AUDIOVOX AND XM SATELLITE RADIO INTRODUCE BREAKTHROUGH XM SOLUTION FOR MORE THAN 25 MAKES OF NEW AND USED CARS

Audiovox's Terk adaptor makes it possible for every car radio with Radio Data Service (RDS) to become an XM radio

Washington D.C., August 09, 2005 -- Audiovox Corporation (NASDAQ: VOXX) and XM Satellite Radio (NASDAQ: XMSR), the nation's leading satellite radio service with more than 4.4 million subscribers, today announced a new smart digital adaptor that delivers XM to any new or used vehicle that has a car stereo equipped with Radio Data Service (RDS).

RDS is available in various vehicle models offered by leading automakers such as Audi, BMW, Chrysler, Dodge, Ford, Infiniti, Jaguar, Jeep, Land Rover, Lexus, Lincoln-Mercury, Mercedes-Benz, Mini, Nissan, Porsche, Range Rover, Scion, Toyota, Volkswagen, Volvo, and many others. RDS is a technology that was introduced in the U.S. in 1998 to send digital display information to FM radios.

The smart digital adaptor marketed by Audiovox under its Terk brand connects the in-dash radio to a hideaway XM Direct tuner box. The driver can access all XM functions using a full-feature remote control. The Terk adaptor offers consumers a universal solution for new and used vehicles that do not have factory-installed XM radios. The patent-pending technology provides a "factory-like" XM installation, leaving the dash and existing car stereo head unit intact.

"With the introduction of this new RDS product, Audiovox covers another segment of the satellite radio market. Consumers who want satellite radio, but who don't want the extra hardware on their dashboards that a plug-and-play solution requires, will now be able to purchase this new car stereo solution starting this November," said Tom Malone, Senior Vice President, Sales of Audiovox Corporation.

Consumers can simply use the Terk smart digital adapter (MSRP $69.99) to connect the RDS radio to an XM Direct tuner (MSRP $49.99). The XM Direct tuner is placed behind the dash for a clean, seamless installation. The tuner is available at retailers nationwide. The new Terk adapter for RDS-capable car stereos will be widely available in November.

RDS-capable car stereos connected to the XM Direct tuner will display the XM channel names, artist's name, song title, channel number, and music genre on the existing car stereo's display, similar to factory-installed satellite radio receivers. The user will be able to continue to listen to AM and FM radio stations on the in-dash radio.

"With this new Terk adaptor, you can turn any RDS factory-installed radio into an XM radio," said Dan Murphy, Senior Vice President of Product Marketing and Distribution. "This is great news for anyone who has a new or used vehicle with an RDS radio, and is looking for a simple, seamless way to add XM to their existing system."

About Audiovox

Audiovox Electronics Corporation (AEC) is a wholly owned subsidiary of Audiovox Corporation (Nasdaq:VOXX). AEC is a recognized leader in the marketing of automotive entertainment, vehicle security and consumer electronics products. The company is number one in mobile video and places in the top ten of almost every category that it sells. Among the lines marketed by AEC are its mobile electronics products including mobile video systems, auto sound systems including satellite radio, vehicle security, and consumer electronics products such as portable DVD players, flat-panel TV's, extended range two-way radios, multi media products like MP 3 players, and home and portable stereos. The company markets its products through an extensive distribution network that includes power retailers, 12-volt specialists, mass merchandisers and an OE sales group. The company markets products under the Audiovox, Jensen, Acoustic Research, Advent, Code Alarm, Terk, Vogel's and Prestige brands. For additional information, visit our web site at www.audiovox.com .