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FREMONT, Calif. and ROMANEL-SUR-MORGES, Switzerland, Aug. 14, 2008— Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced that the company has agreed to acquire privately held Ultimate Ears, of Irvine, Calif., for $34 million in cash. The long-established leader in custom in-ear monitors for on-stage professional musicians and sound engineers, Ultimate Ears has over the last few years expanded its product line to include a range of acclaimed in-ear consumer earphones for portable music enthusiasts, including users of iPhone®, iPod® and other MP3 players. The acquisition is subject to customary closing conditions and is expected to close in August.
The acquisition of Ultimate Ears allows Logitech to expand its portfolio of digital audio products, providing more options for portable music listening. The company already offers a line of digital music speaker systems for in the home and on the go. Logitech is also a leading worldwide provider of speakers and headphones for PCs. And the company recently introduced a portable wireless speaker product for listening to music stored on Bluetooth® mobile phones.
“Ultimate Ears is a perfect fit for Logitech and our audio business,” said Gerald P. Quindlen, Logitech president and chief executive officer. “Since its inception, Ultimate Ears has been driven by innovation, close ties to its customers, and the desire to enable an immersive audio experience. Logitech’s success has been built on using a deep understanding of our customers to create innovative products that let people immerse themselves in their pursuits – whether they are listening to music, gaming, watching a video or otherwise enjoying their digital lifestyle. We look forward to using our worldwide distribution network and operational efficiencies to help more people discover this superior listening experience.”
Ultimate Ears has a loyal following of touring musicians, sound engineers and mainstream music lovers, due to the sound quality and comfortable fit of the company’s earphones. The company was founded in 1995 to address the sound-monitoring needs of on-stage rock musicians, developing the first high-performance two-way, custom in-ear stage monitors. An estimated 75 percent of today’s top touring rock musicians now use the Ultimate Ears custom-fit in-ear monitor while performing. Since 2005, using patented, proprietary technology, Ultimate Ears has expanded its product line with universal-fit earphones for audiophiles as well as mainstream music enthusiasts. Pricing for the company’s consumer products begins at U.S. $40, while pricing for custom products can be as much as $1200. Ultimate Ears employs nearly 40 people.
“The iPod and iPhone have made it possible for each of us to have a portable and personal music-listening experience,” said Junien Labrousse, executive vice president of Logitech’s Products Group. “But for a truly immersive listening experience, you need an earphone with a comfortable fit that keeps out the background noise and lets you hear music as the artists intended, which is precisely what Ultimate Ears has mastered.”
Impact on Financial Results for Current Fiscal Year
The impact of the acquisition on Logitech’s current fiscal year results is not expected to be material.
Logitech is a world leader in personal peripherals, driving innovation in PC navigation, Internet communications, digital music, home-entertainment control, gaming and wireless devices. Founded in 1981, Logitech International is a Swiss public company listed on the SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market (LOGI).
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This press release contains forward-looking statements, including the statements regarding the expected benefits of the transaction, management plans relating to the transaction and the effect of the acquisition on Logitech’s financial performance. These forward-looking statements involve risks and uncertainties that could cause Logitech’s actual performance to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include Logitech's ability to successfully integrate the Ultimate Ears products, technology and operations, the retention of Ultimate Ears employees, and Logitech’s ability to successfully introduce and market Ultimate Ears consumer products. For information regarding other related risks, see the risk factors section in Logitech’s Annual Report on Form 10-K for the fiscal year ended March 31, 2008, and our quarterly reports on Form 10-Q, available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.
Logitech, the Logitech logo, and other Logitech marks are registered in Switzerland and other countries. All other trademarks are the property of their respective owners. For more information about Logitech and its products, visit the company’s Web site at www.logitech.com.