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Logitech Delivers 8th Consecutive Record Year

30th Straight Quarter of Double-Digit Sales Growth

FREMONT, Calif., April 19, 2006 and ROMANEL-SUR-MORGES, Switzerland, April 20, 2006 — Logitech International (SWX: LOGN) (Nasdaq: LOGI) today announced it has posted its eighth consecutive year of record sales and profits, ending with a record fourth quarter and reaching its increased fiscal-year goals.

Sales for the fiscal year, ended March 31, 2006, were $1.8 billion, up 21 percent from $1.48 billion in Fiscal Year 2005. Operating income was $199 million, an increase of 16 percent over $172 million in the prior year. Net income was $181 million ($1.84 per share), up 21 percent from $149 million ($1.53 per share) last year. Gross margin for FY 2006 was 32 percent, compared with 34 percent last year.

For Logitech's fourth fiscal quarter, sales were $466 million, up 16 percent from $403 million for the same quarter one year ago. Operating income was $55 million, up 17 percent from $47 million last year. Net income for the quarter was $51 million ($0.52 per share), up 27 percent from $40.2 million ($0.41 per share) in the prior year. Gross margin was 31.9 percent, compared with 33.6 percent last year.

Logitech's retail sales for Q4 grew by 19 percent year over year, with sales up in the Americas by 18 percent, in EMEA by 20 percent and in Asia by 15 percent. Retail sales were driven by high demand for audio products (up 68 percent), video products (up 61 percent) and a return to strong growth in cordless mice (up 21 percent). The Company's line of Harmony® remote controls also continued its rapid growth during the quarter, with sales in Europe accelerating. Logitech's OEM sales declined by 6 percent for the quarter.

"We are very pleased with the Company's strong performance in FY 06, and with our record-breaking results in the fourth quarter," said Guerrino De Luca, Logitech's president and chief executive officer. "Operational efficiencies and successful management of our working capital resulted in a record high in a single quarter for cash flow from operations of $137 million. Our gross margin was impacted by more audio products in the mix, and further pressured by reserves taken for an audio product, but we closed the quarter near our long-term target range, and grew operating income 17 percent and net income 27 percent – a confirmation of the strength of our business model and our consistent execution."

Highlights for Logitech's Fiscal Year 2006

Outlook
"Logitech begins FY 07 well positioned for sustained growth and profitability," continued De Luca. "We expect our current key growth categories – audio, video and Harmony remotes – to retain their momentum. We also expect product and marketing initiatives related to our cordless desktops and mice to return the cordless category to solid growth."

Logitech announced its targets for the current fiscal year, ending March 31, 2007. The Company expects both sales and 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 than for FY 06, due to anticipated upside in the second half of FY 07 following new-product introductions. These targets exclude the cost of equity-based compensation, which will be included in the Company's operating results beginning in the first quarter of FY 07. The net cost of equity-based compensation for FY 07 reflected in net income is expected to be between $16 and $19 million.

Earnings Teleconference
Logitech will hold an earnings teleconference on April 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.

Investor Meeting
Logitech will hold an investor meeting in London on May 11, 2006 at 09:45 British Summer Time/4:45 a.m. Eastern Daylight Time/1:45 a.m. Pacific Daylight Time. A live video webcast and replay of the meeting will be available on the Logitech corporate Web site at http://ir.logitech.com.

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 National Market System (LOGI).

# # #

This press release contains forward-looking statements regarding expected sales, operating income and gross margin and gross margin upside for Fiscal Year 2007, long-term gross margin target range, and growth expectations for the video, audio, Harmony and cordless categories. 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 successful products in a timely manner, 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, 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, 2005, 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 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.

LOGITECH INTERNATIONAL S.A.
 
(In thousands, except per share / ADS) - Unaudited
 
 
Quarter Ended
March 31
CONSOLIDATED STATEMENTS OF INCOME
2006
2005
     
Net sales
$
466,056
$
402,648
Cost of goods sold
317,187
267,524
Gross profit
148,869
135,124
               % of net sales
31.9%
33.6%
     
Operating expenses:    
          Marketing and selling
52,687
51,531
          Research and development
23,064
20,558
          General and administrative
18,347
16,085
Total operating expenses
94,098
88,174
     
Operating income
54,771
46,950
     
Interest income, net
1,131
423
Other income (expense), net
2,807
(40)
     
Income before income taxes
58,709
47,333
Provision for income taxes
7,586
7,100
     
Net income
$
51,123
$
40,233
     
Shares used to compute net income per share and ADS:    
          Basic
92,683
88,452
          Diluted
98,057
99,067
Net income per share and ADS:    
          Basic
$
0.55
$
0.45
 
          Diluted
$
0.52
$
0.41
     
Note: Share and per-share data for all periods presented have been adjusted to give effect to the two-for-one stock split that took effect on June 30, 2005.

LOGITECH INTERNATIONAL S.A.
 
(In thousands, except per share / ADS) - Unaudited
 
 
Twelve Months Ended
March 31
CONSOLIDATED STATEMENTS OF INCOME
2006
2005
     
Net sales
$
1,796,715
$
1,482,626
Cost of goods sold
  1,222,605
979,039
Gross profit
574,110
503,587
               % of net sales
32.0%
34.0%
     
Operating expenses:    
          Marketing and selling
223,063
201,353
          Research and development
87,953
73,900
          General and administrative
64,183
56,660
Total operating expenses
375,199
331,913
     
Operating income
198,911
171,674
     
Interest income, net
3,591
141
Other income, net
7,352
3,791
     
Income before income taxes
209,854
175,606
Provision for income taxes
28,749
26,340
     
Net income
$
181,105
$
149,266
     
Shares used to compute net income per share and ADS:    
          Basic
90,681
88,504
          Diluted
99,385
99,125
Net income per share and ADS:    
          Basic
$
2.00
$
1.69
          Diluted
$
1.84
$
1.53
     
Note: Share and per-share data for all periods presented have been adjusted to give effect to the two-for-one stock split that took effect on June 30, 2005.

LOGITECH INTERNATIONAL S.A.
 
(In thousands) - Unaudited
 
CONSOLIDATED BALANCE SHEETS
March 31,
2006
March 31,
2005
March 31,
2004
       
Current assets      
          Cash and cash equivalents
$
245,014
$
341,277
$
294,753
          Accounts receivable
289,849
229,234
206,187
          Inventories
196,864
175,986
135,561
          Other current assets
34,479
50,364
45,304
          Total current assets
766,206
796,861
681,805
Investments
36,414
16,793
16,172
Property, plant and equipment
74,810
52,656
37,308
Intangible assets
          Goodwill
135,396
134,286
108,615
          Other intangible assets
11,175
15,816
12,543
Other assets
33,063
10,671
16,244
Total assets
$
1,057,064
$
1,027,083
$
872,687
       
Current liabilities
          Short-term debt
$
14,071
$
9,875
$
14,129
          Accounts payable
181,290
177,748
143,016
          Accrued liabilities
162,922
156,575
113,752
          Total current liabilities
358,283
344,198
270,897
Long-term debt
4
147,788
137,008
Other liabilities
13,601
8,948
7,702
Total liabilities
371,888
500,934
415,607
       
Shareholders' equity
685,176
526,149
457,080
       
Total liabilities and shareholders' equity
$
1,057,064
$
1,027,083
$
872,687

LOGITECH INTERNATIONAL S.A.
 
 (In thousands) - Unaudited
 
 
Quarter Ended 
March 31
Twelve Months Ended 
March 31
SUPPLEMENTAL FINANCIAL INFORMATION
2006
2005
2006
2005
         
Depreciation
$
6,405
$
7,183
$
29,880
$
26,041
Amortization of other acquisition-related intangibles
1,160
1,685
4,641
6,320
Operating income
54,771
46,950
198,911
171,674
Operating income before depreciation and amortization
62,336
55,818
233,432
204,035
Capital expenditures
16,485
13,019
54,102
40,541
     
Net sales by channel:        
          Retail
$
418,388
$
352,169
$
1,588,033
$
1,294,404
          OEM
47,668
50,479
208,682
188,222
               Total net sales
$
466,056
$
402,648
$
1,796,715
$
1,482,626
         
Net sales by product family:        
          Retail - Cordless
$
114,652
$
117,244
$
448,358
$
453,519
          Retail - Corded
81,569
76,145
314,695
296,346
          Retail - Video
81,102
50,438
273,340
201,626
          Retail - Audio
87,496
52,123
334,496
158,134
          Retail - Gaming
28,808
38,694
136,944
146,517
          Retail - Other
24,761
17,525
80,200
38,262
          OEM
47,668
50,479
208,682
188,222
               Total net sales
$
466,056
$
402,648
$
1,796,715
$
1,482,626

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