Harman International's Consumer Group Acquires PhatNoise

WOODBURY, New York--Aug. 2, 20053, 2005--The Consumer Group of Harman International, the maker of high-end audio equipment, announced today that it has acquired the assets and customer business of PhatNoise, Inc., a Los Angeles-based developer of integrated digital media systems for the automotive environment.

"PhatNoise is a remarkably talented organization focused on developing innovative solutions for acquiring, organizing, and enjoying digital media in the car. In its six-year history, the company has defined the leading edge of digital media systems in the automotive market and counts Kenwood, General Motors, Volvo, Mazda, Volkswagen and Audi among its customers," commented Gina Harman, President of the Harman Consumer Group. "The addition of the PhatNoise team to our engineering group will greatly accelerate the delivery of innovative products for the automotive environment."

"Given Harman's enviable position as a proven leader in all aspects of automotive entertainment, this transaction is an excellent strategic fit for us and for our customers," said Sharon Graves, PhatNoise CEO. "Ultimately, digital media in the car has to be about creating a great consumer experience. That has always been PhatNoise's mission, and it is exciting to be joining a company that not only shares that goal, but also has such extensive market depth, experience and resources."

Terms of the transaction were not disclosed.

About Harman Consumer Group

The Harman Consumer Group (HCG) is a leading designer, manufacturer and marketer of a wide range of high-fidelity loudspeakers, audio and video components, and multimedia systems for use in homes and automobiles, and with computers. The group's brands include JBL, Infinity, Harman Kardon, Mark Levinson, Revel, Audioaccess and Lexicon.

Harman International Industries, Incorporated (www.harman.com), is a leading manufacturer of high-quality, high fidelity audio products and electronic systems for the automotive, consumer and professional markets. The company's stock is traded on the New York Stock Exchange under the symbol "HAR."

About PhatNoise, Inc.

PhatNoise, Inc. (www.phatnoise.com) is a leading-edge developer of next-generation hardware and software technologies for digital media enjoyment in the automobile. The company's technology takes consumers beyond current concepts in digital music and media by introducing easy and efficient ways to locate, manage, play and interact with digital content across multiple devices and environments. PhatNoise licenses its technology platforms to strategic partners to develop next generation multimedia products.