Directed Electronics Extends Contract With SIRIUS Satellite Radio

Directed Electronics Extends Contract With SIRIUS Satellite Radio

VISTA, Calif., Nov. 27 /PRNewswire-FirstCall/ -- Directed Electronics, Inc. (NASDAQ:DEIX) announced today that it has entered into an amendment to its distribution agreement with SIRIUS Satellite Radio, Inc. extending their contract to August 31, 2008. The amendment also contains certain changes effective January 1, 2008 regarding the handling of customer returns of SIRIUS product that Directed expects will enhance cost recovery, reduce uncertainty and volatility with respect to returns and meaningfully improve the predictability of the Company's earnings in the satellite radio category.

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"We are pleased to announce both this extension to our existing agreement with SIRIUS as well as enhancements to the agreement that we expect to improve our financial results in this important category going forward," commented James E. Minarik, Directed's President and CEO. "Since the fall of 2004, Directed Electronics and SIRIUS Satellite Radio have partnered to make SIRIUS the number one aftermarket satellite radio brand, successfully increasing SIRIUS' aftermarket share from approximately 30% to consistently over 60%."

"While the pending merger between SIRIUS and XM has added a degree of uncertainty to the satellite radio market during 2007, as well as our agreement renewal discussions, we believe this amended agreement will serve as an excellent template for future extensions we plan to discuss after regulatory review of their merger is fully resolved in the coming months," concluded Mr. Minarik.

About Directed Electronics

Headquartered in Vista, California, Directed Electronics (NASDAQ:DEIX) is the largest designer and marketer in North America of premium home theater loudspeakers, consumer branded vehicle security, vehicle remote start and convenience systems, and the largest supplier of aftermarket satellite radio receivers. Directed is also a major supplier of mobile audio and video systems and has exclusive rights to market and sell certain SIRIUS-branded satellite radio receivers and accessories to Directed's existing U.S. retailer customer base. In the home audio market, Directed designs and markets award-winning Polk Audio(R) and Definitive Technology(R) premium loudspeakers. Directed's broad portfolio of security products, remote start, hybrid systems, GPS tracking, and navigation systems are sold under leading brands including Viper(R), Clifford(R), Python(R), Astroflex(R) and Autostart(R). Directed's mobile audio and video products include speakers, subwoofers, amplifiers, video screens and digital media players, sold under its Polk MOMO(R), Orion(R), Precision Power(R), Directed Audio(R), Xtreme(R) Directed Video(R), Directed Mobile Media(R) and Automate(R) brand names. Directed was founded in 1982 and markets its broad portfolio of products through many channels including leading retailers and specialty chains throughout North America and around the world. More information is available at http://www.directed.com/.

Forward-Looking Statements

Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "may," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some may be expressed differently. Forward-looking statements in this release include, but are not limited to, statements as to cost recovery, product returns and financial results. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Directed to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include competition in the consumer electronics industry, development of new products and changing demand of customers, reliance on certain key customers, adverse developments affecting SIRIUS Satellite Radio, challenge of the company's pricing and promotional practices, reliance on certain manufacturers and their ability to maintain satisfactory delivery schedules, disruption in supply chain, shortages of components and materials, disruption in imports, quality installation of products by customers, significant product returns or product liability claims, compliance with various state and local regulations, remediation of any internal control deficiencies and identified material weaknesses in internal control over financial reporting, risks with international operations, claims related to intellectual property, ability to service debt obligations, disruption in distribution centers, decline in consumer spending, outcome of existing litigation, dependence on senior management, ability to realize on investments made in the business, and integration of acquired businesses. Certain of these factors, as well as various additional factors, are discussed from time to time in the reports filed by Directed with the Securities and Exchange Commission, including the Form 10-K for the year ended December 31, 2006. Directed disclaims any intent or obligation to update these forward-looking statements.

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Source: Directed Electronics, Inc.

CONTACT: Kevin Duffy, Chief Financial Officer of Directed Electronics,
Inc., +1-760-598-6200; or John Mills, Integrated Corporate Relations,
+1-310-954-1100, for Directed Electronics, Inc.

Web site: http://www.directed.com/

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Profile: International Entertainment