Harvey Electronics, Inc. Announces Appointment of Chief Operating Officer

Harvey Electronics is a leading retailer and custom installer of high quality, exclusive home theater, audio and video products in the New York metropolitan area. The Company operates nine locations; in Manhattan at Fifth Avenue and 45th St, inside ABC Carpet and Home and a Bang & Olufsen showroom at 927 Broadway near Union Square, in New Jersey; in Eatontown, Bridgewater and Paramus; in Greenwich, Connecticut, on the North Shore of Long Island in Greenvale/Roslyn and in Mt. Kisco in Westchester County, New York.

New York Magazine named Harvey "Best in New York in 2007" the best place to buy home theater in New York. Audio Video International, a well-respected trade publication, had named Harvey Electronics a national "Top Ten Retailer of the Year", seven years in a row.

Why Invest in Harvey Electronics, Inc.?

Harvey believes it will continue to benefit from the strong demand for its custom installation services as consumer demand continues for digital video products including larger plasma flat screen, LCD flat panel, high-definition televisions, integrated remote controls and related custom home installations.

Custom installation projects continue to increase, as a percentage of gross sales and accounted for approximately 75% of gross sales for the first nine months of fiscal 2007, as compared to approximately 64% of gross sales for the same period last year.

Harvey's custom installation services yield higher gross profit margins and stronger net profitability, as compared to normal retail store sales.

Harvey believes it differentiates itself by offering sophisticated custom installation services, including programming capabilities that address complex technological integration issues giving its customers easy remote control operations for a variety of functions.

Management believes installations of dedicated theater rooms, media servers, hard drive video and audio storage and distribution, video mounts, lighting systems in the home, as well as network cabling will continue to attract affluent customers to the Company.

The Company believes it can expand its service niche in offering custom labor and other accessories for both Harvey customers and customers that have purchased products elsewhere, specifically on the internet or from mass merchants.

Harvey has an agreement with Cablevision offering and installing their high speed cable modems and digital cable boxes.

Harvey is also working with Time Warner and Patriot Media and Communications in offering similar services.