Mackie Designs Reports Third Quarter Results

October 30, 2001 - Woodinville, WA - Mackie Designs Inc. (NASDAQ:MKIE) announced today a net loss for the third quarter ended September 30, 2001 of $3,835,000, or $0.31 per share, on revenue of $48.4 million. For the third quarter of 2000, net income was $925,000, or $0.07 per diluted share, on revenue of $51.4 million.

For the nine months ended September 30, 2001, the net loss was $4,669,000, or $0.38 per share. This compares to net income of $5,590,000, or $0.44 per diluted share, for the first nine months of 2000. Revenue was $159.7 million versus $153.5 million for the same period a year ago.

Chief Executive Officer Jamie Engen said, "Mackie was not immune to the effects of the economic slowdown in the U.S. and many other parts of the world that intensified during the third quarter, especially following the tragic events of September 11th. The second half of September has traditionally been a very strong sales period as businesses recover from the quiet summer season and begin to gear up for Christmas. This was not the case this year. In addition to weaker-than-expected revenue, which affected overhead absorption and reduced gross margin, our performance for the quarter reflected severance and related expenses associated with our cost reduction program. Sales of our core professional audio products have shown signs of recovery in recent weeks, however, and we expect our cost reduction program to begin to make a favorable impact on our operations in the fourth quarter."

Noting Mackie's continued commitment to new products, as evidenced by its substantial investment in research and development, Engen said, "Because of our unparalleled product line-up and global distribution capabilities, we believe that Mackie's share of the professional audio market has continued to increase even during this difficult period in our industry. Our goal is to continue to enhance our competitive position, and we are devoting considerable resources to making sure that Mackie has the right products with the right technologies at the right prices now and in the future. We are pleased by our customers' positive response to our recently released products, including our exciting new MDR, a popularly priced version of our innovative Hard Disc Recorder (HDR), and we are excited about the market potential of the full slate of new products scheduled to be launched soon."

Engen concluded, "We expect a modest seasonal improvement in demand as we enter the Christmas selling season, which should be accompanied by higher gross margin due to more efficient overhead absorption compared to the third quarter. This plus the impact of our cost reduction efforts suggests improved bottom-line performance for the fourth quarter compared to the third. Although the market is challenging in the near term, we are enthusiastic about Mackie's long-term growth opportunity."

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.

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, 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.

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