Investor Relations
INFOSONICS BEGINS SHIPPING THE i500 AND i230; ITS LATEST GENERATION VERYKOOL(tm) WIRELESS HANDSETS

SAN DIEGO, CA, June 27, 2007InfoSonics Corporation (NASDAQ: IFON), one of the premier providers and distributors of wireless handsets and accessories serving Latin America and the United States, today announced that its proprietary verykool™ i500 and i230 wireless handsets have begun shipping to carriers in Central America.  The clamshell i500 quad-band and the slim bar type i230 are feature-rich phones that include a 1.3 megapixel camera, Bluetooth, an MP3 player, external memory capacity, and more. 

“The advanced, multimedia based i500 and i230 offer consumers a compelling cellular phone option in the Central American market where upgrade and replacement purchases are increasing,” said Joseph Ram, President and Chief Executive Officer of InfoSonics.  “The i500 and i230 are the third and fourth product we have released in our verykool proprietary product line.  We anticipate releasing three additional verykool phones in the remainder of this year.  We believe the verykool phones will offer InfoSonics improved gross margins, as sales ramp-up in the back half of the year. In addition, the GSM multiple-band functionality makes these true world-phones, both beneficial for traveling customers, and providing InfoSonics the potential for future geographic expansion.”

About verykool
 
InfoSonics’ verykool™ proprietary line of mobile phones covers a full spectrum of product offerings, including entry level handsets, mid-tier feature phones and a Smartphone utilizing Microsoft’s Windows Mobile operating platform.  The verykool phones are compact, stylish handsets, available in multiple fashion colors and include the most popular features demanded by younger consumers, such as, MP3 and multimedia players; megapixel cameras; PC Sync; expansion memory slots; and GSM tri-band or quad-band ‘world phone’ standards. In addition to its wireless handsets, InfoSonics’ offers a verykool fixed wireless phone providing connectivity and capacity for broadband that is unimpeded by the limitations of fiber or cable capacity in Latin America and other developing countries where traditional phone connectivity is greatly limited.  InfoSonics is initially focused on selling its proprietary line of products to carrier customers in Latin America and the United States, and anticipates additional geographic expansion opportunities in the future from its fully featured, low priced, verykool family of wireless handsets. To view InfoSonics’ verykool line-up, please visit www.verykool.net

About InfoSonics Corporation

InfoSonics is one of the premier providers and distributors of wireless handsets and accessories in Latin America and the United States.  For the wireless telecommunications industry, InfoSonics provides flexible and cost effective solutions, including product assembly, purchasing, marketing, selling, warehousing, order assembly, programming, packing, shipping, and delivery. InfoSonics supports manufacturers in moving their products to agents, resellers, distributors, independent dealers, retailers and wireless network operators in the U.S. and Latin America. For additional information, please visit www.infosonics.com.

Cautionary Statement for the Purpose of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995

The matters in this press release that are forward-looking statements, including without limitation to statements about future revenues, sales levels, operating income and margins, wireless handset sales, stock-based compensation expense, gain (loss) in value of derivatives, cost synergies, operating efficiencies, profitability, market share and rates of return, are based on current management expectations that involve certain risks which, if realized, in whole or in part, could cause such expectations to fail to be achieved and have a material adverse effect on InfoSonics’ business, financial condition and results of operations, including, without limitation: (1) intense competition, regionally and internationally, including competition from alternative business models, such as manufacturer-to-carrier sales, which may lead to reduced prices, lower sales or reduced sales growth, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) inability to secure adequate supply of competitive products on a timely basis and on commercially reasonable terms; (3) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions, political or economic instability, or disruption of a foreign market, and other related risks of our international operations; (4) the ability to attract new sources of profitable business from expansion of products or services or risks associated with entry into new markets, including geographies, products and services; (5) an interruption or failure of our information systems or subversion of access or other system controls may result in a significant loss of business, assets, or competitive information; (6) significant changes in supplier terms and relationships; (7) termination of a supply or services agreement with a major supplier or product supply shortages; (8) continued consolidation in the wireless handset carrier market; (9) extended general economic downturn; (10) loss of business from one or more significant customers; (11) customer and geographical accounts receivable concentration risk; (12) rapid product improvement and technological change resulting in inventory obsolescence; (13) future terrorist or military actions; (14) the loss of a key executive officer or other key employees; (15) changes in consumer demand for multimedia wireless handset products and features; (16) our failure to adequately adapt to industry changes and to manage potential growth and/or contractions; (17) future periodic assessments required by current or new accounting standards such as those relating to long-lived assets, goodwill and other intangible assets and expensing of stock options and valuing gain or loss on fair value of derivatives may result in additional non-cash income or expenses; (18) seasonal buying patterns; (19) dependency on Latin American sales; (20) uncertain political and economic conditions internationally; (21) the impact, if any, of changes in EITF 00-19 or SFAS 133 guidance as it relates to warrants and registration rights and SFAS 123R as it relates to stock options; (22) the resolution of any litigation against the company and (23) the ability of the Company to generate taxable income in future periods in order to utilize and realize any quarterly tax benefits recorded.  Our actual results could differ materially from those anticipated in our forward looking statements.

InfoSonics has instituted in the past and continues to institute changes to its strategies, operations and processes to address these risk factors and to mitigate their impact on InfoSonics’ results of operations and financial condition. However, no assurances can be given that InfoSonics will be successful in these efforts. For a further discussion of significant factors to consider in connection with forward-looking statements concerning InfoSonics, reference is made to Item 1A Risk Factors of InfoSonics’ Annual Report on Form 10-K for the year ended December 31, 2006; other risks or uncertainties may be detailed from time to time in InfoSonics’ future SEC filings. InfoSonics does not intend to update any forward-looking statements.

Contacts:

Jeffrey A. Klausner
Chief Financial Officer
ir@InfoSonics.com
858-373-1600

Bonnie Mc Bride or Todd Kehrli
MKR Group, Inc.
ifon@mkr-group.com
323-468-2300



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