News Releases  



December 16, 2002

Garmin® Revises Guidance Upward for Fourth Quarter and Full-Year 2002, Announces Production and Facility Expansions

CAYMAN ISLANDS, December 16, 2002 / PR Newswire/ — Garmin Ltd. (Nasdaq: GRMN) today revised its fourth quarter and full-year 2002 guidance upward due to continued strong consumer and aviation product sales during the fourth quarter. The company also announced expansion activities for both its Taiwan and Kansas facilities.

Revised Fourth Quarter and Fiscal Year 2002 Guidance

"Sales across our business have been strong throughout the fourth quarter, exceeding our earlier expectations. While we have not yet completed the fourth quarter, given these favorable trends, we are providing updated guidance," said Kevin Rauckman, chief financial officer of Garmin Ltd. "Strong demand for consumer products during the holidays, as well as the shipment of significant quantities of backordered GTX™ 330 and GDL 49 aviation products have pushed revenues higher than anticipated."

Revenues for the fourth quarter 2002 are now expected to be in the $132-$135 million range, up significantly from the earlier estimate of $106-$110 million. Full-year 2002 revenue guidance in turn rises to a range of $464-$467 million. The company anticipates providing 2003 revenue and EPS guidance during the fourth quarter earnings call in mid-February.

Production and Facility Expansion in 2003

To support continued growth across the business, Garmin Ltd. also announces several initiatives. In early 2003, two new surface-mount technology lines will be purchased for the production facility in Taiwan in order to create extra capacity for the company’s growing consumer business.

In addition, Garmin is in the early stages of design for an expansion of the Olathe, Kan. facility to be completed during 2004. This expansion will include additional floor space to support Garmin's growing research and development needs, new call center associates, additional warehouse facilities, and other business needs.

Also, Garmin has purchased and begun implementation of Oracle's E-Business suite, a fully integrated enterprise suite of business applications and supporting technologies, to upgrade its existing MRPII system. The new Oracle ERP (Enterprise Resource Planning) system will provide improved integration among the major Garmin business entities in Taiwan, Europe, and the United States, and enable the company to achieve a higher level of efficiency. The system will be implemented in phases over the next couple of years.

Through its operating subsidiaries, Garmin Ltd. designs, manufactures, and markets navigation, communications and information devices, most of which are enabled by GPS technology. Garmin is a leader in the general aviation and consumer markets and its products serve aviation, marine, general recreation, automotive, wireless and OEM applications. Garmin Ltd. is incorporated in the Cayman Islands, and its principal subsidiaries are located in the United States, Taiwan and the United Kingdom. For more information, visit Garmin's Investor Relations site at or contact the Investor Relations department at 913-397-8200.