Voxx International's Business Segments

VOXX International Corporation is a leading international manufacturer and distributor in the Automotive, Premium Audio and Consumer Accessories industries. The Company has widely diversified interests, with more than 30 global brands that it has acquired and grown throughout the years, achieving a powerful international corporate image and creating a vehicle for each of these respective brands to emerge with its own identity. We conduct our business through eighteen wholly-owned subsidiaries: Audiovox Atlanta Corp., VOXX Electronics Corporation, VOXX Accessories Corp., Audiovox Consumer Electronics, Inc. ("ACE"), Audiovox German Holdings GmbH ("Voxx Germany"), Audiovox Venezuela, C.A., Audiovox Canada Limited, Voxx Hong Kong Ltd., Audiovox International Corp., Audiovox Mexico, S. de R.L. de C.V. ("Voxx Mexico"), Code Systems, Inc., Oehlbach Kabel GmbH ("Oehlbach"), Schwaiger GmbH ("Schwaiger"), Invision Automotive Systems, Inc. ("Invision"), Klipsch Holding LLC ("Klipsch"), Car Communication Holding GmbH ("Hirschmann"), Omega Research and Development, LLC ("Omega") and Audiovox Websales LLC, as well as a majority owned subsidiary, EyeLock LLC ("EyeLock"). We market our products under the Audiovox® brand name and other brand names and licensed brands, such as 808®, AR for Her, Acoustic Research®, Advent®, Ambico®, Car Link®, Chapman®, Code-Alarm®, Discwasher®, Energy®, Heco®, Hirschmann Car Communication®, Incaar™, Invision®, Jamo®, Jensen®, Klipsch®, Mac Audio™, Magnat®, Mirage®, myris®, Oehlbach®, Omega®, Phase Linear®, Prestige®, Pursuit®, RCA®, RCA Accessories, Schwaiger®, Recoton®, Terk® and VoxxHirschmann as well as private labels through a large domestic and international distribution network. We also function as an OEM ("Original Equipment Manufacturer") supplier to several customers, as well as market a number of products under exclusive distribution agreements, such as SiriusXM satellite radio products; Singtrix®, the next generation in karaoke and 360 Fly® Action Cameras.

The Company currently reports sales data for the following three operating segments:

Automotive products include:

mobile multi-media video products, including in-dash, overhead and headrest systems,

autosound products including radios and amplifiers,

satellite radios including plug and play models and direct connect models,

smart phone telematics applications,

automotive security and remote start systems,

automotive power accessories,

rear observation and collision avoidance systems,

TV tuners and antennas,

location based services, and

power lift gates.

Premium Audio products include:

premium loudspeakers,

architectural speakers,

commercial speakers,

outdoor speakers,

flat panel speakers,

wireless speakers,

Bluetooth speakers,

home theater systems,

business music systems,

streaming music systems,

on-ear and in-ear headphones,

wireless and Bluetooth headphones,

soundbars and sound bases, and

DLNA (Digital Living Network Alliance) compatible devices.

Consumer Accessories products include:

High-Definition Television ("HDTV") antennas,

Wireless Fidelity ("WiFi") antennas,

High-Definition Multimedia Interface ("HDMI") accessories,

security related products,

home electronic accessories such as cabling,

other connectivity products,

power cords,

performance enhancing electronics,

TV universal remotes,

flat panel TV mounting systems,

iPod specialized products,

wireless headphones,

wireless speakers,

Bluetooth speakers,

action cameras,

karaoke products,

infant/nursery products,

power supply systems and charging products,

electronic equipment cleaning products,

personal sound amplifiers,

set-top boxes,

home and portable stereos, and

digital multi-media products, such as personal video recorders and MP3 products.

We believe our segments have expanding market opportunities with certain levels of volatility related to domestic and international markets, new car sales, increased competition by manufacturers, private labels, technological advancements, discretionary consumer spending and general economic conditions. Also, all of our products are subject to price fluctuations, which could affect the carrying value of inventories and gross margins in the future.