Market Capitalization $7.8 Billion. Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years

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1 BUY HOLD SELL A+ A A- B+ B B- C+ C C- D+ D D- E+ E E- F Annual Dividend Rate BUSINESS DESCRIPTION Harman International Industries, Incorporated designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide. The company operates through four segments: Connected Car, Lifestyle Audio, Professional Solutions, and Connected Services. STOCK PERFORMANCE (%) 3 Mo. 1 Yr. 3 Yr (Ann) Price Change GROWTH (%) Last Qtr 12 Mo. 3 Yr CAGR Revenues Net Income EPS RETURN ON EQUITY (%) Ind Avg S&P 500 Q Q Q P/E COMPARISON BUY Sector: Consumer Goods & Svcs Sub-Industry: Consumer Electronics Source: S&P BUY RATING SINCE 01/08/2013 TARGET PRICE $ Weekly Price: (US$) SMA (50) SMA (100) 1 Year 2 Years Rating History BUY Volume in Millions TARGET PRICE $ COMPUSTAT for Price and Volume, TheStreet Ratings, Inc. for Rating History RECOMMENDATION We rate () a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any nesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, notable return on equity, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company has had sub par growth in net income Ind Avg S&P 500 HIGHLIGHTS 's revenue growth has slightly outpaced the industry average of 5.7%. Since the same quarter one year prior, revenues slightly increased by 9.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. EPS ANALYSIS¹ ($) Net operating cash flow has increased to $ million or 40.02% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 22.94%. The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Household Durables industry and the overall market on the basis of return on equity, has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. Q Q Q Q Q Q2 Q NA = not available NM = not meaningful Q Q Q Compustat fiscal year convention is used for all fundamental data items. Compared to its closing price of one year ago, 's share price has jumped by 44.09%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels. 's earnings per share declined by 10.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MAN INTERNATIONAL INDS increased its bottom line by earning $4.98 versus $4.83 in the prior year. This year, the market expects an improvement in earnings ($7.30 versus $4.98). Report Date: PAGE 1

2 PEER GROUP ANALYSIS REVENUE GROWTH AND EBITDA MARGIN* Revenue Growth (TTM) -60% 60% UNFAVORABLE VUZI -800% EBITDA Margin (TTM) ZAGG FAVORABLE KOSS GRMN HEAR SNE GPRO MSN MCZ 100% Companies with higher EBITDA margins and revenue growth rates are outperforming companies with lower EBITDA margins and revenue growth rates. Companies for this scatter plot have a market capitalization between $5.1 Million and $38.9 Billion. Companies with NA or NM values do not appear. *EBITDA Earnings Before Interest, Taxes, Depreciation and Amortization. REVENUE GROWTH AND EARNINGS YIELD Revenue Growth (TTM) -60% 60% HEAR UNFAVORABLE -300% MCZ Earnings Yield (TTM) FAVORABLE SNE GPRO VUZI ZAGG GRMN KOSS UEIC MSN 50% Companies that exhibit both a high earnings yield and high revenue growth are generally more attractive than companies with low revenue growth and low earnings yield. Companies for this scatter plot have revenue growth rates between -53.7% and 49.2%. Companies with NA or NM values do not appear. INDUSTRY ANALYSIS The household durables industry includes the home furnishing, household appliances, house-wares and specialties, consumer electronics and homebuilding sectors. Major players include Sony (SNE), Garmin (GRMN), Whirlpool (WHR), Newell Brands (NWL), Mohawk Industries (MHK), D. R. Horton (DHI), and La-Z-Boy (LZB). Fuel prices and other input costs, and increasing foreign competition threaten the stability of industry participants. To offset these pressures, manufacturers have resorted to price hikes and cost-saving programs. The industry is cyclical in nature and highly sensitive to interest rate fluctuations, employment level, and disposable income. The consumer electronics sector, which includes companies that manufacture and distribute electronic products to consumers and supply content and services that are in sync with these products, has been profoundly affected by globalization and technological changes of the last two decades. Manufacturing of many consumer electronics products has moved abroad, but domestic employment in industries supplying content and services has risen. The sector contributes more than 4% to annual US gross domestic product and provides employment to around 4 million Americans. The introduction and rapid adoption of new products has stimulated growth in the sector and industries that supply content and services. As such, household utilization of consumer electronics has increased over the years, but average spending has risen marginally because prices for most electronic products have fallen over the last decade. The home furnishings market includes furniture, floor coverings, and household textiles. The industry is highly concentrated as 70% of sector sales come from the 50 largest companies. Large players compete through volume purchasing, breadth of products, and effective merchandising and marketing. Small companies focus on specific market segments and compete through depth of products and superior customer service. The economy and credit crisis took a toll as customers cut back on home decor spending, although this trend appears to be reversing. The homebuilding sector enjoyed a lengthy period of prosperity until the subprime debacle and corresponding economic crisis. Homebuilding alone accounts for 54% of the construction industry. After low interest rates fueled a booming US housing market in the early 2000s, rising interest rates in 2005 and the subprime mortgage crisis spurred a massive downturn in the homebuilding sector from which it has started to recover from the massive oversupply of homes. Household appliances market sales have been for the past few years due to the healthy US housing market. Brand consolidation remains a key to success of leading appliance manufacturers. The biggest brand consolidation took place in the US appliance market with the acquisition of Maytag by long-time rival Whirlpool. US companies are feeling the heat from Asian manufacturers such as Sharp, Matsushita Electric, LG, and Samsung. Household durable goods are deferrable purchases that are postponed during times of economic restraint. Consequently, the industry rebounds quickly during economic recoveries. So in the near-term the industry will continue to benefit from new housing activity, growth in disposable personal income, and consumers past actions in rebuilding savings and paying off debts. PEER GROUP: Household Durables Recent Market Price/ Net Sales Net Income Ticker Company Name Price ($) Cap ($M) Earnings TTM ($M) TTM ($M) MAN INTERNATIONAL IN , , UEIC UNIVERSAL ELECTRONICS INC GPRO GOPRO INC NM 1, HEAR TURTLE BEACH CORP NM MCZ MAD CATZ INTERACTIVE INC NM SNE SONY CORP ,937 NM 68, MSN EMERSON RADIO CORP ZAGG ZAGG INC NM KOSS KOSS CORP VUZI VUZIX CORP NM GRMN GARMIN LTD , , The peer group comparison is based on Major Consumer Electronics companies of comparable size. Report Date: PAGE 2

3 Annual Dividend Rate COMPANY DESCRIPTION Harman International Industries, Incorporated designs and engineers connected products and solutions for automakers, consumers, and enterprises worldwide. The company operates through four segments: Connected Car, Lifestyle Audio, Professional Solutions, and Connected Services. The Connected Car segment designs, manufactures, and markets connected car systems for vehicle applications to be installed as original equipment by automotive manufacturers, as well as produces an infotainment system for Harley-Davidson touring motorcycles. This segment also offers automotive cyber security solutions. The Lifestyle Audio segment offers car audio systems for vehicle applications, as well as provides a range of consumer audio products, including mid-to high-end loudspeakers and electronics, headphones, embedded audio products for consumer electronics, and branded portable wireless speakers. The Professional Solutions segment designs, manufactures, and markets audio, lighting, video and control, and automation solutions for entertainment and enterprise applications, such as live concerts and festivals, stadiums, airports, hotels and resorts, conference centers, educational institutions, command centers, and houses of worship. Its products include loudspeakers, amplifiers, digital signal processors, microphones, headphones, mixing consoles, guitar pedals, lighting, video and control, and enterprise automation solutions. The Connected Services segment offers software solutions to the automotive, retail, mobile, healthcare, media, and consumer electronics markets. The company markets its products under the AKG, AMX, Crown, Harman/Kardon, Infinity, JBL, JBL Professional, Lexicon, Mark Levinson, Martin, Revel, Soundcraft, and Studer brand names. Harman International Industries, Incorporated has strategic partnership with Navdy to offer an aftermarket augmented reality driving device to automotive OEMs. The company was founded in 1980 and is headquartered in Stamford, Connecticut. 400 Atlantic Street, Suite 1500 Stamford, CT USA Phone: STOCK-AT-A-GLANCE Below is a summary of the major fundamental and technical factors we consider when determining our overall recommendation of shares. It is provided in order to give you a deeper understanding of our rating methodology as well as to paint a more complete picture of a stock's strengths and nesses. It is important to note, however, that these factors only tell part of the story. To gain an even more comprehensive understanding of our stance on the stock, these factors must be assessed in combination with the stock s valuation. Please refer to our Valuation section on page 5 for further information. FACTOR SCORE Growth 5.0 out of 5 stars Measures the growth of both the company's income statement and cash flow. On this factor, has a growth score better than 90% of the stocks we rate. Total Return 3.0 out of 5 stars Measures the historical price movement of the stock. The stock performance of this company has beaten 50% of the companies we cover. Efficiency 4.5 out of 5 stars Measures the strength and historic growth of a company's return on invested capital. The company has generated more income per dollar of capital than 80% of the companies we review. Price volatility 3.0 out of 5 stars Measures the volatility of the company's stock price historically. The stock is less volatile than 50% of the stocks we monitor. Solvency 4.5 out of 5 stars Measures the solvency of the company based on several ratios. The company is more solvent than 80% of the companies we analyze. Income 3.5 out of 5 stars Measures dividend yield and payouts to shareholders. The company's dividend is higher than 60% of the companies we track. THESTREET RATINGS RESEARCH METHODOLOGY TheStreet Ratings' stock model projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Our Buy, Hold or Sell ratings designate how we expect these stocks to perform against a general benchmark of the equities market and interest rates. While our model is quantitative, it utilizes both subjective and objective elements. For instance, subjective elements include expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings. Objective elements include volatility of past operating revenues, financial strength, and company cash flows. Our model gauges the relationship between risk and reward in several ways, including: the pricing drawdown as compared to potential profit volatility, i.e.how much one is willing to risk in order to earn profits; the level of acceptable volatility for highly performing stocks; the current valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's valuation as compared to projected earnings growth; and the financial strength of the underlying company as compared to its stock's performance. These and many more derived observations are then combined, ranked, weighted, and scenario-tested to create a more complete analysis. The result is a systematic and disciplined method of selecting stocks. Report Date: PAGE 3

4 Consensus EPS Estimates² ($) IBES consensus estimates are provided by Thomson Financial 1.50 Q3 FY E 2017(E) 7.64 E 2018(E) INCOME STATEMENT Net Sales ($mil) 1, , EBITDA ($mil) EBIT ($mil) Net Income ($mil) FINANCIAL ANALYSIS 's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. has liquidity. Currently, the Quick Ratio is 0.94 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow. During the same period, stockholders' equity ("net worth") has increased by 5.35% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit BALANCE SHEET Cash & Equiv. ($mil) Total Assets ($mil) 6, , Total Debt ($mil) 1, , Equity ($mil) 2, , PROFITABILITY Gross Profit Margin 33.96% 34.11% EBITDA Margin 13.79% 12.80% Operating Margin 11.10% 9.53% Sales Turnover Return on Assets 5.75% 5.89% Return on Equity 14.13% 14.04% DEBT Current Ratio Debt/Capital Interest Expense Interest Coverage SE DATA Shares outstanding (mil) Div / share EPS 1.39 Book value / share Institutional Own % NA NA Avg Daily Volume 979,578 1,248,062 2 Sum of quarterly figures may not match annual estimates due to use of median consensus estimates. Report Date: PAGE 4

5 RATINGS HISTORY Our rating for has not changed since 1/8/2013. As of 3/9/2017, the stock was trading at a price of which is.3% below its 52-week high of $ and 71.7% above its 52-week low of $ Year Chart BUY: $ $150 $125 $100 $75 MOST RECENT RATINGS CHANGES Date Price Action From To 3/9/15 $ No Change Buy Buy Price reflects the closing price as of the date listed, if available RATINGS DEFINITIONS & DISTRIBUTION OF THESTREET RATINGS (as of 3/9/2017) 42.12% Buy - We believe that this stock has the opportunity to appreciate and produce a total return of more than 10% over the next 12 months % Hold - We do not believe this stock offers conclusive evidence to warrant the purchase or sale of shares at this time and that its likelihood of positive total return is roughly in balance with the risk of loss % Sell - We believe that this stock is likely to decline by more than 10% over the next 12 months, with the risk involved too great to compensate for any possible returns. TheStreet Ratings 14 Wall Street, 15th Floor New York, NY Research Contact: Sales Contact: VALUATION BUY. This stock's P/E ratio indicates a premium compared to an average of for the Household Durables industry and a discount compared to the S&P 500 average of For additional comparison, its price-to-book ratio of 3.02 indicates valuation on par with the S&P 500 average of 2.96 and a premium versus the industry average of The current price-to-sales ratio is well below the S&P 500 average and is also below the industry average, indicating a discount. After reviewing these and other key valuation criteria, proves to trade at a premium to investment alternatives within the industry. Price/Earnings Peers Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation. is trading at a valuation on par with its peers. Price/Projected Earnings Peers Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations. is trading at a significant discount to its peers. Price/Book 3.02 Peers 2.52 Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. is trading at a premium to its peers. Price/Sales 1.08 Peers 1.23 Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. is trading at a discount to its industry on this measurement. DISCLAIMER: Price/CashFlow Peers Discount. The P/CF ratio, a stock s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. is trading at a significant discount to its peers. Price to Earnings/Growth 0.48 Peers 1.29 Discount. The PEG ratio is the stock s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. trades at a significant discount to its peers. Earnings Growth lower higher 6.73 Peers 2.43 Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. is expected to have an earnings growth rate that significantly exceeds its peers. Sales Growth lower higher Peers Lower. A sales growth rate that trails the industry implies that a company is losing market share. significantly trails its peers on the basis of sales growth The opinions and information contained herein have been obtained or derived from sources believed to be reliable, but TheStreet Ratings cannot guarantee its accuracy and completeness, and that of the opinions based thereon. Data is provided via the COMPUSTAT Xpressfeed product from Standard &Poor's, a division of The McGraw-Hill Companies, Inc., as well as other third-party data providers. TheStreet Ratings is a division of TheStreet, Inc., which is a publisher. This research report contains opinions and is provided for informational purposes only. You should not rely solely upon the research herein for purposes of transacting securities or other investments, and you are encouraged to conduct your own research and due diligence, and to seek the advice of a qualified securities professional, before you make any investment. None of the information contained in this report constitutes, or is intended to constitute a recommendation by TheStreet Ratings of any particular security or trading strategy or a determination by TheStreet Ratings that any security or trading strategy is suitable for any specific person. To the extent any of the information contained herein may be deemed to be investment advice, such information is impersonal and not tailored to the investment needs of any specific person. Your use of this report is governed by TheStreet, Inc.'s Terms of Use found at Report Date: PAGE 5