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Net sales for the quarter decreased approximately 11%, to $18.3 million from $20.4 million for the same period a year ago. Net income increased to approximately $277,000 from approximately $171,000, and diluted earnings per share increased to $.06 per share compared to $.03 per share for the same period a year ago.

The reduction in net sales is the result of the continued difficult economic environment and its significant impact on the Company's business segments, particularly computer multimedia speaker sales. While net sales of the Company's Core products decreased approximately 4% compared to a year ago, net sales of the OEM/ Multimedia segment were down 23%.

CEO Moses Gabbay stated, "Despite an overall 11% reduction in sales, we made a small profit for the quarter. The profit is attributable to two factors: a larger percentage of sales derived from the Company's Core segment of products which have higher gross margins and continued improvements in manufacturing efficiency. Although operating expenses have increased over the same period a year ago, these increases were anticipated and result from the Company's recent investment in people and process to meet new business opportunities, particularly the automotive OEM program announced last month. During the quarter, we reduced our outstanding debt by $1.25 million, and as a result our interest expense continues to decrease. We continue to be focused on maintaining profitability while gaining market share in the Core segment. Furthermore, the Company is streamlining the product development process to deliver new products to the marketplace to stimulate future sales."

                                          Three Months Ended
                                     June 29, 2002     June 30, 2001

Net Sales                             $18,257,277       $20,442,904
Cost of Goods Sold                     12,448,444        14,932,474
  Gross profit                          5,808,833         5,510,430
Selling and Marketing Expenses          2,626,924         2,530,046
General and Administrative Expenses     1,231,520         1,155,093
Engineering and Development Expenses    1,554,583         1,324,256
  Total operating expenses              5,413,027         5,009,395
  Income from operations                  395,806           501,035
Interest Income (Expense), net             11,972          (116,287)
Other Income (Expense)                     18,831           (11,094)
  Income before provision
   for income taxes                       426,609           373,654
Provision for Income Taxes                150,000           203,000
  Net income                          $   276,609        $  170,654

Basic Earnings per Share                     $.06              $.03
Diluted Earnings per Share                   $.06              $.03
Weighted Average Shares Outstanding
    Basic                               4,595,595         4,929,114
    Diluted                             4,673,688         4,941,282

Consolidated Balance Sheets

                                    June 29, 2002      March 30, 2002

Assets
Current Assets
Cash and cash equivalents            $  4,779,845      $  5,134,558
Accounts receivable, net               11,110,685        10,830,538
Inventories                            14,567,342        14,370,308
Other current assets                    2,802,529         2,734,792
  Total current assets                 33,260,401        33,070,196
Property and Equipment, net            13,366,830        13,919,964
Other Assets, net                       1,427,444         1,428,286
  Total assets                        $48,054,675       $48,418,446

Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable                      $ 6,163,954      $  5,230,684
Accrued payroll & related expenses      1,228,858         1,185,529
Current maturity of line of credit      1,250,000         2,500,000
Other current liabilities               1,504,286         1,485,995
  Total current liabilities            10,147,098        10,402,208
Minority Interest in Joint Venture         23,620            18,265
Shareholders' Equity                   37,883,957        37,997,973
  Total liabilities and shareholders'
   equity                             $48,054,675       $48,418,446

Boston Acoustics, Inc. provides audio solutions for home entertainment, automobiles and personal computers. Founded in 1979, Boston Acoustics is located in Peabody, Massachusetts.

Certain statements in this press release contain certain forward-looking statements concerning Boston Acoustics' operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's Annual Report on Form 10-K for the fiscal year ended March 30, 2002. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made.

Contact:

     Boston Acoustics, Inc
     Moses Gabbay, 978/538-5000
     Moses@bostona.com
     or
     Boston Acoustics, Inc
     Debby Ricker-Rosato, 978/538-5000
     DRicker@bostona.com