Press Release Details

20% Growth in Sales, 56% Growth in Profit Fueled by New Products on Holiday Shelves, Growing Internet Video Camera Market, Increasing Popularity of Radio-Based Cordless Devices

Third Quarter Fiscal 2000 Highlights:

• Fifth consecutive quarter of record revenue: $185 million (20% year over year growth)
• Record net profit: $14.9 million (56% year over year growth)
• $19.7 million improvement in net cash position over same quarter last year
• Retail sales accounting for 76% of total revenue, compared with 70% for same quarter last year
• 128% growth in PC video camera sales

Fremont, CA -- January 25, 2000 -- Logitech (NASDAQ:LOGIY; Switzerland: LOGN, LOGZ), international market leader in human interface devices that define the way people link to information in business, at home and online, today announced record results for the third quarter of fiscal 2000 ending December 31, 1999. Sales reached $185.4 million, an increase of 20 percent over sales of $154.5 million in the same quarter last year. Net income was $14.9 million, or $6.86 per share ($0.69 per ADS), an increase of 56 percent over a net income of $9.6 million, or $4.85 per share ($0.49 per ADS), in the same quarter last year.

Gross margin of 36.3 percent showed a year over year increase of 0.6 percentage points and a sequential increase of 3.8 percentage points over last quarter. Operating income of $20.5 million increased by 65 percent over the third quarter of fiscal 1999.

The balance between retail and OEM sales continued to shift toward the higher-margin retail market, with retail accounting for 76 percent of total sales, as compared with 70 percent for the same quarter last year. At the same time, the company maintained its strong position in terms of unit sales in the OEM market, as a pointing device supplier to major systems vendors, value-added resellers and systems integrators worldwide. During the third quarter, Logitech entered a major OEM relationship with Compaq Computer Corporation. As of December 1999, Compaq is bundling most of its new Presario® systems with the popular Logitech QuickCam® Express Internet Video Camera.

"We are pleased with our strong financial performance, which validates our product strategy and business development initiatives," said Guerrino De Luca, president and chief executive officer. "In keeping with this successful strategic direction, we are continuing to enrich our family of human interface devices and services that leverage the power of the Internet and maximize the productivity and enjoyment of the computing experience.

"We have strengthened our market presence with new product categories and powerful, innovative technologies such as force feedback, one-button web access, motion sensing, Internet video and cordless digital radio.

"In November, we announced that venture capital firms @Ventures, an affiliate of CMGI, Inc. and Atlas Venture were joining Logitech in the funding of a new company that will enhance video communications using the Internet infrastructure. This partnership is further proof of the opportunities to establish valuable Internet services that leverage our strong device presence. We look forward to the launch of the new company during the first calendar quarter of 2000."

About Logitech

Founded in 1981, Logitech designs, manufactures and markets human interface devices and supporting software that link people to the Internet and enable them to work, play, learn and communicate more effectively in the digital world. Logitech's interface products include Internet video cameras; input and pointing devices such as corded and cordless mice, optical trackballs and keyboards; multimedia speakers; and entertainment products such as joysticks, gamepads and racing systems.

With operational headquarters through its U.S. subsidiary in Fremont, California, and regional headquarters through local subsidiaries in Romanel, Switzerland, and Hsinchu, Taiwan, R.O.C., Logitech International is a Swiss public company traded in Switzerland under the symbols LOGN and LOGZ, and in the U.S. on the Nasdaq National Market System (LOGIY). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.

This press release contains forward-looking statements which involve risks and uncertainties. The Company's actual performance could differ materially from that anticipated in these forward-looking statements as a result of certain factors, including those set forth under "Risk Factors" in the Annual Report on Form 20-F dated June 30, 1999, and the quarterly reports on Form 6-K dated August 16, 1999, and November 15, 1999, available upon request from Logitech by calling (510) 713-4220.