Moody's Investors Service Raises HARMAN Rating and Gives Positive Outlook Citing Harman's Strong Cash Position, Improved Cost Structure and Competitive Strengths

Moody's Investors Service Raises HARMAN Rating and Gives Positive Outlook Citing Harman's Strong Cash Position, Improved Cost Structure and Competitive Strengths

Harman International Industries, Incorporated, the leading global audio and infotainment group (NYSE: HAR) today announced that Moody’s Investors Service increased HARMAN’s corporate credit rating to Ba1, and raised the Speculative Grade Liquidity Rating to SGL-1 from SGL-2.

According to the Moody’s statement, the Company’s much improved credit metrics and strong free cash flow generation were cited as keys to the rating change. Noting benefits accrued from over $400 million in sustainable cost savings achieved through HARMAN’s STEP Change program, Moody’s commented that it expects HARMAN’s profit margin improvement to continue. In particular, Moody’s cited HARMAN’s $14.5 billion dollar business backlog and ongoing cost improvement actions as key to continued margin improvement and positive outlook, despite an environment of lingering economic volatility and uncertainty.

“Building upon S&P’s rating upgrade last week, the Moody’s ratings outlook illustrates its confidence in our commitment to maintaining a strong balance sheet and generating consistently strong free cash flow, in spite of economic headwinds,” said Dinesh C. Paliwal, HARMAN’s Chairman, President and CEO. “The rapid success of our higher-margin scalable infotainment platform and $14.5 billion backlog is being recognized as a true game changer. This, in conjunction with an expanding footprint in fast-growing emerging markets and a healthy liquidity profile, will continue to drive improvements to our business fundamentals that have delivered eight consecutive quarters of top and bottom line growth.”

About HARMAN

HARMAN (www.harman.com) designs, manufactures and markets a wide range of audio and infotainment solutions for the automotive, consumer and professional markets — supported by 15 leading brands, including AKG, Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson. The company is admired by audiophiles across multiple generations and supports leading professional entertainers and the venues where they perform. More than 25 million automobiles on the road today are equipped with HARMAN audio and infotainment systems. HARMAN has a workforce of about 12,500 people across the Americas, Europe and Asia, and reported net sales of $4.0 billion for twelve months ending September 30, 2011. The Company's shares are traded on the New York Stock Exchange under the symbol NYSE:HAR.

Forward-Looking Information

Except for historical information contained herein, the matters discussed in this news release are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act. One should not place undue reliance on these statements. We base these statements on particular assumptions that we have made in light of our industry experience, as well as our perception of historical trends, current market conditions, current economic data, expected future developments and other factors that we believe are appropriate under the circumstances. These statements involve risks and uncertainties that could cause actual results to differ materially from those suggested in the forward-looking statements, including but not limited to: (1) our ability to maintain profitability in our infotainment division if there are delays in our product launches which may give rise to significant penalties and increased engineering expense; (2) the loss of one or more significant customers, or the loss of a significant platform with an automotive customer; (3) warranty obligations for defects in our products; (4) fluctuations in currency exchange rates, particularly with respect to the value of the U.S. Dollar and the Euro; (5) our ability to successfully implement our global footprint initiative, including achieving cost reductions and other benefits in connection with the restructuring of our manufacturing, engineering, procurement and administrative organizations; (6) fluctuations in the price and supply of raw materials including, without limitation, petroleum, copper, steel, aluminum, synthetic resins, rare metals and rare-earth minerals, or shortages of materials, parts and components; (7) the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; (8) our ability to attract and retain qualified senior management and to prepare and implement an appropriate succession plan for our critical organizational positions; (9) our failure to implement and maintain a comprehensive disaster recovery program; (10) our failure to comply with governmental rules and regulations, including the Foreign Corrupt Practices Act and U.S. export control laws, and the cost of compliance with such laws; (11) our ability to maintain a competitive technological advantage through innovation and leading product designs; (12) our failure to maintain the value of our brands and implementing a sufficient brand protection program; (13) acceptance of our mid-platform infotainment systems by original equipment manufacturers and consumers; (14) the outcome of pending or future litigation and other claims, including, but not limited to, the current stockholder and Employee Retirement Income Security Act of 1974 lawsuits; (15) our ability to enforce or defend our ownership and use of intellectual property rights; and (16) other risks detailed in Harman International Industries, Incorporated Annual Report on Form 10-K for the fiscal year ended June 30, 2011 and other filings made by the Company with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statement except as required by law. This news release also makes reference to the Company’s sales backlog. The Company's sales backlog reflects anticipated net sales from formally awarded new programs and open replacement programs, less phased-out and cancelled programs. The sales backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new and replacement programs, foreign currency exchange rates and the timing of major program launches.

HAR-C

HARMAN
Darrin Shewchuk, 203-328-3834
Corporate Affairs and Communications
darrin.shewchuk@harman.com
or
Robert Lardon, 203-328-3500
Investor Relations
robert.lardon@harman.com