Press Release Source: DEI Holdings, Inc.

Directed Electronics to Exit Satellite Radio Business
Wednesday November 5, 4:15 pm ET

* Focus to return exclusively to security and entertainment products
* Company expects exit to result in recovery of working capital, reduction of debt, and increased gross margins

VISTA, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Directed Electronics, an operating unit of DEI Holdings, Inc. (Nasdaq: DEIX - News), today announced that it has entered into an agreement with SIRIUS XM Radio outlining key terms for winding down their business together by January 31, 2009, the expiration date of the current distribution agreement.

Jim Minarik, DEI Holdings' President and CEO stated, "We became the primary retail distribution partner for what was then SIRIUS SATELLITE RADIO in 2004, and are proud of the results we have achieved by growing SIRIUS' satellite radio retail share from approximately 20% to over 60% during the past four years. However, based on the large working capital commitment required for this business, as well as a strategic decision on our part to focus on our core security and entertainment businesses, we will not be extending our current agreement with SIRIUS XM when it expires on January 31, 2009. We have enjoyed an excellent partnership with SIRIUS over the past four years and expect to continue working closely with them to ensure the smoothest possible transition to their new distribution partner between now and early 2009."

The agreement specifies that SIRIUS or its new distribution partner will purchase substantially all remaining satellite radio receiver inventory from Directed in the first quarter of 2009 and assume full responsibility for all product returns and warranty costs after January 31, 2009, regardless of when the product was sold.

Mike Simmons, President of Directed Electronics said, "While our role as SIRIUS' primary retail partner over the past four years has benefited Directed, it has also diluted our team's focus on our core security and entertainment businesses, sold principally under our Viper, Python, Clifford, and Orion brand names. Going forward, we are excited to be able to once again dedicate 100% of our attention to improving the experience, service, and innovation we deliver to our customers."

Kevin Duffy, DEI Holdings', CFO commented, "Exiting the satellite radio business will allow us to focus on our core categories and also increase our ability to pay down debt by recovering the $20 to $25 million of working capital we have committed to this business."