Audiovox Corporation Reports Second Quarter 1999 Results.

HAUPPAUGE, N.Y.--(BUSINESS WIRE)--June 22, 1999--

-- Company sets quarter sales record with 82.8% increase to

$242.1 million

-- EPS $.34 per share basic and diluted vs. loss of ($.24) per

share in second quarter '98

-- Digital Handset sales reach 75% of total units sold

-- Toshiba makes 5% equity invests in Wireless Subsidiary

-- Mobile Video and Consumer Electronics continue to set sales

records

Audiovox Corporation (AMEX: VOX) today announced results for the quarter and six months ended May 31, 1999.

Net sales for the second fiscal quarter 1999 were $242.1 million, an 82.8% increase over sales of $132.4 million in the comparable period one-year ago. Net income and earnings per share for the second quarter 1999 were $6.5 million and $0.34 basic and diluted compared to a net loss of ($4.7) million or ($0.24), basic and diluted for the three months ended May 31, 1998.

For the six months ended May 31, 1999, net sales were $452.3 million, a 78.5% increase from sales of $253.4 million in the comparable year-ago period. Net income and earnings per share for the six months 1999 were $9.4 million and $0.50 basic and $0.49 diluted compared to a net loss of ($3.1) million or ($0.16) basic and diluted for the six month period in 1998.

Commenting on the performance, John J. Shalam, Chairman, President and CEO of Audiovox Corporation said, "We have just completed our third consecutive record breaking quarter, as both of our operations contributed handsomely to our growth. I am gratified with our performance. Our Wireless subsidiary and its digital cellular telephone sales were largely responsible for our strong performance this quarter. We expect that with the many new product introductions scheduled for the second half of the year, in both of our operating divisions, Audiovox Corporation should continue to post strong gains."

Shalam further stated, "The management of Audiovox remains focused on delivering improved shareholder value to our investors. In addition to the strategic value, the 5% investment by Toshiba in our wireless subsidiary resulted in a $0.12 per share positive impact to our earnings. Second quarter earnings per share, excluding this transaction, were $0.22 per share compared to a loss of ($0.24) per share during the second quarter 1998. In line with our recent announcement concerning our share repurchase program, the Company has purchased an additional 123,277 shares, bringing our total buyback to just over 623,000 shares."

Philip Christopher, President and CEO of Audiovox Communications Corp., the Company's communications subsidiary, stated, "Sales of our CDMA digital phones reached 75% of total phone sales during this quarter. In May, we introduced our second generation CDMA phone, the CDM 4000 and shipped nearly 30,000 units. The eagerly awaited CDM 4000 is sleeker, lighter and more feature rich than its predecessor, and we expect this model to dominate the CDMA market this year. In addition, we began final product testing of our TDMA phone during the second quarter and pending those results, we expect to begin shipments of this model during the third quarter."

Christopher further stated, "The first half results clearly position ACC as a major player in the digital market and with the addition of TDMA, we are one step closer to achieving our stated goal of providing all of the wireless technologies available today."

Electronics Division Senior Vice President, Patrick Lavelle, said, "Sales of mobile video systems, particularly the new line of vehicle specific consoles, combined with sales of our consumer electronic product line, drove the division to an increase of 19% over the second quarter '98. Our mobile video sales group has broken sales records every month for almost a year and the market acceptance of our new products should continue that trend." Lavelle further stated, "With the continued rollout of new products in new categories, we expect sales and profits to track to plan for the balance of 1999."

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. For additional information, please visit Audiovox on the Web at http://www.audiovox.com.

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, non-availability of product, price and product competition and new product introductions. These factors, among others 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, 1998. -0-

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

                         Three Months                Six Months
                         Ended May 31,               Ended May 31,
                         (unaudited)                 (unaudited)
                      1999          1998          1999          1998

Net sales      $    242,069  $    132,411  $    452,335  $    253,384
Operating
 income (loss)        5,220        (7,957)       10,422        (5,422)
Net income
 (loss)               6,454        (4,695)        9,436        (3,056)
Net income
 (loss) per
 common share
 - basic       $       0.34  ($      0.24) $       0.50  ($      0.16)
Net income
 (loss) per
 common share
- diluted      $       0.34  ($      0.24) $       0.49  ($      0.16)
Weighted
 average number
 of common
 shares
 outstanding
 - basic         19,023,964    19,174,487    19,022,718    19,183,459
Weighted
 average number
 of common
 shares
 outstanding
 - diluted       19,302,033    19,174,487    19,289,988    19,183,459