Mackie Designs Inc. Announces Lower Earnings Expectations for Third Quarter

October 2, 2000 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq: MKIE) today announced that sales for the third quarter are estimated to be approximately $49 million. This represents a decline in sales of $7 million, when compared to second quarter sales of $56 million, and will impact earnings substantially. Sales for the comparable third quarter in 1999 were $40 million.

"A number of factors contributed to our sales decline," stated William Garrard, Chief Financial Officer. "First, we saw a softening of sales in some product categories. Second, our international sales were impacted negatively by the continued strength of the U.S. Dollar. Finally, the traditional summer quiet period affected our business, particularly in Europe. In the past this seasonality has been mitigated with new product introductions, but not so in the current quarter."

"While it is disappointing to report a setback in our growth, we are confident that this is temporary," continued Mr. Garrard. "The fourth quarter is traditionally a strong quarter and we anticipate several new product introductions during the quarter to boost revenues, including our much anticipated HDR 24/96 Hard Disk Recorder and several new loudspeaker products."

About Mackie
Mackie Designs Inc. is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs Inc. products are marketed by 54 distributors to more than 100 countries around the world.

"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.

For more information please contact: Mackie Designs Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: 425-487-4333 – Fax: 425-487-4337 – Internet: www.mackie.com