FORM 10-K - Harman

Competitive conditions in the markets in which we operate may limit our ability to increase prices in the
event of adverse changes in currency exchange rates. For example, certain products made in Europe are sold in
the U.S. Sales of these products are affected by the value of the U.S. dollar relative to the Euro. Any weakening
of the U.S. dollar could depress the demand for these European manufactured products in the U.S. and reduce
sales. However, due to the multiple currencies involved in our business and the netting effect of various
simultaneous transactions, our foreign currency positions are partially offsetting. In addition, our foreign
currency hedging program is designed to limit our exposure.
Actual gains and losses in the future may differ materially from the hypothetical gains and losses discussed
above based on changes in the timing and amount of interest rate and foreign currency exchange rate movements
and our actual exposure and hedging transactions.
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