LOUD Technologies Reports 2006 Results

March 16, 2007 – Woodinville, Wash. - LOUD Technologies Inc. (LOUD) (NASDAQ:LTEC) today announced net income for 2006 was $0.6 million, or $0.13 per diluted share on sales of $215.0 million.

“We did not fully achieve our financial objectives for 2006,” said Chairman and CEO Jamie Engen. “However, we did make many significant strides in our plan to improve the long term profitability of the company. The costs of consolidating our operations, and costs incurred in the process of closing our two remaining domestic manufacturing plants, had an adverse effect on our 2006 performance. We are confident that the steps we have taken will reduce our operating costs and increase our gross margin in the future. By continuing to leverage LOUD's global distribution capability, expanding portfolio of famous-name branded products, and solid reputation for quality and innovation in the professional audio and music industries, we believe we can achieve our goal to deliver long-term value for our shareholders."

Twelve Month Results
For the twelve months ended December 31, 2006, net sales increased 5.2% to $215.0 million from $204.3 million for 2005.

Gross profit for 2006 was $71.5 million or 33.2% of net sales compared to $65.3 million or 32.0% of net sales for 2005. Reducing the 2005 gross profit was approximately $2.4 million of costs relating to the impact of recording St. Louis Music’s inventories at fair value as a result of the purchase price allocation of St. Louis Music.

Operating income for 2006 was $8.8 million compared to $8.5 million for 2005. Included in 2006 are restructuring costs of $1.6 million related to reductions in workforce in the consolidation of St. Louis Music operations and service operations, and the planned closures of our domestic manufacturing plants in the first half of 2007.

Net income from continuing operations for 2006 was $0.6 million, or $0.13 per diluted share. This compares to net income from continuing operations of $0.9 million or $0.19 per diluted share in 2005. Net income in 2005 included a gain on the sale of the Company’s discontinued operations in Italy of $2.8 million (net of tax), or $0.57 per diluted share.

Three Month Results
Net sales for the three months ended December 31, 2006 decreased 11.8% to $49.5 million from $56.1 million in the comparable period in 2005.

Gross profit for the three months ended December 31, 2006 was $15.8 million, or 32.0% of net sales compared to $18.1 million, or 32.3% of net sales for the comparable period in 2005.

Net loss for the three months ended December 31, 2006 was $1.6 million, or $0.33 per diluted share compared to net income of $1.7 million, or $0.35 per diluted share for the comparable period in 2005.

About LOUD Technologies Inc.
LOUD Technologies Inc. (www.loudtechinc.com) is one of the world's largest manufacturers and distributors of professional audio and music products. As the corporate parent for world recognized brands including Alvarez, Ampeg, Crate, EAW, Knilling, Mackie, SIA and TAPCO, LOUD Technologies produces and distributes a wide range of digital recording products, loudspeakers, commercial audio systems, audio and music software, guitars, guitar and bass amplifiers, and orchestral string instruments. LOUD Technologies' brands can be found in professional and project recording studios, video and broadcast suites, post-production facilities, sound reinforcement applications including churches and nightclubs, and retail locations and on major musical tours.

Forward Looking Statements
Certain statements contained in this release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words - "believe", "expect", "anticipate", "intend", "will" and similar expressions are examples of words that identify forward-looking statements. These forward-looking statements include statements about the anticipated success of our management initiatives in driving future profitability, and are based on current expectations and assumptions based on information currently available to us. These forward-looking statements may be affected by the risks and uncertainties associated with our business and are qualified in their entirety by the cautionary statements and risk factor disclosure contained in our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2005. We do not assume, and expressly disclaim, any obligation to update these forward-looking statements to conform them to actual results or changes in the Company's expectations.

For more information please contact: LOUD Technologies Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: (425) 487-4333 – Fax: (425) 487-4337 – Internet: www.loudtechinc.com