Parrot Wraps Up Its Strongest Year Ever in the U.S.

AUSTIN, Texas, Jan. 29 /PRNewswire/ -- Parrot, Inc., the U.S. subsidiary of Paris-based Parrot SA, announced today that 2007 was its best year yet. The company's increased sales revenue was primarily due to a growing demand for its hands-free Bluetooth(R) car kits, but company officials expect its new multimedia line of digital picture frames and wireless speaker systems to start gaining traction in the U.S. market and support continued gains in 2008.

"To 'parrot' Frank Sinatra, it was a very good year," says Ed Valdez, president and COO, Parrot, Inc. "Our retailers and dealers report that audio quality, universal phone compatibility and brand recognition are the key factors driving sales and helping differentiate Parrot from competitive brands."

The company also added several connectivity options to its new wireless stereo speaker systems and digital product lines including SD card, USB port, RCA jacks and iPod(R) connectors. Parrot expects these expanded options to assist sales in its growing multimedia line.

New Customers

Helping Parrot achieve its sales gains were the addition of some major new retailers in 2007.

"All of our customers -- large and small -- reported increased volumes of Parrot's car kits being sold throughout 2007," says Valdez, "There is no question, however, that the additions of Best Buy and Circuit City were key tipping points. Even though both retailers only had our car kit line for half of the year, they finished 2007 very strong."

Parrot, in addition, added and expanded its business with market leaders such as 6th Avenue Electronics and P.C. Richard & Son in the Northeast, Car Toys in the West, and Mickey Shorr in the North Central, among many others.

Distributors, Reps Played a Key Role

Parrot singled out three of its distributors -- M. Rothman & Company, Tessco Technologies, and Superior Communications -- for special recognition for their contribution to its sales success in 2007 and named each "Distributor of the Year" for the Eastern, Central and Western Regions, respectively. In addition, manufacturer reps have played a key role and they too have been recognized. Named "Rep of the Year" were Opus Marketing, AR Marketing and Rep America for the East, Central and West sales regions, respectively.

"We couldn't have had the success we had in 2007 without the pivotal assistance of our distributors and reps," said Valdez. "As they know, we run a very lean organization and they play a strategic role in our continued growth."

12 New Products Launched in 2007

In 2007, Parrot continued its tradition of launching numerous new products in both its car kit and multimedia lines. In fact, Parrot launched twelve new products in 2007 in the U.S. -- one a month -- including a corporate-style conference speaker phone, three new digital picture frames, three new car kits, a hands-free kit for motorcyclists and four new stereo speaker units.

This year, Parrot concentrated on offering a greater choice of connectivity options and versatility to its consumers. Its new digital frames, the DF7120 and DF3120, both accept photos via Bluetooth(R), SD card, or USB. The company also added connectivity options to is digital stereo products; its DS1120 plays music via streaming Bluetooth(R) stereo (AD2P) or traditional line-in jack, while its DS3120 allows users to stream music via Bluetooth(R) stereo (AD2P), USB, SD card and traditional line-in jack.

Parrot also added greater choice of connectivity to its car kit line so drivers can easily sync their portable devices while on the go. It's latest addition, the RK8200 car stereo, plays music through a vehicle's sound system by streaming Bluetooth(R) stereo, USB, SD card, MP3 connector, iPod(R) specific connector, or tradition line-in jack.

Looking forward: New Technologies, Increased Sales

Parrot expects sales for its car kits range and multimedia line to continue to increase as the company rolls out more products in 2008.

"You can expect more innovation and continued customer satisfaction in 2008," says Valdez. "We think it will be another very good year for Parrot in the U.S. We don't expect the market to soften very much and with more consumers wanting to use their portable devices while on the go, we see the potential for greater penetration in car kits across the U.S."

Recently, at the Consumer Electronic Show 2008 in Las Vegas, Parrot presented its Near Field Communications (NFC) products for trial and showcased the world's first MMS digital picture frame. NFC products allow wireless devices to pair with each other nearly automatically while the Parrot MMS digital frame allows cell phones to transmit pictures to a frame from anywhere in the world.

"If you can send a text message," said Valdez, "you can send a photo with our newest frame technology, and the procedure is the same. It will be incredible to watch a photo appear on your frame of your newest grandchild sent half way across the world, or of your kids on their honeymoon wherever they might be. The possibilities are endless."

This MMS frame, the Parrot DF7700, was launched in late 2007 with French telecom Bouygues, and will be seen in the U.S. market in 2008.

ABOUT PARROT

Founded in 1994, Parrot has rapidly established itself as a pivotal global player for wireless mobile telephone accessories. Drawing on its tried-and- tested expertise on voice recognition and signal processing technologies, Parrot was one of the very first companies to produce Bluetooth(R)-based wireless hands free car kits, having identified this standard's vast potential as early as 1999. In 2006, Parrot sold about 3 million units. Determined to accompany the wireless peripherals' irresistible breakthrough into our day-to- day lives, Parrot has been developing since 2006 a new wireless range of sound and image products.

Today, Parrot truly has a major international focus: 90.5% of its sales are generated outside of France, and a large percentage of its production is outsourced to carefully selected partners, enabling it to achieve the best possible level of quality and responsiveness. Parrot is now particularly well positioned to capitalize on the bright future opening up for mobile telephone devices. Parrot has achieved strong growth in its consolidated revenues, up from 80.9 million Euros pro forma in 2005 to 166.9 million Euros in 2006.

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