Gentex Reports Record Second Quarter Results; Company Ships

ZEELAND, MI--(Marketwire - July 23, 2007) - Gentex Corporation (NASDAQ: GNTX), the Zeeland, Michigan-based manufacturer of automatic-dimming rearview mirrors and commercial fire protection products, today reported record financial results for the second quarter and six-month periods ended June 30, 2007. The Company also announced that it reached a milestone in the second quarter of 2007 by shipping its 100 millionth auto-dimming mirror unit. Approximately 30 million of those units were exterior auto-dimming mirrors.

The Company's net sales increased by 15 percent from $142.4 million in the second quarter of 2006 to a record $163.5 million in the second quarter of 2007. Current second quarter net income increased by 14 percent to $31.0 million compared with $27.2 million in the second quarter last year. Earnings per diluted share increased by 20 percent to 22 cents in the second quarter of 2007 compared with 18 cents in the second quarter of 2006.

For the first six months of 2007, net sales increased by 14 percent to $320.7 million compared with $281.4 million in the first six months of 2006. Net income for the first six months of 2007 increased by 13 percent to $60.5 million compared with $53.6 million in the first six months of 2006. Earnings per diluted share increased by 21 percent to 42 cents for the first six months of 2007 compared with 35 cents for the same period in calendar 2006.

During the second quarter of 2007, the Company's quarterly financial results were negatively impacted by approximately $1.4 million (pre-tax) in expenses related to litigation between the Company and K.W. Muth and Muth Mirror Systems LLC. The litigation, as previously announced, relates to exterior mirrors with turn signal indicators. The trial is currently taking place in Wisconsin.

"We are pleased that our growth trend continued in the second quarter," said Gentex Chairman and Chief Executive Officer Fred Bauer. "Mirror unit shipments for the second quarter of 2007 increased by 14 percent, but automotive revenues increased by 16 percent due to a richer mix of European mirror products shipped during the quarter. For the current quarter, unit shipments in North America increased by six percent. Increased penetration at certain of our European and Asian automotive customers was the primary factor in achieving a 21 percent increase in our offshore unit shipments."

Gentex Senior Vice President Enoch Jen said that the Company continues to make good progress in its manufacturing yields, and provided certain guidance for the third quarter and calendar year 2007.

"For the third quarter of 2007, we now expect that our mirror unit shipments and revenues will increase by approximately 10-15 percent over the same prior-year period, based on the current forecast for product mix. For the balance of 2007, we now also expect percentage increases similar to those expected for the third quarter for both unit shipments and revenues."

Jen also said that given the current forecast of double-digit growth for the third quarter and remainder of the year, the Company now should have a greater ability to leverage its fixed overhead costs and expects to achieve gross margins that will be similar to the second quarter of 2007 gross margin. However, he also said that it's important to note that the third quarter is always a difficult quarter to forecast, due to customer plant summer shutdowns and model year product changeover. In addition, in the third quarter of 2007, there are additional uncertainties, including vehicle production and sales rates at the domestic automakers in North America as well as the upcoming United Auto Workers contract negotiations.

Jen said that the Company's current third quarter 2007 forecast is based on CSM's mid-July forecast for light vehicle production of 3.6 million units for North America, 4.7 million units for Europe and 3.5 million units for Japan and Korea. The Company's current calendar year 2007 forecast is based on CSM's 2007 calendar year projection of 15.2 million units for North America, 21.3 million units for Europe and 14.6 million units for Japan and Korea.

Total auto-dimming mirror unit shipments in the second quarter of 2007 were approximately 3.9 million, a 14 percent increase over the same period last year. Auto-dimming mirror unit shipments increased by 13 percent to 7.7 million for the first six months of 2007, compared with the same prior-year period.

Auto-dimming mirror unit shipments to customers in North America increased by six percent to approximately 1.7 million in the second quarter of 2007 compared with the same quarter last year. North American light vehicle production was down two percent in the second quarter of 2007 compared with the same period in 2006. For the first six months of 2007, auto-dimming mirror unit shipments to customers in North America increased by five percent to approximately 3.3 million compared with the same period last year. North American light vehicle production declined by three percent for the first six months of 2007 compared with the same period in 2006.

Unit shipments to offshore customers increased by 21 percent to approximately 2.2 million in the second quarter of 2007 compared with the same period in 2006. Light vehicle production in Europe, and Japan and Korea, increased by three percent in the second quarter, compared with the same prior year periods. Automotive revenues increased by 16 percent to $157.2 million in the second quarter of 2007 compared with the same period last year, and increased by 14 percent to $308.3 million for the first six months of 2007. Fire Protection revenues decreased by one percent to $6.3 million for the second quarter of 2007 compared with the second quarter of 2006, and increased by two percent to $12.4 million for the first six months of 2007, compared with the same period in 2006.

Non-GAAP Financial Measure

The financial information provided, including earnings, is in accordance with GAAP. Still, the Company believes it is useful to provide non-GAAP earnings to exclude the effect of Statement of Financial Accounting Standards No. 123(R), "Share-Based Payment" [FAS 123(R)]. This non-GAAP financial measure allows investors to evaluate current performance in relation to historic performance without considering this non-cash charge.

The Company's management uses this non-GAAP information internally to help assess performance in the current period versus historical performance (especially prior periods where this non-cash charge was not included). Disclosure of non-GAAP earnings to exclude the effect of FAS 123(R) has economic substance because the excluded expenses do not represent current or future cash expenditures.

A reconciliation of non-GAAP earnings, to exclude the effect of FAS 123(R), to GAAP earnings can be found in the attached financial table. The use of non-GAAP earnings is intended to supplement, not to replace, presentation of GAAP earnings. Like all non-GAAP financial measures, non-GAAP earnings are subject to inherent limitations because all of the expenses required by GAAP are not included. The limitations are compensated by the fact that non-GAAP earnings are not relied on exclusively, but are used to simply supplement GAAP earnings.

Safe Harbor Statement

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act, as amended, that are based on management's belief, assumptions, current expectations, estimates and projections about the global automotive industry, the economy, the impact of stock option expenses on earnings, the ability to leverage fixed manufacturing overhead costs, unit shipment and revenue growth rates and the Company itself. Words like "anticipates," "believes," "confident," "estimates," "expects," "forecast," "likely," "plans," "projects," and "should," and variations of such words and similar expressions identify forward-looking statements. These statements do not guarantee future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict with regard to timing, expense, likelihood and degree of occurrence. These risks include, without limitation, employment and general economic conditions, the pace of automotive production worldwide, the maintenance of the Company's relative market share, competitive pricing pressures, currency fluctuations, the financial strength of the Company's customers, supply chain disruptions, potential sale of OEM business segments or suppliers, the mix of products purchased by customers, the ability to continue to make product innovations, the success of certain newer products (e.g. SmartBeam®, Z-Nav® and Rear Camera Display Mirror), and other risks identified in the Company's filings with the Securities and Exchange Commission. Therefore, actual results and outcomes may materially differ from what is expressed or forecasted. Furthermore, the Company undertakes no obligation to update, amend, or clarify forward-looking statements, whether as a result of new information, future events, or otherwise.

Second Quarter Conference Call

A conference call related to this news release will be simulcast live on the Internet beginning at 10:30 a.m. Eastern Daylight Saving Time today. To access that call, go to www.gentex.com and select the "Audio Webcast" icon in the lower right-hand corner of the page. Other conference calls hosted by the Company will also be available at that site in the future.

About the Company

Founded in 1974, Gentex Corporation (NASDAQ: GNTX) is an international company that provides high-quality products to the worldwide automotive industry and North American fire protection market. Based in Zeeland, Michigan, the Company develops, manufactures and markets interior and exterior automatic-dimming automotive rearview mirrors that utilize proprietary electrochromic technology to dim in proportion to the amount of headlight glare from trailing vehicle headlamps. Many of the mirrors are sold with advanced electronic features, and approximately 96 percent of the Company's revenues are derived from the sales of auto-dimming mirrors to nearly every major automaker in the world.


                    GENTEX CORPORATION AND SUBSIDIARIES
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME

                                         (unaudited)

                      Three Months Ended             Six Months Ended
                         June 30,                         June 30,
                    2007           2006           2007           2006
                -------------  -------------  -------------  -------------

Net Sales       $ 163,479,812  $ 142,391,231  $ 320,685,794  $ 281,411,824

Costs and
 Expenses
  Cost of Goods
   Sold           105,782,966     91,494,753    208,410,186    182,282,638
  Engineering,
   Research &
   Development     12,446,469      9,962,629     24,722,131     20,121,797
  Selling,
   General &
   Administrative   8,732,630      7,512,959     17,099,201     15,304,027
  Other Expense
   (Income)        (8,447,283)    (6,678,259)   (17,981,306)   (14,666,670)
                -------------  -------------  -------------  -------------

Total Costs and
 Expenses         118,514,782    102,292,082    232,250,212    203,041,792
                -------------  -------------  -------------  -------------

Income Before
 Provision for
 Income Taxes      44,965,030     40,099,149     88,435,582     78,370,032

Provision for
 Income Taxes      14,008,923     12,863,099     27,981,766     24,762,925
                -------------  -------------  -------------  -------------

Net Income      $  30,956,107  $  27,236,050  $  60,453,816  $  53,607,107
                =============  =============  =============  =============

Earnings Per
 Share
  Basic         $        0.22  $        0.18  $        0.42  $        0.35
  Diluted       $        0.22  $        0.18  $        0.42  $        0.35
Weighted
 Average
 Shares:
  Basic           142,543,923    150,592,680    142,356,126    152,402,407
  Diluted         143,477,655    151,044,639    143,047,008    153,176,602

Cash Dividends
 Declared per
 Share          $       0.095  $       0.090  $        0.19  $        0.18



                        CONDENSED CONSOLIDATED BALANCE SHEETS


                                                (unaudited)
                                                  June 30,      Dec 31,
                                                    2007          2006
                                                ------------- -------------
ASSETS
Cash and Short-Term Investments                 $ 364,684,039 $ 328,227,710
Other Current Assets                              131,040,411   118,650,384
                                                ------------- -------------

Total Current Assets                              495,724,450   446,878,094

Plant and Equipment - Net                         191,969,821   184,134,373
Long-Term Investments and Other Assets            164,824,106   154,015,933
                                                ------------- -------------

Total Assets                                    $ 852,518,377 $ 785,028,400
                                                ============= =============
LIABILITIES AND SHAREHOLDERS' INVESTMENT
Current Liabilities                             $  65,266,670 $  57,362,978
Long-Term Debt                                              0             0
Deferred Income Taxes                              26,079,464    24,971,133
Shareholders' Investment                          761,172,243   702,694,289
                                                ------------- -------------

Total Liabilities & Shareholders' Investment    $ 852,518,377 $ 785,028,400
                                                ============= =============




              AUTO-DIMMING MIRROR UNIT SHIPMENTS
                          (Thousands)


                       Second Quarter       Six Months
                        Ended June          Ended June
                           30,                 30,
                       ----------- -------  ----------- -------

                       2007  2006  %Change   2007  2006  %Change
                       ----- ----- -------  ----- ----- -------
Domestic Interior      1,249 1,124      11% 2,426 2,229       9%
                       ----- ----- -------  ----- ----- -------
Domestic Exterior        455   488      -7%   918   966      -5%
                       ----- ----- -------  ----- ----- -------
Total Domestic Units   1,704 1,612       6% 3,344 3,195       5%
                       ----- ----- -------  ----- ----- -------

                       ----- ----- -------  ----- ----- -------
Foreign Interior       1,557 1,293      20% 3,060 2,560      20%
                       ----- ----- -------  ----- ----- -------
Foreign Exterior         613   503      22% 1,249 1,046      19%
                       ----- ----- -------  ----- ----- -------
Total Foreign Units    2,170 1,796      21% 4,309 3,605      20%
                       ----- ----- -------  ----- ----- -------

                       ----- ----- -------  ----- ----- -------
Total Interior Mirrors 2,806 2,417      16% 5,486 4,789      15%
                       ----- ----- -------  ----- ----- -------
Total Exterior Mirrors 1,068   991       8% 2,166 2,011       8%
                       ----- ----- -------  ----- ----- -------
Total Mirror Units     3,874 3,408      14% 7,653 6,800      13%
                       ----- ----- -------  ----- ----- -------

Note: Certain prior year amounts have been reclassified to conform with the
current year presentation.  Amounts may not total due to rounding.


                GENTEX CORPORATION AND SUBSIDIARIES
                STATEMENTS OF INCOME RECONCILIATION
                     NON-GAAP MEASURMENT TO GAAP


                         Three Months Ended June 30, 2007
                   -------------------------------------------
                                                   (Non-GAAP
                                                   Excluding
                                  Stock Option   Stock Option
                       GAAP          Expense       Expense)
                   -------------  -------------  -------------

Net Sales          $ 163,479,812  $           0  $ 163,479,812

Costs and Expenses
  Cost of Goods
   Sold              105,782,966       (555,221)   105,227,745
  Engineering,
   Research &
   Development        12,446,469       (612,372)    11,834,097
  Selling, General
   & Administrative    8,732,630       (590,206)     8,142,424
  Other Expense
   (Income)           (8,447,283)             0     (8,447,283)
                   -------------  -------------  -------------

Total Costs and
 Expenses            118,514,782     (1,757,799)   116,756,983
                   -------------  -------------  -------------

Income Before
 Provision
 for Income Taxes     44,965,030      1,757,799     46,722,829

Provision for
 Income Taxes         14,008,923      1,409,077     15,418,000
                   -------------  -------------  -------------

Net Income         $  30,956,107  $     348,722  $  31,304,829
                   =============  =============  =============


                        Six Months Ended June 30, 2007
                   -------------------------------------------
                                                   (Non-GAAP
                                                   Excluding
                                  Stock Option   Stock Option
                       GAAP          Expense       Expense)
                   -------------  -------------  -------------

Net Sales          $ 320,685,794  $           0  $ 320,685,794

Costs and Expenses
  Cost of Goods
   Sold              208,410,186     (1,174,418)   207,235,768
  Engineering,
   Research &
   Development        24,722,131     (1,275,561)    23,446,570
  Selling, General
   & Administrative   17,099,201     (1,101,787)    15,997,414
  Other Expense
   (Income)          (17,981,306)             0    (17,981,306)
                   -------------  -------------  -------------

Total Costs and
 Expenses            232,250,212     (3,551,766)   228,698,446
                   -------------  -------------  -------------

Income Before
 Provision for
 Income Taxes         88,435,582      3,551,766     91,987,348

Provision for
 Income Taxes         27,981,766      2,386,234     30,368,000
                   -------------  -------------  -------------

Net Income         $  60,453,816  $   1,165,532  $  61,619,348
                   =============  =============  =============



                       Three Months Ended June 30, 2006
                   -------------------------------------------

                                                                     Non-
                                                              GAAP   GAAP
                                                              2007   2007
                                                 (Non-GAAP     vs.    vs.
                                     Stock       Excluding    2006   2006
                                    Option     Stock Option     %      %
                       GAAP         Expense      Expense)     Change Change
                   -------------  -----------  -------------  -----  -----

Net Sales          $ 142,391,231  $         0  $ 142,391,231   14.8%  14.8%

Costs and Expenses
  Cost of Goods
   Sold               91,494,753     (575,107)    90,919,646   15.6%  15.7%
  Engineering,
   Research &
   Development         9,962,629     (619,071)     9,343,558   24.9%  26.7%
  Selling, General
   & Administrative    7,512,959     (555,617)     6,957,342   16.2%  17.0%
  Other Expense
   (Income)           (6,678,259)           0     (6,678,259)  26.5%  26.5%
                   -------------  -----------  -------------

Total Costs and
 Expenses            102,292,082   (1,749,795)   100,542,287   15.9%  16.1%
                   -------------  -----------  -------------

Income Before
 Provision for
 Income Taxes         40,099,149    1,749,795     41,848,944   12.1%  11.6%

Provision for
 Income Taxes         12,863,099      424,901     13,288,000    8.9%  16.0%
                   -------------  -----------  -------------

Net Income         $  27,236,050  $ 1,324,894  $  28,560,944   13.7%   9.6%
                   =============  ===========  =============


                         Six Months Ended June 30, 2006
                   -------------------------------------------

                                                                     Non-
                                                              GAAP   GAAP
                                                              2007   2007
                                                 (Non-GAAP     vs.    vs.
                                     Stock       Excluding    2006   2006
                                    Option     Stock Option     %      %
                       GAAP         Expense      Expense)     Change Change
                   -------------  -----------  -------------  -----  -----

Net Sales          $ 281,411,824  $         0  $ 281,411,824   14.0%  14.0%

Costs and Expenses
  Cost of Goods
   Sold              182,282,638   (1,117,361)   181,165,277   14.3%  14.4%
  Engineering,
   Research &
   Development        20,121,797   (1,276,781)    18,845,016   22.9%  24.4%
  Selling, General
   & Administrative   15,304,027   (1,075,748)    14,228,279   11.7%  12.4%
  Other Expense
   (Income)          (14,666,670)           0    (14,666,670)  22.6%  22.6%
                   -------------  -----------  -------------

Total Costs and
 Expenses            203,041,792   (3,469,890)   199,571,902   14.4%  14.6%
                   -------------  -----------  -------------

Income Before
 Provision for
 Income Taxes         78,370,032    3,469,890     81,839,922   12.8%  12.4%

Provision for
 Income Taxes         24,762,925    1,222,075     25,985,000   13.0%  16.9%
                   -------------  -----------  -------------

Net Income         $  53,607,107  $ 2,247,815  $  55,854,922   12.8%  10.3%
                   =============  ===========  =============

Contact Information: CONTACT: Connie Hamblin (616) 772-1800

Gentex Reports Record Second Quarter Results; Company Ships 100 Millionth Mirror in the Second Quarter