Harman International
PRESS RELEASE

January 25, 2006		FOR IMMEDIATE RELEASE
		Contact:  Greg Henry
	Harman International Industries, Incorporated
		202-393-1101

HARMAN INTERNATIONAL
REPORTS RECORD SECOND QUARTER RESULTS

Washington, D.C. – Harman International Industries, Incorporated (NYSE:  HAR) today announced record results for the second quarter and six months ended December 31, 2005.  Net sales for the quarter were $832.6 million, a 6 percent increase compared to $788.6 million last year, or 12 percent exclusive of foreign currency translation.  Operating income for the three months was $115.9 million, 16 percent higher than the $99.5 million in the second quarter last year.  Exclusive of foreign currency translation, operating income increased 25 percent.  Earnings per diluted share were $1.07 compared to $0.92 a year ago, an increase of 16 percent.  Excluding foreign currency translation, earnings per diluted share increased 25 percent.

For the six months ended December 31, 2005 net sales were $1.587 billion compared to $1.480 billion, an increase of 7 percent.  Exclusive of foreign currency translation, net sales increased 11 percent.  Operating income for the period was $194.1 million, a 20 percent increase versus $161.4 million last year, or 26 percent excluding foreign currency translation.  Earnings per diluted share for the six months were $1.86 compared to $1.40 in the prior year period, an increase of 33 percent.  Excluding foreign currency translation, earnings per diluted share were 39 percent higher.

Automotive sales were $547.6 million for the second quarter, an increase of 2 percent versus the same period last year.  Exclusive of foreign currency translation, Automotive sales would have been 9 percent higher than a year ago.  Our Automotive segment absorbs most of the company’s translation exposure.  Consumer sales increased 22 percent to $155.0 million.  Professional sales were $130.0 million, an increase of 5 percent compared to the prior year period. 

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

“We achieved excellent results for the second quarter and first half of fiscal 2006.  Despite unfavorable foreign currency translation, each of our three operating groups had a strong first half.  Automotive continues to invest in research and development to fuel the growth of our expanding infotainment business.  Consumer multimedia products continued their vigorous growth. Although hampered by product shortages around the

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world, sales increased 144 percent compared to the first six months last year.  Professional did well with a solid array of products linked by the HiQnet protocol.  During the first six months of this fiscal year, we repurchased 1,341,300 shares of our outstanding common stock for $119 million. 

Harman/Becker has been selected by the BMW Group as the supplier to enter into final contract negotiations to develop its next generation infotainment headunit with introduction planned in three to four years.  The development, based on Harman-Becker’s scalable platform, has begun and finalization of the development contract is in process.  Harman has also received the award for the 2009 Mercedes-Benz E Class mid-level infotainment system and for its sound system, branded Harman/Kardon.

We look forward to the second half of fiscal 2006 and reiterate our expectation that at current exchange rates, we will earn $3.85 per diluted share for the fiscal year.”

At 4:30 p.m. EST today, Harman International will host an analyst and investor conference call to discuss the results for the three and six months ended December 31, 2005 and to offer management’s outlook for future periods.  To participate in the conference call, please dial (877) 777-1973 or for international calls dial (612) 332-0107 prior to 4:30 p.m. EST.  Please let the operator know that you would like to join the Harman International call.

A replay of the conference call will be available following the completion of the call at approximately 8:00 p.m. EST.  The replay will be available through February 2, 2006.  To access the replay, please call (800) 475-6701 or for international calls (320) 365-3844.  The access code number is 815075.

AT&T will also be web-casting the presentation.  The web-cast can be accessed at http://65.197.1.5/att/confcast , enter the Access Code:  815075 and then click Go.  There will also be a link to the web-cast at www.harman.com.  Participation through the web-cast will be in listen-only mode.  If you need technical assistance, call the toll-free AT&T Help Line at 1-888-793-6118 (678-749-8002 for international customers).  An archive will be available for 30 days following the presentation. 

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Harman International Industries, Incorporated (www.harman.com) is a leading manufacturer of high-quality, high fidelity audio products and electronic systems for the automotive, consumer and professional markets.  The Company’s stock is traded on the New York Stock Exchange under the symbol:  HAR.

Note:  Except for historical information contained herein, the matters discussed are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act.  You 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 the effect of changes in consumer confidence, a rise in interest rates affecting consumer spending, automobile industry sales and production rates, the loss of one or more significant customers, including our automotive customers, model-year changeovers and customer acceptance in the automotive industry, our ability to satisfy contract performance criteria, availability of key components to the products we manufacture, competitive products, fluctuations in currency exchange rates, the outcome of pending or future litigation and other claims, labor disputes at our facilities and those of our customers or common carriers, general economic conditions and other risks detailed in filings made by Harman International with the Securities and Exchange Commission.

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED UNAUDITED CONDENSED STATEMENTS OF OPERATIONS (000s omitted except per share amounts)
		Three months ended		Six months ended
		December 31,		December 31,
		2005	2004	2005	2004
Net sales	$	832,645	788,587	1,587,293	1,480,293
Cost of sales		526,876	510,097	1,015,229	980,404
Gross profit		305,769	278,490	572,064	499,889
Selling, general and administrative expenses		189,909	178,978	378,011	338,452
Operating income		115,860	99,512	194,053	161,437
Other expenses:
Interest expense, net		4,558	2,600	8,397	5,967
Miscellaneous, net		1,156	699	1,770	4,214
Income before income taxes and minority interest		110,146	96,213	183,886	151,256
Income tax expense		37,968	30,788	57,741	52,159
Minority interest		(357)	---	(357)	---
Net income	$	72,535	65,425	126,502	99,097
Basic earnings per share	$	1.10	0.97	1.92	1.48
Diluted earnings per share	$	1.07	0.92	1.86	1.40
Shares outstanding – Basic		65,771	67,361	65,944	66,777
Shares outstanding – Diluted		67,948	70,942	68,185	70,592

HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (000s omitted)
	December 31,		December 31,
	2005		2004
ASSETS
Current assets
Cash and cash equivalents	$	394,499		270,188
Investments		---		29,750
Accounts receivable		418,579		402,351
Inventories		321,331		326,331
Other current assets		158,168		108,467
Total current assets		1,292,577		1,137,087
Property, plant and equipment		473,356		495,220
Goodwill		350,707		376,618
Other assets		164,805		130,792
Total assets	$	2,281,445		2,139,717
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings	$	1,735		3,548
Current portion of long-term debt		3,001		865
Accounts payable and accrued liabilities		742,049		638,905
Total current liabilities		746,785		643,318
Borrowings under revolving credit facility		75,000		---
Long-term debt		322,893		335,450
Other non-current liabilities		69,052		79,010
Total shareholders’ equity		1,067,715		1,081,939
Total liabilities and shareholders’ equity	$	2,281,445		2,139,717