Directed Electronics Reduces Interest Rate on Newly Amended Credit Facility

VISTA, Calif., Feb. 7, 2006 -- Directed Electronics, Inc. , 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 car and home audio, mobile video and satellite radio products, announced today that it has successfully negotiated a 100 basis point interest rate reduction to its current credit agreement.

Effective February 4, 2006, the interest rate on the Company's term loan was reduced by 100 basis points from LIBOR plus 3.25% to LIBOR plus 2.25%. At Directed Electronics' current debt level, the 2006 annual savings at the current LIBOR rate will be approximately $1.5 million. The reduction was contingent on the successful completion of Directed's initial public offering, and the Company's subordinated notes being paid in full.

"We are very pleased with the support we have received from CIBC, Wachovia, and our entire lending group as we embark on a new journey as a public company. The reduction in our interest rate will have a positive impact on our bottom-line and cash flow performance," commented Jim Minarik, President and CEO of Directed Electronics. "We are excited about this interest savings as well as the growth opportunities in front of us, and believe we have the right strategic initiatives to execute on our goals."

Moody's also recently upgraded Directed Electronics debt rating to B1 from B2.

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, Directed Mobile Media and Automate brand names. In the home audio market, Directed designs and markets award-winning 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.

Safe Harbor Statement

Certain statements in this news release that are not historical fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements typically are identified by the use of terms such as "may," "should," "might," "believe," "expect," "anticipate," "estimate" and similar words, although some may be expressed differently. Forward-looking statements in this release include, but are not limited to, statements as to savings in interest expense, as well as other growth opportunities. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which may cause the actual results of Directed Electronics to be materially different from historical results or from any results expressed or implied by such forward-looking statements. These factors include competition in the consumer electronics industry, development of new products and changing demand of customers, reliance on certain key customers, adverse developments affecting SIRIUS Satellite Radio, ability to service debt obligations, and ability to realize on investments made in the business. Certain of these factors, as well as various additional factors, are discussed from time to time in the reports filed by Directed Electronics with the Securities and Exchange Commission, including the Form S-1. Directed Electronics disclaims any intent or obligation to update these forward-looking statements.