Mackie Designs First Quarter Revenue Increases 30%

April 25, 2001 – Woodinville, WA – Mackie Designs Inc. (NASDAQ:MKIE) announced today that revenue for the first quarter ended March 31, 2001 increased 30% to a record $58,625,000 from $45,191,000 for the first quarter of 2000. Net income was $962,000, or $0.08 per diluted share. This compares to net income of $2,419,000, or $0.20 per diluted share, for last year's first quarter and $636,000, or $0.05 per diluted share, for last year's fourth quarter.

The Company attributed the increase in revenue for the first quarter to the acquisition in April 2000 of Eastern Acoustic Works (EAW), a manufacturer of loudspeakers for the professional audio market, as well as initial sales of Mackie's new Hard Disc Recorder and certain new Mackie-branded loudspeakers. Gross margin for the period was 33.7%, compared to 35.8% for the first quarter of 2000 and 33.0% for the fourth quarter of 2000, reflecting the higher contribution of loudspeakers in total revenue compared to last year's first quarter. Loudspeakers typically generate lower gross margin than the Company's digital products.

Chief Executive Officer Jamie Engen said, "Having made considerable progress in the integration of EAW, we are focusing our attention on increasing profitability. We have developed and are implementing a series of steps involving logistics, offshore manufacturing, and improvements to our manufacturing plants that we expect will contribute to higher gross margin in the future.

"In addition, for the past few quarters we have invested heavily in infrastructure to properly support the continued revenue growth that we expect. This includes the implementation of an advanced Oracle-based management information system that will soon be fully operational throughout our global operations. We expect the cash outlays related to the Oracle implementation to wind down in the second half.

"Our long-term goal for gross margin is in the range of 38-40%. Combined with the impact of the infrastructure investments we are making today, we believe that Mackie ultimately can deliver operating margins in the 10-12% range. While we know that we have a lot of work still ahead of us to achieve these goals, we are confident that they are within our reach."

Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.

About Mackie Designs
Mackie Designs is a leading designer, manufacturer and marketer of professional audio equipment. The Company sells audio mixers, mixer systems, power amplifiers, and professional loudspeakers.

Conference Call
Mackie has scheduled a conference call this morning at 11:00 AM EDT to discuss its results for the first quarter of 2001. A simultaneous WebCast of the conference call may be accessed online at www.StreetFusion.com or at www.Mackie.com. A replay will be available immediately following the WebCast at these same Internet addresses. For a telephone replay, dial (800) 633-8284, reservation #18523433 beginning at approximately 1:00 PM ET.

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