Logitech Delivers Tenth Consecutive Record Year with Strongest Q4 Ever

Q4 Revenue Up 17%, Operating Income Up 20%

Company Confirms Targets for FY 2009
FREMONT, Calif. & ROMANEL-SUR-MORGES, Switzerland--(Business Wire)--
Logitech International (SWX:LOGN) (Nasdaq:LOGI) today announced
record Q4 sales and profits, delivering its tenth consecutive year of
double-digit revenue growth and reaching its full year revenue and
profitability goals.

For the fourth quarter of Fiscal Year 2008, ended March 31, 2008,
sales were $601 million, up 17 percent from $513 million in the same
quarter last year. Operating income was $66.1 million, up 20 percent
from $55.3 million for the same quarter a year ago. Net income was
$60.3 million ($0.32 per share), up from $56.2 million ($0.29 per
share) in the prior year. Gross margin was 35.6 percent, compared to
34.5 percent in Q4 of FY 2007.

Logitech's retail sales for Q4 grew by 15 percent year over year,
increasing by 13 percent in EMEA, 8 percent in the Americas, and 58
percent in Asia Pacific. Across Logitech sales regions, retail growth
was fueled by strong sales of cordless mice (up 58 percent) and
speakers (up 24 percent). Retail video sales grew by 9 percent. OEM
sales grew by 34 percent, driven primarily by strong demand for
microphones for console gaming.

For the full fiscal year, sales were $2.4 billion, up 15 percent
from $2.1 billion in FY 2007. Operating income was $287 million, up 24
percent from $231 million a year ago. Net income was $231 million
($1.23 per share) compared to $230 million ($1.20 per share) in the
prior year. Gross margin for the fiscal year was 35.8 percent,
compared to 34.3 percent in FY 2007.

"We are very pleased with our Q4 performance, including our return
to growth in the video category," said Gerald P. Quindlen, Logitech
president and chief executive officer. "Our revenue growth of 17
percent underscores the strength of our product portfolio and our
geographic diversity, both key factors in our ability to deliver
consistent growth over the last decade. The strong momentum we carry
into the new fiscal year, combined with a solid balance sheet,
position us to continue delivering double-digit growth in sales and
profitability."

Outlook

For Fiscal Year 2009, ending March 31, 2009, the Company confirmed
its financial targets of 15 percent growth in both sales and operating
income. FY 2009 gross margin is expected to be above the high end of
the Company's long-term target range of 32-34 percent. The Company's
tax rate for the year is expected to be approximately 12 percent.

Earnings Teleconference

Logitech will hold an earnings teleconference on April 22, 2008 at
13:30 Central European Summer Time/7:30 a.m. Eastern Daylight
Time/4:30 a.m. Pacific Daylight Time to discuss these results as well
as the Company's outlook. A live webcast and replay of the
teleconference, including presentation slides, will be available on
the Logitech corporate Web site at ir.logitech.com. Please
visit the Web site at least 10 minutes early to register for the
teleconference webcast.

Investor Meeting

Logitech will hold an investor meeting in New York on May 22, 2008
at 8:30 a.m. Eastern Daylight Time/16:30 Central European Summer Time.
A live video webcast and replay of the meeting will be available on
the Logitech corporate Web site at ir.logitech.com.

About Logitech

Logitech is a world leader in personal peripherals, driving
innovation in PC navigation, Internet communications, digital music,
home-entertainment control, gaming and wireless devices. Founded in
1981, Logitech International is a Swiss public company traded on the
SWX Swiss Exchange (LOGN) and on the Nasdaq Global Select Market
(LOGI).

This press release contains forward-looking statements, including
the statements regarding expected sales and operating income growth,
gross margin and effective tax rate for Fiscal Year 2009. The
forward-looking statements in this release involve risks and
uncertainties that could cause Logitech's actual performance and
results to differ materially from that anticipated in these
forward-looking statements. Factors that could cause actual results to
differ materially include if we fail to successfully innovate in our
current and emerging product categories and identify new feature or
product opportunities; consumer demand for our products and our
ability to accurately forecast it; the effect of pricing, product,
marketing and other initiatives by our competitors, and our reaction
to them, on our sales, gross margins and profitability; our ability to
continue to implement our plan to control operating expenses while
growing sales; the sales mix among our lower- and higher-margin
products and our geographic sales mix; as well as those additional
factors set forth in our periodic filings with the Securities and
Exchange Commission, including our annual report on Form 20-F for the
fiscal year ended March 31, 2007 and our quarterly reports on Form 6-K
available at www.sec.gov. Logitech does not undertake to update any
forward-looking statements.

Logitech, the Logitech logo, and other Logitech marks are
registered in the United States and other countries. All other
trademarks are the property of their respective owners. For more
information about Logitech and its products, visit the company's Web
site at www.logitech.com.

(LOGI - IR)

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LOGITECH INTERNATIONAL S.A.

(In thousands, except per share amounts) - Unaudited

Quarter Ended March 31,
CONSOLIDATED STATEMENTS OF INCOME 2008 2007
----------------------------------------------------------------------

Net sales $ 601,234 $ 512,734
Cost of goods sold 387,290 335,743
-----------------------
Gross profit 213,944 176,991
-----------------------
% of net sales 35.6% 34.5%

Operating expenses:
Marketing and selling 84,689 66,475
Research and development 33,462 28,432
General and administrative 29,654 26,786
-----------------------
Total operating expenses 147,805 121,693
-----------------------

Operating income 66,139 55,298

Interest income, net 3,744 3,212
Other income, net (1,852) 3,531
-----------------------

Income before income taxes 68,031 62,041
Provision for income taxes 7,693 5,848
-----------------------

Net income $ 60,338 $ 56,193
=======================

Shares used to compute net income per share:
Basic 180,636 182,738
Diluted 186,299 191,091
Net income per share:
Basic $ 0.33 $ 0.31
Diluted $ 0.32 $ 0.29

Other income, net for the quarter ended March 31, 2008 includes an
impairment loss of $6.9 million related to the decline in the fair
value of short-term investments.
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LOGITECH INTERNATIONAL S.A.

(In thousands, except per share amounts) - Unaudited

Twelve Months Ended
March 31,
CONSOLIDATED STATEMENTS OF INCOME 2008 2007
----------------------------------------------------------------------

Net sales $2,370,496 $2,066,569
Cost of goods sold 1,521,378 1,357,044
-----------------------
Gross profit 849,118 709,525
-----------------------
% of net sales 35.8% 34.3%

Operating expenses:
Marketing and selling 324,451 272,264
Research and development 124,544 108,256
General and administrative 113,443 98,143
-----------------------
Total operating expenses 562,438 478,663
-----------------------

Operating income 286,680 230,862

Interest income, net 15,508 8,733
Other income (expense), net (39,374) 15,962
-----------------------

Income before income taxes 262,814 255,557
Provision for income taxes 31,788 25,709
-----------------------

Net income $ 231,026 $ 229,848
=======================

Shares used to compute net income per share:
Basic 181,362 182,635
Diluted 187,942 190,991
Net income per share:
Basic $ 1.27 $ 1.26
Diluted $ 1.23 $ 1.20

Other income (expense), net for the twelve months ended March 31, 2008
includes an impairment loss of $79.8 million related to the decline
in fair value of short-term investments, and a net realized gain of
$27.8 million on the sales of short-term investments.
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LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

March 31, March 31,
CONSOLIDATED BALANCE SHEETS 2008 2007
----------------------------------------------------------------------

Current assets
Cash and cash equivalents $ 482,352 $ 196,197
Short term investments 3,940 214,625
Accounts receivable 373,619 310,377
Inventories 245,737 217,964
Other current assets 60,668 68,257
---------- ----------
Total current assets 1,166,316 1,007,420
Property, plant and equipment 104,461 87,054
Intangible assets
Goodwill 194,383 179,991
Other intangible assets 21,730 18,920
Other assets 40,042 34,078
---------- ----------
Total assets $1,526,932 $1,327,463
========== ==========

Current liabilities
Short-term debt $ - $ 11,856
Accounts payable 287,001 218,129
Accrued liabilities 168,403 235,080
---------- ----------
Total current liabilities 455,404 465,065
Other liabilities 111,484 17,874
---------- ----------
Total liabilities 566,888 482,939

Shareholders' equity 960,044 844,524

---------- ----------
Total liabilities and shareholders' equity $1,526,932 $1,327,463
========== ==========
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LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

SUPPLEMENTAL FINANCIAL INFORMATION Quarter Ended Twelve Months Ended
Reconciliation of GAAP to non-GAAP March 31 March 31
Financial Measures 2008 2008
----------------------------------------------------------------------

GAAP net income $ 60,338 $ 231,026
Adjustments:
Impairment loss on short-term
investments 6,900 79,823
Realized gain on sale of short-
term investments - (33,712)
Realized loss on sale of short-
term investments - 5,951
------------- -------------------
6,900 52,062
------------- -------------------

Non-GAAP net income $ 67,238 $ 283,088
============= ===================

GAAP net income per share:
Basic $ 0.33 $ 1.27
Diluted $ 0.32 $ 1.23

Impairment loss on short-term
investments, net of realized gain
per share
Basic $ 0.04 $ 0.29
Diluted $ 0.04 $ 0.28

Non-GAAP net income per share:
Basic $ 0.37 $ 1.56
Diluted $ 0.36 $ 1.51

We sometimes use information derived from consolidated financial
information but not presented in our financial statements prepared in
accordance with U.S. generally accepted accounting principles (GAAP).
Certain of these data are considered "non-GAAP financial measures"
under the U.S. Securities and Exchange Commission rules. The
adjustments between the GAAP and non-GAAP financial measures
presented above consist of the impact on Other Income (Expense) of
the impairment loss related to other-than-temporary declines in fair
value of short-term investments during the three and twelve months
ended March 31, 2008, and the realized gain/loss on sales of short-
term investments during the twelve months ended March 31, 2008. Our
management uses these non-GAAP measures in its financial and
operational decision-making. Our management believes these non-GAAP
measures, when considered in conjunction with the corresponding GAAP
measures, facilitate better comparison by our investors of our
current period results with corresponding prior periods.
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LOGITECH INTERNATIONAL S.A.

(In thousands) - Unaudited

Quarter Ended Twelve Months Ended
March 31 March 31
SUPPLEMENTAL FINANCIAL
INFORMATION 2008 2007 2008 2007
----------------------------------------------------------------------

Depreciation $ 10,801 $ 8,944 $ 43,831 $ 35,239
Amortization of other
acquisition-related
intangibles 1,736 1,591 5,391 4,876
Operating income 66,139 55,298 286,680 230,862
Operating income before
depreciation and
amortization 78,676 65,833 335,902 270,977
Capital expenditures 16,611 10,605 57,900 47,246

Net sales by channel:
Retail $527,001 $457,205 $2,067,288 $1,844,395
OEM 74,233 55,529 303,208 222,174
--------- --------- ----------- -----------
Total net sales $601,234 $512,734 $2,370,496 $2,066,569
========= ========= =========== ===========

Net sales by product
family:
Retail - Pointing Devices $167,838 $121,632 $ 622,074 $ 508,449
Retail - Keyboards &
Desktops 117,255 110,411 458,434 372,266
Retail - Audio 113,785 98,553 478,455 408,314
Retail - Video 59,981 54,980 238,728 314,514
Retail - Gaming 32,865 40,176 146,016 149,113
Retail - Remotes 35,277 31,453 123,581 91,739
OEM 74,233 55,529 303,208 222,174
--------- --------- ----------- -----------
Total net sales $601,234 $512,734 $2,370,496 $2,066,569
========= ========= =========== ===========

Stock-based Compensation Quarter Ended Twelve Months Ended
Expense for March 31 March 31
Employee Stock Options and
Employee Stock Purchases 2008 2007 2008 2007
------------------------------------ --------- ----------- -----------

Cost of goods sold $ 704 $ - $ 2,706 $ 2,077
Marketing and selling 1,908 1,772 7,696 7,167
Research and development 1,051 824 3,505 3,151
General and administration 2,118 1,874 7,132 7,069
Income tax benefit (1,546) (2,215) (4,773) (4,526)
--------- --------- ----------- -----------

Total stock-based
compensation expense
after income taxes $ 4,235 $ 2,255 $ 16,266 $ 14,938
========= ========= =========== ===========

Stock-based compensation
expense for employee
stock options and
employee stock purchases,
net of tax, per share
(diluted) $ 0.02 $ 0.01 $ 0.09 $ 0.07
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Logitech International
Joe Greenhalgh, 510-713-4430
Vice President, Investor Relations - USA
Ben Starkie, +41-(0) 21-863-5195
Public Relations Manager - Europe
Nancy Morrison, 510-713-4948
Vice President, Corporate Communications - USA

Copyright Business Wire 2008