Audiovox Enters the New Year With Products That Define Their Leadership

Jan. 8 /PRNewswire-FirstCall/ -- 'We enter 2003 having completed the most successful year in our history despite economic uncertainty, a dock strike and the normal challenges that surround the consumer and mobile electronics industries,' said Patrick M. Lavelle, President-CEO of Audiovox Electronics Corporation, a subsidiary of Audiovox Corporation (NASDAQ:VOXX).

Sales ran ahead of 2001 in most categories such as mobile video, where the company maintains its number one market share, as well as in consumer electronics and vehicle security. Sales in the autosound category were down slightly, "but that," notes Lavelle, "was by design, as the company stepped back from some low profit sales opportunities in favor of higher end product sales. While it had a negative effect on sales, it had a positive effect on our bottom line."

Now, as Audiovox enters 2003, the focus will be on new products that have been developed as a logical expansion of the company's presence in some exciting new market areas. Video is the buzzword for 2003. As the number one supplier of mobile video products and a market leader in portable DVD and under-counter TV, Audiovox has developed close relationships with a number of flat panel manufacturers and the company intends to use those relationships to help springboard themselves into the home flat panel TV market. Lavelle says, "Consumers have shown no reluctance in spending from $1,500 to as much as $2,500 for an Audiovox mobile entertainment system and we believe that this consumer confidence in the brand can transfer itself over to the home market. This category, Lavelle believes, will see volatile pricing as many companies attempt to gain a foothold in what promises to be an explosive market.

"Our retailers have seen the Audiovox brand carry substantial price points and we believe that we will be very competitive in the 10 to 30 inch category. We will maintain a broad line of LCD TV and High Definition LCD TV to give our retailers the most flexibility in design and price points."

Another new market entry for Audiovox will be cordless telephones. The company will introduce several 2.4 and 5.8GHz models, featuring user-friendly features and eye-appealing cosmetics, all digital, all performance-oriented. Lavelle notes that Audiovox is no stranger to the communications industry, with its wireless subsidiary consistently among the market leaders in cellular telephones. He believes this new category will meet with strong consumer acceptance, thanks, in part, to the positive experience consumers have had with Audiovox cellular phones over the years.

The company has also partnered with Buena Vista Home Entertainment in a program that will run into the second quarter, and includes free Disney titles on VHS or DVD with the purchase of Audiovox mobile video systems. In addition, the consumer gets $25 in coupons for Disney merchandise. The promotion will run for 5 months and was launched in October at the country's largest retailers nationwide, in time for the busy fourth-quarter holiday/travel season.

"Year 2003," says Lavelle, "should also be one that shows growth in our core businesses. Our mobile video business continues to grow. We have patented overhead built-in DVD systems and our "Video-In-A-Bag" line now includes a system with both DVD and VCP capability as well as a between-the-seat console designed to hold any Audiovox portable DVD player, a video game or the DVDs themselves."

Lavelle expects to see some momentum in the Autosound category this year, due largely to the new emerging broadcast formats such as Satellite Radio. Audiovox will be introducing several offerings in this category. "In auto security," notes Lavelle, "we will highlight the 2003 line with a Two-Way Remote Start Alarm System and our Pursuitrak Vehicle Location System."

Where there is a need to connect without air-time costs, Audiovox's FRS/GMRS new product line-up will focus on longer range and newer, more sophisticated features like GPS capability, weather alert and tracking.

"This year," Lavelle says, "the consumer will see Audiovox in markets we have never been in before, with products that, 10 years ago, the average consumer would not relate to this company. It is that very philosophy that has allowed us to grow very rapidly in recent years. By continuing to market high-quality products and supporting them with good quality control and technical service, we come closer to our goal of making every consumer a permanent Audiovox fan regardless of the product he or she buys. All of the marketing elements are in place. We have retailer-friendly programs and price points, exciting products and packaging, and strong customer service. We understand the nuances of the marketplace. There will be unforeseen obstacles that we will have to adjust for, but our company is strong and healthy and our game plan is sound. We expect 2003 to be an exciting year."

For additional information, visit their web site at http://www.audiovox.com/ or call 1-800-290-6650.

Source: Audiovox Electronics Corporation