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November 2, 2012 -- FOR IMMEDIATE RELEASE

HARMAN Q1 Fiscal Year 2013 GAAP EPS up 17% to $0.79

STAMFORD, Conn.--(BUSINESS WIRE)-- Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR), today announced results for the first quarter ended September 30, 2012.

Net sales for the first quarter were $998 million, a decrease of 5 percent compared to the same period last year. In local currency, net sales increased by 2 percent. The Company noted that the year-ago quarter benefitted from an estimated $75 million in additional infotainment sales as vehicle production surged to fulfill pent-up demand and one time competitive replacement following interruptions associated with the tsunami in Japan.

First quarter operating income was $79 million, compared to $74 million in the same period last year. Excluding restructuring charges, operating profit in the first quarter grew by 4 percent to $79 million, compared to $76 million in the same period last year. On a GAAP basis, earnings per diluted share were $0.79 for the quarter compared to $0.67 in the same period last year. Excluding restructuring charges, earnings per diluted share were $0.79 compared to $0.69 in the same period last year.

Dinesh C. Paliwal, HARMAN's Chairman, President and CEO, commented, "We delivered another strong quarter with growth in local currency, even against last year's abnormally strong first quarter. Our success continues to be underlined by our launch of several award winning new products and our competitive wins in car audio business from BMW, Ford and Volvo. Despite economic uncertainty and a weak European automotive sector, we have the largest backlog of awarded business in our history. We are proud that relentless execution and continued cost focus has allowed us to post our 12th consecutive quarter of top and bottom line growth. We are also pleased to see our solid track record reflected by our credit rating upgrade to investment grade. We are confident that our excellent liquidity profile will enable us to continue to utilize a variety of initiatives to deploy capital, invest in growth and generate strong returns for our shareholders."

FY 2013 Key Figures — Total Company   Three Months Ended September 30

$ millions (except per share data)



Net sales   998   1,051   (5%)   2%
Gross profit   278   288   (3%)   3%
Percent of net sales   27.9%   27.4%        
SG&A & Other   199   214   (7%)   0%
Operating income   79   74   7%   14%
Percent of net sales   7.9%   7.1%        
Net Income   55   48   13%   23%
Diluted earnings per share   0.79   0.67        
Restructuring-related costs   0   2        


Gross profit(1)   278   289   (4%)   3%
Percent of net sales(1)   27.9%   27.5%        
SG&A & Other(1)   199   213   (7%)   0%
Operating income(1)   79   76   4%   11%
Percent of net sales(1)   7.9%   7.3%        
Net Income(1)   55   50   10%   19%
Diluted earnings per share(1)   0.79   0.69        
Shares outstanding — diluted (in millions) 69 72  
1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Summary of Operations — Gross Margin and SG&A

On a non-GAAP basis gross margin increased 34 basis points to 27.9 percent of sales in the first quarter of fiscal 2013. This improvement was primarily due to neodymium cost mitigation and productivity gains.

On a non-GAAP basis SG&A and Other expense decreased 36 basis points to 19.9 percent of sales.

Investor Call on Friday, November 2, 2012

On Friday, November 2, 2012, HARMAN's management will host an analyst and investor conference call to discuss the first quarter results. Those who wish to participate via audio in the earnings conference call, scheduled at 11:00 a.m. EDT, should dial 1 (800) 659 1839 (U.S.) or +1 (303) 223 4399 (International) ten minutes before the call and reference HARMAN, Access Code: 21608442.

In addition, HARMAN invites you to visit the Investors section of its website at: www.harman.com where visitors can sign-up for email alerts and conveniently download copies of historical earnings releases and supporting slide presentations, among other documents. For your reference during the Analyst and Investor Call, the Company has posted a set of information slides on its website at www.harman.com and accompanying this press release on www.businesswire.com.

A replay of the call will also be available following its completion at approximately 1:00 p.m. EDT. The replay will be available through January 31, 2013 at 1:00 p.m. EST. To listen to the replay, dial 1 (800) 633 8284 (U.S.) or +1 (402) 977 9140 (International), Access Code: 21608442.

If you need technical assistance, call the toll-free Global Crossing Customer Care Line at 1 (800) 473 0602 (U.S.) or +1 (303) 446 4604 (International).

General Information

HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets — supported by 15 leading brands, including AKG®, Harman Kardon®, Infinity®, JBL®, Lexicon® and Mark Levinson®. The Company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 13,900 people across the Americas, Europe and Asia, and reported net sales of $4.4 billion for year ended June 30, 2012. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.

A reconciliation of the non-GAAP measures included in this press release to the most comparable GAAP measures is provided in the tables contained at the end of this press release. HARMAN does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with GAAP.

Forward-Looking Information

Except for historical information contained herein, the matters discussed in this release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. One should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to: (1) our ability to maintain profitability in our infotainment segment if there are delays in our product launches which may give rise to significant penalties and increased engineering expense; (2) the loss of one or more significant customers, or the loss of a significant platform with an automotive customer; (3) fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro; (4) our ability to successfully implement our global footprint initiative, including achieving cost reductions and other benefits in connection with the restructuring of our manufacturing, engineering, procurement and administrative organizations; (5) fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; (6) the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; (7) our ability to attract and retain qualified senior management and to prepare and implement an appropriate succession plan for our critical organizational positions; (8) our failure to implement and maintain a comprehensive disaster recovery program; (9) our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices Act and U.S. export control laws, and the cost of complying with such laws; (10) our ability to maintain a competitive technological advantage through innovation and leading product designs; (11) our failure to maintain the value of our brands and implementing a sufficient brand protection program; and (12) other risks detailed in Harman International Industries, Incorporated Annual Report on Form 10-K for the fiscal year ended June 30, 2012 and other filings made by the Company with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement except as required by law. This earnings release also makes reference to the Company's awarded business, which represents the estimated future lifetime net sales for all customers. The Company's future awarded business does not represent firm customer orders. The Company calculates its awarded business using various assumptions including global vehicle production forecasts, customer take rates for the Company's products, revisions to product life cycle estimates and the impact of annual price reductions, among other factors. These assumptions are updated on an annual basis. The Company updates the estimates quarterly by adding the value of new awards received and subtracting sales recorded during the quarter.



Infotainment Division

FY 2013 Key Figures — Infotainment   Three Months Ended September 30

$ millions



Net sales   561   603   (7%)   2%
Gross profit   128   144   (11%)   (2%)
Percent of net sales   22.9%   23.9%        
SG&A & Other   84   97   (14%)   (4%)
Operating income   45   47   (5%)   2%
Percent of net sales   8.0%   7.8%        
Restructuring-related costs   0   2        


Gross profit(1)   128   146   (12%)   (3%)
Percent of net sales(1)   22.9%   24.1%        
SG&A & Other(1)   84   97   (14%)   (5%)
Operating income(1)   45   49   (8%)   (1%)
Percent of net sales(1) 8.0% 8.1%  
(1) A non-GAAP measure, see reconciliations of non-GAAP measures later in this release.

Net sales in the first quarter were $561 million, a decrease of 7 percent, or an increase of 2 percent in local currency. Prior year sales were exceptionally robust due to approximately $30 million in one-time competitive replacement business and $45 million in additional sales to fulfill pent-up demand following the tsunami in Japan. Continued revenue growth in BRIC countries was led China, up 27 percent. On a non-GAAP basis gross margin decreased 121 basis points to 22.9 percent of sales, primarily due to the impact of the higher margin competitive substitution business booked in the prior year.

On a non-GAAP basis SG&A and Other expense decreased 116 basis points to 14.9 percent of sales.

Infotainment Division Highlights

In the first quarter, HARMAN continued to be a driving force for innovation in embedded infotainment systems globally.

HARMAN celebrated the start of production of the latest generation BMW infotainment system for all vehicles world-wide. HARMAN's system for BMW is the most advanced on the market, offering a sophisticated set of features including 3-D navigation with real-time traffic information, brilliant graphics, office function integration, voice command intelligence, internet connectivity, and more.

Chryslers´ latest Ram Truck and Dodge Viper models launched into the market featuring the next generation Uconnect™ infotainment system, designed and built by Harman. This scalable system combines phone, navigation, entertainment, digital media compatibility, Bluetooth, and voice command — including voice activated texting — in an intuitive, easy-to-use design.

In September, Harman announced plans to establish a software engineering center in Chicago to further expand on its global network of Infotainment engineering and development centers. Harman also became a founding member of the Automotive Grade Linux Workgroup, with a goal to foster widespread industry collaboration and reference distributions that advance Linux-based automotive device development. In Pune, India, a new Sales & Development Center started operations.

Harman´s Aha™ Radio was launched as an integral feature in Honda's new in-vehicle connectivity system HondaLink™. HondaLink with Aha Radio debuted on the 2013 Accord in September and will be rolled out to Honda's entire U.S. line. Aha will be seamlessly integrated into the HondaLink mobile app and audio system-based interface for a unified user experience and will bring tens of thousands of stations of digital content to drivers.

Lifestyle Division

FY 2013 Key Figures — Lifestyle   Three Months Ended September 30

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