Note: In accordance with GAAP, the Company is deferring significant revenue and the related costs associated with high margin sales of certain products bundled with content and services over their economic lives. In the fourth quarter of 2011, the Company deferred, net of amortization of previous deferrals, $72 million of revenue, $15 million of costs, and approximately $0.26 of diluted EPS, net of taxes, into future years. For the full year, the Company deferred, net of amortization of previous deferrals, $179 million of revenue, $36 million of costs, and approximately $0.66 of diluted EPS, net of taxes, into future years. A table outlining the impact of this net deferral in both 2011 and 2010 is included for reference. Results have not been adjusted unless specifically stated as such.

Business highlights:

• Achieved full year revenue growth in outdoor, fitness, marine and aviation offsetting declines in auto/mobile. These growth segments generated 71% of the total operating income in 2011.
• Sold almost 16 million units in 2011 with unit growth in outdoor, fitness, marine and automotive OEM nearly offsetting declines in personal navigation devices (PND).
• Continued to be the world-wide PND market share leader with market share gains globally.
• Received the J.D. Power and Associates award for Highest Customer Satisfaction with Factory-Installed Navigation in our first year of eligibility for the 2011 Dodge Charger. The Garmin solution for the Chrysler 300 was ranked third.
• Announced the Approach® G6 golf handheld to further enhance our growing position in the golf market. It joins the successful Approach S1, which gained market share in the holiday selling season.
• Introduced the nüvi® 3500 series in the Prestige line. These 5-inch devices are ultra-thin and loaded with the most premium capabilities including: high resolution color display with capacitive touch, digital 3D traffic and photoReal junction view.
• Supported the successful first flight of the Cessna Citation Ten with the Garmin G5000 cockpit.

Executive overview from Dr. Min Kao, Chairman and Chief Executive Officer:

“Entering 2011, we forecasted $2.5 billion of revenue and $2.50 of EPS. I am pleased to say that we far exceeded those targets through a combination of solid execution by our associates and successful acquisitions that further diversify our company in both products and geographies,” said Dr. Min Kao, chairman and chief executive officer of Garmin Ltd. “The business generated free cash flow of $784 million. We returned $311 million to shareholders through our quarterly dividend and used an additional $54 million to fund acquisitions. We will continue to use both of these strategies to grow long-term shareholder value.

The automotive/mobile segment revenues increased 4% on a year-over-year basis in the fourth quarter as PND unit declines were offset by improved pricing related to mix and growth in mobile applications and auto OEM. The improvement in our overall average selling price (ASP) for the fourth quarter is due to an increase in the popularity of our bundled product offerings, offset by decreases in the ASP of comparable models from the prior year. While the PND market size continued to decline in 2011, we emerge from the year with increased market share, stabilizing ASPs and strong profitability. In 2012, we will continue to focus on gaining market share and improved profitability. We are extremely excited that Garmin was recognized by J.D. Power and Associates for Highest Customer Satisfaction with Factory-Installed Navigation on the 2011 Dodge Charger. This is validation for our ongoing investment and serves as a selling point as we work with future OEM partners on next-generation solutions.

The outdoor segment posted revenue growth of 35% in the fourth quarter as supply constraints that affected results in the third quarter were resolved and our broad portfolio of products saw strong holiday demand. Some of our best sellers included our Approach S1, the Montana™ series, the eTrex® series and the Astro® series. Each of these product lines serves a diverse niche market which has allowed us to continue to grow. We believe this will be true again in 2012 as we fully integrate Tri-Tronics dog training capabilities and grow share in the golf market with further innovation.

The fitness segment posted revenue growth of 17% in the quarter and full-year growth of 24%. Growth in the segment fell slightly short of our expectations as we were unable to ship the Forerunner® 910XT in time for the holiday season. The good news is that we are now filling back orders and customer feedback on the product has been extremely positive. We expect 2012 to be another exciting year for the segment as we launch the Vector™ power meter and other unique offerings that we believe will continue to drive our growth in this segment.

Aviation segment revenues were up only slightly in the fourth quarter as sales were reduced in the 2011 quarter due to OEM program contributions. For the full year, revenues improved by 9% and the segment contributed $72 million of operating income. In light of the ongoing economic conditions affecting the general aviation industry, we are pleased with our revenue growth and plan to build on it in 2012. Our focus will be expanding our presence in the Part 25 business jet market, while also winning new helicopter business with the recently introduced G5000H. The G5000H was already named as the avionics for the upcoming Bell Relentless helicopter.