Harman International Reports Record Results

Automotive net sales for the fiscal year were $2.236 billion, anincrease of 5 percent compared to last year. Excluding foreigncurrency translation, Automotive net sales increased 9 percent.Consumer net sales were $494 million, 18 percent higher versus a yearago. Professional net sales were $517 million, an increase of 6percent compared to the prior year.

Net sales for the fourth quarter were $859 million, an increase of6 percent compared to the prior year. Foreign currency translation didnot have a material impact on fourth quarter sales. Excluding fourthquarter restructuring charges and costs associated with repurchasingsenior debt, earnings per diluted share were $1.09, an increase of 8percent versus last year. Earnings per diluted share, including thosecharges, were $0.95 compared to $1.01 in the fourth quarter last year.

Dr. Sidney Harman, Executive Chairman, and Douglas Pertz, ChiefExecutive Officer, commented:

"We achieved record results in fiscal 2006 and completed the yearwith a very strong balance sheet. The restructuring program willincrease efficiency in our manufacturing and engineeringorganizations.

We are pleased to announce that after many years of seniorresponsibility at BMW, Mr. Helmut Schinagel will join us as ChiefExecutive Officer of Harman/Becker Automotive Systems effectiveOctober 1, 2006. Dr. Erich Geiger will then assume the newcompany-wide position of Chief Strategy and Technology Officer. Thisnew position will enable Dr. Geiger to guide technological initiativesat Consumer and Professional as well as at Automotive.

We reiterate our expectation for earnings of $4.35 per dilutedshare in fiscal 2007 and look forward to the opportunities that lieahead."

At 4:30 p.m. EDT today, Harman International will host an analystand investor conference call to discuss the results for the three andtwelve months ended June 30, 2006 and to offer management's outlookfor future periods. To participate in the conference call, please dial(888) 276-9996 or for international calls dial (612) 288-0337 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 August 22, 2006. Please call (800) 475-6701 toaccess the replay. For international calls please call (320) 365-3844.The access code number is 838364.

Harman International will be web-casting the conference call. Theweb-cast can be accessed at http://65.197.1.5/att/confcast as well aswww.harman.com, in the Investor Relations section. Conference I.D. is838364 with a Passcode of Harman. Participation through the web-castwill be in listen-only mode. You will need Windows Media Player orReal Player to listen to the presentation. An archive will beavailable for 7 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
GAAP CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(000s omitted except per share amounts)

(unaudited)
Three Months Ended Twelve Months Ended
June 30, June 30,
2006 2005 2006 2005
---------- ---------- ---------- ----------
Net sales $859,117 808,032 3,247,897 3,030,889
Cost of sales 560,228 526,211 2,095,327 1,999,187
---------- ---------- ---------- ----------
Gross profit 298,889 281,821 1,152,570 1,031,702

Selling, general and
Administrative expenses 194,491 181,034 755,329 680,721
---------- ---------- ---------- ----------
Operating income 104,398 100,787 397,241 350,981

Other expenses:
Interest expense, net 2,138 2,235 13,027 10,516
Miscellaneous, net 5,400 596 8,027 5,128
---------- ---------- ---------- ----------
Income before income taxes 96,860 97,956 376,187 335,337

Income tax expense 32,361 27,721 121,877 102,489
Minority interest (268) 0 (985) 0
---------- ---------- ---------- ----------
Net income $64,767 70,235 255,295 232,848
========== ========== ========== ==========

Basic earnings per share $0.97 1.05 3.85 3.47
Diluted earnings per share $0.95 1.01 3.75 3.31

Shares outstanding -
Basic 66,733 67,195 66,260 67,120
Shares outstanding -
Diluted 67,984 69,623 68,105 70,399


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

June 30, June 30,
2006 2005
----------- -----------
ASSETS
Current assets
Cash and cash equivalents $291,758 $291,214
Accounts receivable 444,474 433,041
Inventories 344,957 312,950
Other current assets 168,168 146,088
----------- -----------
Total current assets 1,249,357 1,183,293
----------- -----------

Property, plant and equipment 521,935 491,619
Goodwill 381,219 345,071
Other assets 202,150 167,220
----------- -----------

Total assets $2,354,661 $2,187,203
=========== ===========

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings $1,751 $2,593
Current portion of long-term debt 16,337 533
Accounts payable 320,327 274,145
Accrued liabilities 530,586 451,799
----------- -----------
Total current liabilities 869,001 729,070
----------- -----------

Borrowings under revolving credit facility 159,900 0
Long-term debt 19,566 330,791
Other non-current liabilities 78,030 66,394

Total shareholders' equity 1,228,164 1,060,948
----------- -----------

Total liabilities and shareholders' equity $2,354,661 $2,187,203
=========== ===========


HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(000s omitted except per share amounts)
(unaudited)

Three Months Ended Months Ended
June 30, 2006 June 30, 2005
------------------------------------- -------------
GAAP Adjustments Non-GAAP GAAP
--------- ----------- ------------- -------------
Net sales $859,117 --- 859,117 808,032
Cost of sales 560,228 --- 560,228 526,211
--------- ----------- ------------- -------------
Gross profit 298,889 --- 298,889 281,821

Selling, general
and
Administrative
expenses 194,491 (9,499)(a) 184,992 181,034
--------- ----------- ------------- -------------
Operating income 104,398 9,499 113,897 100,787

Other expenses:
Interest
expense, net 2,138 --- 2,138 2,235
Miscellaneous,
net 5,400 (4,930)(b) 470 596
--------- ----------- ------------- -------------
Income before
income taxes 96,860 14,429 111,289 97,956

Income tax expense 32,361 5,050 37,411 27,721
Minority interest (268) --- (268) 0
--------- ----------- ------------- -------------
Net income $64,767 9,379 74,146 70,235
========= =========== ============= =============

Basic earnings per
share $0.97 0.14 1.11 1.05
Diluted earnings
per share $0.95 0.14 1.09 1.01

Shares outstanding
- Basic 66,733 66,733 66,733 67,195
Shares outstanding
- Diluted 67,984 67,984 67,984 69,623

(a) Restructuring charges in the amount of $9.5 million were
recorded during the fourth quarter to increase efficiency in
manufacturing and engineering.

(b) Non-operating costs of $4.9 million associated with the fourth
quarter repurchase of senior debt.


HARMAN INTERNATIONAL INDUSTRIES, INCORPORATED
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
RECONCILIATION OF GAAP TO NON-GAAP RESULTS
(000s omitted except per share amounts)

Year Ended Year Ended
June 30, 2006 June 30, 2005
------------------------------------ -------------
GAAP Adjustments Non-GAAP GAAP
----------- ----------- ---------- -------------
Net sales $3,247,897 --- 3,247,897 3,030,889
Cost of sales 2,095,327 --- 2,095,327 1,999,187
----------- ----------- ---------- -------------
Gross profit 1,152,570 --- 1,152,570 1,031,702

Selling, general
and
Administrative
expenses 755,329 (9,499)(a) 745,830 680,721
----------- ----------- ---------- -------------
Operating income 397,241 9,499 406,740 350,981

Other expenses:
Interest
expense, net 13,027 --- 13,027 10,516
Miscellaneous,
net 8,027 (4,930)(b) 3,097 5,128
----------- ----------- ---------- -------------
Income before
income taxes 376,187 14,429 390,616 335,337

Income tax expense 121,877 5,050 126,927 102,489
Minority interest (985) --- (985) 0
----------- ----------- ---------- -------------
Net income $255,295 9,379 264,674 232,848
=========== =========== ========== =============

Basic earnings per
share $3.85 0.14 3.99 3.47
Diluted earnings
per share $3.75 0.14 3.89 3.31

Shares outstanding
- Basic 66,260 66,260 66,260 67,120
Shares outstanding
- Diluted 68,105 68,105 68,105 70,399

(a) Restructuring charges in the amount of $9.5 million were
recorded during the fourth quarter to increase efficiency in
manufacturing and engineering.

(b) Non-operating costs of $4.9 million associated with the fourth
quarter repurchase of senior debt.