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HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED, ANNOUNCES ACQUISITION OF AKG

 WASHINGTON, Sept. 27 /PRNewswire/ -- Harman International Industries, Incorporated (NYSE: HAR), announced today that it has acquired from GiroCredit Bank 76 percent of AKG, a leading manufacturer of microphones, audio headphones and other professional audio products.
 Under the terms of the Purchase Agreement, Harman paid 76 Austrian schillings for the 76 percent share of AKG, with an option to purchase the remaining shares for 100 million Austrian schillings (approximately $9.0 million) through fiscal 1999. Harman will assume post-acquisition indebtedness of AKG of approximately $22 million. GiroCredit Bank has agreed to compensate AKG for any potential post-acquisition losses, for a two-year period following the acquisition, of up to an aggregate of 100 million Austrian schillings (approximately $9.0 million) and for any losses incurred from the potential recapture of government subsidies previously granted to AKG.
 During the year ended Dec. 31, 1992, AKG's net sales were approximately $85 million with a pretax loss of approximately $4.0 million.
 AKG, which was founded in 1947, is one of the leading companies in its field. AKG's headquarters are in Vienna, Austria, where the majority of its microphones and headphones is produced. Its principal subsidiaries include AKG USA, which distributes AKG products and produces worldwide audio signal processing devices under the brand name dbx and Orban, and AKG U.K., which distributes AKG products and manufactures amplifiers, loudspeakers and other professional audio products, which are sold worldwide under the brand names BSS and Turbosound.
 At the closing in Vienna, Dr. Sidney Harman, chairman and chief executive officer of Harman International, stated: "AKG provides important product line additions and will add significantly to our strong professional audio business. It will enhance our technical and manufacturing resources. We believe that under Harman management AKG will begin to realize its substantial potential."
 Harman International Industries, Incorporated, is a leader in the design, manufacture and marketing of high-quality, high-fidelity audio products targeted primarily at the consumer, professional and automotive markets. The company's stock is traded in the New York Stock Exchange under the symbol: HAR.
 -0- 9/27/93
 /CONTACT: Sandra Robinson of Harman International Industries, 202-393-1101/
 (HAR)


CO: Harman International Industries, Incorporated; AKG ST: District of Columbia IN: CPR SU: TNM

MH-DS -- DC005 -- 5812 09/27/93 09:09 EDT
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Publication:PR Newswire
Date:Sep 27, 1993
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