SANTA CRUZ, CA – November 1, 2005 - Plantronics, Inc., (NYSE: PLT) today reported second quarter revenues of $172.2 million and earnings per share of $0.28, in line with the updated guidance it provided on October 2, 2005.  These results are the consolidated results of the company including the revenues and earnings of Altec Lansing from August 18th, the date of its acquisition by Plantronics, to the end of the Company’s second fiscal quarter. With the acquisition of Altec Lansing now completed, we will also report results in two segments as well as consolidated Company performance.  We are referring to the Plantronics headset and Clarity product groups as the Audio Communications Group and to the newly acquired business, and some directly related new initiatives that had been underway at Plantronics, as the Audio Entertainment Group.

Audio Communications Group

Revenues for the Audio Communications Group (“ACG”) amounted to $150.3 million, up approximately 15% from $130.2 million in the year ago quarter.  Revenue growth was driven by our wireless office headsets which represented about 22% of total ACG revenues in comparison to approximately 10% a year ago.    The point of sale data we receive from our U.S. commercial distributors indicated record sell-through for the quarter as a whole, with especially strong trends in the months of August and September, offsetting what had been a slow July.  This channel primarily sells our office and contact center products to the enterprise market in the U.S. and we are encouraged by these figures which suggest strong overall end user demand.  Revenues from Bluetooth headsets for cell phone applications were also up sharply versus a year ago, but were offset by declines in sales of corded headsets for similar applications.

Ken Kannappan, President and Chief Executive Officer, noted, “Although it’s too early to measure increases in customer awareness or purchases in the office market as a result of our marketing campaign, we’re extremely encouraged by the response from our channel partners and other stakeholders to date.  Separately, demand for Bluetooth headsets continues to be strong.  Our new Bluetooth suite of products began shipping toward the end of the quarter.  That was later than expected, but the response to the design and sound quality of the products has bolstered our approach to the consumer business and with improved operational efficiencies, positions us well in this area of the business moving forward.”

Gross margins for the Audio Communications Group were approximately 45.5%, down from year ago levels of 53.4%.  There were many factors contributing to the decline.   We have been increasing capacity to prepare for anticipated future growth.  Consequently, one of the largest factors in our gross margin decline was an overall reduction in the efficiency of our manufacturing operations with higher fixed costs than a year ago on lower total production.   This statement includes the impact of start-up costs in China, but we have also grown capacity in Mexico.   Unit production was lower than a year ago due primarily to the decline in mobile corded headsets.  The number of new products that our factory needed to ramp in the quarter was significant and yields have not hit target levels, further contributing to less than optimal manufacturing costs.  Requirements for excess and obsolete inventory increased and the cost of our warranty obligations was higher than it was a year ago.  Additionally, our mix was somewhat unfavorable with a decline in the percent of total revenue contributed by professional grade corded headsets.   Finally, net prices on certain products were down versus a year ago as well and also contributed to the decrease in gross margin.

Operating expenses were up $11.9 million versus the year ago quarter with the principal drivers being the $5 million spent this quarter on our national advertising campaign, expansion of R&D and the $2 million benefit in the year ago quarter in connection with winning a litigation matter.  Since the media portion of the ad campaign did not begin until August 29, we believe that any revenue increase from the campaign was very limited in this time period, though we continue to believe that the benefits of the campaign will at least be commensurate with the costs.   As a result of the foregoing, operating expenses rose to 32% of ACG revenue from 27.8% in the year-ago quarter and operating margins were 13.6% versus an unusually high 25.6% in the year ago quarter.

Audio Entertainment Group

The revenue contribution from Altec Lansing for the period from close to the end of our second quarter was approximately $21.9 million, driven by strong sales of its portable audio line of products, and accounted for all of the revenues of the Audio Entertainment Group (“AEG”) in the second quarter.  In accordance with purchase accounting, we recorded non-cash charges of approximately $4.1 million, including $2.3 million to cost of goods sold, $0.9 million for an in-process R&D write-off, and $0.9 million in S,G&A principally for amortization of intangible assets acquired.  Including these non-cash charges associated with purchase accounting, the acquisition reduced earnings per share by $0.05 in the quarter.  Excluding these non-cash purchase accounting items, the acquisition was accretive by approximately $1.6 million or approximately $0.03 per share.  Management believes the pro forma EPS as it relates to the acquisition is an important measure because by excluding the non-cash purchase accounting items, some of which will be temporary in nature, an investor has better insight into the underlying operational results.

“I’m pleased not only with the financial performance of Altec Lansing since we closed the acquisition, but also grow more impressed with the recognition and reach of the Altec Lansing brand.  We are working well as a team on the integration planning and continue to get positive reception from our channel partners on our combination,” said Ken Kannappan.

Balance Sheet and Cash Flow

The Company’s balance sheet is presented on a consolidated basis, including the assets and liabilities of both our principal business segments.  Of particular note is the increase in intangible assets and goodwill, which are the result of the acquisition of Altec Lansing.  For further information on the items which make up these balances, please refer to our report on Form 8-K/A filed on October 18, 2005.  We also now have a short term debt balance from our line of credit in the amount of $41.1 million.  We used our line of credit to fund a portion of the purchase price for the acquisition given our working capital requirements and balance of offshore cash.   Although we did not repurchase any stock during the quarter, after announcing a new program on October 2, 2005, we have purchased 460,000 shares and have 540,000 shares remaining authorized to be purchased.

On a consolidated basis, our days sales outstanding was 60 for the September quarter and we had approximately 4 inventory turns.  These figures are not comparable with earlier periods as this is the first period which includes the assets and liabilities associated with the acquisition of Altec Lansing.

Business Outlook

The following statements are based on current information and expectations. For the third quarter, we currently estimate that:

• Revenues for the third quarter of fiscal 2006 will be approximately $195 million to $205 million in total;
• Earnings per share for the third quarter of fiscal 2006 will be in a range of $0.29 to $0.34.  Included in these estimates is our expectation that we will incur a further $4.1 million in purchase accounting related charges during the quarter, against which no tax benefit is available.

Plantronics does not intend to update these estimates except by its next press release announcing its third quarter fiscal year 2006 results which we plan to release on Tuesday, January 24, 2006. Any statements by persons outside Plantronics speculating on the final outcome of the third quarter of the fiscal year will not be based on internal Company information and should be assessed accordingly by investors.

We have been evaluating the potential to repatriate cash from offshore earnings and profits under the American Jobs Creation Act, and also evaluating borrowing offshore within that same context.  Our analysis is not complete and we have not reached a decision.  If, during the third quarter, we determine that we should repatriate offshore cash, we will be required to record the incremental tax expense associated with such a decision during the quarter even though we would not expect to be able to bring the cash back to the United States until the fourth quarter.  The earnings estimates above do not include the impact of additional tax expense that would be due if we reached such a decision.  If we proceed, our net income and earnings per share will be lower than the estimates above because of the higher tax expense.

SAFE HARBOR

This release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Specific forward-looking statements include our estimates of revenues and earnings for the third quarter of fiscal 2006, our expectations regarding demand for our products, expectations regarding our national advertising campaign, and our consideration of repatriating offshore cash and the anticipated effects of doing so.  These forward-looking statements involve a number of risks and uncertainties, and are based on current information and management judgment.

Among the factors that could cause actual results to differ materially from those projected are:

• Our operating results are difficult to predict;
• The market for our products is characterized by rapidly changing technology, short product life cycles, and frequent new product introductions, and we may not be able to develop, manufacture or market new products in response to changing customer requirements and new technologies;
• The actions of existing and/or new competitors, especially with regard to pricing and promotional programs;
• The inability to successfully develop, manufacture and market new products and achieve volume shipment schedules to meet demand;
• The advertising campaign may not increase demand for our products or may not increase demand as much as we anticipate, or may increase demand for products that we are not prepared to produce within the lead-time required by customers;
• A softening of the level of market demand for our products within our core contact center market and/or in the newer office, mobile, computer and residential markets;
• The entry of new competitors which could be spurred by changes in the regulatory environment, particularly laws requiring the use of hands-free devices by drivers when using cellular telephones;
• Variations in sales and profits in higher tax, as compared to lower tax, jurisdictions;
• Fluctuations in foreign exchange rates; and
• Changes in the regulatory environment either as to headsets directly or as to the products, such as mobile phones, with which our products are used.
• Additional risk factors include: changes in the timing and size of orders from our customers, price erosion, increased requirements from retail customers for marketing and advertising funding, failure to match production to demand, interruption in the supply of sole-sourced critical components, continuity of component supply at costs consistent with our plans, failure of our distribution channels to operate as we expect, failure to develop products that keep pace with technological changes, the inherent risks of our substantial foreign operations, problems which might affect our manufacturing facilities in Mexico or in China, further terrorist acts, our nation’s response to terrorist attacks and the effects of these activities on capital and consumer spending, and the loss of the services of key executives and employees.

For more information concerning these and other possible risks, please refer to the Company’s Annual Report on Form 10-K filed on May 31, 2005, quarterly reports filed on Form 10-Q and other filings with the Securities and Exchange Commission as well as recent press releases. These filings can be accessed over the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html

Financial Summaries

The following related charts are provided:

• Summary Unaudited Condensed Consolidated Financial Statements
• Summary Unaudited Condensed Statements of Operations by Segment
• Unaudited GAAP to NON-GAAP Reconciliation for the Audio Entertainment Group
• Summary Unaudited Statements of Operations and Related Data

About Plantronics

In 1969, a Plantronics headset carried the historic first words from the moon: “That’s one small step for man, one giant leap for mankind.”  Since then, we’ve become the headset of choice for mission-critical applications such as air traffic control, 911 dispatch, and the New York Stock Exchange.  Today, this history of Sound Innovation™ is the basis for every product we build for the office, contact center, personal mobile, entertainment and residential markets. The Plantronics family of brands includes Plantronics, Altec Lansing, Clarity, and Volume Logic. For more information, go to www.plantronics.com or call (800) 544-4660.

Plantronics, Altec Lansing, Clarity, VolumeLogic and Sound Innovation are either  registered trademarks or trademarks of Plantronics, Inc.  Bluetooth is a trademark owned by Bluetooth SIG Inc., and is used by Plantronics under license. All other products or service names mentioned herein are trademarks of their respective owners