The Auto Channel
The Largest Independent Automotive Research Resource
The Largest Independent Automotive Research Resource
Official Website of the New Car Buyer

Recoton Receives Additional $50 Million Working Capital Credit Facility

9 September 1999

Recoton Receives Additional $50 Million Working Capital Credit Facility Via Successful Debt Restructuring

    LAKE MARY, Fla.--Sept. 9, 1999--Recoton Corporation (Nasdaq National Market: RCOT), a leading global consumer electronic accessory, loudspeaker and car audio company, today announced that its lenders and noteholders have granted the Company an additional $50 million working capital credit facility.
    The Company and its lenders and noteholders also agreed to extend the expiration of Recoton's banking facilities, while shortening the term of the Company's adjustable rate senior notes. The additional working capital facility, as well as the banking facilities and adjustable rate senior notes, will become due on June 30, 2001.
    Robert L. Borchardt, President and CEO of Recoton, stated, "With this new funding, Recoton now has adequate working capital to strengthen its position as a one-stop supplier of accessories, consumer electronics and speakers to the world's leading retailers and continue to implement its previously announced comprehensive business plan.
    "With the current introduction of the Sega Dreamcast(R) next generation of video game systems, as well as future anticipated new game platform introductions by Sony(R) and Nintendo(R), we are confident that compatible accessory products being delivered now and in the future by InterAct(R) will continue to build upon our position as the leading third party supplier of video and PC game accessories. With the evolution from analog to digital technology, Recoton is poised to be an active participant in the product-driven consumer electronics industry. This transition in game platforms and evolution in technology provides us the opportunity to introduce many new offerings to fortify our reputation as one of the industry's leading providers of innovative consumer electronic products and accessories. We look forward with optimism to the balance of 1999 and beyond."
    Recoton Corporation, is a global leader in the development, manufacturing and marketing of consumer electronic accessories, loudspeakers and car audio products. Recoton's more than 4,000 products feature highly functional accessories for audio, video, car audio, camcorder, multi-media/computer, home office, cellular and standard telephone, music and video game products and 900MHz wireless technology headphones and speakers. They are sold under the AAMP(, Ambico(, Ampersand(R), AR(/Acoustic Research(, Discwasher(, InterAct(, Parsec(, Peripheral(, Performance(, Recoton(, Rembrandt(, Ross(, SoleControl(, SoundQuest( and Stinger( brand names. The Company also produces and markets audio components, high fidelity loudspeakers, home theater speakers, and car audio speakers and components which are sold under the Advent(, AR(/Acoustic Research(,HECO(, Jensen( , MacAudio(R), Magnat(, NHT( (Now Hear This), and Phase Linear( and Recoton( brand names.

This press release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of l995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Such statements speak only as of the date made. Please refer to the Company's Form 10-K and other SEC filings.