Mackie Designs Inc. (Nasdaq: MKIE) today announced that it incurred a loss of $1.4 million, or $0.11 per share, for the first quarter ended March 31, 1999 on revenues of $31.0 million. This compares to earnings of $0.09 per share on revenues of $17.4 million for the quarter ended March 31, 1998.

April 27, 1999 – Woodinville, Wash. – "The results for the first quarter are very disappointing," commented senior officer Roy Wemyss. "While demand for our product led to increased revenue when compared to Q1 98, the introduction of seven new products in manufacturing resulted in diminished efficiencies. Added to this, coincident with the conversion of distribution of Mackie product in several main countries in Europe from independent third parties to subsidiaries, costs incurred in the conversion of operations have been written off in full.

"On a positive note, demand for our newly released product indicates that the products have been well received. Improved sales in our new digital product line late in the quarter provides confirmation that the market is pleased with the Version 2.0 software release and other related plug-in components.

"It is important to note that at the end of 1996, the company only produced nine main products. The addition of seven main products, all in one quarter, was a major achievement. While efficiencies were lower than standard, this was not unreasonable."

"Mackie continues to progress," commented Greg Mackie, Founder and Chairman of Mackie Designs Inc. "At NAMM in Los Angeles in January 1999, Mackie previewed a record 20-plus new products, a great tribute as we celebrate our 10th anniversary. This was a function of the hard work and focused effort of our entire team, who should be complimented on this achievement.

"At my request, the Board of Directors appointed Roy Wemyss to the role of President and Chief Executive Officer effective April 20,1999, and invited him to join the Mackie Board. I would like to take this opportunity to thank Roy and the entire Mackie team for their collective effort. This change allows me to spend more time on the product development side of our operations, one which gives me great personal satisfaction."

Mackie Designs is a leading designer, manufacturer and marketer of professional audio equipment. The company sells audio mixers, mixer systems, power amplifiers, studio monitors and related audio equipment worldwide.

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

This press release contains forward-looking statements. These statements are based on current expectations that are subject to risks and uncertainties. Actual results may vary because of factors such as market conditions; technological shifts; customer demand; competitive product and pricing; product development, and other factors discussed in the Company's Form 10-K.