Net sales for the second quarter of 2001 were $29.1 million compared to $28.3 million for the same quarter last year. Net income for the second quarter was $2.3 million, or $0.16 per diluted share, compared to $2.1 million, or $0.14 per diluted share, for the second quarter of 2000.

Net sales increased 18% for the six months ended June 30, 2001 to $60.1 million compared to $51.0 million for the first six months of 2000. Net income increased 53% for the first six months of 2001 to $4.9 million, or $0.33 per diluted share compared to $3.2 million, or $0.21 per diluted share for the same period last year.

Paul Arling, the company’s chairman and chief executive officer, stated, UEI posted record sales and earnings for the second quarter and year to date. We believe our strong customer relationships, leading technology and component purchasing power have enabled us to lead our market in delivering value to our cable, satellite, consumer electronics and retail customers. Considering the current economy, we anticipate these industries may experience increased pressure in the near term. However, we believe our customer diversity and expansion into new geographical regions will minimize risks and our emerging growth products and markets will provide positive upside for the future.

Mark Belzowski, UEI’s CFO added, We met our targeted gross margin for the 2001 second quarter achieving 41.7%, compared to 40.5% in the second quarter of 2000, reflecting a more favorable product mix of higher margin items. Our balance sheet is increasingly strong, with nearly $28 million in cash.

Recently, UEI made significant management changes. In May, after an extensive search, UEI appointed Rob Lilleness as president and COO. Lilleness joins UEI most recently from Trilogy Software, Inc., a privately held company that develops and markets e-business software for Global 2000 corporations, including Compaq Computer Corp., Hewlett-Packard Co., Sun Microsystems, Inc., Ford Motor Co., Land’s End and The Boeing Co. Prior to Trilogy, Lilleness worked for Microsoft Corp. in a number of marketing, management and operational roles. His work was critical in the success of the Windows NT Server and Microsoft BackOffice businesses, and Microsoft’s move into enterprise computing and Internet technologies.

Over the past 5 years, we have built robust relationships with our customers and it is our continued goal to build on those, as well as develop new relationships that will support our future growth, Arling continued. While the current economy and its effect on our industries may affect our near-term performance, we believe the combination of our partnerships with industry leaders, a strong wireless technology base, much of which is protected under patent, and a strong management team will lead us to long-term success. These strengths will propel the company to capture opportunities in the emerging digital cable, satellite, interactive TV and home automation markets.

SOURCE: COMPANY PRESS RELEASE