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March 2007

March 2007 Disclaimer on Forward-looking Statements

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March 2007

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  1. March 2007

  2. Disclaimer on Forward-looking Statements Certain statements made by the Company in this presentation are forward-looking statements. These statements include comments as to the Company’s beliefs and expectations as to future events and trends affecting the Company’s business. These forward-looking statements are based upon management’s current expectations concerning future events and trends and are necessarily subject to uncertainties, many of which are outside the control of the Company. The factors stated under Item 1A. Risk Factors, which appears in the Company’s Annual Report on Form 10-K for the year ended June 30, 2006, and the Company’s most recent 10-Q filings with the SEC, as well as other factors, could cause actual results to differ materially from such statements.

  3. Harman International – Financial Overview Q2 1

  4. Harman International - Inventory • Total Harman: Currency translation $22M, Sales Growth $21M • Automotive: PND $67M • Consumer: New Product Ramp-up $13M • Professional: New Products $9M 2

  5. Automotive Group -Financial Overview 3

  6. Automotive R&D Expenses Drivers of R&D Spend • Infotainment Awards not forecasted as part of original plan • Driver Assistance & Pedestrian Safety 4

  7. Automotive Group -Recent BMW Award • BMW award announced in Jan 2007, totaling $800 million over 4 years, beginning in FY’09 • Harman Becker Infotainment solution spread across virtually entire BMW model range • Harman Becker (70%) and an Asian support supplier (30%) will share the BMW high system business • The State of the Art system will include: • HD Digital Audio Tuner (US), Satellite Radio (US), Weatherband (US), Video Out to RSE, Music Jukebox (via HDD), 2D & 3D Navigation, Traffic Information, Voice Recognition, Internet Browser, Wireless connectivity 5

  8. Automotive GroupOrder Backlog: FY 07 to FY 13 Awarded Business 6

  9. Automotive Group – Driver Assist • Driver Assist is the interaction of the car with the driver to allow safe vehicle operation and includes lane guidance, pre-crash emergency braking, adaptive cruise control, night vision, etc. • Harman's industrial-proven Infotainment platform built on the exclusive QNX Real Time Operating System, the low latency high-speed MOST Network (150 Mbps) and the Q-Net multi processor link, make it the ideal platform for Driver Assist • Harman’s unique infotainment platform will allow Driver Assist technology to be delivered through an integrated, scaleable system for all levels of automobile platforms  7

  10. Consumer Group -Financial Overview 8

  11. Consumer Group - Opportunities • 12 new products introduced ahead of the holiday season with another dozen launching in the second half of year • Drive + Play II – allows streaming and wireless control of MP3 player coupled with a high-resolution mountable display • Music Enabled Cell Phones – iPhone expected to drive demand – significant opportunity for Harman’s multimedia products 9

  12. Consumer Group - PND • Personal Navigation Device Products – Distinctions are superior user interface and industrial design • Guide + Play GPS-500, a GPS navigator and digital audio/video player launched in March 2007 • 4” WQVGA touchscreen for MPEG4 and WMV9 video format • US & Canada Maps, Full POI database, MP3 compatability • Product roadmap includes 5 additional models launching throughout the coming fiscal year 10

  13. Harman/Kardon PND in Action 11

  14. Professional Group -Financial Overview 12

  15. Professional Group - HiQnet • HiQnet makes complex professional audio systems easy to configure, connect and control from microphone to speaker • Acknowledged State of the Art digital integration system • 60+ products are HiQnet-enabled and more than 20% of HPro’s sales are generated from HiQnet Products • Future applications include leveraging HiQnet technology for video applications 13

  16. harman international

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