ROCKFORD CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE 2010 PROFIT

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1 Executive Contact: Richard Vasek Chief Financial Officer Rockford Corporation (480) ROCKFORD CORPORATION REPORTS THIRD QUARTER AND YEAR-TO-DATE 2010 PROFIT Tempe, Arizona, October 19, Rockford Corporation (Pink Sheets: ROFO.PK) today announced financial results for the three and nine months ended September 30, Net income for the three months ended September 30, 2010 was $0.7 million, compared to a net loss of $0.5 million for the same period in Net income for the nine months ended September 30, 2010 was $2.5 million, compared to a net loss of $0.1 million for the same period in Net income for the comparable nine month period in 2009 included a gain of approximately $0.5 million from a January 2009 repurchase at a discount of $2.5 million face value of convertible notes. Net sales for the three months ended September 30, 2010, increased 16.6% to $14.3 million compared to net sales of $12.3 million for the same period in Net sales for the nine months ended September 30, 2010, increased 0.9% to $42.6 million compared to net sales of $42.2 million for the same period in The increase in net sales for the three and nine month period was primarily due to increases in Rockford s core aftermarket, international and OEM channels. This increase was partially offset by lower sales to Best Buy after Rockford s decision early in 2010 to cease selling to Best Buy. OEM royalty revenue for the nine months ended September 30, 2010, was $2.2 million compared to $1.1 million for the same period in 2009.

2 As a percent of net sales, gross margin for the three months ended September 30, 2010 increased to 36.9% compared to 32.5% for the same period in As a percent of net sales, gross margin for the nine months ended September 30, 2010 increased to 37.0% compared to 31.6% for the same period in The increase in gross margin percentage was primarily due to lower product costs, lower fixed costs resulting from the closure of Rockford s Michigan warehouse in June 2009, and higher OEM royalty revenue. Operating expenses for the three months ended September 30, 2010, increased 3.1% to $4.5 million compared to $4.4 million for the same period in Operating expenses for the nine months ended September 30, 2010, decreased 4.3% to $13.1 million compared to $13.7 million for the same period in The decrease in operating expenses for the nine month period compared to the prior year was primarily due to lower professional and legal fees, as well as lower payroll and related expenses. William R. Jackson, Rockford s President, commented, The marketplace in the third quarter remained challenging. Many of our retailers reported sluggish sales and reduced consumer traffic patterns towards the end of the quarter. In the face of this challenging environment, Rockford s overall sales for the third quarter were up in all of our continuing sales channels. Year to date we are slightly ahead of the comparable period in 2009, even though 2009 included sales to Best Buy throughout the period. We think this increase confirms that our decision early in 2010 to end our relationship with Best Buy, and focus on retailers who are more aligned with our objectives, was the right one. Mr. Jackson stated, Net income for the third quarter and for the nine months ended September 30, 2010 represents a positive swing of $1.2M and $2.6M, respectively, compared to the same periods in Operating expenses are in line with our plan and are down 4.3% year to date. OEM royalties continue to track ahead of the same period in New car sales have improved during 2010 and, as a result, our business with Nissan and Mitsubishi has also improved. We are confident about our overall business model and our position in the marketplace. Mr. Jackson observed, Dealers and distributors continue to comment on the strength of our Rockford Fosgate product offering. Our team has worked hard through

3 the summer selling season supporting our retailers in many creative ways, including events exploiting our new Sound Lab presentation vehicles. In addition, we just launched a viral marketing campaign called What s your Volume 2.0. This video contest and sales promotion is offered in cooperation with Suzuki Motorsports and features a grand prize of a custom Suzuki motorcycle and a $5,000 Rockford Fosgate system. The contest allows consumers to submit online videos telling the world why they are the biggest Rockford Fosgate fanatic. In addition to the contest prizes, consumers receive discount coupons towards the purchase of Rockford Fosgate gear and Suzuki motorcycles. Tools like the Sound Lab vehicle and What s your Volume 2.0 help drive consumer excitement for high performance car audio and create sales opportunities for our dealers. Retailers who are creating and promoting an exciting car audio experience continue to do well even in the current market environment. Mr. Jackson concluded, Our performance through the third quarter feels good. The overall retail and new vehicle markets still remain uncertain, however we feel confident in our cost structure and market position. We remain cautiously optimistic about the balance of the year. Liquidity and Capital Resources Rockford s cash provided by operations was $0.2 million for the nine months ended September 30, 2010 as compared to $7.4 million during the comparable period in Net income of $2.5 million was the primary source of cash from operations and an increase in accounts receivable of $2.2 million was the primary use of cash from operations. Rockford s asset-based credit facility with Wells Fargo Capital Financial continues to have the terms described in Rockford s annual report for the year ended December 31, Under the agreement, pricing options based on LIBOR and prime rates are available to Rockford. The LIBOR and prime interest rate options were approximately 2.26% and 3.25% at September 30, 2010, respectively. As of September 30, 2010, Rockford was in compliance with all applicable covenants. Availability under the credit facility at September 30, 2010 was approximately $5.3 million in excess of the

4 outstanding balance of $4.6 million. Rockford has paid off its senior notes and all other material financing facilities (other than ordinary course financing of trade payables), so that the Wells Fargo credit facility is Rockford s only significant bank financing arrangement. Rockford anticipates, based on its operating plans and cash flow forecast, that cash flow from operations for 2010 and 2011, and available borrowings under its credit facility, will be adequate to meet Rockford s requirements for current capital expenditures, working capital and interest payments for the next twelve months. About Rockford Corporation ( Rockford is a designer, marketer and distributor of high-performance audio systems for the mobile audio aftermarket and for the OEM market. Rockford's mobile audio products are marketed primarily under the Rockford Fosgate, Rockford Acoustic Design, Lightning Audio, and Renegade brand names. Rockford s primary brand websites include: and and Forward-looking Statement Disclosure We make forward-looking statements in this press release including but not limited to statements about our results of operations. These statements may be identified by the use of forward-looking terminology such as may, will, believe, expect, anticipate, estimate, continue, or other similar words. Forward-looking statements are subject to many risks and uncertainties. Rockford cautions you not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. Actual results may differ materially from those anticipated in our forward-looking statements. Rockford disclaims any obligation or undertaking to update these forward-looking statements to reflect changes in our expectations or changes in events, conditions, or circumstances on which our expectations are based. Our business experienced a significant loss in 2008 (with almost all of the loss in the fourth quarter). In response we reduced our operating expenses in order to reduce our working capital needs and break-even sales level. We were able to improve our financial performance, achieving a relatively small loss for We achieved an

5 increase in our sales, and a profit, in the first nine months of We cannot be certain whether we will be able to continue this increase in sales and return to profitability. If our sales return to a negative trend or if competitive and market circumstances require us to increase our costs to maintain sales, we may not be able to achieve our business objectives and our current financing might not prove adequate to maintain our current business. In this event, we might have to consider changes in our operations and additional borrowings or equity financing. There is no assurance that we could implement operational changes or raise adequate new financing in the current economic environment. If we failed to do so, we could suffer setbacks in our competitive position, ability to improve our aftermarket and OEM businesses, and overall financial performance. In the worst case, we might not be able to continue our business as we currently plan. When considering our forward-looking statements, you should keep in mind the risk factors discussed in our press releases and earnings reports, as well as the risk factors generally applicable to a small business such as ours. We particularly call your attention to the risk factors and other cautionary statements identified on our investor relations web-site, in a document titled Risk Factors That May Affect Rockford s Operating Results, Business Prospects and Stock Price (the Risk Disclosure ). We updated the Risk Disclosure as of October 19, Our business is subject to the risk factors noted in the Risk Disclosure and other risk factors identified above. These risk factors, particularly those identified in the Risk Disclosure, and other risk factors that we have not anticipated or discussed, could cause our actual results to differ significantly from those anticipated in our forward-looking statements.

6 Rockford Corporation Condensed Consolidated Statements of Operations (unaudited) ($000s omitted except per share amounts) Three months ended September 30, Nine months ended September 30, Net sales $ 12,288 $ 14,330 $ 42,203 $ 42,573 Cost of goods sold 8,294 9,044 28,866 26,839 Gross profit 3,994 5,286 13,337 15,734 Operating expenses: Sales and marketing 2,033 2,005 6,363 6,066 General and administrative 1,943 1,982 5,955 5,510 Research and development ,342 1,503 Total operating expenses 4,384 4,518 13,660 13,079 Operating income(loss) (390) 768 (323) 2,655 Interest and other (income) expense, net (215) 150 Income(loss) before income taxes (460) 734 (108) 2,505 Income(loss) tax expense Net income (loss) $ (464) $ 734 $ (120) $ 2,505 Net income (loss)per common share: Basic $ (0.05) $ 0.09 $ (0.01) $ 0.29 Diluted $ (0.05) $ 0.08 $ (0.01) $ 0.28 Weighted average shares: Basic 8,581 8,582 8,581 8,582 Diluted 8,581 9,287 8,581 9,109 -more-

7 Rockford Corporation Condensed Consolidated Balance Sheets (unaudited) (In thousands) ASSETS December 31, September 30, Current assets: Cash $ $ Accounts receivable, net 9,946 12,046 Inventories 5,754 6,143 Prepaid expenses and other current assets Total current assets 16,078 18,709 Property and equipment, net 1,540 1,533 Other assets Total assets $ 17,795 $ 20,489 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Accounts payable $ 5,269 $ 4,599 Accrued salaries and incentives 737 1,102 Accrued warranty and returns Other accrued liabilities 1,934 2,093 Notes payable 2, Asset based credit facility 1,630 4,573 Total current liabilities 12,913 13,086 Other long-term liabilities Total liabilities 13,126 13,222 Shareholders' equity: Common stock Additional paid-in-capital 38,680 38,773 Retained deficit (32,794) (30,289) Treasury stock (1,311) (1,311) Total shareholders' equity 4,669 7,267 Total liabilities and shareholders' equity $ 17,795 $ 20,489 more-

8 Rockford Corporation Condensed Consolidated Statements of Cash Flows (Unaudited) (In thousands) Nine months ended September 30, Cash flow from operating activities: Net income (loss) $ (120) $ 2,505 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Share based compensation expense Provision for doubtful accounts Provision for inventory (15) 131 Net gain on buyback of notes (497) Gain on sale of property and equipment (87) (26) Impairment of other assets 33 Changes in operating assets and liabilities: Accounts receivable (358) (2,233) Inventories 8,159 (521) Prepaid expenses and other current assets 52 (141) Accounts payable (683) (670) Accrued salaries and incentives (557) 364 Accrued warranty and returns 69 (40) Other accrued expenses Net cash provided by operating activities 7, Cash flow from investing activities: Purchases of property and equipment (309) (470) Decrease (increase) in other assets 31 (150) Proceeds from sale of property and equipment Net cash used in investing activities (189) (543) Cash flow from financing activities: Proceeds from line of credit 38,452 44,338 Payments on line of credit (42,463) (41,394) Payments on notes payable and other debt (3,152) (2,584) Payments on capital lease obligations (39) Net cash (used in) provided by financing activities (7,202) 360 Effect of exchange rate changes on cash Net change in cash flow Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period $ $ ####