Garmin Reports Record First Quarter; Strong Margins and Increased Market Share

A phone recording will be available for three business days following the earnings call and can be accessed by dialing (800) 642-1687 or (706) 645-9291 and utilizing the access code #42452953. An archive of the live webcast will be available until May 30, 2008 on the Garmin website at http://www.garmin.com. To access the replay, click on the Investor Relations link and click over to the Events Calendar page.

This release includes projections and other forward-looking statements regarding Garmin Ltd. and its business. Any statements regarding the company's estimated earnings and revenue for fiscal 2008, the Company's expected segment revenue growth rate, margins, new products to be introduced in 2008 and the company's plans and objectives are forward-looking statements. The forward- looking events and circumstances discussed in this release may not occur and actual results could differ materially as a result of risk factors affecting Garmin, including, but not limited to, the risk factors that are described in the Annual Report on Form 10-K for the year ended December 29, 2007 filed by Garmin with the Securities and Exchange Commission (Commission file number 0-31983). A copy of Garmin's 2007 Form 10-K can be downloaded from http://www.garmin.com/aboutGarmin/invRelations/finReports.html.

The global leader in satellite navigation, Garmin Ltd. and its subsidiaries have designed, manufactured, marketed and sold navigation, communication and information devices and applications since 1989 -- most of which are enabled by GPS technology. Garmin's products serve automotive, mobile, wireless, outdoor recreation, marine, aviation, 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 virtual pressroom at http://www.garmin.com/pressroom or contact the Media Relations department at 913-397-8200. Garmin, nuvi, and Forerunner are registered trademarks, and nuvifone and Colorado and are trademarks of Garmin Ltd. or its subsidiaries.

All other brands, product names, company names, trademarks and service marks are the properties of their respective owners. All rights reserved.



                          Garmin Ltd. And Subsidiaries
                Condensed Consolidated Balance Sheets (Unaudited)
                    (In thousands, except share information)

                                                  March 29,       December 29,
                                                    2008              2007
    Assets
    Current assets:
      Cash and cash equivalents                   $598,815          $707,689
      Marketable securities                         17,976            37,551
      Accounts receivable, net                     515,648           952,513
      Inventories, net                             676,051           505,467
      Deferred income taxes                         98,506           107,376
      Prepaid expenses and other current assets     24,129            22,179

    Total current assets                         1,931,125         2,332,775

    Property and equipment, net                    392,001           374,147

    Marketable securities                          542,937           386,954
    Restricted cash                                  1,565             1,554
    Licensing agreements, net                       13,236            14,672
    Other intangible assets, net                   202,534           181,358

    Total assets                                $3,083,398        $3,291,460

    Liabilities and Stockholders' Equity
    Current liabilities:
      Accounts payable                            $213,766          $341,053
      Salaries and benefits payable                 34,618            31,696
      Accrued warranty costs                        72,751            71,636
      Other accrued expenses                       129,415           280,603
      Income taxes payable                          16,163            76,895

    Total current liabilities                      466,713           801,883

    Deferred income taxes                           12,123            11,935
    Non-current taxes                              136,137           126,593
    Other liabilities                                             980                              435

        Stockholders'  equity:
            Common  stock,  $0.005  par  value,
              1,000,000,000  shares  authorized:
                  Issued  and  outstanding  shares
                    -  215,648,000  as  of  March  29,  2008  and
                    216,980,000  as  of  December  29,  2007                1,079                          1,086
            Additional  paid-in  capital                                        54,502                      132,264
            Retained  earnings                                                    2,318,914                  2,171,134
            Accumulated  other  comprehensive  income                92,950                        46,130

        Total  stockholders'  equity                                      2,467,445                  2,350,614
        Total  liabilities  and  stockholders'  equity    $3,083,398                $3,291,460



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

                                                                                                                13-Weeks  Ended
                                                                                                    March  29,                  March  31,
                                                                                                        2008                            2007

        Net  sales                                                                          $663,805                    $492,159

        Cost    of  goods  sold                                                        343,690                      254,407

        Gross  profit                                                                      320,115                      237,752

        Selling,  general  and  administrative  expense          97,825                        65,925
        Research  and  development  expense                                49,558                        33,503
                                                                                                      147,383                        99,428

        Operating  income                                                              172,732                      138,324

        Other  income  (expense):
                  Interest  income                                                          8,404                          9,359
                  Interest  expense                                                            (77)                            (32)
                  Foreign  currency                                                      (3,999)                      13,205
                  Other                                                                              5,383                                51
                                                                                                          9,711                        22,583

        Income  before  income  taxes                                          182,443                      160,907

        Income  tax  provision                                                        34,664                        21,047

        Net  income                                                                        $147,779                    $139,860

        Net  income  per  share:
                  Basic                                                                              $0.68                          $0.65
                  Diluted                                                                          $0.67                          $0.64

        Weighted  average  common  shares  outstanding:
                  Basic                                                                          216,505                      216,215
                  Diluted                                                                      218,979                      218,704



                                                  Garmin  Ltd.  And  Subsidiaries
                              Condensed  Consolidated  Statements  of  Cash  Flows
                                                                  (Unaudited)
                                                                (In  thousands)

                                                                                              13-Weeks  Ended
                                                                                      March  29,              March  31,
                                                                                          2008                        2007
        Operating  Activities:
        Net  income                                                        $147,779                $139,860
        Adjustments  to  reconcile  net  income
          to  net  cash
        provided  by  operating  activities:
            Depreciation                                                      9,861                      6,213
            Amortization                                                      7,775                      9,872
            Loss  (gain)  on  sale  of  property
              and  equipment                                                        (1)                          27
            Provision  for  doubtful  accounts                    350                          991
            Deferred  income  taxes                                  17,067                      2,159
            Foreign  currency  transaction
              gains/losses                                                  64,946                  (13,052)
            Provision  for  obsolete  and  slow
              moving  inventories                                      11,669                      8,156
            Stock  compensation  expense                          9,124                      3,955
            Realized  gains  on  marketable
              securities                                                      (5,245)                          -
        Changes  in  operating  assets  and
          liabilities,  net  of  acquisitions:
            Accounts  receivable                                    458,821                    84,886
            Inventories                                                  (169,501)                (16,772)
            Other  current  assets                                      9,946                      2,947
            Accounts  payable                                        (159,590)                    6,252
            Other  current  and  non-current
              liabilities                                                (137,588)                (34,628)
            Income  taxes  payable                                  (60,701)                (11,993)
            Purchase  of  licenses                                  (12,247)                (20,203)
        Net  cash  provided  by  operating
          activities                                                        192,465                  168,670

        Investing  activities:
        Purchases  of  property  and  equipment        (26,690)                (12,399)
        Proceeds  from  sale  of  property  and
          equipment                                                                      8                            -
        Purchase  of  intangible  assets                      (2,562)                  (1,564)
        Purchase  of  marketable  securities          (265,758)              (102,197)
        Redemption  of  marketable  securities        102,374                  153,924
        Change  in  restricted  cash                                    (11)                          (4)
        Acquisitions,  net  of  cash  acquired          (23,725)                (68,902)
        Net  cash  used  in  investing  activities  (216,364)                (31,142)

        Financing  activities:
        Proceeds  from  issuance  of  common  stock      1,524                      2,842
        Stock  repurchase                                              (90,050)                          -
        Payments  on  long  term  debt                                      0                          (14)
        Tax  benefit  related  to  stock  option
          exercise                                                                1,633                      2,190
        Net  cash  provided  by/(used  in)
          financing  activities                                    (86,893)                    5,018

        Effect  of  exchange  rate  changes  on
          cash  and  cash  equivalents                              1,918                        (487)

        Net  increase/(decrease)  in  cash  and
          cash  equivalents                                          (108,874)                142,059
        Cash  and  cash  equivalents  at
          beginning  of  period                                      707,689                  337,321
        Cash  and  cash  equivalents  at  end  of
          period                                                              $598,815                $479,380



                                                  Garmin  Ltd.  And  Subsidiaries
                        Revenue,  Gross  Profit,  and  Operating  Income  by  Segment

                                                                                          Reportable  Segments
                                                                    Outdoor/                      Auto/
                                                                    Fitness    Marine      Mobile      Aviation    Total

        13-Weeks  Ended  March  29,  2008
            Net  Sales                                    $70,495    $56,006    $451,859    $85,445    $663,805
            Operating  income                      $19,311    $17,836    $107,641    $27,944    $172,732
            Income  before  taxes                $20,447    $19,333    $112,304    $30,359    $182,443

        13-Weeks  Ended  March  31,  2007
            Net  Sales                                    $60,527    $43,004    $316,626    $72,002    $492,159
            Operating  Income                      $21,209    $11,294      $79,525    $26,296    $138,324
            Income  before  taxes                $24,783    $13,085      $95,145    $27,894    $160,907
 

Web site: http://www.garmin.com/



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