Garmin revenue for the quarter increased 32% to $189.7 million from $143.5 million in the year-ago quarter. Net income was $56.3 million, or $0.52 diluted earnings per share, compared to $47.2 million or $0.43 diluted earnings per share in the year-ago quarter. Second quarter net income included a $3.6 million foreign currency gain as a result of a stronger U.S. dollar compared to the Taiwan dollar. Excluding the effects of foreign currency, diluted EPS for the quarter was $0.49 compared to $0.44 in the year-ago quarter, exceeding the high end of management's guidance of $0.44 to $0.48.

“We are pleased to announce another quarter of solid revenue growth. Demand for our products continues strong, driven by increased demand across all product lines,” said Dr. Min Kao, CEO of Garmin Ltd. “The consumer segment recorded a 30 percent growth in revenues during this quarter despite severe component availability constraints. The introduction of 36 new and innovative products during the first half of 2004 has generated excitement in our core markets, and our new product pipeline remains robust. Our StreetPilots, marine network systems, 60C, 76C, 276C, and 296C are just a few of the products we have introduced which provide consumers with many options for navigation. We also began shipping our first G1000(TM) avionics in the second quarter of 2004.”

Consumer revenue for the second quarter totaled $148.5 million – a 30% growth compared to the second quarter of 2003. In addition, aviation revenue totaled $41.2 million – a 41 percent increase compared to the year-ago quarter. Total units sold for the quarter increased to 569,000 from 513,000 – representing an increase of 11 percent.

Revenue increased across all geographic regions during the second quarter of fiscal 2004 when compared to the year-ago quarter

North America revenue was $125.7 million compared to $100.3 million, up 25 percent. Europe revenue was $56.3 million compared to $37.0 million, up 52 percent. Asia revenue was $7.7 million compared to $6.2 million, up 24 percent.

“We are pleased with the quarter's overall financial performance,” said Kevin Rauckman, chief financial officer of Garmin Ltd. “Our consumer segment has now logged its eleventh consecutive quarter of year-over-year revenue growth in excess of 20%. Our aviation segment has also demonstrated growth with the introduction of both panel-mount and portable products. The many new products released in the first half of 2004 should fuel strong growth in the second half of the year. Gross margins improved during the second quarter of 2004 to 51.8% from 50.8% in the first quarter of 2004. Improved product mix within both aviation and consumer segments offset by additional product transition costs during the quarter accounted for the increase in gross margins.”

Revenue for the six-month period ending June 26, 2004 was $348.0 million – up 30 percent from the $267.3 million generated in the year-ago. Net income increased to $91.0 million or $0.83 diluted earnings per share, compared to $88.7 million or $0.81 diluted earnings per share in the year-ago period. Net income for the six-month period ended June 26, 2004 included a $3.9 million foreign currency loss as a result of a weaker U.S. dollar compared to the Taiwan dollar. Excluding the effects of foreign currency, diluted EPS for the period was $0.86 compared to $0.83 in the year-ago period.

Consumer revenue for the six-month period totaled $271.9 million – a 30 percent growth compared to the year-ago period. Aviation revenue totaled $76.1 million – a 32 percent increase compared to the same period in fiscal 2003. Total units sold for the period increased to 1,048,000 from 959,000 – representing an increase of 9 percent.

Revenue increased across all geographic regions during the six months ending June 26, 2004 when compared with the same period in 2003.

North America revenue was $233.0 million compared to $185.6 million, up 26 percent. Europe revenue was $100.2 million compared to $70.5 million, up 42 percent. Asia revenue was $14.8 million compared to $11.2 million, up 32 percent.

The company estimates that its diluted EPS for the third fiscal quarter of 2004, excluding effects for foreign currency, will be in the range of $0.42 to $0.45 on revenues of $167 million to $174 million.

The company estimates that its diluted EPS for fiscal year 2004, excluding effects for foreign currency, will be in the range of $1.79 to $1.85 on revenues of $718 million to $732 million.

“We are also pleased to report that the Garmin Board of Directors has approved a $0.50/share annual cash dividend payable to shareholders of record on December 1, 2004,” announced Dr. Kao. “This dividend will be paid on December 15, 2004.” The payment of future dividends will be at the discretion of the Board of Directors after taking into account various factors including operating results, anticipated needs and plans for acquisition or expansion.

   Garmin Ltd. And Subsidiaries
   Condensed Consolidated Balance Sheets
   (In thousands)

                                                 (Unaudited)
                                                   June 26,  December 27,
                                                     2004        2003

  Assets
  Current assets:
    Cash and cash equivalents                     $242,716    $274,329
    Marketable securities                           62,610      53,127
    Accounts receivable, net                        98,638      82,718
    Inventories                                     89,866      96,794
    Deferred income taxes                           27,699      26,812
    Prepaid expenses and other current assets       21,168       6,148

  Total current assets                             542,697     539,928

  Property and equipment, net                      141,074     104,784

  Restricted cash                                    1,603       1,602
  Marketable securities                            221,415     168,320
  Other assets, net                                 62,177      42,311

  Total assets                                    $968,966    $856,945

  Liabilities and Stockholders' Equity
  Current liabilities:
    Accounts payable                               $40,587     $40,671

    Other accrued expenses                          33,711      24,817
    Income taxes payable                            50,188      38,946

  Total current liabilities                        124,486     104,434

  Deferred income taxes                                615       2,821

  Stockholders' equity:
    Common stock                                     1,081       1,082
    Additional paid-in capital                     101,969     104,022
    Retained earnings                              754,574     663,604
    Accumulated other comprehensive loss           (13,759)    (19,018)

  Total stockholders' equity                       843,865     749,690
  Total liabilities and stockholders' equity      $968,966    $856,945



                       Garmin Ltd. And Subsidiaries
               Condensed Consolidated Statements of Income
               (In thousands, except per share information)
                               (Unaudited)

                                 13-Weeks Ended         26-Weeks Ended

                               June 26,    June 28,   June 26,   June 28,
                                 2004        2003       2004       2003

  Net sales                   $189,655    $143,495    $347,984   $267,283

  Cost of goods sold            91,336      59,838     169,214    108,970

  Gross profit                  98,319      83,657     178,770    158,313

  Selling, general and
   administrative expenses      19,401      13,935      36,043     27,529

  Research and development
   expense                      14,710       9,607      28,929     18,403
                                34,111      23,542      64,972     45,932

  Operating income              64,208      60,115     113,798    112,381

  Other income(expense)(A)       5,637      (1,057)        (85)      (227)

  Income before income taxes    69,845      59,058     113,713    112,154

  Income tax provision          13,530      11,812      22,743     23,413

  Net income                   $56,315     $47,245     $90,970    $88,741

  Net income per share:
    Basic                        $0.52       $0.44       $0.84      $0.82
    Diluted                      $0.52       $0.43       $0.83      $0.81

  Weighted average common
   shares outstanding:
    Basic                      108,161     107,995     108,179    107,972
    Diluted                    108,884     109,038     109,052    108,888