The Singing Machine Company Reports First Quarter Revenue of $2.4 Million Versus $1.0 Million.

COCONUT CREEK, Fla. -- The Singing Machine Company (AMEX: SMD) today announced that revenue for the first quarter of fiscal 2008 ended June 30, 2007 more than doubled to $2,446,000 compared to $1,036,000 for the first quarter of fiscal 2007. This increase was driven by approximately $550,000 in sales of the Company's new line of consumer electronic products based on MGA's BRATZ(TM) franchise, one of the world's leading toy lines and girls' lifestyle brands, and increased sales of karaoke products in Europe.

Gross margin improved to 14% of revenue compared to 12% for last year's first quarter.

General and administrative expenses decreased 18% to $960,000 for this year's first quarter compared to $1,166,000 for the same period last year, as the Company continued to benefit from its aggressive cost control program. Selling expenses increased to $164,000 compared to $4,000 last year, reflecting an increase in royalties associated with sales of licensed products and freight expense related to product returns.

The net loss for the three months ended June 30, 2007 decreased to $852,000, or $0.03 per share. This compares to a net loss for the three months ended June 30, 2006 of $1,151,000, or $0.11 per share.

Working capital at June 30, 2007 was $2,209,000, including cash and cash equivalents of $1,003,000. This compares to working capital at March 31, 2007 of $2,395,000, including cash and cash equivalents of $1,189,000. The Company has no long-term debt.

"We made solid progress against our growth plan during the fiscal 2008 first quarter, and are especially pleased by our customers' enthusiastic response to our new BRATZ line. With total orders running ahead of last year as we enter the prime selling season in our industry, we are increasingly confident that the gains in revenue and income we are striving to achieve this year compared to fiscal 2007 are within our reach," said CFO Danny Zheng.

About The Singing Machine

Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music as well as other electronic products under The Singing Machine(TM), Motown(TM), Hi-5TM, Bratz(TM) and other brand names. The first to provide karaoke systems for home entertainment in the United States, The Singing Machine sells its products in North America, Europe and Asia.

Forward-Looking Statements 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2007. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including the risks that our vendors in China may not ship our products on the scheduled basis and that we will have sufficient cash flow to finance our working capital needs in the second and third quarter of this fiscal year. In addition, you should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

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