<PAGE>
August 16, 2000 FOR IMMEDIATE RELEASE
HARMAN INTERNATIONAL INDUSTRIES, INC.
REPORTS RECORD FOURTH QUARTER AND YEAR END RESULTS
Washington, D.C. -- Harman International (HAR:NYSE) today announced record
results for the fourth quarter and fiscal year ended June 30, 2000. For the
year, sales increased 12 percent to a record $1.678 billion. Excluding
currency effects, sales increased 17 percent. Net income for the year was
a record $72.8 million, equal to $4.13 per share. Last year, after a
restructuring charge of $66.4 million ($45.9 million after tax), recorded
in the second quarter, the Company reported net income of $11.7 million,
equal to $.65 per share. Excluding the restructuring charge, last year's
net income was $57.6 million. This year's net income of $72.8 million in
the same period represents a 26 percent increase.
The fourth quarter produced record results in sales, net income and
earnings per share. Fourth quarter sales increased 6 percent over the
same period in the prior year to $446.4 million. Excluding currency
effects, sales increased 12 percent. Net income increased 11 percent
to $23.3 million. Diluted earnings per share increased 13 percent to
$1.32 per share. Last year's fourth quarter sales and earnings included
a gain of $5.9 million pretax on a one-time $11.0 million sale of
broadcast software.
For the year, Consumer Systems Group sales increased 13 percent to
$1.2 billion. Sales to automobile manufacturers reflected strong growth
with Toyota and the Mercedes Benz division of Daimler Chrysler. Sales
to personal computer manufacturers were more than double last year's level,
driven primarily by higher shipments of Harman Kardon systems to Apple
and Dell. Sales to consumer electronics dealers and distributors
approximated last year's levels, reflecting higher sales in North America
offset by lower sales in Europe as a result of the Company's inventory
reduction program. New loudspeaker lines from JBL and Infinity and new
product introductions from Harman Kardon, including a new range of
audio/video receivers, a five-disc DVD changer and a CD recorder,
contributed to the growth in North American sales.
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August 16, 2000
Page Two
The Professional Group, manufacturers of audio systems for concert hall,
recording, broadcast and cinema applications, reported higher sales for the
fourth quarter and the year. For the year, Professional Group sales
increased 10 percent to $476 million. JBL Professional, AKG,
The Harman Music Group and Lexicon all reported strong operating results.
Crown International, a professional amplifier manufacturer acquired in
March 2000, also contributed to the growth. Broadcast electronics
manufacturer Orban was sold in the fourth quarter.
Commenting on the results, Dr. Sidney Harman, Chairman, stated: "The
Company produced record sales, earnings and cash flows for the year despite
unfavorable currency fluctuations. We posted significant reductions in
working capital and debt even after acquisitions and the repurchase of
778,600 shares. We are pleased with the results of fiscal 2000 and look
forward to an exciting year ahead."
Bernard Girod, Chief Executive Officer, said: "While posting excellent
current operating results, we are investing in the engineering and
manufacturing infrastructure necessary to realize the substantial
opportunities of the years ahead. These include broadband applications
in the home and car, improved audio for personal computers and cellular
telephones, digitally controlled audio systems for the professional markets
and potent new consumer products that provide high quality audio and video
performance plus full internet access."
In a separate press release, the Company reported a two-for-one stock split
and the repurchase of 625,000 shares in July 2000.
Harman International Industries, Incorporated (www.harman.com) is a leading
manufacturer of high-quality, high-fidelity audio and video products for the
consumer and professional markets. The Company's stock is traded on the
New York Stock Exchange under the symbol: HAR.
Note: Except for historical information contained herein, the matters
discussed are forward-looking statements which involve risks and
uncertainties that could cause actual results to differ materially from
those suggested in the forward-looking statements, including but not
limited to the effect of economic conditions, product demand, currency
exchange rates, labor disputes, competitive products and other risks
detailed in the Company's Securities and Exchange Commission filings.
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HARMAN INTERNATIONAL INDUSTRIES, INC.
FINANCIAL RESULTS FOR THE THREE AND TWELVE MONTHS
ENDED JUNE 30, 2000 AND 1999
(000's omitted except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended June 30 Twelve Months Ended June 30
2000 1999 2000 1999
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 446,409 $ 421,817 $ 1,677,939 $ 1,500,135
Income before Taxes $ 32,202 $ 28,375 $ 102,829 $ 14,447 a)
Income Tax Expense 8,882 7,398 29,991 2,724
------------ ------------ ------------ ------------
Net Income $ 23,320 $ 20,977 $ 72,838 $ 11,723
Basic EPS $1.37 $1.18 $4.23 $0.66
Diluted EPS $1.32 $1.17 $4.13 $0.65
Shares Outstanding - basic 17,072 17,725 17,226 17,897
Shares Outstanding - diluted 17,667 17,930 17,650 18,061
</TABLE>
SELECTED BALANCE SHEET & CASH FLOW INFORMATION
(000'S omitted)
<TABLE>
<CAPTION>
June 30, 2000 June 30, 1999
----------------- -----------------
<S> <C> <C>
Current assets $ 671,026 $ 646,609
Total Assets $1,137,505 $1,065,755
Current Liabilities $ 361,381 $ 286,821
Shareholders' Equity $ 486,333 $ 468,187
Total Short-term and Long-term Debt $ 277,324 $ 311,575
Capital Expenditures $ 82,000 $ 67,830
Depreciation and Amortization $ 65,000 $ 66,780
Cost of Share Repurchase $ 36,000 $ 33,977
Payment for Purchase of Companies $ 49,700 $ 568
a) After restructuring charge of $66,446
</TABLE>
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HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE TWELVE MONTHS ENDED June 30, 2000
(000s omitted except per share amounts)
<TABLE>
<CAPTION>
Year Ended
June 30, 2000
------------
<S> <C>
Net sales $ 1,677,939
Cost of sales 1,208,603
------------
Gross profit 469,336
Selling, general and administrative expenses 347,614
------------
Operating income 121,722
Other expense (income):
Interest expense 18,507
Miscellaneous, net 386
------------
Income before income taxes 102,829
Income tax expense and minority interest 29,991
------------
Net income $ 72,838
============
Basic EPS $ 4.23
Diluted EPS $ 4.13
Shares outstanding - basic 17,226
Shares outstanding - diluted 17,650
<?TABLE>
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HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONDENSED CONSOLIDATED BALANCE SHEET
AS OF JUNE 30, 2000
(000s omitted)
</TABLE>
<TABLE>
<CAPTION>
June 30, 2000
-------------
<S> <C>
ASSETS
Current assets
Cash and cash equivalents $ 4,365
Accounts receivable 306,596
Inventories 298,273
Other current assets 61,792
-------------
Total current assets 671,026
-------------
Property, plant and equipment 251,737
Excess of cost over fair value of assets acquired 166,647
Other assets 48,095
-------------
Total assets $ 1,137,505
=============
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 14,969
Current portion of long-term debt 7,537
Accounts payable and accrued liabilities 338,875
-------------
Total current liabilities 361,381
-------------
Long-term debt 254,818
Other non-current liabilities 33,918
Minority interest 1,055
Total shareholders' equity 486,333
-------------
Total liabilities and shareholders' equity $ 1,137,505
=============
</TABLE>
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