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Plantronics sells Altec Lansing to Prophet Equity

Plantronics has sold Altec Lansing, the Audio Entertainment Group segment, to an affiliate of Texas-based private equity firm Prophet Equity for approximately USD16.2m in cash.

The transaction was completed on 1 December 2009.

The change in the consideration from USD18m as previously announced to USD16.2m reflects the change in the estimated value of net assets being delivered at closing together with the negotiated after-tax value of income in November.

Under the terms of the sale, Plantronics will retain certain Altec Lansing assets and liabilities, including accounts receivable, accounts payable and certain other liabilities. As a result, Plantronics expects these net assets to result in additional operating cash flow once the retained working capital assets are monetized in fiscal 2010.

Plantronics will also retain assets and/or the use of certain assets with strategic value, including the right to use the Altec Lansing brand for specific music applications for two years.

As a result of the sale of Altec Lansing, Plantronics expects all future and historical Audio Entertainment Group segment results to be reported as discontinued operations in its financial statements beginning in the third quarter of fiscal 2010.

Plantronics is a manufacturer of personal audio communications for professionals and consumers.

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