Harman International Reports Record Third Quarter Results

Harman International Industries, Incorporated (NYSE:HAR)today announced record sales and earnings for the third quarter andnine months ended March 31, 2006. Net sales for the quarter were$801.5 million compared to $742.6 million during the same period lastyear, an increase of 8 percent. Exclusive of foreign currencytranslation, net sales increased 14 percent. Operating income for thethree-month period was $98.8 million, an increase of 11 percentcompared to the same period last year. Operating income was 20 percenthigher excluding the effects of foreign currency translation. Earningsper diluted share for the quarter were $0.94 compared to $0.90 lastyear, an increase of 4 percent. Exclusive of foreign currencytranslation, earnings per diluted share increased 13 percent. Thirdquarter results include a $1.7 million tax charge related to therepatriation of foreign earnings under the "American Jobs Creation Actof 2004."

For the nine months ended March 31, 2006, net sales were $2.389billion, an increase of 7 percent compared to the same period lastyear. Exclusive of foreign currency translation, net sales increased12 percent. Operating income for the nine months was $292.8 million,or 17 percent higher than a year ago. Exclusive of foreign currencytranslation, operating income increased 24 percent compared to lastyear. Earnings per diluted share for the nine-month period were $2.80versus $2.30 a year ago, an increase of 22 percent. Excluding foreigncurrency translation, earnings per diluted share increased 30 percent.These results include tax charges of $2.8 million related torepatriation of foreign earnings.

Automotive net sales were $567.3 million during the third quarter,an increase of 9 percent compared to last year. Excluding foreigncurrency translation, Automotive net sales were 16 percent higher thanlast year. Consumer net sales were $106.8 million for the quarter, anincrease of 7 percent. Professional net sales increased 6 percent to$127.3 million.

Dr. Sidney Harman, Executive Chairman, and Bernard Girod, ViceChairman and Chief Executive Officer, commented:

"We produced solid results for the third quarter and first ninemonths of fiscal 2006. All three of our operating groups achieved goodresults while continuing to invest in research and developmentprograms that will support the next phase of the Company's growth.Automotive continues to develop infotainment systems to satisfy newcontract awards that launch in fiscal years 2007, 2008 and beyond.Consumer is developing new multimedia products and the next generationof home electronic systems. Professional is building on the foundationlaid by the successful introduction of the HiQnet protocol.

Under the 'American Jobs Creation Act of 2004,' the Companyrepatriated $200 million and incurred a $1.1 million tax charge in thesecond quarter. Because we intend to repatriate an additional $300million in the fourth quarter, a tax charge of $1.7 million was bookedin the third quarter. Further, the Company is evaluating whether toretire its outstanding bonds prior to maturity in order to obtain thebenefit of the substantial interest expense reduction. We look forwardto the fourth quarter of fiscal 2006 and reiterate our expectation ofearning $3.85 per diluted share for the full year.

Subject to Board approval, Douglas Pertz will join the Company asPresident and CEO on May 1, 2006. He will succeed Bernard Girod whowill continue with the Company through the calendar year."

At 4:30 p.m. EDT today, Harman International will host an analystand investor conference call to discuss the results for the three andnine months ended March 31, 2006 and to offer management's outlook forfuture periods. To participate in the conference call, please dial(800) 230-1074 or for international calls dial (612) 332-0107 prior to4:30 p.m. EDT. Please let the operator know that you would like tojoin the Harman International call.

A replay of the conference call will be available following thecompletion of the call at approximately 8:00 p.m. EDT. The replay willbe available through May 3, 2006. To access the replay, please call(800) 475-6701 or for international calls (320) 365-3844. The accesscode number is 826146.

Harman International will also be web-casting the presentation.The web-cast can be accessed at http://65.197.1.5/att/confcast.Please enter the Access Code: 815075 and then click Go. There willalso be a link to the web-cast at www.harman.com. Participationthrough the web-cast will be in listen-only mode. You will needWindows Media Player or Real Player to listen to the presentation. Anarchive will be available for 30 days following the presentation.

Harman International Industries, Incorporated (www.harman.com) isa leading manufacturer of high-quality, high fidelity audio productsand electronic systems for the automotive, consumer and professionalmarkets. The Company's stock is traded on the New York Stock Exchangeunder the symbol: HAR.

Note: Except for historical information contained herein, thematters discussed are forward-looking statements within the meaning ofSection 21E of the Securities Exchange Act. You should not place unduereliance on these statements. We base these statements on particularassumptions that we have made in light of our industry experience, aswell as our perception of historical trends, current marketconditions, current economic data, expected future developments andother factors that we believe are appropriate under the circumstances.These statements involve risks and uncertainties that could causeactual results to differ materially from those suggested in theforward-looking statements, including but not limited to the effect ofchanges in consumer confidence, a rise in interest rates affectingconsumer spending, automobile industry sales and production rates, theloss of one or more significant customers, including our automotivecustomers, model-year changeovers and customer acceptance in theautomotive industry, our ability to satisfy contract performancecriteria, availability of key components to the products wemanufacture, competitive products, fluctuations in currency exchangerates, the outcome of pending or future litigation and other claims,labor disputes at our facilities and those of our customers or commoncarriers, general economic conditions and other risks detailed infilings made by Harman International with the Securities and ExchangeCommission.


HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
UNAUDITED CONDENSED STATEMENTS OF OPERATIONS
(000s omitted except per share amounts)


Three Months Ended Nine Months Ended
March 31, March 31,
2006 2005 2006 2005
---------- -------- ---------- ----------
Net sales $ 801,487 742,564 2,388,780 2,222,857
Cost of sales 519,870 492,572 1,535,099 1,472,976
---------- -------- ---------- ----------
Gross profit 281,617 249,992 853,681 749,881

Selling, general and
Administrative expenses 182,827 161,235 560,838 499,687
---------- -------- ---------- ----------
Operating income 98,790 88,757 292,843 250,194

Other expenses:
Interest expense, net 2,492 2,314 10,889 8,281
Miscellaneous, net 857 318 2,627 4,532
---------- -------- ---------- ----------
Income before income taxes 95,441 86,125 279,327 237,381

Income tax expense 31,775 22,609 89,516 74,768
Minority interest (360) 0 (717) 0
---------- -------- ---------- ----------
Net income $ 64,026 63,516 190,528 162,613
========== ======== ========== ==========

Basic earnings per share $ 0.96 0.94 2.88 2.42
Diluted earnings per share $ 0.94 0.90 2.80 2.30

Shares outstanding - Basic 66,428 67,743 66,103 67,095
Shares outstanding - Diluted 68,109 70,831 68,164 70,679



HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(000s omitted)


March 31, March 31,
2006 2005
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $ 397,099 $ 282,661
Investments 0 6,651
Accounts receivable 440,191 430,085
Inventories 337,685 340,522
Other current assets 158,864 116,335
----------- -----------
Total current assets 1,333,839 1,176,254
----------- -----------

Property, plant and equipment 479,815 477,027
Goodwill 356,005 372,441
Other assets 202,075 117,439
----------- -----------

Total assets $2,371,734 $2,143,161
=========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $ 1,746 $ 2,997
Current portion of long-term debt 174,961 699
Accounts payable and accrued liabilities 763,548 660,712
----------- -----------
Total current liabilities 940,255 664,408
----------- -----------

Long-term debt 150,109 329,527
Other non-current liabilities 71,628 76,690

Total shareholders' equity 1,209,742 1,072,536
----------- -----------

Total liabilities and shareholders' equity $2,371,734 $2,143,161
=========== ===========