Audiovox to Acquire Assets of Code-Alarm, Inc. - Company Signs Non-Binding Letter of Intent -

HAUPPAUGE, N.Y., Jan 7, 2002 /PRNewswire via COMTEX/ -- Audiovox Corporation (Nasdaq: VOXX) today announced that Audiovox Electronics Corp. (a wholly owned subsidiary of Audiovox Corporation) has signed a non-binding letter of intent to acquire substantially all of the assets of Code-Alarm, Inc., a supplier of vehicle security and convenience systems.

Commenting on the announcement, President and CEO of Audiovox Electronics Corp., Pat Lavelle stated, "Audiovox is already a significant player in the Original Equipment (OE) market. We believe that upon completion of this proposed strategic acquisition we will strengthen our existing business relationships with some of our large OE customers and will have the opportunity to increase sales to all of the market segments that Code-Alarm supports."

Doug Graham, Chairman of the Board of Code Alarm, Inc. said, "We are excited that as a result of the proposed transaction, the new PowerCode technology platform will continue to be distributed to customers in both the Aftermarket and OE channels."

Completion of the transaction is subject to several conditions, including the negotiation and execution of definitive transaction documents, including a definitive asset purchase agreement, resolution of the status of certain customer agreements, the satisfaction of all due diligence investigations, and compliance with all applicable corporate requirements by both parties, including the approval of their respective boards of directors and, in the case of Code Alarm, its shareholders.

Audiovox Electronics Corp. is a wholly owned subsidiary of Audiovox Corporation, specializing in the sale and marketing of mobile entertainment and security products as well as consumer electronics products.

Headquartered in Madison Heights, Michigan, Code Alarm, Inc. designs, engineers, manufactures, and markets advanced vehicle electronics including automotive security systems and components, remote keyless entry systems, security and convenience accessories and remote car start systems.

Except for historical information contained herein, statements made in this release that would constitute forward-looking statements may involve certain risks such as our ability to keep pace with technological advances, significant competition in the wireless, mobile and consumer electronics businesses, quality and consumer acceptance of newly introduced products, our relationships with key suppliers and customers, market volatility, non-availability of product, excess inventory, price and product competition, new product introductions, the uncertain economic and political climate in the United States and throughout the rest of the world and the potential that such climate may deteriorate further and other risks detailed in Audiovox's Form 10K for the fiscal year ended November 30, 2000 and its 10Q for the third quarter ended August 31, 2001. These factors, among others may cause actual results to differ materially from the results suggested in the forward-looking statements.

SOURCE Audiovox Corporation

CONTACT: C. Michael Stoehr of Audiovox Corporation, +1-631-231-7750; Financial Investor Relations - Glenn Wiener, +1-212-299-8982, or Chris Fullam, +1-212-299-3956, both of PR21, Inc., for Audiovox Corporation (VOXX)

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