----

----

| T | ANNUAL REPORT PURSUANT TO      SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|---|------------------------------------------------------------------------------------------------|

| Delaware                                                            | 11-2534306                                |
|---------------------------------------------------------------------|-------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) | (I.R.S.      Employer Identification No.) |
|                                                                |                                      |
| 1101      Pennsylvania Ave., N.W., Suite 1010,                      |                                      |
| Washington,      D.C.                                               | 20004                                     |
| (Address      of Principal Executive Offices)                       | (Zip      Code)                           |

| Title of Each      Class                    |   | Name of Each Exchange on Which      Registered |
|---------------------------------------------|--------|------------------------------------------------|
| Common      Stock, par value $.01 per share |   | New      York Stock Exchange                   |
| Preferred      Stock Purchase Rights        |   | New      York Stock Exchange                   |

| Large      accelerated filer  T | Accelerated      filer   | Non-accelerated      filer   | Smaller      reporting company   |
|-------------------------------------------|------------------------------------|----------------------------------------|--------------------------------------------|

----

----

----

INDEX

|                      | Page   |
|---------------------------|--------|
|                      |   |
| ForwardLooking Statements | i      |
|                      |   |   |   |
| Part      I               |   |   |   |
| Item                      | 1.     | Business | 1 |
| Item                      | 1A.    | Risk Factors | 9 |
| Item                      | 1B.    | Unresolved Staff Comments | 14 |
| Item                      | 2.     | Properties | 15 |
| Item                      | 3.     | Legal Proceedings | 16 |
| Item                      | 4.     | Submission of Matters to a Vote of Security Holders and      Executive      Officers of the Registrant | 19 |
|                      |   |   |   |
| Part      II              |   |   |   |
| Item                      | 5.     | Market for Registrants Common Equity, Related Stockholder      Matters and Issuer Purchases of Equity Securities | 20 |
| Item                      | 6.     | Selected Financial Data | 22 |
| Item                      | 7.     | Managements Discussion and Analysis of Financial Condition      and Results of Operations | 22 |
| Item                      | 7A.    | Quantitative and Qualitative Disclosures About Market      Risk | 37 |
| Item                      | 8.     | Financial Statements and Supplementary    Data | 39 |
| Item                      | 9.     | Changes in and Disagreements With Accountants on Accounting      and Financial Disclosure | 78 |
| Item                      | 9A.    | Controls and Procedures | 78 |
| Item                      | 9B.    | Other Information | 79 |
|                      |   |   |   |
| Part      III             |   |   |   |
| Item                      | 10.    | Directors, Executive Officers and Corporate      Governance | 79 |
| Item                      | 11.    | Executive Compensation | 79 |
| Item                      | 12.    | Security Ownership of Certain Beneficial Owners and      Management and Related Stockholder Matters | 79 |
| Item                      | 13.    | Certain Relationships and Related Transactions, and      Director Independence | 79 |
| Item                      | 14.    | Principal Accounting Fees and Services | 79 |
|                      |   |   |   |
| Part      IV              |   |   |   |
| Item                      | 15.    | Exhibits and Financial Statement    Schedules | 80 |
|                      |   |   |   |
| Signatures                | 85     |

----

Index

Forwa

|   |  | our      ability to successfully implement our strategic initiatives and to achieve      the intended benefits of thoseinitiatives; |
|--------|--|-------------------------------------------------------------------------------------------------------------------------------------|

|   |  | automobile      industry sales and production rates and the willingness of automobile      purchasers to pay for the option of a premium audio system and/or a      multi-function infotainment system; |
|--------|--|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | changes      in consumer confidence andspending; |
|--------|--|--------------------------------------------------|

|   |  | changes      in interest rates and the availability of financing affecting consumer      spending; |
|--------|--|----------------------------------------------------------------------------------------------------|

|   |  | fluctuations      in currency exchange rates and other risks inherent in international trade      and business transactions; |
|--------|--|------------------------------------------------------------------------------------------------------------------------------|

|   |  | warranty      obligations for defects in ourproducts; |
|--------|--|-------------------------------------------------------|

|   |  | our      ability to satisfy contract performance criteria, including our ability to      meet technical specifications and due dates on our new automotive      platforms; |
|--------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | our      ability to design, engineer and manufacture our products profitably under      our long-term supply arrangements with  automakers; |
|--------|--|---------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | the      loss of one or more significant customers, including our automotive      manufacturer customers, or the loss of a significant platform with an      automotive customer; |
|--------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | competition      in the automotive, consumer or professional markets in which we operate,      including pricing pressure in the market for personal navigation devices      (PNDs); |
|--------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | our      ability to achieve cost reductions and other benefits in connection with      our restructuring program of our manufacturing, engineering  and      administrative organizations; |
|--------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | model-year      changeovers in the automotiveindustry; |
|--------|--|--------------------------------------------------------|

|   |  | our      ability to enforce or defend our ownership and use of intellectual      property; |
|--------|--|--------------------------------------------------------------------------------------------|

|   |  | our      ability to maintain a competitive technological advantage within the      systems, services and products we provide into the market      place; |
|--------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | our      ability to effectively integrate acquisitions made by our Company or      manage restructuring and cost migration  initiatives; |
|--------|--|------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|   |  | strikes,      work stoppages and labor negotiations at our facilities, or at a facility      of one of our significant customers; or work stoppages at a common carrier      or a major shipping location; |
|--------|--|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | commodity      price fluctuations; |
|--------|--|------------------------------------|

|   |  | the      outcome of pending or future litigation and other claims, including, but      not limited to the current stockholder and ERISA lawsuits or any claims or      litigation arising out of our business, labor disputes at our facilities      and those of our customers or commoncarriers; |
|--------|--|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | changes      in general economic conditions; and |
|--------|--|--------------------------------------------------|

|   |  | world      political stability. |
|--------|--|---------------------------------|

----

Index

Item 

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

 Item 

----

Index

----

Index

----

Index

|   |  | changes      in tariff regulations; |
|--------|--|-------------------------------------|

|   |  | political      instability, war, terrorism and other political  risks; |
|--------|--|------------------------------------------------------------------------|

|   |  | foreign      currency exchange ratefluctuations; |
|--------|--|--------------------------------------------------|

|   |  | establishing      and maintaining relationships with local distributors and      dealers; |
|--------|--|-------------------------------------------------------------------------------------------|

|   |  | lengthy      shipping times and accounts receivable payment  cycles; |
|--------|--|----------------------------------------------------------------------|

|   |  | import      and export licensing requirements; |
|--------|--|------------------------------------------------|

|   |  | compliance      with foreign laws and regulations, including unexpected changes in      taxation and regulatoryrequirements; |
|--------|--|------------------------------------------------------------------------------------------------------------------------------|

|   |  | greater      difficulty in safeguarding intellectual property than in the United      States; and |
|--------|--|---------------------------------------------------------------------------------------------------|

|   |  | difficulty      in staffing and managing geographically diverse  operations. |
|--------|--|------------------------------------------------------------------------------|

----

Index

|   |  | incur      debt; |
|--------|--|------------------|

|   |  | create      or assume liens; |
|--------|--|------------------------------|

|   |  | enter      into sale-leaseback transactions;and |
|--------|--|-------------------------------------------------|

|   |  | engage      in mergers or consolidations. |
|--------|--|-------------------------------------------|

----

Index

Item 1B

----

Index

Item

| Location                          | Segments     |            Size      (Sq. Ft.) |            Owned      or Leased |            Percentage      Utilization |
|-----------------------------------|--------------|---------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                              |              |                                                                                       |                                                                                        |                                                                                               |
| Atlanta,      Georgia             | Consumer     |            635,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Northridge,      California       | Automotive   |                                                                                       |                                                                                        |                                                                                               |
|                              | Consumer     |                                                                                       |                                                                                        |                                                                                               |
|                              | Professional |            589,000             |            Leased               |            82%                         |
|                              |              |                                                                                       |                                                                                        |                                                                                               |
| Ittersbach,      Germany          | Automotive   |            565,000             |            Owned                |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Moreno,      California           | Consumer     |                                                                                       |                                                                                        |                                                                                               |
|                              | Professional |            301,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Straubing,      Germany           | Automotive   |            235,000             |            Owned                |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Elkhart,      Indiana             | Professional |            223,000             |            Owned                |            86%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Chateau      du Loir, France      | Automotive   |                                                                                       |                                                                                        |                                                                                               |
|                              | Consumer     |            221,000             |            Owned                |            75%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Martinsville,      Indiana        | Automotive   |            221,000             |            Owned                |            40%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Rancho      Cucamonga, California | Professional |            212,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Worth-Schaidt,      Germany       | Automotive   |            204,000             |            Owned                |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Tijuana,      Mexico              | Consumer     |                                                                                       |                                                                                        |                                                                                               |
|                              | Professional |            198,000             |            Leased               |            78%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Vienna,      Austria              | Professional |            193,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Bridgend,      United Kingdom     | Automotive   |            168,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Potters      Bar, United Kingdom  | Professional |            160,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Franklin,      Kentucky           | Automotive   |            152,000             |            Owned                |            96%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Suzhou,      China                | Automotive   |            145,000             |            Owned                |            50%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Sandy,      Utah                  | Professional |            127,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Szekesfehervar,      Hungary      | Automotive   |            117,000             |            Owned                |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Juarez,      Mexico               | Automotive   |            109,000             |            Leased               |            100%                        |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Regensdorf,      Switzerland      | Professional |            108,000             |            Leased               |            93%                         |
|                              |         |                                                                                       |                                                                                        |                                                                                               |
| Washington,      Missouri         | Automotive   |            101,000             |            Owned                |            100%                        |

----

Index

Item 3

----

Index

----

Index

----

Index

Item 4

| Name                  |   | Position                                                   |   | Age    |
|-----------------------|--------|------------------------------------------------------------|--------|--------|
|                  |   |                                                       |   |   |
| Dinesh      Paliwal   |   | Chairman      and Chief Executive Officer                  |   | 50     |
| Herbert      Parker   |   | Executive      Vice President and Chief Financial Officer  |   | 50     |
| Helmut      Schinagel |   | Executive      Vice President and Chief Technology Officer |   | 55     |
| Klaus      Blickle    |   | President      Automotive                                  |   | 53     |
| Richard      Sorota   |   | President      Consumer                                    |   | 45     |
| Blake      Augsburger |   | President      Professional                                |   | 45     |
| John      Stacey      |   | Vice      President and Chief Human Resources Officer      |   | 43     |
| David      Karch      |   | Vice      President, Operational Excellence                |   | 47     |
| Edwin      Summers    |   | Vice      President General Counsel and Secretary          |   | 61     |

----

Index

Item

|                                  |   | Fiscal 2008 |   |   | Fiscal 2007 |   |
|---------------------------------------|--------|-------------|--------|--------|-------------|--------|
| Market      Price                     |   | High        |   |   | Low         |   |   | High |   |   | Low |   |
|                                  |   |             |   |   |             |   |   |  |   |   |  |   |
| First      quarter ended September 30 |   | $           | 118.15 |   |        |   | 75.52 |   |   |   | 87.03 |   |   |   | 74.65 |   |
| Second      quarter ended December 31 |   |        | 89.64  |   |        |   | 69.48 |   |   |   | 108.29 |   |   |   | 82.64 |   |
| Third      quarter ended March 31     |   |        | 73.75  |   |        |   | 35.74 |   |   |   | 105.68 |   |   |   | 92.40 |   |
| Fourth      quarter ended June 30     |   |        | 46.90  |   |        |   | 37.60 |   |   |   | 125.13 |   |   |   | 96.12 |   |

----

Index

| Period                |   | Total Number of Shares Acquired During      Period |    |   | Average Price Paid PerShare |   |   | Total Number of Shares Purchased as Part of      Publicly Announced Plans or Programs |   |   | Maximum Number of Shares That May Yet Be Purchased      Under the Plans or Programs |   |
|-----------------------|--------|----------------------------------------------------|---------|--------|-----------------------------|--------|--------|---------------------------------------------------------------------------------------|--------|--------|-------------------------------------------------------------------------------------|--------|
| April      1 April 30 |   |                                               | ---     |   |                        |   | ---    |                                                                                  |   |   | ---                                                                                 |   |   |   | --- |   |
| May      1 May 31     |   |                                               | 286,604 |   |                        | $      | 43.09  |                                                                                  |   |   | ---                                                                                 |   |   |   | --- |   |
| June      1 June 30   |   |                                               | ---     |   |                        |   | ---    |                                                                                  |   |   | ---                                                                                 |   |   |   | --- |   |
| Total                 |   |                                               | 286,604 |   |                        | $      | 43.09  |                                                                                  |   |   | ---                                                                                 |   |   |   | --- |   |

----

Index

Item 

|                                             |   | For the Years Ended      June 30, |      |
|--------------------------------------------------|--------|----------------------------------------|-----------|
|  (In thousands except per share      data)  |   | 2008                                   |      |   | 2007 |   |   | 2006 |   |   | 2005 |   |   | 2004 |   |
|                                             |   |                                   |      |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                   |   | $                                      | 4,112,503 |   |   |   | 3,551,144 |   |   |   | 3,247,897 |   |   |   | 3,030,889 |   |   |   | 2,711,374 |   |
| Operating      income                            |   | $                                      | 138,501   |   |   |   | 386,387 |   |   |   | 397,241 |   |   |   | 350,981 |   |   |   | 254,465 |   |
| Income      before income taxes                  |   | $                                      | 124,484   |   |   |   | 382,205 |   |   |   | 376,187 |   |   |   | 335,337 |   |   |   | 227,520 |   |
| Net      income                                  |   | $                                      | 107,786   |   |   |   | 313,963 |   |   |   | 255,295 |   |   |   | 232,848 |   |   |   | 157,883 |   |
| Diluted      earnings per share                  |   | $                                      | 1.73      |   |   |   | 4.72 |   |   |   | 3.75 |   |   |   | 3.31 |   |   |   | 2.27 |   |
| Weighted      average shares outstanding diluted |   |                                   | 62,182    |   |   |   | 66,449 |   |   |   | 68,105 |   |   |   | 70,399 |   |   |   | 69,487 |   |
| Total      assets                                |   | $                                      | 2,826,925 |   |   |   | 2,508,868 |   |   |   | 2,375,752 |   |   |   | 2,201,983 |   |   |   | 1,999,875 |   |
| Total      debt                                  |   | $                                      | 427,952   |   |   |   | 76,528 |   |   |   | 197,554 |   |   |   | 333,917 |   |   |   | 394,925 |   |
| Shareholders      equity                         |   | $                                      | 1,339,846 |   |   |   | 1,494,041 |   |   |   | 1,228,164 |   |   |   | 1,060,948 |   |   |   | 874,996 |   |
| Dividends      per share                         |   | $                                      | 0.05      |   |   |   | 0.05 |   |   |   | 0.05 |   |   |   | 0.05 |   |   |   | 0.05 |   |

Item 7. 

----

Index

----

Index

----

Index

----

Index

----

Index

| ($000s omitted) |   | Fiscal 2008 |      |   | Fiscal 2007 |   |   | Fiscal 2006 |   |
|-----------------|--------|-------------|-----------|--------|-------------|--------|--------|-------------|--------|
|            |   |             |      |   |             |   |   |        |   |   |  |   |   |   |   |   |  |   |
| Automotive      |   | $           | 2,970,139 |   |        |   | 72     | %           |   |   | 2,492,815 |   |   |   | 70 | % |   |   | 2,237,632 |   |   |   | 69 | % |
| Consumer        |   |        | 531,283   |   |        |   | 13     | %           |   |   | 497,673 |   |   |   | 14 | % |   |   | 492,977 |   |   |   | 15 | % |
| Professional    |   |        | 611,081   |   |        |   | 15     | %           |   |   | 560,656 |   |   |   | 16 | % |   |   | 517,288 |   |   |   | 16 | % |
| Total           |   | $           | 4,112,503 |   |        |   | 100    | %           |   |   | 3,551,144 |   |   |   | 100 | % |   |   | 3,247,897 |   |   |   | 100 | % |

----

Index

----

Index

| ($000s omitted)   |   | Fiscal 2008 |      |   | Percentof netSales |   |   | Fiscal 2007 |   |   | Percentof netsales |   |   | Fiscal 2006 |   |   | Percentof netsales |   |
|-------------------|--------|-------------|-----------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|
|              |   |        |      |   |               |   |   |        |   |   |               |   |   |        |   |   |               |   |
| Automotive        |   | $           | 746,429   |   |               |   | 25.1   | %           |   |   | 872,838            |   |   |        | 35.0   | %      |               |   | 805,152 |   |   |   | 36.0 | % |
| Consumer          |   |        | 124,478   |   |               |   | 23.4   | %           |   |   | 126,392            |   |   |        | 25.4   | %      |               |   | 160,212 |   |   |   | 32.5 | % |
| Professional      |   |        | 243,499   |   |               |   | 39.8   | %           |   |   | 216,976            |   |   |        | 38.7   | %      |               |   | 193,129 |   |   |   | 37.3 | % |
| Other/Unallocated |   |        | (5,000    | )      |               |   | ---    |        |   |   | (5,000             | )      |   |        | ---    |   |               |   | (5,923 | ) |   |   | --- |   |
| Total             |   | $           | 1,109,406 |   |               |   | 27.0   | %           |   |   | 1,211,206          |   |   |        | 34.1   | %      |               |   | 1,152,570 |   |   |   | 35.5 | % |

----

Index

----

Index

| ($000s omitted)   |   | Fiscal 2008 |    |   | Percentof netsales |   |   | Fiscal 2007 |   |   | Percentof netsales |   |   | Fiscal 2006 |   |   | Percentof netsales |   |
|-------------------|--------|-------------|---------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|
|              |   |        |    |   |               |   |   |        |   |   |               |   |   |        |   |   |               |   |
| Automotive        |   | $           | 625,963 |   |               |   | 21.1   | %           |   |   | 532,722            |   |   |        | 21.4   | %      |               |   | 468,357 |   |   |   | 20.9 | % |
| Consumer          |   |        | 131,932 |   |               |   | 24.8   | %           |   |   | 112,805            |   |   |        | 22.7   | %      |               |   | 109,399 |   |   |   | 22.2 | % |
| Professional      |   |        | 151,944 |   |               |   | 24.9   | %           |   |   | 136,008            |   |   |        | 24.3   | %      |               |   | 133,851 |   |   |   | 25.9 | % |
| Other/Unallocated |   |        | 61,066  |   |               |   | ---    |        |   |   | 43,284             |   |   |        | ---    |   |               |   | 43,722 |   |   |   | --- |   |
| Total             |   | $           | 970,905 |   |               |   | 23.6   | %           |   |   | 824,819            |   |   |        | 23.2   | %      |               |   | 755,329 |   |   |   | 23.3 | % |

----

Index

| ($000s omitted)                  |   | June 30, 2008 |    |   | June 30, 2007 |   |   | June 30, 2006 |   |
|----------------------------------|--------|--------------------|---------|--------|--------------------|--------|--------|--------------------|--------|
|                             |   |               |    |   |               |   |   |               |   |
| Beginning      accrued liability |   | $                  | 7,527   |   |               |   | 8,533  |               |   |   | --- |   |
| Expense                          |   |               | 42,192  |   |               |   | 7,071  |               |   |   | 9,499 |   |
| Utilization                      |   |               | (14,118 | )      |               |   | (8,077 | )                  |   |   | (966 | ) |
| Ending      accrued liability    |   | $                  | 35,601  |   |               |   | 7,527  |               |   |   | 8,533 |   |

----

Index

| ($000s omitted) |   | Fiscal 2008 |    |   | Percentof netsales |   |   | Fiscal 2007 |   |   | Percentof netsales |   |   | Fiscal 2006 |   |   | Percentof netSales |   |
|-----------------|--------|-------------|---------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|--------|-------------|--------|--------|--------------------|--------|
|            |   |        |    |   |               |   |   |        |   |   |               |   |   |        |   |   |               |   |
| Automotive      |   | $           | 120,466 |   |               |   | 4.1    | %           |   |   | 340,116            |   |   |        | 13.6   | %      |               |   | 336,795 |   |   |   | 15.1 | % |
| Consumer        |   |        | (7,454  | )      |               |   | -1.4   | %           |   |   | 13,587             |   |   |        | 2.7    | %      |               |   | 50,813 |   |   |   | 10.3 | % |
| Professional    |   |        | 91,555  |   |               |   | 15.0   | %           |   |   | 80,968             |   |   |        | 14.4   | %      |               |   | 59,278 |   |   |   | 11.5 | % |
| Other           |   |        | (66,066 | )      |               |   | ---    |        |   |   | (48,284            | )      |   |        | ---    |   |               |   | (49,645 | ) |   |   | --- |   |
| Total           |   | $           | 138,501 |   |               |   | 3.4    | %           |   |   | 386,387            |   |   |        | 10.9   | %      |               |   | 397,241 |   |   |   | 12.2 | % |

----

Index

----

Index

----

Index

|                                           |   | Fiscal Year Ending      June 30, |    |   |   |   |   |   |   |
|------------------------------------------------|--------|---------------------------------------|---------|--------|--------|--------|--------|--------|--------|
| ($000s)                                        |   | 2009                                  |    |   | 2010   |   |   | 2011   |   |   | 2012 |   |   | 2013 |   |   | Thereafter |   |   | Total |   |
|                                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Short-term      borrowings (a)                 |   | $                                     | ---     |   |   |   | ---    |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   | $ | --- |   |
| Senior      notes (b)                          |   |                                  | ---     |   |   |   | ---    |   |   |   | --- |   |   |   | 400,000 |   |   |   | --- |   |   |   | --- |   |   |   | 400,000 |   |
| Capital      leases (d)                        |   |                                  | 555     |   |   |   | 577    |   |   |   | 474 |   |   |   | 479 |   |   |   | --- |   |   |   | --- |   |   |   | 2,085 |   |
| Other      long-term obligations (b)           |   |                                  | 84      |   |   |   | 96     |   |   |   | 25,100 |   |   |   | 105 |   |   |   | 110 |   |   |   | 372 |   |   |   | 25,867 |   |
| Firm      commitments for capital expenditures |   |                                  | 22,351  |   |   |   | ---    |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 22,351 |   |
| Purchase      obligations (c)                  |   |                                  | 198,302 |   |   |   | 19,011 |   |   |   | 2 |   |   |   | --- |   |   |   | --- |   |   |   | --- |   |   |   | 217,315 |   |
| Non-cancelable      operating leases (d)       |   |                                  | 43,776  |   |   |   | 38,104 |   |   |   | 29,002 |   |   |   | 18,295 |   |   |   | 18,367 |   |   |   | 33,988 |   |   |   | 181,532 |   |
| Total      contractual cash obligations        |   | $                                     | 265,068 |   |   |   | 57,788 |   |   |   | 54,578 |   |   |   | 418,879 |   |   |   | 18,477 |   |   |   | 34,360 |   |   | $ | 849,150 |   |

| (a) | See      Note 5 to our consolidated financialstatements. |
|-----|----------------------------------------------------------|

| (b) | See      Note 6 to our consolidated financialstatements. |
|-----|----------------------------------------------------------|

| (c) | Includes      amounts committed under enforceable agreements for purchase of goods and      services with defined terms as to quantity, price and timing of      delivery. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (d) | See      Note 8 to our consolidated financialstatements. |
|-----|----------------------------------------------------------|

----

Index

Item 7A

----

Index

|                        |   | Fiscal Years Ending June 30, |   |   |   |   |   |   |   |   |   |   |
|-----------------------------|--------|-----------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|  ($ millions)          |   | 2009                              |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |   | 2013 |   |   | Thereafter |   |   | Total |   |   | Fair value (assets)/      liabilities |   |
|                        |   |                                   |   |   |        |   |   |        |   |   |        |   |   |  |   |   |   |   |   |   |   |   |   |   |
|  Debt      obligation  |   | $                                 | 0.1    |   |   |   | 25.1   |   |   |   | 0.1    |   |   |   | 0.1 |   |   |   | 0.1 |   |   |   | 0.3 |   |   | $ | 25.8 |   |   | $ | 25.8 |   |
|                        |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Average interest rate |   |                              | 5.00   | %      |   |   | 3.39   | %      |   |   | 5.00   | %      |   |   | 5.00 | % |   |   | 5.00 | % |   |   | 5.00 | % |   |   | --- |   |   |   | --- |   |

----

Index

Item 8.

----

Index

----

Index

----

Index

| ($000s      omitted except share and per share amounts)                                                                        |   | June 30, |       |
|--------------------------------------------------------------------------------------------------------------------------------|--------|---------------|------------|
|                                                                                                                           |   | 2008          |       |   | 2007 |   |
| Assets                                                                                                                         |   |          |       |   |   |   |
| Current      assets                                                                                                            |   |          |       |   |   |   |
| Cash      and cash equivalents                                                                                                 |   | $             | 223,109    |   |   |   | 106,141 |   |
| Receivables,      net                                                                                                          |   |          | 574,195    |   |   |   | 486,557 |   |
| Inventories,      net                                                                                                          |   |          | 390,638    |   |   |   | 453,156 |   |
| Other      current assets                                                                                                      |   |          | 251,139    |   |   |   | 187,299 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      current assets                                                                                                      |   |          | 1,439,081  |   |   |   | 1,233,153 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Property,      plant and equipment, net                                                                                        |   |          | 640,042    |   |   |   | 591,976 |   |
| Goodwill                                                                                                                       |   |          | 436,447    |   |   |   | 403,749 |   |
| Other      assets                                                                                                              |   |          | 311,355    |   |   |   | 279,990 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      assets                                                                                                              |   | $             | 2,826,925  |   |   |   | 2,508,868 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Liabilities      and Shareholders Equity                                                                                       |   |          |       |   |   |   |   |   |
| Current      liabilities                                                                                                       |   |          |       |   |   |   |   |   |
| Short-term      borrowings                                                                                                     |   | $             | ---        |   |   |   | 1,838 |   |
| Current      portion of long-term debt                                                                                         |   |          | 639        |   |   |   | 17,029 |   |
| Accounts      payable                                                                                                          |   |          | 343,780    |   |   |   | 356,763 |   |
| Accrued      liabilities                                                                                                       |   |          | 413,645    |   |   |   | 302,016 |   |
| Accrued      warranties                                                                                                        |   |          | 126,977    |   |   |   | 48,148 |   |
| Income      taxes payable                                                                                                      |   |          | 21,911     |   |   |   | 90,187 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      current liabilities                                                                                                 |   |          | 906,952    |   |   |   | 815,981 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Borrowings      under revolving credit facility                                                                                |   |          | 25,000     |   |   |   | 55,000 |   |
| Convertible      senior notes                                                                                                  |   |          | 400,000    |   |   |   | --- |   |
| Other      senior debt                                                                                                         |   |          | 2,313      |   |   |   | 2,661 |   |
| Minority      interest                                                                                                         |   |          | 34         |   |   |   | 878 |   |
| Other      non-current liabilities                                                                                             |   |          | 152,780    |   |   |   | 140,307 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      liabilities                                                                                                         |   |          | 1,487,079  |   |   |   | 1,014,827 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Shareholders      equity                                                                                                       |   |          |       |   |   |   |   |   |
| Preferred      stock, $.01 par value. Authorized 5,000,000 shares; none issued and      outstanding                            |   |          | ---        |   |   |   | --- |   |
| Common      stock, $.01 par value. Authorized 200,000,000 shares; issued 83,940,927      shares in 2008 and 83,436,983 in 2007 |   |          | 839        |   |   |   | 834 |   |
| Additional      paid-in capital                                                                                                |   |          | 620,651    |   |   |   | 595,853 |   |
| Accumulated      other comprehensive income (loss):                                                                            |   |          |       |   |   |   |   |   |
| Unrealized      loss on hedging derivatives                                                                                    |   |          | (1,328     | ) |   |   | (510 | ) |
| Pension      benefits                                                                                                          |   |          | (11,947    | ) |   |   | (15,778 | ) |
| Cumulative      foreign currency translation adjustment                                                                        |   |          | 204,806    |   |   |   | 98,479 |   |
| Retained      earnings                                                                                                         |   |          | 1,566,720  |   |   |   | 1,454,771 |   |
| Less      common stock held in treasury (25,422,861 shares in 2008 and 18,198,082      shares in 2007)                         |   |          | (1,039,895 | ) |   |   | (639,608 | ) |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      shareholders equity                                                                                                 |   |          | 1,339,846  |   |   |   | 1,494,041 |   |
|                                                                                                                           |   |          |       |   |   |   |   |   |
| Total      liabilities and shareholders equity                                                                                 |   | $             | 2,826,925  |   |   |   | 2,508,868 |   |

----

Index

|                                                  |   | Years Ended June 30, |      |
|-------------------------------------------------------|--------|---------------------------|-----------|
|                                                  |   | 2008                      |      |   | 2007 |   |   | 2006 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |
| Net      sales                                        |   | $                         | 4,112,503 |   |   |   | 3,551,144 |   |   |   | 3,247,897 |   |
| Cost      of sales                                    |   |                      | 3,003,097 |   |   |   | 2,339,938 |   |   |   | 2,095,327 |   |
| Gross      profit                                     |   |                      | 1,109,406 |   |   |   | 1,211,206 |   |   |   | 1,152,570 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Selling,      general and administrative expenses     |   |                      | 970,905   |   |   |   | 824,819 |   |   |   | 755,329 |   |
| Operating      income                                 |   |                      | 138,501   |   |   |   | 386,387 |   |   |   | 397,241 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Other      expenses:                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Interest      expense, net                            |   |                      | 8,648     |   |   |   | 1,500 |   |   |   | 13,027 |   |
| Miscellaneous,      net                               |   |                      | 5,369     |   |   |   | 2,682 |   |   |   | 8,027 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Income      before income taxes and minority interest |   |                      | 124,484   |   |   |   | 382,205 |   |   |   | 376,187 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Income      tax expense, net                          |   |                      | 17,119    |   |   |   | 70,186 |   |   |   | 121,877 |   |
| Minority      interest                                |   |                      | (421      | ) |   |   | (1,944 | ) |   |   | (985 | ) |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Net      income                                       |   | $                         | 107,786   |   |   |   | 313,963 |   |   |   | 255,295 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share                         |   | $                         | 1.75      |   |   |   | 4.81 |   |   |   | 3.85 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Diluted      earnings per share                       |   | $                         | 1.73      |   |   |   | 4.72 |   |   |   | 3.75 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding basic        |   |                      | 61,472    |   |   |   | 65,310 |   |   |   | 66,260 |   |
|                                                  |   |                      |      |   |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding diluted      |   |                      | 62,182    |   |   |   | 66,449 |   |   |   | 68,105 |   |

----

Index

| ($000s      omitted)                                                                        |   | Years Ended June 30, |     |
|---------------------------------------------------------------------------------------------|--------|---------------------------|----------|
|                                                                                        |   | 2008                      |     |   | 2007 |   |   | 2006 |   |
| Cash      flows from operating activities:                                                  |   |                      |     |   |   |   |   |   |   |
| Net      income                                                                             |   | $                         | 107,786  |   |   |   | 313,963 |   |   |   | 255,295 |   |
| Adjustments      to reconcile net income to net cash provided by operating      activities: |   |                      |     |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization                                                          |   |                      | 152,342  |   |   |   | 127,162 |   |   |   | 129,949 |   |
| Deferred      income taxes                                                                  |   |                      | (10,441  | ) |   |   | (45,563 | ) |   |   | (8,011 | ) |
| Loss      on disposition of assets                                                          |   |                      | 235      |   |   |   | 959 |   |   |   | 1,480 |   |
| Share-based      compensation                                                               |   |                      | 23,148   |   |   |   | 15,418 |   |   |   | 16,586 |   |
| Excess      tax benefits from share-based payment arrangements                              |   |                      | (5,321   | ) |   |   | (10,456 | ) |   |   | (45,493 | ) |
|                                                                                        |   |                      |     |   |   |   |   |   |   |   |   |   |
| Changes      in operating assets and liabilities:                                           |   |                      |     |   |   |   |   |   |   |   |   |   |
| Decrease      (increase) in:                                                                |   |                      |     |   |   |   |   |   |   |   |   |   |
| Receivables                                                                                 |   |                      | (34,980  | ) |   |   | (20,314 | ) |   |   | 4,877 |   |
| Inventories                                                                                 |   |                      | 102,451  |   |   |   | (92,024 | ) |   |   | (21,433 | ) |
| Other      current assets                                                                   |   |                      | (55,950  | ) |   |   | (34,844 | ) |   |   | (27,456 | ) |
| Increase      (decrease) in:                                                                |   |                      |     |   |   |   |   |   |   |   |   |   |
| Accounts      payable                                                                       |   |                      | (38,265  | ) |   |   | 26,266 |   |   |   | 37,274 |   |
| Accrued      warranty liabilities                                                           |   |                      | 78,829   |   |   |   | (12,620 | ) |   |   | 12,186 |   |
| Accrued      other liabilities                                                              |   |                      | 69,785   |   |   |   | (24,677 | ) |   |   | 33,691 |   |
| Income      taxes payable                                                                   |   |                      | (63,666  | ) |   |   | (34,083 | ) |   |   | 5,303 |   |
| Other      operating activities                                                             |   |                      | (9,144   | ) |   |   | 6,126 |   |   |   | 5,731 |   |
| Net      cash provided by operating activities                                              |   | $                         | 316,809  |   |   |   | 215,313 |   |   |   | 399,979 |   |
|                                                                                        |   |                      |     |   |   |   |   |   |   |   |   |   |
| Cash      flows from investing activities:                                                  |   |                      |     |   |   |   |   |   |   |   |   |   |
| Contingent      purchase price consideration                                                |   | $                         | (12,724  | ) |   |   | (9,229 | ) |   |   | (13,808 | ) |
| Proceeds      from asset dispositions                                                       |   |                      | 1,476    |   |   |   | 3,038 |   |   |   | 1,574 |   |
| Capital      expenditures                                                                   |   |                      | (138,934 | ) |   |   | (174,794 | ) |   |   | (130,548 | ) |
| Other      items, net                                                                       |   |                      | 7,697    |   |   |   | 970 |   |   |   | (3,898 | ) |
| Net      cash used in investing activities                                                  |   | $                         | (142,485 | ) |   |   | (180,015 | ) |   |   | (146,680 | ) |
|                                                                                        |   |                      |     |   |   |   |   |   |   |   |   |   |
| Cash      flows from financing activities:                                                  |   |                      |     |   |   |   |   |   |   |   |   |   |
| Net      increase (decrease) in short-term borrowings                                       |   | $                         | (1,838   | ) |   |   | 135 |   |   |   | (828 | ) |
| Net      (repayments) borrowings under revolving credit facility                            |   |                      | (38,940  | ) |   |   | (107,631 | ) |   |   | 158,294 |   |
| Repayments      of long-term debt                                                           |   |                      | (18,140  | ) |   |   | (18,782 | ) |   |   | (294,733 | ) |
| Proceeds      from issuance of convertible senior notes                                     |   |                      | 400,000  |   |   |   | --- |   |   |   | --- |   |
| Repurchase      of common stock                                                             |   |                      | (400,287 | ) |   |   | (128,780 | ) |   |   | (192,608 | ) |
| Dividends      paid to shareholders                                                         |   |                      | (3,056   | ) |   |   | (3,262 | ) |   |   | (3,321 | ) |
| Share-based      payment arrangements                                                       |   |                      | (3,152   | ) |   |   | 25,115 |   |   |   | 27,650 |   |
| Debt      issuance costs                                                                    |   |                      | (4,750   | ) |   |   | --- |   |   |   | --- |   |
| Excess      tax benefits from share-based payment arrangements                              |   |                      | 5,321    |   |   |   | 10,456 |   |   |   | 45,493 |   |
| Net      cash used in financing activities                                                  |   | $                         | (64,842  | ) |   |   | (222,749 | ) |   |   | (260,053 | ) |
| Effect      of exchange rate changes on cash                                                |   |                      | 7,486    |   |   |   | 1,834 |   |   |   | 7,298 |   |
| Net      increase (decrease) in cash and cash equivalents                                   |   |                      | 116,968  |   |   |   | (185,617 | ) |   |   | 544 |   |
| Cash      and cash equivalents at beginning of period                                       |   | $                         | 106,141  |   |   |   | 291,758 |   |   |   | 291,214 |   |
|                                                                                        |   |                      |     |   |   |   |   |   |   |   |   |   |
| Cash      and cash equivalents at end of period                                             |   | $                         | 223,109  |   |   |   | 106,141 |   |   |   | 291,758 |   |
|                                                                                        |   |                      |     |   |   |   |   |   |   |   |   |   |
| Supplemental      schedule of non-cash investing activities:                                |   |                      |     |   |   |   |   |   |   |   |   |   |
| Fair      value of assets acquired                                                          |   | $                         | ---      |   |   |   | --- |   |   |   | 12,102 |   |
| Cash      paid for the assets                                                               |   |                      | ---      |   |   |   | --- |   |   |   | 6,503 |   |
| Liabilities      assumed                                                                    |   | $                         | ---      |   |   |   | --- |   |   |   | 5,599 |   |

----

Index

|                                                        |   | Common Stock     |       |   |                 |   |   |                            |   |   |                                                    |   |   |                   |    |   |                |   |
|--------------------------------------------------------|--------|------------------|------------|--------|-----------------|--------|--------|----------------------------|--------|--------|----------------------------------------------------|--------|--------|-------------------|---------|--------|----------------|--------|
| ($000s omitted)                                        |   | Number of shares |       |   | $0.01 Par Value |   |   | Additional paid-in capital |   |   | Accumulated Other Comprehensive income      (loss) |   |   | Retained Earnings |    |   | Treasury Stock |   |   | Total share- holders equity |   |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2005                            |   |             | 66,662,544 |   |            | $      | 811    |                       |   |   | 455,158                                            |   |   |              | 31,103  |   |           |   | 892,096 |   |   |   | (318,220 | ) |   |   | 1,060,948 |   |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income:                             |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | 255,295 |   |   |   |   |   |   |   | 255,295 |   |
| Foreign      currency translation adjustment           |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 24,578  |   |           |   |   |   |   |   |   |   |   |   | 24,578 |   |
| Unrealized      loss on hedging derivatives            |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | (8,815  | )      |           |   |   |   |   |   |   |   |   |   | (8,815 | ) |
| Pension      liability adjustment                      |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 2,358   |   |           |   |   |   |   |   |   |   |   |   | 2,358 |   |
| Total      comprehensive income                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 18,121  |   |           |   | 255,295 |   |   |   |   |   |   |   | 273,416 |   |
| Exercise      of stock options, net of shares received |   |             | 1,632,883  |   |            |   | 16     |                       |   |   | 27,634                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 27,650 |   |
| Tax      benefit attributable to stock options plan    |   |             |       |   |            |   |   |                       |   |   | 45,493                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 45,493 |   |
| Share-based      compensation                          |   |             |       |   |            |   |   |                       |   |   | 16,586                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 16,586 |   |
| Treasury      shares purchased                         |   |             | (2,230,700 | )      |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   | (192,608 | ) |   |   | (192,608 | ) |
| Dividends      ($.05 per share)                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | (3,321 | ) |   |   |   |   |   |   | (3,321 | ) |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2006                            |   |             | 66,064,727 |   |            | $      | 827    |                       |   |   | 544,871                                            |   |   |              | 49,224  |   |           |   | 1,144,070 |   |   |   | (510,828 | ) |   |   | 1,228,164 |   |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income:                             |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | 313,963 |   |   |   |   |   |   |   | 313,963 |   |
| Foreign      currency translation adjustment           |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 34,199  |   |           |   |   |   |   |   |   |   |   |   | 34,199 |   |
| Unrealized      gain on hedging derivatives            |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 2,757   |   |           |   |   |   |   |   |   |   |   |   | 2,757 |   |
| Pension      liability adjustment                      |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 3,264   |   |           |   |   |   |   |   |   |   |   |   | 3,264 |   |
| Total      comprehensive income                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 40,220  |   |           |   | 313,963 |   |   |   |   |   |   |   | 354,183 |   |
| Exercise      of stock options, net of shares received |   |             | 682,074    |   |            |   | 7      |                       |   |   | 25,108                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 25,115 |   |
| Tax      benefit attributable to stock option plan     |   |             |       |   |            |   |   |                       |   |   | 10,456                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 10,456 |   |
| Adoption      of SFAS No. 158 (net of tax)             |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | (7,253  | )      |           |   |   |   |   |   |   |   |   |   | (7,253 | ) |
| Share-based      compensation                          |   |             |       |   |            |   |   |                       |   |   | 15,418                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 15,418 |   |
| Treasury      shares purchased                         |   |             | (1,507,900 | )      |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   | (128,780 | ) |   |   | (128,780 | ) |
| Dividends      ($.05 per share)                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | (3,262 | ) |   |   |   |   |   |   | (3,262 | ) |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2007                            |   |             | 65,238,901 |   |            | $      | 834    |                       |   |   | 595,853                                            |   |   |              | 82,191  |   |           |   | 1,454,771 |   |   |   | (639,608 | ) |   |   | 1,494,041 |   |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive      income:                             |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | 107,786 |   |   |   |   |   |   |   | 107,786 |   |
| Foreign      currency translation adjustment           |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 106,327 |   |           |   |   |   |   |   |   |   |   |   | 106,327 |   |
| Unrealized      loss on hedging derivatives            |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | (818    | )      |           |   |   |   |   |   |   |   |   |   | (818 | ) |
| Pension      liability adjustment                      |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 3,831   |   |           |   |   |   |   |   |   |   |   |   | 3,831 |   |
| Total      comprehensive income                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              | 109,340 |   |           |   | 107,786 |   |   |   |   |   |   |   | 217,126 |   |
| Exercise      of stock options, net of shares received |   |             | 503,944    |   |            |   | 5      |                       |   |   | (3,157                                             | )      |   |              |    |   |           |   |   |   |   |   |   |   |   |   | (3,152 | ) |
| Tax      benefit attributable to stock option plan     |   |             |       |   |            |   |   |                       |   |   | 5,321                                              |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 5,321 |   |
| Share-based      compensation                          |   |             |       |   |            |   |   |                       |   |   | 22,634                                             |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   | 22,634 |   |
| Treasury      shares purchased                         |   |             | (7,224,779 | )      |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   | (400,287 | ) |   |   | (400,287 | ) |
| Dividends      ($.05 per share)                        |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | (3,056 | ) |   |   |   |   |   |   | (3,056 | ) |
| Adoption      of FIN 48                                |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   | 7,219 |   |   |   |   |   |   |   | 7,219 |   |
|                                                   |   |             |       |   |            |   |   |                       |   |   |                                               |   |   |              |    |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Balance,      June 30, 2008                            |   |             | 58,518,066 |   |            | $      | 839    |                       |   |   | 620,651                                            |   |   |              | 191,531 |   |           |   | 1,566,720 |   |   |   | (1,039,895 | ) |   |   | 1,339,846 |   |

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

----

Index

|                            |   | June 30, |    |
|---------------------------------|--------|---------------|---------|
| ($000s omitted)                 |   | 2008          |    |   | 2007 |   |
|                            |   |          |    |   |   |   |
| Finished      goods             |   | $             | 150,634 |   |   |   | 235,736 |   |
| Work      in process            |   |          | 60,045  |   |   |   | 52,682 |   |
| Raw      materials and supplies |   |          | 179,959 |   |   |   | 164,738 |   |
| Total                           |   | $             | 390,638 |   |   |   | 453,156 |   |

----

Index

|                                                |   | June 30, |      |
|-----------------------------------------------------|--------|---------------|-----------|
| ($000s omitted)                                     |   | 2008          |      |   | 2007 |   |
|                                                |   |          |      |   |   |   |
| Land                                                |   | $             | 14,659    |   |   |   | 14,738 |   |
| Buildings      and improvements                     |   |          | 311,336   |   |   |   | 269,968 |   |
| Machinery      and equipment                        |   |          | 1,082,359 |   |   |   | 905,293 |   |
| Furniture      and fixtures                         |   |          | 46,749    |   |   |   | 41,386 |   |
|                                                |   |          | 1,455,103 |   |   |   | 1,231,385 |   |
| Less      accumulated depreciation and amortization |   |          | (815,061  | ) |   |   | (639,409 | ) |
| Property,      plant and equipment, net             |   | $             | 640,042   |   |   |   | 591,976 |   |

|                                                                                                                                                        |   | June 30, |    |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|
| ($000s omitted)                                                                                                                                             |   | 2008          |    |   | 2007 |   |
| Convertible      senior notes due 2012, interest due semi-annually at 1.25% (note      7)                                                                   |   | $             | 400,000 |   |   |   | --- |   |
| Senior      notes, unsecured, due July 1, 2007 interest due semi-annually at      7.32%                                                           |   |          | ---     |   |   |   | 16,486 |   |
| Revolving      credit facility                                                                                                                              |   |          | 25,000  |   |   |   | 55,000 |   |
| Obligations      under capital leases (note 8)                                                                                                              |   |          | 2,085   |   |   |   | 2,251 |   |
| Other      unsubordinated variable rate loans due through      2016, bearing interest at an average effective rate of 5.00% at      June 30, 2008 |   |          | 867     |   |   |   | 953 |   |
| Total                                                                                                                                                       |   |          | 427,952 |   |   |   | 74,690 |   |
| Less      current installments                                                                                                                              |   |          | (639    | ) |   |   | (17,029 | ) |
| Long-term      debt                                                                                                                                         |   | $             | 427,313 |   |   |   | 57,661 |   |

----

Index

| 2009       |   | $      | 639     |   |
|------------|--------|--------|---------|--------|
| 2010       |   |   | 673     |   |
| 2011       |   |   | 25,574  |   |
| 2012       |   |   | 400,584 |   |
| 2013       |   |   | 110     |   |
| Thereafter |   |   | 372     |   |

----

Index

|   |  | during      any calendar quarter commencing after December 31, 2007, if the closing      price of our common stock exceeds 130% of the conversion price for at      least 20 trading days in the period of 30 consecutive tradings days ending      on the last trading day of the preceding calendar  quarter; |
|--------|--|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | during      the five business day period immediately after any five day trading period      in which the trading price per $1,000 principal amount of the Notes for      each day of the trading period was less than 98% of the product of (1) the      closing price of our common stock on such date and (2) the conversion rate      on such date; |
|--------|--|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  | upon      the occurrence of specified corporate transactions that are described in      the indenture for the Notes; or |
|--------|--|-------------------------------------------------------------------------------------------------------------------------|

|   |  | at      any time after June 30, 2012 until the close of business on the business      day immediately prior to October 15,2012. |
|--------|--|---------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                               |   | June 30, |   |
|------------------------------------|--------|---------------|--------|
| ($000s omitted)                    |   | 2008          |   |   | 2007 |   |
| Capital      lease assets          |   | $             | 8,103  |   |   |   | 6,982 |   |
| Less      accumulated amortization |   |          | (5,695 | ) |   |   | (4,629 | ) |
| Net                                |   | $             | 2,408  |   |   |   | 2,353 |   |

|                                         |   | Capital |   |   | Operating |   |
|----------------------------------------------|--------|---------|--------|--------|-----------|--------|
| ($000s omitted)                              |   | Leases  |   |   | leases    |   |
|                                         |   |         |   |   |           |   |
| 2009                                         |   | $       | 610    |   |      | $      | 43,776 |   |
| 2010                                         |   |    | 613    |   |      |   | 38,104 |   |
| 2011                                         |   |    | 490    |   |      |   | 29,002 |   |
| 2012                                         |   |    | 479    |   |      |   | 18,295 |   |
| 2013                                         |   |    | ---    |   |      |   | 18,367 |   |
| Thereafter                                   |   |    | ---    |   |      |   | 33,988 |   |
| Total      minimum lease payments            |   |    | 2,192  |   |      | $      | 181,532 |   |
| Less      interest                           |   |    | (107   | )      |      |   |   |   |
| Present      value of minimum lease payments |   | $       | 2,085  |   |      |   |   |   |

----

Index

|                              |   | Years ended June 30, |    |
|-----------------------------------|--------|---------------------------|---------|
| ($000s omitted)                   |   | 2008                      |    |   | 2007 |   |
|                              |   |                      |    |   |   |   |
| Balance      at beginning of year |   | $                         | 48,148  |   |   |   | 60,768 |   |
| Expense                           |   |                      | 131,677 |   |   |   | 49,148 |   |
| Payments      (cash or in-kind)   |   |                      | (52,848 | ) |   |   | (61,768 | ) |
| Balance      at end of year       |   | $                         | 126,977 |   |   |   | 48,148 |   |

|                                                                                                 |   | Years ended      June 30, |    |
|------------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
| ($000s omitted)                                                                                      |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
|                                                                                                 |   |                           |    |   |   |   |   |   |   |
| Provision      for Federal income taxes before credits at statutory    rate                     |   | $                              | 43,569  |   |   |   | 133,772 |   |   |   | 131,665 |   |
| State      income taxes                                                                              |   |                           | 260     |   |   |   | 260 |   |   |   | 211 |   |
| Difference      between Federal statutory rate and foreign effective    rate                    |   |                           | (28,001 | ) |   |   | (1,305 | ) |   |   | (2,401 | ) |
| Dividend      repatriation                                                                           |   |                           | ---     |   |   |   | --- |   |   |   | 3,350 |   |
| IRS      settlement                                                                                  |   |                           | ---     |   |   |   | --- |   |   |   | (1,081 | ) |
| Permanent      differences                                                                           |   |                           | 4,722   |   |   |   | (330 | ) |   |   | (524 | ) |
| Tax      benefit from export sales and U.S. production activities                                    |   |                           | (1,024  | ) |   |   | (1,338 | ) |   |   | (2,186 | ) |
| Change      in valuation allowance                                                                   |   |                           | 497     |   |   |   | --- |   |   |   | 61 |   |
| Change      in other tax liabilities                                                                 |   |                           | (1,497  | ) |   |   | (1,712 | ) |   |   | (2,611 | ) |
| Difference      between Federal and financial accounting for incentive stock option      grants |   |                           | 1,164   |   |   |   | 432 |   |   |   | 853 |   |
| Federal      income tax credits                                                                      |   |                           | (2,750  | ) |   |   | (59,750 | ) |   |   | (5,168 | ) |
| Other                                                                                                |   |                           | 179     |   |   |   | 157 |   |   |   | (292 | ) |
| Total                                                                                                |   | $                              | 17,119  |   |   |   | 70,186 |   |   |   | 121,877 |   |

----

Index

|                                                                                           |   | Years ended      June 30, |    |
|------------------------------------------------------------------------------------------------|--------|--------------------------------|---------|
| ($000s omitted)                                                                                |   | 2008                           |    |   | 2007 |   |   | 2006 |   |
| Current:                                                                                       |   |                           |    |   |   |   |   |   |   |
| Federal                                                                                        |   | $                              | 2,194   |   |   |   | 3,991 |   |   |   | (3,692 | ) |
| State                                                                                          |   |                           | 400     |   |   |   | 400 |   |   |   | 325 |   |
| Foreign                                                                                        |   |                           | 22,551  |   |   |   | 107,818 |   |   |   | 134,610 |   |
|                                                                                           |   |                           | 25,145  |   |   |   | 112,209 |   |   |   | 131,243 |   |
| Deferred:                                                                                      |   |                           |    |   |   |   |   |   |   |   |   |   |
| Federal                                                                                        |   |                           | (11,124 | ) |   |   | (43,913 | ) |   |   | (47,105 | ) |
| State                                                                                          |   |                           | ---     |   |   |   | --- |   |   | ___--- |   |
| Foreign                                                                                        |   |                           | (2,223  | ) |   |   | (8,566 | ) |   |   | (7,754 | ) |
|                                                                                           |   |                           | (13,347 | ) |   |   | (52,479 | ) |   |   | (54,859 | ) |
| Charge      in lieu of taxes attributable to tax benefit from employee stock      options |   |                           | 5,321   |   |   |   | 10,456 |   |   |   | 45,493 |   |
| Total                                                                                          |   | $                              | 17,119  |   |   |   | 70,186 |   |   |   | 121,877 |   |

|                                                                  |   | June 30, |     |
|-----------------------------------------------------------------------|--------|---------------|----------|
| ($000s omitted)                                                       |   | 2008          |     |   | 2007 |   |
| Federal      tax credits                                              |   | $             | 203,535  |   |   |   | 206,110 |   |
| Inventory      costing differences                                    |   |          | 12,285   |   |   |   | 8,816 |   |
| Capitalized      research and development                             |   |          | 63,104   |   |   |   | 52,925 |   |
| Foreign      tax loss and credit carryforwards              |   |          | 18,089   |   |   |   | 23,475 |   |
| Non-qualified      stock options GAAP deductions                      |   |          | 16,212   |   |   |   | 12,075 |   |
| Valuations      and other allowances                                  |   |          | 75,463   |   |   |   | 64,014 |   |
| Total      gross deferred tax asset                                   |   | $             | 388,688  |   |   |   | 367,415 |   |
| Less      valuation allowance                                         |   |          | (120,220 | ) |   |   | (110,765 | ) |
| Deferred      tax asset                                               |   | $             | 268,468  |   |   |   | 256,650 |   |
|                                                                  |   |          |     |   |   |   |   |   |
| Total      gross deferred tax liability from fixed asset depreciation |   | $             | (9,301   | ) |   |   | (8,545 | ) |
| Foreign      statutory accounting including royalty payments          |   |          | (14,206  | ) |   |   | (18,906 | ) |
| Total      gross deferred tax liability                               |   | $             | (23,507  | ) |   |   | (27,451 | ) |
|                                                                  |   |          |     |   |   |   |   |   |
| Net      deferred tax asset                                           |   | $             | 244,961  |   |   |   | 229,199 |   |

----

Index

| ($000s omitted)                                                   |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |   |   |
| Balance      at July 1, 2007                                      |   | $ | 31,219 |   |
| Increases      based on tax positions related to the current year |   |   | 3,956 |   |
| Decreases      due to settlements with taxing authorities         |   |   | (14,093 | ) |
| Decreases      due to tax positions of prior years                |   |   | (3,401 | ) |
| Decrease      due to adoption of FIN 48                           |   |   | (7,219 | ) |
| Balance      at June 30, 2008                                     |   | $ | 10,462 |   |

----

Index

----

Index

----

Index

|                             |   | Years ended June 30, |              |
|----------------------------------|--------|---------------------------|-------------------|
|                             |   | 2008                      |              |   | 2007 |   |   | 2006 |   |
| Expected      volatility         |   |                      | 35.1%      - 52.0 | % |   |   | 34.2%      - 42.0 | % |   |   | 35.0%      - 43.0 | % |
| Weighted-average      volatility |   |                      | 40.7              | % |   |   | 36.2 | % |   |   | 38.7 | % |
| Expected      annual dividend    |   | $                         | 0.05              |   |   | $ | 0.05 |   |   | $ | 0.05 |   |
| Expected      term (in years)    |   |                      | 1.69      6.71    |   |   |   | 1.42      - 7.69 |   |   |   | 1.90      - 8.33 |   |
| Risk-free      rate              |   |                      | 1.80%      - 5.01 | % |   |   | 4.43%      - 4.97 | % |   |   | 4.05%      - 5.24 | % |

|                              |   | Shares |      |   | Weighted average exerciseprice |   |   | Weighted averageremainingcontractualterm (years) |   |   | Aggregateintrinsicvalue($000s) |   |
|-----------------------------------|--------|--------|-----------|--------|--------------------------------|--------|--------|--------------------------------------------------|--------|--------|--------------------------------|--------|
| Outstanding      at July 1, 2007  |   |   | 3,214,238 |   |                           | $      | 61.11  |                                             |   |   |                           |   |   |   |
| Granted                           |   |   | 839,253   |   |                           |   | 59.88  |                                             |   |   |                           |   |   |   |
| Exercised                         |   |   | (971,714  | )      |                           |   | 17.72  |                                             |   |   |                           |   |   |   |
| Forfeited      or expired         |   |   | (445,150  | )      |                           |   | 80.71  |                                             |   |   |                           |   |   |   |
| Outstanding      at June 30, 2008 |   |   | 2,636,627 |   |                           |   | 73.40  |                                             |   | 6.40   |                           |   | $ | 7,018 |   |
| Exercisable      at June 30, 2008 |   |   | 885,324   |   |                           | $      | 62.22  |                                             |   | 4.06   |                           |   | $ | 6,997 |   |

----

Index

|                            |   | Shares |   |   | Weighted average grant-date fair      value |   |
|---------------------------------|--------|--------|--------|--------|---------------------------------------------|--------|
| Nonvested      at July 1, 2007  |   |   | 12,000 |   |                                        | $      | 82.00 |   |
| Granted                         |   |   | 86,079 |   |                                        |   | 98.36 |   |
| Vested                          |   |   | ---    |   |                                        |   | --- |   |
| Forfeited                       |   |   | (5,169 | )      |                                        |   | 116.65 |   |
| Nonvested      at June 30, 2008 |   |   | 92,910 |   |                                        | $      | 95.23 |   |

----

Index

----

Index

|                             |   | June 30, |    |   | June 30, |   |   | June 30, |   |
|----------------------------------|--------|---------------|---------|--------|---------------|--------|--------|---------------|--------|
| ($000s omitted)                  |   | 2008          |    |   | 2007          |   |   | 2006          |   |
|                             |   |          |    |   |          |   |   |          |   |
| Beginning      accrued liability |   | $             | 7,527   |   |          |   | 8,533  |          |   |   | --- |   |
| Expense                          |   |          | 42,192  |   |          |   | 7,071  |          |   |   | 9,499 |   |
| Utilization                      |   |          | (14,118 | )      |          |   | (8,077 | )             |   |   | (966 | ) |
| Ending      accrued liability    |   | $             | 35,601  |   |          |   | 7,527  |          |   |   | 8,533 |   |

|            |   | Years ended      June 30, |   |
|-----------------|--------|--------------------------------|--------|
| ($000s omitted) |   | 2008                           |   |   | 2007 |   |   | 2006 |   |
|            |   |                           |   |   |   |   |   |   |   |
| Automotive      |   | $                              | 24,677 |   |   |   | 5,670 |   |   |   | 7,337 |   |
| Consumer        |   |                           | 8,668  |   |   |   | 1,034 |   |   |   | 422 |   |
| Professional    |   |                           | 6,023  |   |   |   | 367 |   |   |   | 1,740 |   |
| Other           |   |                           | 2,824  |   |   |   | --- |   |   |   | --- |   |
| Total           |   | $                              | 42,192 |   |   |   | 7,071 |   |   |   | 9,499 |   |

----

Index

----

Index

|                                           |   | Years ended June 30, |     |
|------------------------------------------------|--------|---------------------------|----------|
| ($000s omitted)                                |   | 2008                      |     |   | 2007 |   |
| Change      in benefit obligation:             |   |                           |     |   |  |   |
| Benefit      obligation at beginning of year   |   | $                         | 120,058  |   |   |   | 104,059 |   |
| Service      cost                              |   |                      | 2,529    |   |   |   | 3,292 |   |
| Interest      cost                             |   |                      | 7,153    |   |   |   | 6,010 |   |
| Amendments                                     |   |                      | 9,891    |   |   |   | 12,950 |   |
| Actuarial      gain                            |   |                      | (9,946   | ) |   |   | (5,245 | ) |
| Asset      transfer                            |   |                      | ---      |   |   |   | --- |   |
| Benefits      paid                             |   |                      | (8,464   | ) |   |   | (4,233 | ) |
| Foreign      currency exchange rate changes    |   |                      | 9,453    |   |   |   | 3,225 |   |
| Benefit      obligation at end of year         |   | $                         | 130,674  |   |   |   | 120,058 |   |
| Change      in plan assets:                    |   |                      |     |   |   |   |   |   |
| Fair      value of assets at beginning of year |   | $                         | ---      |   |   |   | --- |   |
| Asset      transfer                            |   |                      | ---      |   |   |   | --- |   |
| Employer      contributions                    |   |                      | 8,464    |   |   |   | 4,234 |   |
| Benefits      paid                             |   |                      | (8,464   | ) |   |   | (4,234 | ) |
| Foreign      currency exchange rate changes    |   |                      | ---      |   |   |   | --- |   |
| Fair      value of assets at end of year       |   | $                         | ---      |   |   |   | --- |   |
| Reconciliation      of funded status:          |   |                      |     |   |   |   |   |   |
| Funded      status                             |   | $                         | (130,674 | ) |   |   | (120,058 | ) |
| Unrecognized      prior service cost           |   |                      | 13,252   |   |   |   | 7,484 |   |
| Unrecognized      net loss                     |   |                      | 5,517    |   |   |   | 16,591 |   |
| Accrued      pension cost                      |   | $                         | (111,905 | ) |   |   | (95,983 | ) |
| Amounts      recognized on the balance sheet:  |   |                      |     |   |   |   |   |   |
| Accrued      liabilities                       |   |                      | (9,216   | ) |   |   | (9,229 | ) |
| Other      non-current liabilities             |   |                      | (121,458 | ) |   |   | (110,829 | ) |
| Accumulated      other comprehensive loss      |   |                      | 18,769   |   |   |   | 24,075 |   |
| Accrued      pension cost                      |   | $                         | (111,905 | ) |   |   | (95,983 | ) |

|                                                          |   | Years ended June 30 |   |
|---------------------------------------------------------------|--------|--------------------------|--------|
| ($000s      omitted)                                          |   | 2008                     |   |   | 2007 |   |
| Amounts      recorded in accumulated other comprehensive loss |   |                     |   |   |   |   |
| Prior      service cost                                       |   | $                        | 13,252 |   |   |   | 7,484 |   |
| Net      actuarial loss                                       |   |                     | 5,517  |   |   |   | 16,591 |   |
|                                                          |   |                     | 18,769 |   |   |   | 24,075 |   |
| Income      tax benefits related to above items               |   |                     | (6,822 | ) |   |   | (8,297 | ) |
| Total      recognized in accumulated other comprehensive loss |   | $                        | 11,947 |   |   |   | 15,778 |   |

----

Index

| ($000s omitted)                                                     |   |
|---------------------------------------------------------------------|--------|
| Amounts      expected to be recognized in net periodic benefit cost |   |   |   |
| Recognized      net actuarial loss (gain)                           |   | $ | 1,643 |   |
| Amortization      of prior service cost (credit)                    |   |   | 215 |   |
| Total                                                               |   | $ | 1,858 |   |

|                                |   | Years      ended June 30, |    |
|-------------------------------------|--------|--------------------------------|---------|
| ($000s omitted)                     |   | 2008                           |    |   | 2007 |   |
| Projected      benefit obligation   |   | $                              | 130,674 |   |   |   | 120,058 |   |
| Accumulated      benefit obligation |   |                           | 122,101 |   |   |   | 66,624 |   |

|                                          |   | Years ended June 30, |   |
|-----------------------------------------------|--------|---------------------------|--------|
| ($000s omitted)                               |   | 2008                      |   |   | 2007 |   |   | 2006 |   |
| Components      of net periodic benefit cost: |   |                           |   |   |  |   |   |  |   |
| Service      cost                             |   | $                         | 2,529  |   |   |   | 3,292 |   |   |   | 2,679 |   |
| Interest      cost                            |   |                      | 7,153  |   |   |   | 6,010 |   |   |   | 4,354 |   |
| Amortization      of prior service cost       |   |                      | 4,152  |   |   |   | 887 |   |   |   | 728 |   |
| Amortization      of net loss                 |   |                      | 1,349  |   |   |   | 2,147 |   |   |   | 2,003 |   |
| Net      periodic benefit cost                |   | $                         | 15,183 |   |   |   | 12,336 |   |   |   | 9,764 |   |

|                                                                                              |   |   | June 30,      |   |
|---------------------------------------------------------------------------------------------------|--------|--------|--------------------|--------|
|                                                                                              |   |   | 2008               |   |   |   | 2007 |   |   |   | 2006 |   |
| Assumptions:                                                                                      |   |   |               |   |   |   |   |   |   |   |   |   |
| Weighted      average rates used to determine benefit obligations at June      30: |   |   |               |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |               |   |   |   |   |   |   |   |   |   |
| Range      of discount rates for pension plans                                                    |   |   | 5.50%      to 6.73 | %      |   |   | 4.75% to 6.15 | % |   |   | 4.60% to 6.25 | % |
|                                                                                              |   |   |               |   |   |   |   |   |   |   |   |   |
| Range      of rates of compensation increase for pension    plans                       |   |   | 2.0%      to 4.0   | %      |   |   | 2.0% to      4.0 | % |   |   | 2.0% to      4.0 | % |
|                                                                                              |   |   |               |   |   |   |   |   |   |   |   |   |
| Weighted      average rates used to determine net periodic benefit cost at June      30:     |   |   |               |   |   |   |   |   |   |   |   |   |
|                                                                                              |   |   |               |   |   |   |   |   |   |   |   |   |
| Range      of discount rates for pension plans                                                    |   |   | 5.50%      to 6.73 | %      |   |   | 4.75% to 6.25 | % |   |   | 4.60% to      5.10 | %  |
|                                                                                              |   |   |               |   |   |   |   |   |   |   |   |   |
| Range      of rates of compensation increase for pension    plans                       |   |   | 2.0%      to 4.0   | %      |   |   | 2.0% to      4.0 | %  |   |   | 2.0% to      4.0 | % |

----

Index

| ($000s      omitted)                               |   | Before      application of SFAS No. 158 |    |   | Adjustments |   |    | After      application of SFAS No. 158 |   |
|----------------------------------------------------|--------|-----------------------------------------|---------|--------|-------------|--------|---------|----------------------------------------|--------|
| Incremental      impact of applying SFAS No. 158   |   |                                    |    |   |        |   |    |                                   |   |
| Other      assets                                  |   | $                                       | 15,432  |   |        |   | (3,777  | )                                      |   |   | 11,655 |   |
| Total      assets                                  |   |                                    | 15,432  |   |        |   | (3,777  | )                                      |   |   | 11,655 |   |
|                                               |   |                                    |    |   |        |   |    |                                   |   |   |   |   |
| Accrued      liabilities                           |   |                                    | 101,589 |   |        |   | (92,360 | )                                      |   |   | 9,229 |   |
| Other      non-current liabilities                 |   |                                    | 14,993  |   |        |   | 95,836  |                                   |   |   | 110,829 |   |
| Total      liabilities                             |   |                                    | 116,582 |   |        |   | 3,476   |                                   |   |   | 120,058 |   |
|                                               |   |                                    |    |   |        |   |    |                                   |   |   |   |   |
| Accumulated      other comprehensive income (loss) |   |                                    | (8,525  | )      |        |   | (7,253  | )                                      |   |   | (15,778 | ) |
| Total      shareholders equity                     |   |                                    | (8,525  | )      |        |   | (7,253  | )                                      |   |   | (15,778 | ) |

----

Index

----

Index

|                                |   | Years Ended June 30, |      |
|-------------------------------------|--------|---------------------------|-----------|
| ($000s omitted)                     |   | 2008                      |      |   | 2007 |   |   | 2006 |   |
| Net      sales:                     |   |                      |      |   |   |   |   |   |   |
| Automotive                          |   | $                         | 2,970,139 |   |   |   | 2,492,815 |   |   |   | 2,237,632 |   |
| Consumer                            |   |                      | 531,283   |   |   |   | 497,673 |   |   |   | 492,977 |   |
| Professional                        |   |                      | 611,081   |   |   |   | 560,656 |   |   |   | 517,288 |   |
| Total                               |   | $                         | 4,112,503 |   |   |   | 3,551,144 |   |   |   | 3,247,897 |   |
|                                |   |                      |      |   |   |   |   |   |   |   |   |   |
| Operating      income (loss):       |   |                      |      |   |   |   |   |   |   |   |   |   |
| Automotive                          |   | $                         | 120,466   |   |   |   | 340,116 |   |   |   | 336,795 |   |
| Consumer                            |   |                      | (7,454    | ) |   |   | 13,587 |   |   |   | 50,813 |   |
| Professional                        |   |                      | 91,555    |   |   |   | 80,968 |   |   |   | 59,278 |   |
| Other                               |   |                      | (66,066   | ) |   |   | (48,284 | ) |   |   | (49,645 | ) |
| Total                               |   | $                         | 138,501   |   |   |   | 386,387 |   |   |   | 397,241 |   |
|                                |   |                      |      |   |   |   |   |   |   |   |   |   |
| Assets:                             |   |                      |      |   |   |   |   |   |   |   |   |   |
| Automotive                          |   | $                         | 1,844,704 |   |   |   | 1,549,032 |   |   |   | 1,471,755 |   |
| Consumer                            |   |                      | 262,595   |   |   |   | 291,370 |   |   |   | 262,136 |   |
| Professional                        |   |                      | 333,184   |   |   |   | 310,966 |   |   |   | 291,155 |   |
| Other                               |   |                      | 386,442   |   |   |   | 357,500 |   |   |   | 350,706 |   |
| Total                               |   | $                         | 2,826,925 |   |   |   | 2,508,868 |   |   |   | 2,375,752 |   |
|                                |   |                      |      |   |   |   |   |   |   |   |   |   |
| Goodwill:                           |   |                      |      |   |   |   |   |   |   |   |   |   |
| Automotive                          |   | $                         | 367,492   |   |   |   | 336,043 |   |   |   | 315,148 |   |
| Consumer                            |   |                      | 23,369    |   |   |   | 21,958 |   |   |   | 21,882 |   |
| Professional                        |   |                      | 45,586    |   |   |   | 45,748 |   |   |   | 44,189 |   |
| Total                               |   | $                         | 436,447   |   |   |   | 403,749 |   |   |   | 381,219 |   |
|                                |   |                      |      |   |   |   |   |   |   |   |   |   |
| Capital      expenditures:          |   |                      |      |   |   |   |   |   |   |   |   |   |
| Automotive                          |   | $                         | 117,239   |   |   |   | 150,385 |   |   |   | 105,777 |   |
| Consumer                            |   |                      | 7,529     |   |   |   | 9,178 |   |   |   | 8,316 |   |
| Professional                        |   |                      | 12,723    |   |   |   | 13,669 |   |   |   | 15,492 |   |
| Other                               |   |                      | 1,443     |   |   |   | 1,562 |   |   |   | 963 |   |
| Total                               |   | $                         | 138,934   |   |   |   | 174,794 |   |   |   | 130,548 |   |
|                                |   |                      |      |   |   |   |   |   |   |   |   |   |
| Depreciation      and amortization: |   |                      |      |   |   |   |   |   |   |   |   |   |
| Automotive                          |   | $                         | 122,218   |   |   |   | 98,103 |   |   |   | 100,872 |   |
| Consumer                            |   |                      | 11,621    |   |   |   | 11,300 |   |   |   | 9,879 |   |
| Professional                        |   |                      | 15,986    |   |   |   | 16,334 |   |   |   | 17,181 |   |
| Other                               |   |                      | 2,517     |   |   |   | 1,425 |   |   |   | 2,017 |   |
| Total                               |   | $                         | 152,342   |   |   |   | 127,162 |   |   |   | 129,949 |   |

----

Index

|                    |   | Years Ended June 30, |      |
|-------------------------|--------|---------------------------|-----------|
| ($000s omitted)         |   | 2008                      |      |   | 2007 |   |   | 2006 |   |
| Net      sales:         |   |                      |      |   |   |   |   |   |   |
| U.S.                    |   | $                         | 953,549   |   |   |   | 759,159 |   |   |   | 708,564 |   |
| Germany                 |   |                      | 1,741,557 |   |   |   | 1,590,886 |   |   |   | 1,415,871 |   |
| Other      Europe       |   |                      | 666,363   |   |   |   | 631,514 |   |   |   | 578,401 |   |
| Other                   |   |                      | 751,034   |   |   |   | 569,585 |   |   |   | 545,061 |   |
| Total                   |   | $                         | 4,112,503 |   |   |   | 3,551,144 |   |   |   | 3,247,897 |   |
|                    |   |                      |      |   |   |   |   |   |   |   |   |   |
| Long-lived      assets: |   |                      |      |   |   |   |   |   |   |   |   |   |
| U.S.                    |   | $                         | 481,042   |   |   |   | 490,069 |   |   |   | 383,406 |   |
| Germany                 |   |                      | 587,301   |   |   |   | 485,222 |   |   |   | 444,063 |   |
| Other      Europe       |   |                      | 129,403   |   |   |   | 125,474 |   |   |   | 113,288 |   |
| Other                   |   |                      | 190,098   |   |   |   | 174,950 |   |   |   | 164,547 |   |
| Total                   |   | $                         | 1,387,844 |   |   |   | 1,275,715 |   |   |   | 1,105,304 |   |
|                    |   |                      |      |   |   |   |   |   |   |   |   |   |
| Net      Assets         |   |                      |      |   |   |   |   |   |   |   |   |   |
| U.S.                    |   | $                         | (69,748   | ) |   |   | 405,588 |   |   |   | 385,096 |   |
| Germany                 |   |                      | 750,612   |   |   |   | 577,142 |   |   |   | 353,572 |   |
| Other      Europe       |   |                      | 440,724   |   |   |   | 324,992 |   |   |   | 276,738 |   |
| Other                   |   |                      | 218,258   |   |   |   | 186,319 |   |   |   | 212,758 |   |
| Total                   |   | $                         | 1,339,846 |   |   |   | 1,494,041 |   |   |   | 1,228,164 |   |

----

Index

----

Index

----

Index

----

Index

----

Index

|                                          |   | Years Ended June 30, |    |
|-----------------------------------------------|--------|---------------------------|---------|
| ($000s omitted except per share      amounts) |   | 2008                      |    |   | 2007 |   |   | 2006 |   |
|                                          |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Basic                     |    |   | Diluted |   |   | Basic |   |   | Diluted |   |   | Basic |   |   | Diluted |   |
|                                          |   |                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income                               |   | $                         | 107,786 |   |   |   | 107,786 |   |   |   | 313,963 |   |   |   | 313,963 |   |   |   | 255,295 |   |   |   | 255,295 |   |
| Shares      of common stock outstanding       |   |                      | 61,472  |   |   |   | 61,472 |   |   |   | 65,310 |   |   |   | 65,310 |   |   |   | 66,260 |   |   |   | 66,260 |   |
| Employee      stock options                   |   |                      | ---     |   |   |   | 710 |   |   |   | --- |   |   |   | 1,139 |   |   |   | --- |   |   |   | 1,845 |   |
| Total      average equivalent shares          |   |                      | 61,472  |   |   |   | 62,182 |   |   |   | 65,310 |   |   |   | 66,449 |   |   |   | 66,260 |   |   |   | 68,105 |   |
| Earnings      per share                       |   | $                         | 1.75    |   |   |   | 1.73 |   |   |   | 4.81 |   |   |   | 4.72 |   |   |   | 3.85 |   |   |   | 3.75 |   |

----

Index

| ($000s omitted except per share      amounts) |   | Three months ended |    |
|-----------------------------------------------|--------|--------------------|---------|
| Fiscal 2008                                   |   | September 30  |    |   | December 31 |   |   | March 31 |   |   | June 30 |   |
|                                          |   |               |    |   |   |   |   |   |   |   |   |   |
| Net      sales                                |   | $                  | 946,962 |   |   |   | 1,065,610 |   |   |   | 1,032,668 |   |   |   | 1,067,263 |   |
| Gross      profit                             |   | $                  | 264,575 |   |   |   | 301,124 |   |   |   | 261,133 |   |   |   | 282,574 |   |
| Net      income (loss)                        |   | $                  | 36,529  |   |   |   | 42,880 |   |   |   | (3,349 | ) |   |   | 31,726 |   |
| Earnings      (loss) per share basic          |   | $                  | 0.56    |   |   |   | 0.69 |   |   |   | (0.06 | ) |   |   | 0.54 |   |
| Earnings      (loss) per share diluted        |   | $                  | 0.55    |   |   |   | 0.68 |   |   |   | (0.06 | ) |   |   | 0.54 |   |
|                                          |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fiscal 2007                                   |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      sales                                |   | $                  | 825,543 |   |   |   | 931,717 |   |   |   | 882,771 |   |   |   | 911,113 |   |
| Gross      profit                             |   | $                  | 287,289 |   |   |   | 319,638 |   |   |   | 305,375 |   |   |   | 298,904 |   |
| Net      income                               |   | $                  | 56,608  |   |   |   | 81,389 |   |   |   | 71,043 |   |   |   | 104,923 |   |
| Earnings      per share basic                 |   | $                  | 0.86    |   |   |   | 1.25 |   |   |   | 1.09 |   |   |   | 1.61 |   |
| Earnings      per share diluted               |   | $                  | 0.85    |   |   |   | 1.22 |   |   |   | 1.07 |   |   |   | 1.58 |   |

Item 9.

Item 9A

----

Index

Item 9B

Item 

Item 11

Item 12

Item 13

Item 14.

----

Index

Item 15

| Financial      Statements:                                                                                                         |   | Page   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
| Managements      Report on Internal Control over Financial Reporting                                                               |   | 39     |
| Report      of Independent Registered Public Accounting Firm on Internal Control over      Financial Reporting                     |   | 40     |
| Report      of Independent Registered Public Accounting Firm                                                                       |   | 41     |
| Consolidated      Balance Sheets as of June 30, 2008 and 2007                                                                      |   | 42     |
| Consolidated      Statements of Operations for the years ended June 30, 2008, 2007 and      2006                                   |   | 43     |
| Consolidated      Statements of Cash Flows for the years ended June 30, 2008, 2007 and      2006                                   |   | 44     |
| Consolidated      Statements of Shareholders Equity and Comprehensive Income for the years      ended June 30, 2008, 2007 and 2006 |   | 45     |
| Notes      to Consolidated Financial Statements.                                                                                   |   | 46     |
|                                                                                                                               |   |   |
| Financial      Statement Schedules:                                                                                                |   |   |
| Schedule      II - Consolidated Valuation and Qualifying Accounts and      Reserves.                                               |   | 87     |
| (Schedules      I, III, IV and V are not applicable and have therefore been      omitted.)                                         |   |   |

| Exhibit      No. | Exhibit      Description                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 2.1              | Agreement      and Plan of Merger, dated as of April 26, 2007, among Harman International      Industries, Incorporated, KHI Parent Inc. and KHI Merger Sub Inc. (filed      as Exhibit 2.1 to the Current Report on Form 8-K filed with the Commission      on April 27, 2007, Commission File No. 001-09764, and hereby incorporated      by reference)                                                                                                                                                                                                          |
| 3.1              | Restated      Certificate of Incorporation of Harman International Industries,      Incorporated, as amended. (filed as Exhibit 3.1 to the Quarterly Report on      Form 10-Q for the quarter ended December 31, 2003, Commission File No.      001-09764, and hereby incorporated by reference)                                                                                                                                                                                                                                                                   |
| 3.2              | By-Laws      of Harman International Industries, Incorporated, as amended, dated      February 6, 2008. (filed as Exhibit 3.1 to the Quarterly Report on Form      10-Q for the quarter ended December 31, 2007, Commission File No.      001-09764, and hereby incorporated by reference)                                                                                                                                                                                                                                                                         |
| 4.1              | Rights      Agreement, dated as of December 13, 1999, by and between Harman      International Industries, Incorporated and ChaseMellon Shareholder      Services, L.L.C., as rights agent (including a Form of Certificate of      Designation of Series A Junior Participating Preferred Stock, a Form of      Right Certificate and a Summary of Rights to Purchase Preferred Stock).      (filed as Exhibit 4.1 to the Form 8 A filed with the Commission on      December 16, 1999, Commission File No. 001-09764, and hereby incorporated      by reference) |
| 4.2              | Amendment      No. 1, dated as of April 26, 2007, to the Rights Agreement, dated as of      December 13, 1999, by and between Harman International Industries,      Incorporated and Mellon Investor Services LLC (formerly known as      ChaseMellon Shareholder Services, L.L.C.), as rights agent. (filed as      Exhibit 4.1 to the Registration Statement on Form 8-A/A filed with the      Commission on April 27, 2007, Commission File No. 001-09764, and hereby      incorporated by reference)                                                           |

----

Index

| 4.3  | Certificate      of Designation of Series A Junior Participating Preferred Stock of Harman      International Industries, Incorporated, dated January 11, 2000. (filed as      Exhibit 4.3 to the Annual Report on Form 10-K for the fiscal year ended      June 30, 2000, Commission File No. 001-09764, and hereby incorporated by      reference)                                                                                                                                                                                                                                                                 |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.4  | Indenture,      related to the 1.25% Convertible Senior Notes due 2012, dated as of      October 23, 2007, between Harman International Industries, Incorporated      and Wells Fargo Bank, National Association, as trustee (including the form      of 1.25% Convertible Senior Note due 2012) (filed as Exhibit 4.1 to the      Current Report on Form 8-K filed with the Commission on October 25, 2007,      Commission File No. 001-09764, and hereby incorporated by      reference).                                                                                                                         |
| 4.5  | Registration      Rights Agreement, dated as of October 23, 2007, between Harman      International Industries, Incorporated, KKR I-H Limited, GS Capital      Partners VI Fund L.P., GS Capital Partners VI Parallel, L.P., GS Capital      Partners VI Offshore Fund, L.P., GS Capital Partners VI GmbH & Co. KG,      Citibank, N.A. and HSBC USA Inc. (filed as Exhibit 4.2 to the Current      Report on Form 8-K filed with the Commission on October 25, 2007,      Commission File No. 001-09764, and hereby incorporated by      reference).                                                            |
| 10.1 | Amended      and Restated Multi-Currency, Multi-Option Credit Agreement, dated June 22,      2006, among Harman International Industries, Incorporated, Harman Holding      GmbH & Co. KG and the several lenders and agents from time to time      parties thereto. (filed as Exhibit 10.1 to the Current Report on Form 8-K      filed with the Commission on June 26, 2006, Commission File No. 001-09764,      and hereby incorporated by reference)                                                                                                                                                         |
| 10.2 | Guarantee,      dated June 22, 2006, in favor of JPMorgan Chase Bank, N.A., as      administrative agent for the several banks and other financial      institutions or entities from time to time parties to the Amended and      Restated Multi-Currency, Multi-Option Credit Agreement, dated as of June      22, 2006. (filed as Exhibit 10.2 to the Current Report on Form 8-K filed      with the Commission on June 26, 2006, Commission File No. 001-09764, and      hereby incorporated by reference)                                                                                                       |
| 10.3 | Note      Purchase Agreement, dated October 22, 2007, by and among Harman      International Industries, Incorporated, KKR I-H Limited, GS Capital      Partners VI Fund L.P., GS Capital Partners VI Parallel, L.P., GS Capital      Partners VI Offshore Fund, L.P., GS Capital Partners VI GmbH & Co. KG,      Citibank, N.A. and HSBC USA Inc. and, for limited purposes, Kohlberg      Kravis Roberts & Co. L.P. (filed as Exhibit 10.1 to the Current Report      on Form 8-K filed with the Commission on October 25, 2007, Commission File      No. 001-09764, and hereby incorporated by reference) |
| 10.4 | Termination      and Settlement Agreement, dated October 22, 2007, by and among Harman      International Industries, Incorporated, KHI Parent Inc., KHI Merger Sub      Inc., KKR 2006 Fund L.P., Kohlberg Kravis Roberts & Co. L.P., GS      Capital Partners VI Fund L.P., GS Capital Partners VI Parallel, L.P., GS      Capital Partners VI Offshore Fund, L.P. and GS Capital Partners VI GmbH      & Co. KG. (filed as Exhibit 10.2 to the Current Report on Form 8-K      filed with the Commission on October 25, 2007, Commission File No.      001-09764, and hereby incorporated by reference)   |
| 10.5 | Confirmation      between Harman International Industries, Incorporated and Bear, Stearns      International Limited, dated October 30, 2007. (filed as Exhibit 10.1 to      the Current Report on Form 8-K filed with the Commission on October 31,      2007, Commission File No. 001-09764, and hereby incorporated by      reference)                                                                                                                                                                                                                                                                            |
| 10.6 | Confirmation      between Harman International Industries, Incorporated and J.P. Morgan      Securities Inc., as agent for JPMorgan Chase Bank, National Association,      London Branch, dated October 30, 2007. (filed as Exhibit 10.2 to the      Current Report on Form 8-K filed with the Commission on October 31, 2007,      Commission File No. 001-09764, and hereby incorporated by      reference)                                                                                                                                                                                                        |
| 10.7 | Harman      International Industries, Incorporated 1992 Incentive Plan, as amended and      restated. (filed as Exhibit B to the 1999 Proxy Statement, Commission File      No. 001-09764, and hereby incorporated by reference) **                                                                                                                                                                                                                                                                                                                                                                                  |
| 10.8 | Harman      International Industries, Incorporated Amended and Restated 2002 Stock      Option and Incentive Plan. (filed as Exhibit 10.5 to the Annual Report on      Form 10-K for the fiscal year ended June 30, 2006, Commission File No.      001-09764, and hereby incorporated by reference)  **                                                                                                                                                                                                                                                                                                              |

----

Index

| 10.9  | Form      of Harman International Industries, Incorporated 2002 Stock Option and      Incentive Plan Nonqualified Stock Option Agreement for Non-Officer      Directors. (filed as Exhibit 10.11 to the Annual Report on Form 10-K for      the fiscal year ended June 30, 2005, Commission File No. 001-09764, and      hereby incorporated by reference)  **                               |
|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.10 | Form      of Harman International Industries, Incorporated 2002 Stock Option and      Incentive Plan Incentive Stock Option Agreement for Officers and Key      Employees. (filed as Exhibit 10.1 to the Current Report on Form 8-K filed      with the Commission on August 22, 2005, Commission File No. 001-09764, and      hereby incorporated by reference) **                                    |
| 10.11 | Form      of Harman International Industries, Incorporated 2002 Stock Option and      Incentive Plan Nonqualified Stock Option Agreement for Officers and Key      Employees. (filed as Exhibit 10.2 to the Current Report on Form 8-K filed      with the Commission on August 22, 2005, Commission File No. 001-09764, and      hereby incorporated by reference) **                                 |
| 10.12 | Form      of Harman International Industries, Incorporated 2002 Stock Option and      Incentive Plan Restricted Stock Agreement for Officers and Key Employees.      (filed as Exhibit 10.3 to the Current Report on Form 8-K filed with the      Commission on August 22, 2005, Commission File No. 001-09764, and hereby      incorporated by reference) **                                          |
| 10.13 | Form      of Harman International Industries, Incorporated 2002 Stock Option and      Incentive Plan Restricted Share Unit Agreement for Officers and Key      Employees. (filed as Exhibit 10.3 to the Current Report on Form 8-K filed      with the Commission on August 15, 2006, Commission File No. 001-09764, and      hereby incorporated by reference) **                                     |
| 10.14 | Form      of Amended and Restated Harman International Industries, Incorporated 2002      Stock Option and Incentive Plan Nonqualified Performance Stock Option      Agreement for Officers and Key Employees. (filed as Exhibit 10.1 to the      Quarterly Report on Form 10-Q for the quarter ended March 31, 2008,      Commission File No. 001-09764, and hereby incorporated by      reference)** |
| 10.15 | Harman      International Industries, Incorporated 2007 Key Executive Officers Bonus      Plan. (filed as Exhibit 10.1 to the Current Report on Form 8-K filed with      the Commission on December 21, 2007, Commission File No. 001-09764, and      hereby incorporated by reference)**                                                                                                              |
| 10.16 | Harman      International Industries, Incorporated Management Incentive Compensation      Plan. (filed as Exhibit 10.2 to the Current Report on Form 8-K filed with      the Commission on December 21, 2007, Commission File No. 001-09764, and      hereby incorporated by reference)**                                                                                                              |
| 10.17 | Harman      International Industries, Incorporated Supplemental Executive Retirement      Plan, as amended and restated as of October 1, 1999. (filed as Exhibit      10.27 to the Annual Report on Form 10-K for the fiscal year ended June 30,      2000, Commission File No. 001-09764, and hereby incorporated by reference)      **                                                               |
| 10.18 | Amendment      No. 1 to the Harman International Industries, Incorporated Supplemental      Executive Retirement Plan, dated September 24, 2002. (filed as Exhibit      10.5 to the Quarterly Report on Form 10 Q for the quarter ended December      31, 2002, Commission File No. 001-09764, and hereby incorporated by      reference) **                                                           |
| 10.19 | Form      of Benefit Agreement under the Supplemental Executive Retirement Plan.      (filed as Exhibit 10.14 to the Annual Report on Form 10-K for the fiscal      year ended June 30, 2006, Commission File No. 001-09764, and hereby      incorporated by reference) **                                                                                                                             |
| 10.20 | Harman      International Industries, Inc. Deferred Compensation Plan, effective June      1, 1997. (filed as Exhibit 4 to the Registration Statement on Form S-8,      Commission File No. 333-28793, filed with the Commission on June 9, 1997,      and hereby incorporated by reference) **                                                                                                        |
| 10.21 | Amendment      No. 1 to the Harman International Industries, Inc. Deferred Compensation      Plan dated October 1, 1999. (filed as Exhibit 10.46 to the Annual Report      on Form 10-K for the fiscal year ended June 30, 2000, Commission File No.      001-09764, and hereby incorporated by reference)  **                                                                                         |

----

Index

| 10.22 | Amendment      No. 2 to the Harman International Industries, Inc. Deferred Compensation      Plan, effective December 16, 2003. (filed as Exhibit 10.1 to the Quarterly      Report on Form 10-Q for the quarter ended December 31, 2003, Commission      File No. 001-09764, and hereby incorporated by reference)    **                                              |
|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.23 | Letter      Agreement, dated May 8, 2007, between Harman International Industries,      Incorporated and Dinesh Paliwal. (filed as Exhibit 10.1 to the Current      Report on Form 8-K filed with the Commission on May 9, 2007, Commission      File No. 001-09764, and hereby incorporated by reference)    **                                                       |
| 10.24 | Amendment      to Letter Agreement, dated November 29, 2007, between Harman International      Industries, Incorporated and Dinesh Paliwal. (filed as Exhibit 10.2 to the      Current Report on Form 8-K filed with the Commission on December 4, 2007,      Commission File No. 001-09764, and hereby incorporated by      reference)**                              |
| 10.25 | Severance      Agreement, dated May 8, 2007, between Harman International Industries,      Incorporated and Dinesh Paliwal. (filed as Exhibit 10.2 to the Current      Report on Form 8-K filed with the Commission on May 9, 2007, Commission      File No. 001-09764, and hereby incorporated by reference)    **                                                    |
| 10.26 | Form      of Nonqualified Stock Option Agreement, related to the Stock Option Award,      between Harman International Industries, Incorporated and Dinesh Paliwal.      (filed as Exhibit 10.3 to the Current Report on Form 8-K filed with the      Commission on May 9, 2007, Commission File No. 001-09764, and hereby      incorporated by reference) **          |
| 10.27 | Form      of Restricted Stock Agreement, related to the Restricted Stock Award,      between Harman International Industries, Incorporated and Dinesh Paliwal.      (filed as Exhibit 10.4 to the Current Report on Form 8-K filed with the      Commission on May 9, 2007, Commission File No. 001-09764, and hereby      incorporated by reference) **               |
| 10.28 | Form      of Restricted Stock Agreement, related to the Inducement Stock Award,      between Harman International Industries, Incorporated and Dinesh Paliwal.      (filed as Exhibit 10.5 to the Current Report on Form 8-K filed with the      Commission on May 9, 2007, Commission File No. 001-09764, and hereby      incorporated by reference) **               |
| 10.29 | Form      of Restricted Stock Agreement, related to the Equity Replacement Award,      between Harman International Industries, Incorporated and Dinesh Paliwal.      (filed as Exhibit 10.6 to the Current Report on Form 8-K filed with the      Commission on May 9, 2007, Commission File No. 001-09764, and hereby      incorporated by reference) **             |
| 10.30 | Form      of Restricted Share Unit Agreement, related to the RSU Replacement Award,      between Harman International Industries, Incorporated and Dinesh Paliwal.      (filed as Exhibit 10.7 to the Current Report on Form 8-K filed with the      Commission on May 9, 2007, Commission File No. 001-09764, and hereby      incorporated by reference) **           |
| 10.31 | Form      of Restricted Share Unit Agreement, related to the Restricted Share Unit      Award, between Harman International Industries, Incorporated and Dinesh      Paliwal. (filed as Exhibit 10.3 to the Current Report on Form 8-K filed      with the Commission on December 4, 2007, Commission File No. 001-09764,      and hereby incorporated by reference)** |
| 10.32 | Letter      Agreement, dated May 2, 2008, between Harman International Industries,      Incorporated and Herbert Parker. (filed as Exhibit 10.2 to the Current      Report on Form 8-K filed with the Commission on May 6, 2008, Commission      File No. 001-09764, and hereby incorporated by  reference)**                                                          |
| 10.33 | Severance      Agreement, dated July 28, 2008, between Harman International Industries,      Incorporated and Herbert Parker. (filed as Exhibit 10.1 to the Current      Report on Form 8-K filed with the Commission on July 31, 2008, Commission      File No. 001-09764, and hereby incorporated by  reference)**                                                   |
| 10.34 | Employment      Agreement between Harman Management GmbH and Helmut Schinagel. (filed as      Exhibit 10.1 to the Current Report on Form 8-K filed with the Commission      on August 15, 2006, Commission File No. 001-09764, and hereby incorporated      by reference) **                                                                                           |
| 10.35 | Employment      Agreement, dated December 11, 2007, between Harman International      Industries, Incorporated and Richard Sorota. (filed as Exhibit 10.2 to the      Quarterly Report on Form 10-Q for the quarter ended March 31, 2008,      Commission File No. 001-09764, and hereby incorporated by      reference)**                                             |

----

Index

| 10.36  | Employment      Agreement, dated January 11, 2008, between Harman International      Industries, Incorporated and John Stacey. (filed as Exhibit 10.3 to the      Quarterly Report on Form 10-Q for the quarter ended March 31, 2008,      Commission File No. 001-09764, and hereby incorporated by      reference)**                             |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.37  | Employment      Agreement, dated May 30, 2008, between Harman Management GmbH and Klaus      Blickle. **+                                                                                                                                                                                                                                          |
| 10.38  | Employment      Agreement, dated November 6, 2006, between Harman International      Industries, Incorporated and Dr. Erich A. Geiger.  (filed as      Exhibit 10.1 to the Quarterly Report on Form 10-Q for the quarter ended      September 30, 2006, Commission File No. 001-09764, and hereby incorporated      by reference)        |
| 10.39  | Consulting      Agreement, dated January 15, 2007, between Harman International      Industries, Incorporated and Dr. Erich A. Geiger. (filed as Exhibit 10.1      to the Quarterly Report on Form 10-Q for the quarter ended December 31,      2006, Commission File No. 001-09764, and hereby incorporated by reference)      **                 |
| 10.40  | Agreement,      dated August 21, 2008, between Harman International Industries,      Incorporated and Dr. Erich A. Geiger. **+                                                                                                                                                                                                                     |
| 10.41  | Letter      Agreement, dated May 28, 2008, between Harman International Industries,      Incorporated and Dr. Sidney Harman. (filed as Exhibit 10.1 to the Current      Report on Form 8-K filed with the Commission on June 2, 2008, Commission      File No. 001-09764, and hereby incorporated by  reference)**                                 |
| 10.42  | Form      of Severance Agreement between Harman International Industries,      Incorporated and each of Sidney Harman and Kevin L. Brown. (filed as      Exhibit 10.71 to the Annual Report on Form 10-K for the fiscal year ended      June 30, 2000, Commission File No. 001-09764, and hereby incorporated by      reference) **                |
| 10.43  | Letter      Agreement, dated May 2, 2008, between Harman International Industries,      Incorporated and Kevin L. Brown. (filed as Exhibit 10.1 to the Current      Report on Form 8-K filed with the Commission on May 6, 2008, Commission      File No. 001-09764, and hereby incorporated by  reference)**                                      |
| 10.44  | Letter      Agreement, dated June 3, 2005, between Harman International Industries,      Incorporated and Kevin L. Brown. (filed as Exhibit 10.19 to the Annual      Report on Form 10-K for the fiscal year ended June 30, 2006, Commission      File No. 001-09764, and hereby incorporated by reference)    **                                  |
| 10.45  | Letter      Agreement, dated August 26, 2008, between Harman International Industries,      Incorporated and Kevin Brown. **+                                                                                                                                                                                                                      |
| 10.46  | Benefit      Agreement of Kevin Brown, dated April 30, 2007, under the Supplemental      Executive Retirement Plan. (filed as Exhibit 10.1 to the Quarterly Report      on Form 10-Q for the quarter ended March 31, 2007, Commission File No.      001-09764, and hereby incorporated by reference)                                               |
| 10.47  | Amended      and Restated Letter Agreement, dated December 21, 2007, between Harman      International Industries, Incorporated and Sandra B. Robinson. (filed as      Exhibit 10.8 to the Quarterly Report on Form 10-Q for the quarter ended      December 31, 2007, Commission File No. 001-09764, and hereby incorporated      by reference)** |
| 21.1   | Subsidiaries      of Harman International Industries, Incorporated. +                                                                                                                                                                                                                                                                              |
| 23.1   | Consent      of Independent Registered Public Accounting Firm. +                                                                                                                                                                                                                                                                                   |
| 31.1   | Certification      of Dinesh Paliwal filed pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002. +                                                                                                                                                                                                                                       |
| 31.2   | Certification      of Herbert Parker filed pursuant to Section 302 of the Sarbanes-Oxley Act      of 2002. +                                                                                                                                                                                                                                       |
| 32.1   | Certification      of Dinesh Paliwal and Herbert Parker filed pursuant to 18 U.S.C. Section      1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of      2002. +                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                               |
| **     | Management      contract, compensatory plan or arrangement.                                                                                                                                                                                                                                                                                        |
| +      | Filed      herewith.                                                                                                                                                                                                                                                                                                                               |

----

Index

SIGNA

|                            | HARMAN INTERNATIONAL INDUSTRIES,      INCORPORATED |
|---------------------------------|----------------------------------------------------|
|                            |                                               |
|                            |                                               |
| Date: August      29, 2008 | By:                                                | /s/ Dinesh Paliwal |
|                            |                                               | Dinesh      Paliwal |
|                            |                                               | Chairman      and Chief Executive Officer |

|   | /s/ Dinesh Paliwal            |   | Chairman      and Chief Executive Officer                           |
|--------|-------------------------------|--------|---------------------------------------------------------------------|
|   | Dinesh      Paliwal           |   | (Principal      Executive Officer)                                  |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Herbert Parker            |   | Executive      Vice President and Chief Financial Officer           |
|   | Herbert      Parker           |   | (Principal      Financial Officer and Principal Accounting Officer) |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Sidney Harman             |   | Director                                                            |
|   | Sidney      Harman            |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Brian Carroll             |   | Director                                                            |
|   | Brian      Carroll            |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Dr. Harald Einsmann       |   | Director                                                            |
|   | Dr.      Harald Einsmann      |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Shirley Hufstedler        |   | Director                                                            |
|   | Shirley      Hufstedler       |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   | Director                                                            |
|   | Ann      McLaughlin Korologos |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   |                          |   |                                                                |
|   | /s/ Edward Meyer              |   | Director                                                            |
|   | Edward      Meyer             |   |                                                                |

----

Index

|   | /s/ Kenneth Reiss  |   | Director |
|--------|--------------------|--------|----------|
|   | Kenneth      Reiss |   |     |
|   |               |   |     |
|   |               |   |     |
|   | /s/ Gary Steel     |   | Director |
|   | Gary      Steel    |   |     |

----

Index

| Classification                       |   | Balance at beginning of    period |   |   | Charged to costs and    expenses |   |   | Charged to other    accounts |   |   | Deductions |   |   | Balance at end of    period |   |
|--------------------------------------|--------|-----------------------------------|--------|--------|----------------------------------|--------|--------|-----------------------------------|--------|--------|------------|--------|--------|----------------------------------|--------|
|                                 |   |                                   |   |   |                                  |   |   |                                   |   |   |            |   |   |                                  |   |
| Year      ended June 30, 2006        |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |
|                                 |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |
| Allowance      for doubtful accounts |   | $                                 | 8,975  |   |                             |   | 2,167  |                              |   |   | 256        |   |   |                             | 2,660  |   |   |   | 8,738 |   |
|                                 |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
| Year      ended June 30, 2007        |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
|                                 |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
| Allowance      for doubtful accounts |   | $                                 | 8,738  |   |                             |   | 735    |                              |   |   | 342        |   |   |                             | 3,775  |   |   |   | 6,040 |   |
|                                 |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
| Year      ended June 30, 2008        |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
|                                 |   |                              |   |   |                             |   |   |                              |   |   |       |   |   |                             |   |   |   |   |   |   |
| Allowance      for doubtful accounts |   | $                                 | 6,040  |   |                             |   | 5,457  |                              |   |   | 358        |   |   |                             | 4,773  |   |   |   | 7,082 |   |

----