% over Q4'97 -- Net Income for Q4 was $ 0.18 per share -- ACC Continues Transition to Digital Technology -- Electronics Group Debuts FRS Radios to Strong Holiday Sales

Audiovox Corporation (AMEX: VOX) today announced results for its fourth quarter and fiscal year ended November 30, 1998.

Net income and earnings per share for the fourth quarter of fiscal 1998 were $3.4 million or $0.1r share basic and diluted compared to $21 millie of the CellStar shares and charges related to the conversion of convertible debentures, net income was $0.54 per share basic and $0.53 diluted compared to $0.16 per share basic and diluted for fiscal 1998.

John J. Shalam, Chairman, President and CEO of Audiovox Corporation, commenting on the performance said, "As I stated in my shareholders letter for fiscal 1997, we anticipated that the shift from analog to digital technology would effect earnings in the first ahave resulted in reduced overseas sales for our Electronics Division, particularly from our Malaysian operation which experienced an 82% decrease in sales during fiscal 1998. Increases in both the Division's domestic operations and its other international subsidiaries were not large enough to offset the decreases in Malaysia. As we enter 1999, we are already beginning to see improvements in that operation and anticipate a return to profitability this year."

"Our Cots and maintaining profitability so as to deliver the highest return possible to our shareholders."

In commenting on the results of Audiovox Communications Corp., the Company's communication subsidiary, Philip Christopher, President and CEO stated, "During fiscal 1998, we began shipments of digital products in earnest and by the fourth quarter, digital units shipped represented 33.6% of the total phones sold. In the fourth quarter, we announced a $100 million contract to supply CDMA/PCS phones to PrimeCo and to date have shipped them over 93,000 phones."

Christopher further stated, "Our goal is to provide the market with the major technology options that will allow us to capitalize on the growth of digital wireless technology. This past year we took major steps by expanding our product mix to include CDMA, GSM/PCS and CDMA/PCS and added two major new suppliers. We anticipate during 1999 to be able to make announcements regarding the addition of TDMA, PCS, GSM as well as introducing second generation products."

Senior Vice President, Patrick Lavelle, in charge of the Electronics Division said, "Most of our operations met or exceeded their 1998 sales and profit projections with the single exception of Malaysia. We have maintained our supplier relationships with the major Malaysian car manufacturers and anticipate increased business as that economy improves." Lavelle further stated, "The contract with Nissan (R) to supply mobile video for their Quest (R) vans (announced in the third quarter) has been extended into the second quarter 1999. In less than a year, we have become a major force in the emerging mobile video industry. Our division achieved QS9000/ISO9001 Registration in December and as a result, we expect that our Company will be considered for additional OE opportunities with the car manufacturers."

"We continue to pursue new market opportunities and emerging technologies. At the recent Consumer Electronics show, we introduced hand held navigation (GPS) systems, an expanded line of mobile video products, new portable MD players (mini disc) and mini component systems. The response to our newly introduced FRS two-way radios (Family Radio Service) was strong with our products being carried by major retailers for their holiday sales."

Audiovox Corporation is an international leader in the marketing of cellular telephones, auto sound, vehicle security, mobile video systems, and consumer electronics products. The Company conducts its business through two separate marketing groups and markets its products both domestically and internationally under its own brands as well as functioning as an OEM (Original Equipment Manufacturer) supplier to several customers.

Except for historical information contained herein, statements made in this release that would constitute forward-looking statements may involve certain risks such as market volatility, price competition and new product introductions. These factors may cause actual results to differ materially from the results suggested in the forward-looking statements, including those risks detailed from time to time in the Company's reports on file at the Securities and Exchange Commission, including the Company's Form 10-K for the fiscal year ended November 30, 1997.

                 AUDIOVOX CORPORATION AND SUBSIDIARIES
                    CONSOLIDATED SUMMARY OF INCOME
        (Dollars In Thousands, Except Share And Per Share Data)

                       Three Months Ended       Twelve Months Ended
                          November 30,              November 30,
                          (unaudited)               (unaudited)
                       1998         1997         1998         1997
                   ------------ ------------ ------------ ------------

Net sales           $ 208,809    $ 171,149    $ 616,695    $ 639,082

Operating income        6,365        6,339        4,871       19,695

Net income              3,447        5,367        2,972       21,022

Net income per
 common share
 - basic               $ 0.18       $ 0.28       $ 0.16       $ 1.11

Net income per
 common share
 - diluted             $ 0.18       $ 0.27       $ 0.16       $ 1.09

Weighted average
 number of common
 shares outstanding
 - basic           19,052,391   19,303,465   19,134,529   18,948,356


Weighted average
 number of common
 shares outstanding
 - diluted         19,259,919   20,174,522   19,134,529   19,508,132