Audiovox Corporation Responds to MPEG LA Suit

Audiovox Corporation Responds to MPEG LA Suit

Company Believes Complaint is Without Merit and Intends to Countersue for Double Dipping

HAUPPAUGE, N.Y., Dec. 26 /PRNewswire-FirstCall/ -- Audiovox Corporation (NASDAQ:VOXX) announced today that MPEG LA, a licensing administrator offering the MPEG-2 Patent Portfolio License, has filed a Complaint in the Supreme Court of the State of New York, County of New York, against Audiovox Electronics Corporation (AEC), the Company's wholly-owned subsidiary.

MPEG LA has alleged breach of its June 2003 MPEG-2 patent portfolio license agreement with Audiovox through non-payment of royalties based on unreported sales of MPEG licensed products, such as DVD players and multi- media systems, among others sold by Audiovox. MPEG LA is seeking specific performance of the license agreement as well as injunctive relief and past royalty payments with interest.

It is Audiovox's position that the lawsuit is totally without merit and Audiovox intends to countersue MPEG LA for breach of the agreement. The Company has reported all sales and paid all royalties due MPEG LA on products purchased from suppliers whom MPEG LA does not represent to be licensees. In addition, Audiovox has, in the past, made a reasonable offer to MPEG LA to audit its books and records to ascertain that the proper royalties have been paid but such offer was not accepted.

Patrick Lavelle, President and CEO of Audiovox stated, "This Complaint is false, misleading and has no merit whatsoever. MPEG LA has licensing agreements in place with the companies we do business with and this lawsuit is nothing more than an attempt to double dip on royalty payments. I believe their request to audit our records is simply a disguised attempt to review industry sales to aid their collection efforts with other vendors. We will vigorously defend this action and take all necessary legal actions in this manner and I am confident we will prevail."

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 and accessories 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 http://www.audiovox.com/.

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 for the fiscal year ended February 28, 2007.

   Company Contacts   Glenn Wiener   GW Communications for Audiovox   Tel: 212-786-6011 or Email: gwiener@GWCco.com  

Source: Audiovox Corporation

CONTACT: Glenn Wiener of GW Communications for Audiovox,
+1-212-786-6011, gwiener@GWCco.com

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

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Profile: International Entertainment