Koss Q2 EPS Matches 2006

MILWAUKEE, WI, Jan 15 (MARKET WIRE) --
Koss Corporation (NASDAQ: KOSS), the U.S.-based high fidelity stereophone
company, has reported its results for the second quarter ending December 31,
2007. Sales for the period declined by 1% to $12,099,397 from $12,222,584 for
the
same period one year ago. Net income dropped by $37,206 from $1,283,758 to
$1,246,552 or 3% compared with the same quarter one year ago. Diluted earnings
per share were unchanged at $0.34 for the second quarter ending December 31,
2007 compared with the same period one year ago.

"Europe came back from a tough first quarter start to post a 2% gain in
thesecond quarter," Michael J. Koss, President and CEO, said here today.
"TheCompany also saw a significant increase in sales to domestic retail
accounts.
The increase at U.S. retail is positive news in light of the mixed retail
results reported recently in the press."

Year to date sales for the six months ending December 31, 2007 now stand
at$24,737,003 compared with $25,547,683 for the same period last year, a
decline of 3%. Net income for the six months was $2,582,226 compared with
$2,977,438 in 2006, a decline of 13%. Year to date diluted earnings per
share were down 11% to $0.70 per share compared with $0.79 for the same
sixmonths in 2006.

Koss went on to explain that the principal reason for the reduction in
yearto date profits was the decline in sales of infrared stereophones to
automotive companies for use in rear seat entertainment systems.

"The Company continued to post results that are very close to its profit
projections despite the planned increase in Product Development expenses, the
setback in sales to Europe in our first quarter and the $1.8 million decline in
automotive sales this year," Koss said. "Shipments to U.S. retailers have
increased by 19% for the six months to help offset the decline in automotive
sales."

Koss paid a special dividend of $1.00 per share on December 17, 2007 to
shareholders of record on November 16, 2007. The Company will pay a
quarterly dividend of $0.13 cents per share on January 15, 2008 to
shareholders of record on December 31, 2007.

Koss Corporation markets a complete line of high-fidelity stereophones,
speaker-phones,
computer headsets, telecommunications headsets, active noise canceling
stereophones, wireless stereophones, and compact disc recordings of American
Symphony Orchestras on the Koss Classics label.

This press release contains forward-looking statements. These statements
relate to
future events or our future financial performance. In some cases, you can
identify forward-looking statements by terminology such as "may," "will,"
"should," "forecasts," "expects," "plans," "anticipates," "believes,"
"estimates,"
"predicts," "potential," or "continue" or the negative of such terms and
other comparable terminology. These statements are only predictions. Actual
events
or results may differ materially. In evaluating forward-looking statements,
you should specifically consider various factors that may cause actual results
to
vary from those contained in the forward-looking statements, such as general
economic conditions, in particular, consumer demand for the Company's and
its customers' products, competitive and technological developments, foreign
currency fluctuations, and costs of operations. Shareholders, potential
investors and
otherreaders are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue reliance
onsuch forward-looking statements. The forward-looking statements made herein
are only made as of the date of this press release and the Company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent
events or circumstances. In addition, such uncertainties and other
operational matters are discussed further in the Company's quarterly and
annual filings with the Securities and Exchange
Commission.

KOSS CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)

Period Ended Three Months Six Months
December 31 2007 2006 2007 2006
============ ============ ============ ============
Net sales $ 12,099,397 $ 12,222,584 $ 24,737,003 $ 25,547,683
Cost of goods sold 7,775,022 7,812,019 15,620,648 15,541,574
------------ ------------ ------------ ------------
Gross profit 4,324,375 4,410,565 9,116,355 10,006,109
Selling, general and
administrative
expense 2,371,276 2,421,909 5,155,302 5,354,710
------------ ------------ ------------ ------------
Income from operations 1,953,099 1,988,656 3,961,053 4,651,399
Other income (expense)
Royalty income 43,750 81,249 175,000 162,498
Interest income 46,751 34,611 97,191 67,149
Interest expense 0 0 0 0
------------ ------------ ------------ ------------
Income before income
tax provision 2,043,600 2,104,516 4,233,244 4,881,046
Provision for income
taxes 797,048 820,758 1,651,018 1,903,608
------------ ------------ ------------ ------------
Net income $ 1,246,552 $ 1,283,758 $ 2,582,226 $ 2,977,438
============ ============ ============ ============
Earnings per common
share:
Basic $ 0.34 $ 0.35 $ 0.70 $ 0.80
Diluted $ 0.34 $ 0.34 $ 0.70 $ 0.79
============ ============ ============ ============
Dividends per common
share $ 0.13 $ 0.13 $ 1.26 $ 0.26
============ ============ ============ ============

CONTACT:
MICHAEL J. KOSS
(414) 964-5000

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