INVESTOR CONTACT:               COMPANY CONTACT:
                        Neil Berkman                    Y.P. Chan
                        Berkman Associates              Interim CEO
                        (310) 826 - 5051                (954) 596 - 1000
                        info@BerkmanAssociates.com      www.SingingMachine.com

                              FOR IMMEDIATE RELEASE

                      THE SINGING MACHINE COMPANY ANNOUNCES
                     $1 MILLION PRIVATE SALE OF COMMON STOCK

      COCONUT CREEK,  FL, August 14, 2006 -- THE SINGING  MACHINE COMPANY (AMEX:
SMD) announced today that it has agreed to the private sale to two institutional
investors  of  2,300,000  shares of common stock at a price of $0.435 per share,
for an  aggregate  purchase  price of  $1,000,500.  The  offering  is subject to
customary closing  conditions and the approval of the American Stock Exchange of
the listing of the Common Shares. The Singing Machine has received $1,000,500 of
the purchase  price,  and expects to complete this  offering  within the next 30
days, assuming all closing conditions are met.

      Y.P. Chan, Interim CEO of The Singing Machine, said, "We believe that this
fresh equity capital further enhances our financial flexibility as we continue
to implement our strategic growth plan."

      ABOUT THE  SINGING  MACHINE
      Incorporated in 1982, The Singing Machine Company develops and distributes
a full line of  consumer-oriented  karaoke  machines  and music as well as other
electronic products under The Singing MachineTM, MotownTM, MTVTM, NickelodeonTM,
Hi-5TM,  BratzTM and other brand names. The first to provide karaoke systems for
home  entertainment in the United States, The Singing Machine sells its products
in North America, Europe and Asia.

      FORWARD-LOOKING  STATEMENTS
      This press release contains forward-looking  statements within the meaning
of the Private  Securities  Litigation Reform Act of 1995. Such  forward-looking
statements are based on current  expectations,  estimates and projections  about
the Company's  business  based,  in part, on assumptions  made by management and
include,  but are not limited to statements  about our financial  statements for
the fiscal year ended March 31, 2006.  These  statements  are not  guarantees of
future  performance  and involve risks and  uncertainties  that are difficult to
predict.  Therefore, actual outcomes and results may differ materially from what
is expressed or forecasted in such  forward-looking  statements  due to numerous
factors, including the risks that our vendors in China may not ship our products
on the scheduled basis and that we will have sufficient cash flow to finance our
working  capital  needs in the second and third  quarter of this fiscal year. In
addition,  you should  review  our risk  factors  in our SEC  filings  which are
incorporated herein by reference. Such forward-looking  statements speak only as
of the date on  which  they are made  and the  company  does not  undertake  any
obligation  to  update  any  forward-looking  statement  to  reflect  events  or
circumstances after the date of this release.

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                        THE SINGING MACHINE COMPANY, INC.
         6601 Lyons Road o Building A-7 o Coconut Creek, Florida 33073
                     o (954) 596-1000 o Fax (954) 596-2000