CEA and NARDA Jointly Release Dealer Cost of Doing Business Study; Results Show the Average Participant Reported a Gross Profit Margin of Nearly 32 Percent.

ARLINGTON, Va. -- Industry leaders have released a study that serves as an important business management tool that will benefit dealers across several industries. The Consumer Electronics Association (CEA(R)) jointly conducted the "Cost of Doing Business" study with the Professional Audio/Video Retailers Association (PARA, a division of CEA) and the North American Retail Dealers Association (NARDA), along with co-sponsor GE Retail Sales Finance (GECAF).

The study was conducted among a sample of U.S. appliance dealers, consumer electronics dealers, service dealers, and dealers with mixed sales. The research focused on benchmarking key income statement and balance sheet metrics. The results provide a clear picture of dealer profitability, liquidity, operations management, and balance sheet management.

The results also show the average participant reported a gross profit margin of nearly 32 percent. In contrast, high profit dealers, those in the upper quartile, reported a gross profit margin of about 36 percent. Moreover, high profit dealers succeed with fewer employee hours, suggesting a combination of possibly higher employee productivity or a different business model.

"In today's highly competitive marketplace, education and information are essential elements for business success," stated Gary Yacoubian, president of MyerEmco AudioVideo, a PARA member. The Cost of Doing Business Study provides comparative information that dealers can use to assess the financial health of their business, identify strengths and areas that need improvement, and develop strategies for growth.

"Understanding and using the data in this report is one of the most important things dealers can do to ensure their business continues to prosper and grow," stated NARDA's president & CEO, Tom Drake.

"Cost of Doing Business Report" is available free of charge to all those who participated in the survey. The Report is available to PARA and NARDA members for $250 and to nonmembers for $299. To order the Report, contact CEA's PARA Division at 703.907.7655 or NARDA at 800.621.0298.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships. CEA represents more than 2,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels. Combined, CEA's members account for more than $121 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

About NARDA:

The North American Retail Dealers Association is a not-for-profit trade association established in 1943 with members throughout North, Central and South America. Its members are independent retailers and servicers of consumer home electronics, kitchen and laundry appliances, furniture and computers. NARDA members represent over 3,000 storefronts and account for more than $10 billion in annual sales.

NARDA's mission is to provide the power of knowledge to independent retailers and servicers through progressive education, information and services.

For more information, contact NARDA Member Services at 800-621-0298, or by e-mail at [e-mail], or visit www.NARDA.com.

UPCOMING CEA EVENTS

--  CES Unveiled: The Official Press Event of CES
    January 3, 2006, Las Vegas, NV

--  2006 International CES
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--  CEA Winter Summit 2006
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--  CEA 2006 Winter Technology and Standards Forum
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--  CEA Spring Break
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--  2006 Consumer Electronics CEO Summit
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UPCOMING NARDA EVENTS

--  NARDA University - Business Finance
    February 9 & 10, 2006, Las Vegas, NV

--  NARDA University - Leadership & Management
    February 11 & 12, 2006, Las Vegas, NV

--  2006 NARDA, ETA & USA Service & Retail Convention (SRC)
    February 13-16, 2006, Las Vegas, NV