Gentex Reports Record Second Quarter Net Sales and Net Income

ZEELAND, MI, Jul 21 (MARKET WIRE) --
Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based
manufacturer of automatic-dimming rearview mirrors and camera-based
driver-assist systems for the automotive industry, commercial fire
protection products and dimmable aircraft windows, today reported record
financial results for the second quarter and first six months of 2011.

For the second quarter of 2011, the Company's record net sales for any
second quarter increased by 21 percent to $243.0 million compared with
$201.6 million in the second quarter of 2010. Net sales during the second
quarter of 2011 were negatively impacted by approximately $17 million,
due to reduced production at certain Japanese automakers as a result of
the March 11, 2011, earthquake and tsunami in Japan. The gross profit
margin decreased on a quarter-over-quarter basis from 36.7 percent in the
second quarter of 2010 to 35.2 percent in the second quarter of 2011,
primarily due to annual customer price reductions and costs associated
with supply chain constraints on certain automotive-grade electronic
components.

For the first six months of 2011, the Company's record net sales for the
first six months of any year increased by 28 percent to $493.9 million
compared with $387.3 million in the first six months of 2010. The gross
profit margin decreased from 36.8 percent for the first six months of
2010 to 35.6 percent for the first six months of 2011, primarily due to
the impact of annual automotive customer price reductions and costs
associated with supply chain constraints on certain automotive-grade
electronic components, partially offset by the Company's ability to
leverage fixed overhead costs.

Despite increased supply chain costs resulting, in part, from the March
11 events in Japan, the Company reported that record second quarter net
income increased by 13 percent to $38.5 million for the second quarter of
2011, compared with net income of $34.1 million in the second quarter of
2010, primarily due to increased net sales and gross profit. For the
first six months of 2011, record net income for the first six months of
any year of $80.8 million increased 21 percent compared with net income
of $66.5 million for the first six months of 2010. The increase in net
income for the first six months of 2011 compared with the first six
months of 2010 was primarily due to increased net sales and gross profit.

Earnings per diluted share were 27 cents in the second quarter of 2011
compared with 24 cents per share in the second quarter of 2010. Earnings
per diluted share were 56 cents for the first six months of 2011,
compared with 47 cents per share in the first six months of 2010.

"We're pleased to report a record second quarter," said Gentex Chairman
of the Board and Chief Executive Officer Fred Bauer. "We posted a 21
percent increase in net sales quarter-over-quarter, despite the negative
impact of lost revenues as a result of the March 11 earthquake and
tsunami in Japan. Fortunately, we believe we are seeing those automakers'
manufacturing plants coming back on line and starting to ramp production
in the third quarter of 2011.

"Based on IHS Automotive's July 2011 forecast for light vehicle
production, it appears that the automotive production issues related to
the earthquake and tsunami are largely behind us, and our customers in
Japan appear to be ramping up their production schedules in the third
quarter. We currently expect to see some of the highest mirror production
numbers in the Company's history in the third quarter," said Bauer.

Rear Camera Display Update

Gentex Senior Vice President Enoch Jen said that in early July 2011 the
U.S. Department of Transportation (DOT) posted an update on its web site
related to the timing of certain events associated with the Kids
Transportation Safety Act (KTSA) and the pending requirement that all
vehicles in the United States will be required to be equipped with
cameras and rear camera displays by September 2014 [based on the December
3, 2010, Notice of Proposed Rulemaking (NPRM) issued by the National
Highway Traffic Safety Administration (NHTSA)].

"The DOT stated that the final rule related to the KTSA is scheduled to
go to the Office of the Secretary of Transportation (OST) by August 8,
2011, and to the Office of Management and Budget (OMB) by September 24,
2011," said Jen. "It further stated that the rule will receive clearance
from the OMB by December 23, 2011, and that the publication date of the
final rule will be by December 31, 2011. This is the most current
information available to us with respect to the timing of the final
rule," said Jen. This information is available on the DOT's web site at
http://regs.dot.gov/rulemakings/201107/report.htm#64.

As previously announced, the Company's solution to meet the pending KTSA
requirement is its Rear Camera Display (RCD) Mirrors, which display
high-resolution, color images of the area directly behind the vehicle via
an automaker-specified camera.

Jen said that the Company continues to believe that RCD Mirrors will
likely be implemented in three overlapping phases (based on the December
7, 2010, NPRM issued by NHTSA);

1. Market-Driven Phase: time period prior to any legislation through
NHTSA's NPRM on December 7, 2010;
2. "Wait and See" Phase: period of
time from when the legislation was signed into law on February 28, 2008,
until the final rule is issued, which currently is expected by December
31, 2011; and
3. Implementation Phase: from the time the final rule is
issued until September of 2014, when 100 percent of all vehicles in the
U.S. under 10,000 lbs. will be required to be equipped with rear cameras
and displays.

He said that the Company still believes that the market for camera
displays in vehicles will be divided into two primary market segments:

1. Top 15-20 Percent: The top 15-20 percent of the vehicle market will
primarily offer the display for a rear camera in the navigation system,
with the option of purchasing an RCD Mirror, and
2. Rest of the market:
The rest of the market is the most likely market area to offer the camera
display in the mirror or in other multi-purpose displays in the vehicle
in a number of different locations, including the radio, instrument
panel, console, etc. This is the segment of the market with the greatest
volume potential, but also has the greatest and increasing competition.

"We are in the early stages of the implementation phase of this
regulation and many automakers are revisiting any decisions that may have
been made prior to the December 7, 2010, NPRM," said Jen. "There continue
to be many uncertainties surrounding the prospects for RCD Mirror unit
shipments."

Update on Plans for Capital Spending and Hiring in 2011

The Company has historically expanded its plant capacity on a
step-function basis every five to six years. In light of strong customer
demand for our auto-dimming mirrors and a more complex product mix, the
Company has been increasing its production line and facility capacity.
Production lines for auto-dimming mirrors with advanced electronic
features such as RCD and SmartBeam(R) are more complex and require
additional equipment.

According to Jen, "For calendar year 2011, we now estimate that our 2011
capital expenditures will be approximately $100-$115 million, primarily
due to increased production line equipment purchases of approximately
$70-$80 million and new facility costs of approximately $30-$35 million
to increase production plant capacity. Depreciation and amortization
expense for 2011 is now estimated at $41-$44 million."

The new facility costs are intended to increase plant capacity in the
electronic assembly, final assembly, rear camera display and exterior
mirror manufacturing areas.

Gentex currently is working to fill a significant number of manufacturing
and technical positions, primarily in the electrical and software
development and engineering areas. Additional information is available at
http://www.gentex.com/careers/.

Unit Shipments and Net Sales

Total auto-dimming mirror unit shipments increased by 22 percent in the
second quarter of 2011 compared with the second quarter last year.
Automotive net sales increased by 21 percent from $196.4 million in the
second quarter of 2010 to $238.2 million in the second quarter of 2011.

Automatic-dimming mirror unit shipments increased by 21 percent in North
America in the second quarter of 2011 compared with the same quarter last
year, primarily as a result of increased mirror unit shipments to
domestic automakers. North American light vehicle production increased by
one percent in the second quarter of 2011 compared with the same
prior-year quarter.

Automatic-dimming mirror unit shipments to offshore customers increased
by 22 percent in the second quarter of 2011, compared with the same
quarter last year. The increase in unit shipments was primarily due to
increased mirror unit shipments to certain European and Korean
automakers. Light vehicle production in Europe increased by four percent
in the second quarter of 2011, and decreased by 22 percent in Japan and
Korea in the second quarter of 2011, compared with the same period last
year.

Total auto-dimming mirror unit shipments increased by 28 percent in the
first six months of 2011 compared with the first six months last year.
Automotive net sales increased by 28 percent from $377.9 million in the
first six months of 2010 to $484.5 million in the first six months of
2011.

Automatic-dimming mirror unit shipments increased by 31 percent in North
America in the first six months of 2011 compared with the first six
months of 2010, primarily as a result of increased mirror unit shipments
to the domestic automakers. North American light vehicle production
increased by eight percent in the first six months of 2011 compared with
the same prior-year period.

Automatic-dimming mirror unit shipments to offshore customers increased
by 26 percent in the first six months of 2011 compared with the same
period last year. The increase in unit shipments was primarily due to
increased mirror unit shipments to certain European automakers. Light
vehicle production in Europe increased by eight percent in the first six
months of 2011, and decreased by 19 percent in Japan and Korea in the
first six months of 2011, compared with the same period last year.

Other net sales decreased by seven percent to $4.8 million for the second
quarter of 2011 compared with the same quarter last year, due to a 37
percent decrease in dimmable aircraft window net sales partially offset
by a two percent increase in fire protection net sales.

Other net sales increased by one percent to $9.5 million for the first
six months of 2011 compared with the same period last year, due to a
three percent increase in fire protection net sales, mostly offset by a
nine percent decrease in dimmable aircraft windows net sales, each on a
period-over-period basis. The increase in fire protection net sales for
both the second quarter and first six months of 2011 was primarily due to
the continued improvement in the commercial construction market. The
decrease in dimmable aircraft window net sales for both the second
quarter and first six months of 2011 was primarily due to the continued
delays affecting the production and delivery of the Boeing 787 Dreamliner
series of aircraft.

Impact of Japan Earthquake/tsunami on Net sales and Supply Chain
Constraints

The total impact on net sales of the March 11, 2011, earthquake and
tsunami in Japan on the first six months of 2011 was approximately $20
million, including $17 million in the second quarter of 2011. Based on
IHS Automotive's July 2011 forecast for automotive light vehicle
production and our customers' releases, the Company does not currently
expect that there will be any continuing negative impact on the Company's
net sales due to the March 11 earthquake and tsunami in Japan.

Due in part to the fast ramp-up in automotive light vehicle production in
the second half of 2010 and the continuation into the first half of 2011,
the Company continued to experience increased costs associated with
supply chain constraints on certain automotive-grade electronic
components. Although availability of certain automotive-grade components
remained tight, the Company did experience continued sequential
improvement in this area during both the first and second quarters of
2011.

Unfortunately, the March 11, 2011, earthquake and tsunami in Japan
resulted in the Company experiencing additional increased costs
associated with supply chain constraints on certain automotive-grade
electronic components during the second quarter of 2011. While the
Company was successful in securing additional quantities of constrained
parts during the second quarter to meet anticipated customer demand, the
additional secured parts purchased during the second quarter did come at
a higher cost due to changes in purchasing channels.

The Company currently believes that it will experience some sequential
reduction in supply chain-related costs during the third quarter of 2011.
However, the current environment is constantly changing and it is not
known what the ultimate affect will be on the supply chain, global light
vehicle production, the automotive industry or the Company in the second
half of the 2011 calendar year.

Based on the July 2011 IHS forecast for light vehicle production levels
and the Company's anticipated product mix, the Company currently believes
that it has secured an adequate supply of parts for the third quarter of
2011.

Future Estimates

All of the forward-looking projections in this news release are based
upon the following IHS Automotive assumptions regarding the situation in
Japan:

-- Virtually all automakers are now back to running full production
volumes, with certain Japanese automakers still lagging in some
regions.
-- Total lost industry production volume was approximately 2.7 million
vehicle units.
-- Build back of lost production volume will begin early in the summer of
2011 and will extend into 2012, with varying levels of replacement
depending on the automaker.
-- The current assumption is that 20 percent of the lost volume will
be recovered in 2011 with the remainder of the lost volume that
will be recovered to occur in 2012.
-- It is also assumed that 23 percent of the Japan automakers' lost
volume will not be recovered.

Gentex Senior Vice President Enoch Jen provided certain guidance for
2011.

"Our estimate for net sales for the third quarter of 2011 is an increase
of approximately 25-30 percent compared with the same quarter in 2010,
based on IHS's July 2011 forecast for light vehicle production levels,"
said Jen. Based on the Company's expected net sales for the third quarter
of 2011, Jen said that the Company currently expects that its gross
profit margin for the third quarter of 2011 will show a slight sequential
increase compared with the gross margin percentage reported in this
second quarter of 2011.

"Additionally, we currently estimate that shipments of our SmartBeam high
beam headlamp assist product will now increase by approximately 60-70
percent in calendar year 2011 compared with shipments of approximately
630,000 SmartBeam units in calendar year 2010," said Jen. "We also now
estimate that shipments of Rear Camera Display Mirrors in calendar year
2011 will increase by approximately 40 percent compared with shipments of
approximately 1.25 million units in calendar year 2010." The SmartBeam
and Rear Camera Display Mirror unit shipment estimates are also based on
IHS Automotive's July 2011 light vehicle production forecast for calendar
year 2011 compared with calendar year 2010. SmartBeam is the Company's
proprietary high beam headlamp assist system.

The Company's current forecasts for light vehicle production for each of
the following periods in 2011 compared with the same periods in 2010 are
based on IHS Automotive's July 2011 forecast for light vehicle production
in North America, Europe and Japan and Korea:

----------------------------------------------------------------------------
IHS Automotive's Light Vehicle Production Forecast
----------------------------------------------------------------------------
Third Third Calendar Calendar
Quarter Quarter % Year Year %
2011* 2010* Change 2011* 2010* Change
----------------------------------------------------------------------------
*light vehicle units - millions; based on July 2011 forecast
----------------------------------------------------------------------------
North America 3.2 3.0 +6% 13.0 11.9 +9%
----------------------------------------------------------------------------
Europe 4.4 4.3 +4% 20.0 18.8 +6%
----------------------------------------------------------------------------
Japan and Korea 3.2 3.3 -2% 11.9 13.1 -9%
----------------------------------------------------------------------------

Safe Harbor Statement

This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E
of the Securities Exchange Act, as amended, that are based on
management's beliefs, assumptions, current expectations, estimates and
projections about the global automotive industry, the economy, the
ability to control and leverage fixed manufacturing overhead costs, unit
shipment and net sales growth rates, the ability to control E,R&D and
S,G&A expenses, gross margins and the Company itself. Words like
"anticipates," "believes," "confident," "estimates," "expects,"
"forecast," "hopes", "likely," "plans," "projects," "optimistic," and
"should," and variations of such words and similar expressions identify
forward-looking statements. These statements do not guarantee future
performance and involve certain risks, uncertainties, and assumptions
that are difficult to predict with regard to timing, expense, likelihood
and degree of occurrence. These risks include, without limitation,
employment and general economic conditions, worldwide automotive
production, the maintenance of the Company's market share, the ability to
achieve purchasing cost reductions, customer inventory management,
supplier part shortages, competitive pricing pressures, currency
fluctuations, interest rates, equity prices, the financial
strength/stability of the Company's customers (including their Tier 1
suppliers), supply chain disruptions, impact of natural disasters on
supply chain and vehicle production, potential sale of OEM business
segments or suppliers, potential customer (including their Tier 1
suppliers) bankruptcies, the mix of products purchased by customers, the
ability to continue to make product innovations, the market for Rear
Camera Display Mirrors and the success of those products, the success of
certain other products (e.g. SmartBeam(R)), and other risks identified in
the Company's other filings with the Securities and Exchange Commission.
Therefore, actual results and outcomes may materially differ from what is
expressed or forecasted. Furthermore, the Company undertakes no
obligation to update, amend, or clarify forward-looking statements,
whether as a result of new information, future events, or otherwise.

Second Quarter Conference Call

A conference call related to this news release will be simulcast live on
the Internet beginning at 10:30 a.m. EDT today. To access that call, go
to www.gentex.com and select the "Audio Webcast" icon on the right side
of the page. Other conference calls hosted by the Company will also be
available at that site in the future.

About the Company

Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is the leading
supplier of automatic-dimming rearview mirrors and camera-based
driver-assist systems to the global automotive industry. The Company also
provides commercial smoke alarms and signaling devices to the North
American fire protection market, as well as dimmable aircraft windows for
the commercial, business and general aviation markets. Based in Zeeland,
Michigan, the international Company develops, manufactures and markets
interior and exterior automatic-dimming automotive rearview mirrors that
utilize proprietary electrochromic technology to dim in proportion to the
amount of headlight glare from trailing vehicle headlamps. More than half
of the Company's interior mirrors are sold with advanced electronic
features, and more than 98 percent of the Company's net sales are derived
from the sale of auto-dimming mirrors to nearly every major automaker in
the world.

GENTEX CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(unaudited)

Three Months Ended Six Months Ended
June 30, June 30,
2011 2010 2011 2010
------------ -------------- ------------ --------------

Net Sales $243,001,541 $ 201,560,960 $493,947,438 $ 387,329,889
Cost of Goods Sold 157,376,970 127,667,134 318,006,130 244,867,694
------------ -------------- ------------ --------------
Gross Profit 85,624,571 73,893,826 175,941,308 142,462,195

Engineering,
Research &
Development 20,245,757 15,222,622 39,160,518 29,561,140
Selling, General &
Administrative 12,131,922 9,884,445 23,443,024 19,506,399
------------ -------------- ------------ --------------
Income from
Operations 53,246,892 48,786,759 113,337,766 93,394,656

Other Income (4,501,176) (1,554,306) (7,865,564) (4,631,661)
------------ -------------- ------------ --------------

Income Before
Provision for
Income Taxes 57,748,068 50,341,065 121,203,330 98,026,317

Provision for
Income Taxes 19,275,899 16,283,735 40,398,279 31,506,857
------------ -------------- ------------ --------------

Net Income $ 38,472,169 $ 34,057,330 $ 80,805,051 $ 66,519,460
============ ============== ============ ==============

Earnings Per Share
Basic $ 0.27 $ 0.24 $ 0.57 $ 0.48
Diluted $ 0.27 $ 0.24 $ 0.56 $ 0.47
Weighted Average
Shares:
Basic 142,279,210 139,124,771 142,071,203 138,697,007
Diluted 144,196,994 140,546,280 144,063,615 140,062,642

Cash Dividends
Declared per Share $ 0.12 $ 0.11 $ 0.24 $ 0.22

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited)
June 30, December 31,
2011 2010
-------------- --------------
ASSETS
Cash and Short-Term
Investments $ 468,736,735 $ 434,797,369
Other Current
Assets 256,907,915 220,471,905
-------------- --------------

Total Current
Assets 725,644,650 655,269,274

Plant and Equipment
- Net 232,716,169 205,107,756
Long-Term
Investments and
Other Assets 155,659,089 142,313,609
-------------- --------------

Total Assets $1,114,019,908 $1,002,690,639
============== ==============

LIABILITIES AND SHAREHOLDERS'
INVESTMENT
Current Liabilities $ 103,801,515 $ 72,088,629
Long-Term Debt 0 0
Deferred Income
Taxes 46,517,399 37,071,184
Shareholders'
Investment 963,700,994 893,530,826
-------------- --------------

Total Liabilities
& Shareholders'
Investment $1,114,019,908 $1,002,690,639
============== ==============

----------------------------------------------------------------------------
AUTO-DIMMING MIRROR UNIT SHIPMENTS
(Thousands)
----------------------------------------------------------------------------
Second Quarter Six Months
Ended June 30, Ended June 30,
----------------------------------------------------------------------------
% %
2011 2010 Change 2011 2010 Change
----------------------------------------------------------------------------
North American Interior 1,478 1,228 20% 3,064 2,362 30%
----------------------------------------------------------------------------
North American Exterior 366 294 25% 774 559 38%
----------------------------------------------------------------------------
Total North American Units 1,844 1,522 21% 3,837 2,921 31%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Offshore Interior 2,341 1,898 23% 4,806 3,797 27%
----------------------------------------------------------------------------
Offshore Exterior 909 758 20% 1,869 1,491 25%
----------------------------------------------------------------------------
Total Offshore Units 3,250 2,656 22% 6,675 5,288 26%
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Total Interior Mirrors 3,819 3,126 22% 7,869 6,159 28%
----------------------------------------------------------------------------
Total Exterior Mirrors 1,276 1,052 21% 2,643 2,050 29%
----------------------------------------------------------------------------
Total Mirror Units 5,094 4,178 22% 10,512 8,209 28%
----------------------------------------------------------------------------

Note: Certain prior year amounts have been reclassified to conform
with the current year presentation. Percent change and amounts may not
total due to rounding.

CONTACT:
Connie Hamblin
(616) 772-1800

Copyright 2011, Market Wire, All rights reserved.

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