Directed Electronics Prices Initial Public Offering

VISTA, Calif., Dec. 15, 2005 -- Directed Electronics, Inc. , the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States and a major supplier of car and home audio, mobile video and satellite radio products, announced today the pricing of its initial public offering of 9,375,000 shares of common stock at a price of $16.00 per share. Of the shares offered, 5,937,500 are being offered by Directed Electronics and 3,437,500 are being offered by shareholders of Directed Electronics. In addition, the selling shareholders have granted to the underwriters a 30-day option to purchase up to an additional 1,406,250 shares of common stock at the initial public offering price less the underwriting discount.

The offering is expected to close on December 21, 2005, subject to customary conditions. The Directed Electronics common stock is expected to begin trading on the NASDAQ National Market on December 16, 2005, under the symbol "DEIX."

The offering was led by Goldman, Sachs & Co. as book runner and J.P. Morgan Securities, Inc. as joint lead manager, with CIBC World Markets Corp., Wachovia Capital Markets, LLC and Citigroup Global Markets, LLC as co-managers of the offering.

The offering is being made by means of a prospectus, copies of which may be obtained, when available, from Goldman, Sachs & Co. by fax at 212-902-9316 or by email at prospectus-ny@ny.email.gs.com or from J.P. Morgan Securities, Inc. at One Chase Manhattan Plaza, Floor 5B, New York, NY 10018 (Tel: 212-552-5164).

About Directed Electronics

Directed Electronics is the largest designer and marketer of consumer branded vehicle security and convenience systems in the United States based on sales and a major supplier of home and car audio, mobile video, and satellite radio products. As the sales leader in the vehicle security and convenience category, Directed offers a broad range of products, including security, remote start, hybrid systems, GPS tracking, and accessories, which are sold under its Viper, Clifford, Python, and other brand names. Directed's car audio products include speakers, subwoofers, and amplifiers sold under its Orion, Precision Power, Directed Audio, a/d/s/, and Xtreme brand names. Directed also markets a variety of mobile video systems under the Directed Video and Automate brand names. In the home audio market, Directed offers Definitive Technology and a/d/s/ premium loudspeakers. In August 2004, Directed began marketing and selling certain SIRIUS-branded satellite radio products, with exclusive distribution rights for such products to Directed's existing U.S. retailer customer base.