Audiovox to Acquire Thomson's Consumer Electronics Accessory Business Including the Rights to the RCA Brand for Consumer Electronics Accessories

* Purchase price is $50 million, plus a five-year fee related to the RCA

brand in the consumer electronics accessories field

* Proposed acquisition to add over $150 million in annual sales and should

add to 2007 earnings

* Company to acquire the rights to the RCA brand for consumer electronics


Dec 21, 2006, 00:00 ET from Audiovox

    HAUPPAUGE, N.Y., Dec. 21 /PRNewswire-FirstCall/ -- Audiovox Corporation
 (Nasdaq:   VOXX), announced today that it has entered into a definitive
 agreement with Thomson to acquire its Americas consumer electronics
 accessory business, which includes approximately 115 employees in locations
 in the United States, Canada, China (including Hong Kong) and Malaysia. The
 Company anticipates this transaction will close in early 2007.
     As a result of the acquisition, Audiovox will acquire the rights to the
 RCA brand for consumer electronics accessories. The acquisition also
 includes the Recoton, Spikemaster, Ambico and Discwasher brands for use on
 any products and the Jensen, Advent, Acoustic Research and Road Gear brands
 for accessory products. Audiovox already owns Jensen, Advent, Acoustic
 Research and Road Gear brands for electronics products as part of prior
     Patrick Lavelle, President and CEO of Audiovox stated, "The well
 respected RCA name further strengthens our brand portfolio in consumer
 electronics accessories and gives us greater flexibility at the
 distribution level. We believe the acquisition of this business will
 enhance both our top and bottom line performance and create powerful
 marketing synergies for our organization."
     Lavelle further stated, "This acquisition supports our growth strategy
 of acquiring companies in businesses that generally operate at higher
 margins than electronics. In addition, our primary acquisition targets
 include companies where we can utilize operating leverage to gain maximum
 efficiencies. Over the past year, we have worked to streamline our
 operations while maintaining a cost structure that supports additional
 sales. This acquisition is synergistic as its product lines move through
 existing channels where we share many of the same customers and have strong
 relationships in place today. Post closing, we will still have significant
 financial resources and will seek to continue to grow organically and
 through acquisition."
     About Audiovox
     Audiovox Corporation is a leading international supplier and value
 added service provider in the consumer electronics industry. The Company
 conducts its business through subsidiaries and markets mobile and consumer
 electronics products both domestically and internationally under several of
 its own brands. It also functions as an OEM (Original Equipment
 Manufacturer) supplier to a wide variety of customers, through several
 distinct distribution channels. For additional information, please visit
 Audiovox on the Web at
     Safe Harbor Language
     Except for historical information contained herein, statements made in
 this release that would constitute forward-looking statements may involve
 certain risks and uncertainties. All forward-looking statements made in
 this release are based on currently available information and the Company
 assumes no responsibility to update any such forward-looking statements.
 The following factors, among others, may cause actual results to differ
 materially from the results suggested in the forward-looking statements.
 The factors include, but are not limited to, risks that may result from
 changes in the Company's business operations; our ability to keep pace with
 technological advances; significant competition in the mobile and consumer
 electronics businesses; our relationships with key suppliers and customers;
 quality and consumer acceptance of newly introduced products; market
 volatility; non-availability of product; excess inventory; price and
 product competition; new product introductions; the possibility that the
 review of our prior filings by the SEC may result in changes to our
 financial statements; and the possibility that stockholders or regulatory
 authorities may initiate proceedings against Audiovox and/or our officers
 and directors as a result of any restatements. Risk factors associated with
 our business, including some of the facts set forth herein, are detailed in
 the Company's Form 10-K/A for the fiscal year ended November 30, 2005 and
 its Form 10-Q for the fiscal second quarter ended August 31, 2006.
     Company Contacts
     Glenn Wiener
     GW Communications for Audiovox
     Tel: 212-786-6011 or Email:

SOURCE Audiovox