Press Release Details

Sales up 18%, Net Income up 35%

FREMONT, Calif., July 19, 2006 and ROMANEL-SUR-MORGES, Switzerland, July 20, 2006 -- Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced record Q1 sales and profit, posting its thirty-first consecutive quarter of double-digit revenue growth. Sales for the first quarter of Fiscal Year 2007, ended June 30, 2006, were $393 million, up 18 percent from $335 million for the same quarter one year ago.

Beginning with Q1 FY 2007, in accordance with U.S. Generally Accepted Accounting Principles (GAAP), Logitech has adopted Statement of Financial Accounting Standards No.123R (SFAS 123R). The Company's GAAP results now include the costs of stock-based compensation. A reconciliation between GAAP and non-GAAP results is provided in a table as part of the attached financial statements.

For Q1, GAAP operating income was $23.8 million, including $5.1 million in costs for stock-based compensation. GAAP net income for Q1, including $4.2 million in costs for stock-based compensation (net of related tax benefit), was $30.1 million ($0.16 per share). Net income during the first quarter also included a gain of $6.6 million on the sale of shares of Anoto Group AB.

Non-GAAP operating income, which excludes stock-based compensation, was $28.9 million, up 15 percent from last year's operating income of $25.2 million. Non-GAAP net income for Q1 was $34.4 million ($0.18 per share), up 53 percent compared with net income of $22.4 million ($0.12 per share) in the prior year. Non-GAAP gross margin was 30.9 percent, compared to 32.1 percent for the same quarter last year.

Logitech's retail sales for the quarter grew by 20 percent, with growth in all regions, led by 30 percent growth in the Americas. Retail sales were driven by continued strong growth in video products (up 56 percent), remote controls (up 122 percent) and audio products (up 23 percent). Retail sales of cordless products increased by 18 percent, with growth in both cordless mice and cordless desktops. The Company's OEM sales grew by 4 percent.

"With our solid performance in Q1, Logitech is on track to achieve our financial goals for FY 2007," said Guerrino De Luca, the Company's president and chief executive officer. "We saw continued strong retail sales growth in Q1 - including our projected return to growth in the cordless category. As we anticipated, gross margin for the quarter was below our long-term target range of 32-34 percent; we expect to see substantial sequential and year-over-year improvement in gross margin in Q2 as we roll out a range of exciting new products, many with margins higher than those of the products being replaced. A new lineup of webcams, announced earlier this week, should sustain our leadership in video communications, and during the next few months, we'll announce the rest of our portfolio for this holiday season, including a breakthrough in high-performance mice and a range of products for VoIP and notebook users."

Outlook
Logitech confirmed its targets for the current fiscal year, ending March 31, 2007. The Company expects sales and non-GAAP operating income to grow 15 percent, year over year. Gross margin is expected to be at the low end of the Company's long-term targeted range of 32-34 percent, but slightly higher compared with FY 2006, due to anticipated upside in the second half of FY 2007 following new-product introductions. Non-GAAP operating income excludes the cost of stock-based compensation. The net cost of stock-based compensation for FY 2007, reflected in net income, is expected to be between $16 and $19 million.

Earnings Teleconference
Logitech will hold an earnings teleconference on July 20, 2006 at 14:00 Central European Summer Time/8:00 a.m. Eastern Daylight Time/5:00 a.m. Pacific Daylight Time to discuss these results as well as guidance for Fiscal Year 2007. A live webcast and replay of the teleconference, including presentation slides, will be available on the Logitech corporate Web site at http://ir.logitech.com. Please visit the Web site at least 10 minutes early to register for the teleconference webcast.

About Logitech
Founded in 1981, Logitech designs, manufactures and markets personal peripherals that enable people to effectively work, play, and communicate in the digital world. Logitech International is a Swiss public company traded on the SWX Swiss Exchange (LOGN) and in the U.S. on the Nasdaq Global Select Market (LOGI).

This press release contains forward-looking statements regarding expected gross margin improvement in Q2 FY 2007, expected timing of new product introductions and the margins for such products, and expected sales, operating income and gross margin for Fiscal Year 2007. These forward-looking statements involve risks and uncertainties that could cause Logitech's actual performance to differ materially from that anticipated in these forward-looking statements. Factors that could cause actual results to differ materially include our ability to introduce higher-margin products in the balance of Fiscal Year 2007 in a timely manner and market reaction to those products; 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 match production to demand and to coordinate the worldwide manufacturing and distribution of our products in a timely and cost-effective manner; our ability to successfully implement a significant upgrade to our enterprise resource planning software system in Q2 FY 2007; the sales mix between our lower- and higher-margin products; consumer demand for our products and our ability to accurately forecast it; 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, 2006 available at www.sec.gov. Logitech does not undertake to update any forward-looking statements.

Logitech, the Logitech logo and other Logitech marks are owned by Logitech and may be registered. 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.