This acquisition supports our growth strategy of acquiring companies in businesses that generally operate at higher margins than electronics.
Patrick Lavelle, President and CEO, Audiovox

Audiovox Corporation will acquire Thomson's RCA consumer electronics accessory business for $50 million. 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 acquisitions.

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."