Logitech Delivers Best-Ever Q2 Results; Revenue Up 28 Percent; Operating Income Up 29 Percent; Company Increases Full-Year Targets for Sales and Operating Income

For Logitech's second quarter of FY 2006, ended September 30,2005, sales were $422 million, up 28 percent from $330 million in thesame quarter last year. Operating income was $38.2 million, up 29percent from $29.6 million last year. Net income for the quarter was$36.2 million ($.37 per share), up 39 percent from $26 million ($.27per share) in the prior year. Gross margin was 31.4 percent, down from33.2 percent in Q2 FY 2005.

Logitech's retail sales in the second quarter were up 29 percentover the prior year, driven by continued explosive growth in audiosales, and strong growth in the video and console-gaming categories.Retail sales growth was 30 percent in EMEA, 28 percent in the Americasand 31 percent in Asia Pacific. The Company's OEM sales were up 19percent over last year, due to robust sales of mice.

"As demand exceeded our expectations, this Q2 delivered our bestyear-over-year sales growth in more than three years," said GuerrinoDe Luca, Logitech president and chief executive officer. "We areriding the wave of significant trends -- the growing popularity ofdigital music, the pervasiveness of broadband connectivity, and theincreasing role of the PC as an entertainment and communicationplatform. Even with a significantly higher proportion of audioproducts in the overall product mix, we grew our gross profit fasterthan our operating expenses and delivered 29 percent growth inoperating income.

"We enter Q3 well positioned for the 2005 holiday buying seasonwith innovative new products recently launched across our productportfolio, and a higher backlog of retail orders compared to this timelast year. We expect our gross margin in the second half of the yearto be higher than it was in the first half, primarily due to continuedimprovements in the audio category."

Highlights for Logitech's Q2 FY 2006

-- Logitech achieved its best-ever quarter for retail sales of video products, with year-over-year growth of 28 percent, reflecting the increasing use of video communications over the Internet and demand for Logitech's refreshed video product lineup.

-- The Company's retail sales of audio products more than doubled compared to the same quarter last year. Demand for Logitech's PC speakers and audio products for iPod/MP3 players has been driven by the increasing popularity of digital music. And, the sales of Logitech's PC headsets have benefited from the surge in use of voice-over-IP communication.

-- Sales momentum of the Logitech(R) Harmony(R) universal remote control continues to accelerate as the product's channel presence in North America has broadened; the Harmony 880 was one of Logitech's best-selling products in Q2.

-- Retail sales of console-gaming products increased by 62 percent, fueled by a high attachment rate of Logitech products to the sale of PSP(TM) (PlayStation(R)Portable) systems.

Outlook

Logitech increased its financial targets for the current fiscalyear, ending March 31, 2006. The Company now targets sales growth of18-20 percent for the full fiscal year, compared to its earlier targetof 15 percent, and operating income growth to exceed the earliertarget of 15 percent. The Company expects gross margin for the fullfiscal year to be at the low end of the company's long-term targetrange of 32 to 34 percent.

Management Team Update

Logitech announced that Gerald P. Quindlen has joined the Companyas its senior vice president of worldwide sales and marketing. Mr.Quindlen was with the Eastman Kodak Company for seventeen years, wherehe most recently served as vice president of global sales andoperations for the Consumer and Professional Imaging Division. Heholds an M.B.A. degree from the University of Pennsylvania's WhartonSchool and a B.S. degree in chemical engineering from VillanovaUniversity.

Earnings Teleconference

Logitech will hold an earnings teleconference on Thursday, Oct.20, 2005 at 14:00 Central European Time/8:00 a.m. Eastern DaylightTime/5:00 a.m. Pacific Daylight Time to discuss these results as wellas guidance for Fiscal Year 2006. A live webcast and replay of theteleconference, including presentation slides, will be available atwww.logitech.com/investors. Please visit the Web site at least 10minutes early to register for the teleconference webcast.

About Logitech

Founded in 1981, Logitech designs, manufactures and marketspersonal peripherals that enable people to effectively work, play, andcommunicate in the digital world. Logitech International is a Swisspublic company traded on the SWX Swiss Exchange (LOGN) and in the U.S.on the Nasdaq National Market System (LOGI). The company hasmanufacturing facilities in Asia and offices in major cities in NorthAmerica, Europe and Asia Pacific.

This press release contains forward-looking statements regardingexpected sales and operating income for Fiscal 2006 and gross marginfor the second half and full year Fiscal 2006. These forward-lookingstatements involve risks and uncertainties that could cause Logitech'sactual performance to differ materially from that anticipated in theseforward-looking statements. Factors that could cause actual results todiffer materially include our ability to introduce successful productsin a timely manner, the effect of pricing, product, marketing andother initiatives by our competitors and our reaction to them on oursales, gross margins and profitability, our ability to matchproduction to demand and to coordinate the worldwide manufacturing anddistribution of our products in a timely and cost-effective manner,the sales mix between our lower- and higher-margin products, ouroperations in China being adversely impacted by strains on Chineseenergy, transportation, or other infrastructures, consumer demand forour products and our ability to accurately forecast it, as well asthose additional factors set forth in our periodic filings with theSecurities and Exchange Commission, including our Form 20-F for thefiscal year ended March 31, 2005, and our Form 6-K for the quarterended June 30, 2005, available at www.sec.gov. Logitech does notundertake to update any forward-looking statements.

Logitech, the Logitech logo and other Logitech marks are owned byLogitech and may be registered. All other trademarks are the propertyof their respective owners. For more information about Logitech andits products, visit the Company's Web site at www.logitech.com.
LOGITECH INTERNATIONAL S.A.

(In thousands, except per share / ADS) -- Unaudited


Quarter Ended September 30
CONSOLIDATED STATEMENTS OF INCOME 2005 2004
----------------------------------------------------------------------

Net sales $422,101 $329,568
Cost of goods sold 289,739 220,299
--------------------------
Gross profit 132,362 109,269
--------------------------
% of net sales 31.4% 33.2%

Operating expenses:
Marketing and selling 57,703 49,233
Research and development 21,491 17,503
General and administration 14,928 12,986
--------------------------
Total operating expenses 94,122 79,722
--------------------------

Operating income 38,240 29,547

Interest income (expense), net 693 (225)
Other income, net 3,203 1,253
--------------------------

Income before income taxes 42,136 30,575
Provision for income taxes 5,899 4,586
--------------------------

Net income $ 36,237 $ 25,989
==========================


Shares used to compute net income per share
and ADS:
Basic 88,689 88,224
Diluted 99,835 98,438
Net income per share and ADS:
Basic $0.41 $0.29
Diluted $0.37 $0.27

Note:

Share and per-share data for all periods presented have been adjusted
to give effect to the two-for-one stock split that took effect on June
30, 2005.



LOGITECH INTERNATIONAL S.A.

(In thousands, except per share / ADS) -- Unaudited


Six Months Ended September 30
CONSOLIDATED STATEMENTS OF INCOME 2005 2004
----------------------------------------------------------------------

Net sales $756,803 $596,162
Cost of goods sold 517,069 396,027
------------------------------
Gross profit 239,734 200,135
------------------------------
% of net sales 31.7% 33.6%

Operating expenses:
Marketing and selling 103,996 88,802
Research and development 42,509 34,182
General and administration 29,762 26,028
------------------------------
Total operating expenses 176,267 149,012
------------------------------

Operating income 63,467 51,123

Interest income (expense), net 1,278 (515)
Other income, net 3,437 2,149
------------------------------

Income before income taxes 68,182 52,757
Provision for income taxes 9,548 7,913
------------------------------

Net income $ 58,634 $ 44,844
==============================


Shares used to compute net income per
share and ADS:
Basic 88,571 88,948
Diluted 99,456 99,294
Net income per share and ADS:
Basic $0.66 $0.50
Diluted $0.60 $0.47

Note:

Share and per-share data for all periods presented have been adjusted
to give effect to the two-for-one stock split that took effect on June
30, 2005.



LOGITECH INTERNATIONAL S.A.

(In thousands) -- Unaudited


September 30, March 31, September 30,
CONSOLIDATED BALANCE SHEETS 2005 2005 2004
----------------------------------------------------------------------


Current assets
Cash and cash equivalents $ 254,697 $ 341,277 $ 193,477
Accounts receivable 297,418 229,234 214,858
Inventories 266,899 175,986 194,665
Other current assets 55,695 50,364 44,210
------------- ------------- -------------
Total current assets 874,709 796,861 647,210
Investments 16,703 16,793 16,754
Property, plant and equipment 62,895 52,656 43,661
Intangible assets
Goodwill 135,298 134,286 133,630
Other intangible assets 13,495 15,816 19,122
Other assets 2,042 2,460 3,554
------------- ------------- -------------
Total assets $1,105,142 $1,018,872 $ 863,931
============= ============= =============

Current liabilities
Short-term debt $ 109,991 $ 9,875 $ 9,595
Accounts payable 243,051 177,748 160,742
Accrued liabilities 156,633 156,575 130,580
------------- ------------- -------------
Total current liabilities 509,675 344,198 300,917
Long-term debt 25 147,788 140,771
Other liabilities 665 737 883
------------- ------------- -------------
Total liabilities 510,365 492,723 442,571

Shareholders' equity 594,777 526,149 421,360

------------- ------------- -------------
Total liabilities and
shareholders' equity $1,105,142 $1,018,872 $ 863,931
============= ============= =============



LOGITECH INTERNATIONAL S.A.

(In thousands) -- Unaudited

Quarter Ended Six Months Ended
September 30 September 30
SUPPLEMENTAL FINANCIAL ------------------- -------------------
INFORMATION 2005 2004 2005 2004
-------------------------------------------------- -------------------

Depreciation $ 8,730 $ 6,240 $ 15,755 $ 12,156
Amortization of other
acquisition-related
intangibles 1,161 1,585 2,321 2,981
Operating income 38,240 29,547 63,467 51,123
Operating income before
depreciation and amortization 48,131 37,372 81,543 66,260
Capital expenditures 13,320 7,737 24,086 18,328


Net sales by channel:
Retail $368,757 $284,924 $653,069 $508,395
OEM 53,344 44,644 103,734 87,767
--------- --------- --------- ---------
Total net sales $422,101 $329,568 $756,803 $596,162
========= ========= ========= =========


Net sales by product family:
Retail -- Cordless $110,065 $100,970 $185,370 $177,650
Retail -- Corded 74,036 71,632 146,305 129,201
Retail -- Video 61,353 47,984 109,837 93,879
Retail -- Audio 74,601 33,107 129,397 54,606
Retail -- Gaming 30,995 24,935 51,581 41,184
Retail -- Other 17,707 6,296 30,579 11,875
OEM 53,344 44,644 103,734 87,767
--------- --------- --------- ---------
Total net sales $422,101 $329,568 $756,803 $596,162
========= ========= ========= =========

(IR)