Mackie Designs Inc. Announces Lowered Earnings Expectations for Fourth Quarter

December 29, 1998 - Woodinville, Wash. - Mackie Designs Inc. (Nasdaq:MKIE) today announced that revenues and earnings for fourth quarter will be lower than expected. Economic conditions in both the domestic and international markets were weaker than anticipated, resulting in lower revenue than previously projected. While revenue from new products added to the core business is in line with expectations, this will not make up for the weakness in traditional markets.

"The general downturn in the domestic market condition was more pronounced than anticipated. Compounded by difficult conditions in international markets, a factor which we have been contending with for some time, has made this a quarter of challenges," commented Roy Wemyss, Chief Operating Officer. "We remain confident in our ability to deliver improvement, Q4 1998 versus Q4 1997, despite market conditions."

Mackie Designs is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional, home, and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, and on major musical tours. Mackie Designs is marketed by 54 distributors to over 100 countries.

NOTE: Mackie is a registered trademark of Mackie Designs Inc. in the United States and/or other countries.

This press release contains statements that are forward looking. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will vary because of factors such as product shipment growth; technological shifts; customer demand, competitive products and pricing; product mix, ship schedules, life cycles, and terms and conditions; litigation; and other issues discussed in the Company's Form 10K dated December 31, 1997 and Form 10Q dated September 30, 1998, and filed with the SEC.