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Audiovox Completes Sale Of Cellular Subsidiary

11/02/2004 09:31:00 AM Eastern

Hauppauge, N.Y. — Audiovox has completed the sale of its cellular subsidiary business, Audiovox Communications, to UTStarcom.

The sale had been announced last June for a purchase price of $165.1 million.

The Audiovox majority-owned subsidiary has sold selected assets and liabilities, excluding its receivables, inter-company accounts payable and certain accrued expenses. Audiovox said net proceeds from the sale would be about $145 million, after repurchasing Toshiba’s equity interest, paying executive and professional service fees and estimated taxes, collecting the outstanding receivables and paying down the company’s bank lines.

“In the months ahead, our plans are to focus on the continued development and growth of our electronics company, as well as exploring other business opportunities,” said John Shalam, chairman/CEO. “Net proceeds from the transaction will give Audiovox substantial capital, which will place us in a strong position to further enhance the Audiovox brand and expand our presence both in the United States and in Europe.”