Audiovox Communications and AT&T Wireless Launch Smallest Windows Mobile-Based Smartphone

LOS ANGELES, Oct. 12, 2004 —
Today at the Digital Entertainment Anywhere launch event, Microsoft Corp. and Audiovox Communications Corp., a majority-owned subsidiary of Audiovox Corp., and AT & T Wireless introduced the smallest Microsoft® Windows Mobile (TM) -based Smartphone in North America — the Audiovox SMT5600. The Audiovox SMT5600 includes the Windows Mobile 2003 Second Edition software for Smartphones and is the first Windows Mobile-based Smartphone featuring Windows Media®
Player 10 Mobile, providing a rich new media experience that enables the seamless transfer of media from a PC running Windows XP. AT & T Wireless is offering the Audiovox SMT5600 starting today for $199.99 (U.S.) after rebates with a two-year voice and data service contract.

Powered by the Windows Mobile 2003 Second Edition software, the new Audiovox SMT5600 will allow AT & T Wireless customers to take the familiarity of Microsoft Office and Outlook®
features with them while on the move. With the latest in personal information management (PIM) functionality, such as over-the-air access to Outlook Calendar, Inbox and Contacts, phone users can easily transfer their most important information to their mobile phone. In addition, AT & T Wireless customers will be able to receive access to corporate e-mail on the Audiovox SMT5600 through Microsoft Exchange Server 2003 and third-party middleware providers.

“The Audiovox SMT5600 with Windows Mobile software provides a dynamic solution for consumers who need to remain connected — from the busy mobile professional to parents who are constantly juggling hectic schedules. This is a device that can match any consumer’s needs,” said Philip Christopher, president and CEO of Audiovox Communications. “With the introduction of the Audiovox SMT5600, we have once again shown the power of innovative hardware combined with powerful and flexible software.”

“We expect the compact design and advanced capabilities of the new Audiovox SMT5600 to prove extremely popular with mobile professional and businesses looking for access to critical business and personal information such as e-mail, instant messaging, text messaging and corporate applications,” said Abhi Ingle, vice president of business data solutions at AT & T Wireless.

“Today’s busy professionals are demanding more from their devices and are looking for the right combination of connectivity and entertainment functionality,” said Suzan DelBene, corporate vice president of marketing for the Mobile and Embedded Devices Division at Microsoft. “The new Audiovox SMT5600 delivers a great mobile phone experience, combining the dynamic Windows Mobile software with a small, innovative handset.”

In addition to its productivity-focused features, the Audiovox SMT5600 also provides users with a rich mobile multimedia experience through the following features:

  • Advanced and unprecedented out-of-the-box multimedia features. The new Windows Media Player 10 Mobile provides leading-edge audio and video playback experiences with support for secure content, album art, playlists and more. Also, with the AT & T Wireless mMode (TM) Music Store, customers can discover, browse, listen to and purchase digital music tracks from a library of approximately 750,000 songs — all right from the handset. Built in cooperation with Loudeye Corp. and Microsoft, the mobile music store is seamlessly integrated with the PC, so digital music tracks are downloaded to users’ Windows-based PCs and billed automatically to their monthly AT & T Wireless statement or credit card.

  • First Windows Mobile-based smartphone with integrated camera in the United States. The Audiovox SMT5600 features the CMOS VGA digital camera with low-light capabilities, 4x digital zoom and camcorder functionality.

  • Seamless communications. The Audiovox SMT5600 includes pocket versions of Microsoft Outlook, Internet Explorer and MSN®
    Messenger, as well as speakerphone and conference calling functionalities.

  • Versatile mobility. The Audiovox SMT5600 is enabled for Bluetooth®
    and infrared support, and is a tri-band (GSM 850/1800/1900) phone, which makes it a truly global phone.

With Windows Media Player 10 Mobile, SMT5600 users can automatically sync media content easily with a Windows XP PC, transfer album art or playlists, and take advantage of new digital music scenarios powered by Windows Media Digital Rights Management 10. These scenarios include the transfer of purchased music from services such as MSN Music, Musicmatch, MusicNow and Wal-Mart Music Downloads, along with the ability to transfer subscription content from services such as Napster. The SMT5600 also is the first mobile phone to be certified under the PlaysForSure logo program, establishing that it is compatible with the widest variety of online services. And, weighing just 3.6 ounces, the SMT5600 proves that big things can come in small packages. More information is available at .

About Audiovox Communications Corp.

Audiovox Communications Corp. (ACC), a majority-owned subsidiary of Audiovox Corp. (Nasdaq “VOXX”), is one of the leading suppliers of wireless handsets and Pocket PC products in North and South America. Audiovox supplies mobile products to wireless carriers using both the CDMA and GSM/GPRS technology platforms. For more information, visit .

Forward-Looking Statements

Except for historical information contained herein, statements made in this release that would constitute forward-looking statements may involve certain risks and uncertainties. All forward-looking statements made in this release are based on currently available information and the Company assumes no responsibility to update any such forward-looking statement. The following factors, among others, may cause actual results to differ materially from the results suggested in the forward-looking statements. The factors include, but are not limited to, risks that may result from changes in the Company’s business operations; our ability to keep pace with technological advances; significant competition in the mobile and consumer electronics businesses as well as the wireless business; our relationships with key suppliers and customers; quality and consumer acceptance of newly introduced products; market volatility; nonavailability of product; excess inventory; price and product competition; new product introductions; the possibility that the review of our prior filings by the SEC may result in changes to our financial statements; and the possibility that stockholders or regulatory authorities may initiate proceedings against Audiovox and/or our officers and directors as a result of any restatements. Risk factors associated with our business, including some of the facts set forth herein, are detailed in the Company’s Form 10-K for the fiscal fourth quarter and year ended Nov. 30, 2003, and Form 10-Q for the fiscal second quarter ended May 31, 2004.

About AT & T Wireless

AT & T Wireless (NYSE: AWE) is the second-largest wireless carrier, based on revenues, in the United States. With 21.737 million subscribers as of June 30, 2004, and revenues of more than $16.9 billion over the past four quarters, AT & T Wireless delivers advanced high-quality mobile wireless communications services, voice and data, to businesses and consumers, in the U.S. and internationally.

Forward-Looking Statements

This press release contains “forward-looking statements” which are based on management’s beliefs as well as on a number of assumptions concerning future events made by management with information that is currently available to management. Forward-looking statements may include, without limitation, management’s expectations regarding: our future financial and operating performance and financial condition, including the company’s outlook for the fiscal year 2004 and subsequent periods; the outcome of our pending transaction with Cingular; subscriber growth; industry conditions; the strength of our balance sheet; our liquidity and needs for additional financing; and our ability to increase revenue, margins and operating free cash flow.

Readers are cautioned not to put undue reliance on such forward-looking statements, which are not a guarantee of performance and are subject to a number of uncertainties and other factors, many of which are outside AT & T Wireless’ control, that could cause actual results to differ materially from such statements. Without limitation these factors include: the risks associated with the implementation of our technology migration strategy, uncertainty concerning the effects of our pending transaction with Cingular, our ability to continue to reduce costs and increase the efficiency of our distribution channels, the potential competitive impacts of industry consolidation or alternative technologies, potential impacts on revenue and ARPU from competitive pricing and slowing penetration in the wireless industry, the effects of vigorous competition in the markets in which we operate, the risk of decreased consumer spending due to softening economic conditions, acts of terrorism, and consumer response to new service offerings.

For a more detailed description of the factors that could cause such a difference, please see AT & T Wireless’ filings with the Securities and Exchange Commission, including the information under the heading “Additional Factors That May Affect Our Business, Future Operating Results and Financial Condition” and “Forward Looking Statements” in its quarterly report on Form 10-Q filed on August 6, 2004.

About Microsoft

Founded in 1975, Microsoft (Nasdaq “MSFT”) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Note to editors: If you are interested in viewing additional information on Microsoft, please visit the Microsoft Web page at on Microsoft’s corporate information pages. Web links, telephone numbers and titles were correct at time of publication, but may since have changed. For additional assistance, journalists and analysts may contact Microsoft’s Rapid Response Team or other appropriate contacts listed at .

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