Exhibit 99.1 Q1 07 Press Release

Exhibit 99.1

PRESS RELEASE

Plantronics Reports Q1 Fiscal Year 2007 Financial Results

FOR INFORMATION, CONTACT:

Jon Alvarado

Treasurer and Director, Investor Relations

(831) 458-7533

FOR IMMEDIATE RELEASE

July 25, 2006

SANTA CRUZ, CA. - July 25, 2006 - Plantronics, Inc., (NYSE: PLT) today announced first quarter revenues of $195.1 million, an increase of 31% from $148.9 million in the first quarter of fiscal 2006. Of the $46 million in revenue growth, $31.3 million was derived from Altec Lansing products whose revenues are included in our Audio Entertainment Group (AEG) segment. GAAP EPS, which now includes the cost of equity-based compensation, was $0.25. Non-GAAP EPS was $0.28 in comparison to $0.44 in the year ago quarter.

The difference between GAAP and non-GAAP earnings per share includes the after-tax cost of equity-based compensation which was approximately $3 million or $0.06 per share and a gain on sale of land we had owned in Maryland which added $0.03 to earnings per share. Since the sale of this property was uncertain, we did not include the expected gain in our May 2, 2006 earnings guidance. Thus, revenues and non-GAAP earnings per share were at the low end of the range we provided on May 2, 2006 at which time we estimated revenues of $195 - $205 million and non-GAAP EPS of $0.28 to $0.33 for the first quarter.

Ken Kannappan, President and CEO, noted, “We remain confident in our long-term market opportunities, though near-term conditions have weakened. We believe the weaker demand is primarily the result of macro-economic factors contributing to a slowdown in the markets we serve. In light of the current environment, we reduced the level of marketing expenditures otherwise planned for our first quarter. We believe these weak demand trends are likely to continue and we are focusing on improving effectiveness and reducing cost broadly.”

PLANTRONICS, INC. / 345 Encinal Street / P.O. Box 1802 / Santa Cruz, California 95061-1802

831-426-6060 / Fax 831-426-6098

ACG Segment

First quarter revenues of $163.7 million were up 10% in comparison to the year ago quarter. Revenue growth was driven by headsets for mobile phones, up $8.9 million or 33% due to the success of our Plantronics-branded Bluetooth headsets. Almost equal in terms of dollar contribution to revenue growth was our Office and Contact Center (OCC) business, up $8.8 million or 8% versus the year ago quarter. Within OCC, revenues from wireless office headsets were up 53% while revenue from professional grade corded headsets were down 10% compared to a year ago. Computer, gaming and Clarity product revenues were all down versus a year ago.

Sequentially, first quarter revenues declined 3% as a result of a further decline in professional grade corded headsets and a 1% decline in revenues of office wireless headsets. Finally, mobile revenues were flat sequentially, with slight growth in Bluetooth headsets offset by a decline in corded products, and Clarity revenues were up 9%.

Non-GAAP gross margin was down 5.8 points compared to the year ago but was up 0.2 points sequentially. The decline in professional grade corded products was the most significant factor reducing gross margin compared to the first quarter of fiscal 2006. Other significant factors compared to the year ago first quarter were higher provisions for excess and obsolete inventory and freight costs. With inventories increasing and market conditions fluctuating rapidly, we continue to face challenges in these areas. There were other items that were slightly negative versus a year ago but those factors were more than offset by excellent component cost reductions particularly for Bluetooth products where margins improved compared to a year ago.

Non-GAAP gross margin improved slightly sequentially despite a less favorable overall product mix and higher warranty costs as a percent of revenue. Component cost reductions and better factory utilization offset the impact of mix and warranty cost.

Given the weaker environment which has been developing, we reduced the level of marketing expenditures we had planned for the first quarter and re-evaluated elements of the marketing campaign planned for the balance of the year. Based on our review, we re-allocated certain funds to shorter-cycle marketing programs that should yield a better return on investment in the near-term. We are continuing to evaluate the extent and types of marketing programs we will undertake for the balance of the year. In addition to the review of marketing programs, we initiated a broad cost reduction program.

PLANTRONICS, INC. / 345 Encinal Street / P.O. Box 1802 / Santa Cruz, California 95061-1802

831-426-6060 / Fax 831-426-6098

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AEG Segment

First quarter revenues of approximately $31.3 million were down 17% from $37.8 million in the March quarter. Based on Altec Lansing’s historical seasonality, we expected a revenue decline in the range of 5-10%. The actual 17% sequential revenue decrease was driven by weaker U.S. retail market conditions for iPod-related accessories. Significant promotional allowances were required to obtain sell-through and maintain placement. The slower growth in MP3 shipments than the industry had anticipated resulted in too many products competing for the same shelf space and consumer share of wallet. We believe these factors have not yet abated and that market conditions are likely to remain tough through the summer, and potentially into the fall.

Promotional allowances reduce revenue and gross margin, and were the primary reason that the AEG segment realized a non-GAAP gross margin of 18.9%, well below our long-term target model range of 30-35% and down sequentially from 32.6%. As a result of lower revenues and a low gross margin, AEG had a non-GAAP operating loss of $5.6 million in the quarter.

During the June quarter, AEG completed development of four new products which will begin shipping in the September quarter and which have the potential to contribute meaningfully to AEG’s revenue over the next twelve months. The most prominent is the inMotion im500 released last week, an ultra-thin portable speaker system designed specifically for the iPod nano in both form and function.

Balance Sheet and Cash Flow Highlights

“As anticipated, our inventories increased substantially and in fact, increased somewhat more than anticipated given that AEG’s inventories also increased. Primarily as a result of inventory growth, our cash flow from operations was $4.5 million,” noted Barbara Scherer, SVP & CFO. “We paid our line of credit down by $9 million during the quarter and our total cash, cash equivalents and short-term investments decreased by $18.2 million in comparison to the March quarter.”

During the quarter, the Company repurchased the 175,000 shares that remained authorized for repurchase under our 17^th repurchase program. The total cost of the shares repurchased was approximately $4 million at a weighted average purchase price of $22.95. Over the last five fiscal years, we repurchased approximately 9.5 million shares for a total of $218 million. Our philosophy is to return cash flow and cash balances in excess of business requirements to stockholders in the form of share repurchases when expected to be strongly accretive and through regular quarterly dividend payments. Our level of cash and cash flow is not currently providing excess with which to make share repurchases and we believe it is not prudent to add financial risk to business risk, especially during a period in which market and industry conditions appear broadly weaker and visibility is more limited than ever. Thus, we do not plan to borrow or otherwise leverage the Company to repurchase stock. As we reduce inventory and improve inventory turns, and our overall cash and cash flow position improves, we will of course revisit the desirability of another share repurchase program. We remain committed to using excess cash and cash flow to drive stockholder value over the long term.

Business Outlook

The following statements are based on current expectations. Many of these statements are forward-looking, and actual results may differ materially.

We have a “book and ship” business model whereby we ship most orders to our customers within 48 hours of our receipt of those orders, and we thus cannot rely on the level of backlog to provide visibility into potential future revenues.

Based on all of the foregoing, we are currently expecting the following financial results for Q2 FY07:

·	Revenues for the second quarter of fiscal 2007 to be in the range of $190 - $200 million

o	$160 - $165 million for ACG

o	$30 - $35 million for AEG

·	Gross and operating margins to improve sequentially in the AEG segment, but that the segment is still likely to run a loss in the second quarter given that gross margin is unlikely to return to our target model given what we anticipate will continue to be an aggressive promotional environment.

·	Operating expenses, primarily for marketing, to increase sequentially in ACG

·	A small FX loss compared to an $800k FX gain in Q1

·	Consolidated GAAP tax rate to be in the range of 20 - 25%

o	Rate is higher when pre-tax profits are higher

o	Rate is heavily dependent on the results of operations of AEG as losses in that group result in a lower consolidated corporate rate (whereas profits in AEG result in a higher consolidated corporate tax rate)

·	GAAP earnings per share of approximately $0.16 to $0.21

·	Non-GAAP earnings per share for the second quarter of fiscal 2007 to be in the range of $0.22 - $0.27

Plantronics does not intend to update these targets during the quarter or to report on its progress toward these targets. Plantronics will not comment on these targets to analysts or investors except by its next press release announcing its second quarter fiscal year 2007 results or by other public disclosure. Any statements by persons outside Plantronics speculating on the progress of the second quarter of the fiscal year will not be based on internal Company information and should be assessed accordingly by investors. The statements do not reflect the potential impact of any mergers or acquisitions that may be completed after the date of this release.

Conference Call Scheduled to Discuss Financial Results

Plantronics has scheduled a conference call to discuss the contents of this release. The conference call will take place today, Tuesday, July 25 at 2:00 PM (PDT). All interested investors and potential investors in Plantronics stock are invited to participate. To listen please dial in five to ten minutes prior to the scheduled starting time and refer to the "Plantronics Conference Call." Participants from North America should call (888) 301-8736 and other participants should call (706) 634-7260.

A replay of the call with the conference ID #6178327 will be available for 72 hours at (800) 642-1687 for callers from the United States and at (706) 645-9291 for all other callers. The conference call will also be simultaneously web cast at www.plantronics.com under Investor Relations, and the web cast of the conference call will remain available at the Plantronics Web site for thirty days.

Use of Non-GAAP Financial Information

We are reporting GAAP versus non-GAAP for equity based compensation expense and to isolate the earnings per share impact of the real estate transaction. We believe this is appropriate to enhance an overall understanding of our comparative financial performance and our prospects for the future.

We also believe that our estimates of expense and the earnings per share impact from equity compensation pursuant to FAS 123(R) are subject to a number of risks and uncertainties which we had not faced prior to the first fiscal quarter of 2007, including our estimates of the forfeiture rate, estimating the impact on diluted shares outstanding pursuant to the Treasury Stock method, and the tax rate which will apply to the pre-tax expense. Therefore, we are also estimating earnings per share for the second quarter on a GAAP and non-GAAP basis.

SAFE HARBOR

This release contains forward-looking statements within the meaning of Section 27A of the Securities Exchange Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Specific forward-looking statements include our estimates of revenues and earnings for the second quarter of fiscal 2007. These forward-looking statements involve a number of risks and uncertainties, and are based on current information and management judgment.

Among the factors that could cause actual results to differ materially from those projected are:

·	Our operating results are difficult to predict;

·	The market for our products is characterized by rapidly changing technology, short product life cycles, and frequent new product introductions, and we may not be able to develop, manufacture or market new products in response to changing customer requirements and new technologies;

·	The actions of existing and/or new competitors, especially with regard to pricing and promotional programs;

·	The inability to successfully develop, manufacture and market new products and achieve volume shipment schedules to meet demand;

·	A softening of the level of market demand for our products within our core contact center market and/or in the newer office, mobile, computer and residential markets;

·	The entry of new competitors which could be spurred by changes in the regulatory environment, particularly laws requiring the use of hands-free devices by drivers when using cellular telephones;

·	Variations in sales and profits in higher tax, as compared to lower tax, jurisdictions;

·	Fluctuations in foreign exchange rates; and

·	Changes in the regulatory environment either as to headsets directly or as to the products, such as mobile phones, with which our products are used.

Additional risk factors include: changes in the timing and size of orders from our customers, price erosion, increased requirements from retail customers for marketing and advertising funding, failure to match production to demand, interruption in the supply of sole-sourced critical components, continuity of component supply at costs consistent with our plans, failure of our distribution channels to operate as we expect, failure to develop products that keep pace with technological changes, the inherent risks of our substantial foreign operations, problems which might affect our manufacturing facilities in Mexico or in China, further terrorist acts, our nation's response to terrorist attacks and the effects of these activities on capital and consumer spending, and the loss of the services of key executives and employees.

For more information concerning these and other possible risks, please refer to the Company's Annual Report on Form 10-K filed on June 5, 2006, quarterly reports filed on Form 10-Q and other filings with the Securities and Exchange Commission as well as recent press releases. These filings can be accessed over the Internet at http://www.sec.gov/edgar/searchedgar/companysearch.html

Financial Summaries

The following related charts are provided:

·	Summary Unaudited Condensed Consolidated Financial Statements

·	Summary Unaudited Condensed Statements of Operations by Segment

·	Unaudited GAAP to Non-GAAP Statement of Operations Reconciliation for Plantronics, Inc.

·	Unaudited GAAP to Non-GAAP Statements of Operations Reconciliation by Segment

·	Summary Unaudited Statements of Operations and Related Data

About Plantronics

In 1969, a Plantronics headset carried the historic first words from the moon: “That’s one small step for man, one giant leap for mankind.” Since then, Plantronics has become the headset of choice for mission-critical applications such as air traffic control, 911 dispatch, and the New York Stock Exchange. Today, this history of Sound Innovation™ is the basis for every product we build for the office, contact center, personal mobile, entertainment and residential markets. The Plantronics family of brands includes Plantronics, Altec Lansing, Clarity, and Volume Logic. For more information, go to www.plantronics.com or call (800) 544-4660.

Altec Lansing, Clarity, Plantronics, Sound Innovation, and Volume Logic are trademarks or registered trademarks of Plantronics, Inc. All other trademarks are the property of their respective owners.

PLANTRONICS, INC. / 345 Encinal Street / P.O. Box 1802 / Santa Cruz, California 95061-1802

831-426-6060 / Fax 831-426-6098

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PLANTRONICS, INC.

SUMMARY CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(in thousands, except per share data)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
	Three months ended
	June 30,			June 30,
	2005			2006

Net revenues	$	148,909		$	195,069
Cost of revenues		75,760			119,094
Gross profit		73,149			75,975
Gross profit %		49.1	%		38.9	%

Research, development and engineering		13,766			18,600
Selling, general and administrative		29,892			44,888
Gain on sale of land		-			(2,637	)
Total operating expenses		43,658			60,851
Operating income		29,491			15,124
Operating income %		19.8	%		7.8	%

Interest and other income (expense), net		232			985
Income before income taxes		29,723			16,109
Income tax expense		8,025			3,818
Net income	$	21,698		$	12,291

% of Net revenues		14.6	%		6.3	%

Diluted earnings per common share	$	0.44		$	0.25
Shares used in diluted per share calculations		49,335			48,268

Tax rate		27.0	%		23.7	%

UNAUDITED CONSOLIDATED BALANCE SHEETS
		March 31,		June 30,
		2006		2006
ASSETS
Cash and cash equivalents	$	68,703	$	58,486
Short-term investments		8,029		-
Total cash, cash equivalents, and
short-term investments		76,732		58,486
Restricted cash		-		2,667
Accounts receivable, net		118,008		121,702
Inventory		105,882		135,979
Deferred income taxes		12,409		12,428
Other current assets		15,318		13,338
Total current assets		328,349		344,600
Property, plant and equipment, net		93,874		97,738
Intangibles, net		109,208		107,134
Goodwill		75,077		75,286
Other assets		5,741		5,085
	$	612,249	$	629,843
LIABILITIES AND STOCKHOLDERS' EQUITY
Line of credit	$	22,043	$	13,024
Accounts payable		48,574		61,052
Accrued liabilities		43,081		47,838
Income taxes payable		13,231		15,523
Total current liabilities		126,929		137,437
Deferred tax liability		48,246		46,976
Long-term liability		1,453		973
Total liabilities		176,628		185,386
Stockholders' equity		435,621		444,457
	$	612,249	$	629,843

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AUDIO COMMUNICATIONS GROUP

SUMMARY CONDENSED FINANCIAL STATEMENTS

(in thousands, except per share data)

UNAUDITED STATEMENTS OF OPERATIONS
	Three months ended
	June 30,			June 30,
	2005			2006

Net revenues	$	148,909		$	163,737
Cost of revenues		75,760			93,664
Gross profit		73,149			70,073
Gross profit %		49.1	%		42.8	%

Research, development and engineering		13,766			16,018
Selling, general and administrative		29,892			35,875
Gain on sale of land		-			(2,637	)
Total operating expenses		43,658			49,256
Operating income	$	29,491		$	20,817
Operating income %		19.8	%		12.7	%

AUDIO ENTERTAINMENT GROUP

SUMMARY CONDENSED FINANCIAL STATEMENTS

(in thousands, except per share data)

UNAUDITED STATEMENTS OF OPERATIONS
	Three months ended
	June 30,
	2006

Net revenues	$	31,332
Cost of revenues		25,430
Gross profit		5,902
Gross profit %		18.8	%

Research, development and engineering		2,582
Selling, general and administrative		9,013
Total operating expenses		11,595
Operating loss	$	(5,693	)
Operating loss %		-18.2	%

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PLANTRONICS, INC.
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
		Quarter Ended						Quarter Ended
		June 30, 2005						June 30, 2006
		GAAP			GAAP			Excluded⁽¹⁾			Non-GAAP

Net revenues	$	148,909		$	195,069		$	-		$	195,069
Cost of revenues		75,760			119,094			(788	)		118,306
Gross profit		73,149			75,975			788			76,763
Gross profit %		49.1	%		38.9	%					39.4	%

Research, development and engineering		13,766			18,600			(1,027	)		17,573
Selling, general and administrative		29,892			44,888			(2,621	)		42,267
Gain on sale of land		-			(2,637	)		2,637			-
Total operating expenses		43,658			60,851			(1,011	)		59,840
Operating income		29,491			15,124			1,799			16,923
Operating income %		19.8	%		7.8	%					8.7	%

Interest and other income (expense), net		232			985			-			985
Income before income taxes		29,723			16,109			1,799			17,908
Income tax expense		8,025			3,818			443			4,261
Net income	$	21,698		$	12,291		$	1,356		$	13,647

% to Net revenues		14.6	%		6.3	%					7.0	%

Diluted earnings per common share	$	0.44		$	0.25		$	0.03		$	0.28
Shares used in diluted per share calculations		49,335			48,268			48,268			48,268

(1) Excludes stock-based compensation and gain on sale of land.

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AUDIO COMMUNICATIONS GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

UNAUDITED STATEMENTS OF OPERATIONS
		Quarter Ended						Quarter Ended
		June 30, 2005						June 30, 2006
		GAAP			GAAP			Excluded⁽²⁾			Non-GAAP

Net revenues	$	148,909		$	163,737		$	-		$	163,737
Cost of revenues		75,760			93,664			(780	)		92,884
Gross profit		73,149			70,073			780			70,853
Gross profit %		49.1	%		42.8	%					43.3	%

Research, development and engineering		13,766			16,018			(999	)		15,019
Selling, general and administrative		29,892			35,875			(2,518	)		33,357
Gain on sale of land		-			(2,637	)		2,637			-

Total operating expenses		43,658			49,256			(880	)		48,376
Operating income	$	29,491		$	20,817		$	1,660		$	22,477
Operating income %		19.8	%		12.7	%					13.7	%

(2) Excludes stock-based compensation and gain on sale of land.

AUDIO ENTERTAINMENT GROUP
UNAUDITED GAAP TO NON-GAAP RECONCILIATION
(in thousands, except per share data)

UNAUDITED STATEMENTS OF OPERATIONS
					Quarter Ended
					June 30, 2006
		GAAP			Excluded⁽³⁾			Non-GAAP

Net revenues	$	31,332		$	-		$	31,332
Cost of revenues		25,430			(8	)		25,422
Gross profit		5,902			8			5,910
Gross profit %		18.8	%					18.9	%

Research, development and engineering		2,582			(28	)		2,554
Selling, general and administrative		9,013			(103	)		8,910
Total operating expenses		11,595			(131	)		11,464
Operating loss	$	(5,693	)	$	139		$	(5,554	)
Operating loss %		-18.2	%					-17.7	%

(3) Excludes stock-based compensation.

Use of Non-GAAP Financial Information

To supplement our consolidated financial statements presented on a GAAP basis, Plantronics uses non-GAAP measures of operating results, which are adjusted to exclude the impact of all stock-based compensation charges under FAS 123R, and the gain on sale of land, which Plantronics considers a non-recurring transaction. At the segment level, we have presented non-GAAP statements that only show our results to the operating income line. On a consolidated basis, we have presented full non-GAAP statement of operations. The non-GAAP financial measures should not be considered a substitue for, or superior to, financial measures calculated in accordance with GAAP, and the financial results calculated in accordance with GAAP and the reconciliations to those financial statements should be carefully evaluated. The non-GAAP financial measures used by the company may be calculated differently from, and therefore may not be comparable to, similarly titled measures used by other companies.

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Summary of Unaudited Statements of Operations and Related Data

	Q105			Q205			Q305			Q405			FY05			Q106			Q206 ⁽¹⁾			Q306			Q406			FY06 ⁽¹⁾			Q107 ⁽²⁾
Net revenues	$	131,370		$	130,220		$	150,583		$	147,822		$	559,995		$	148,909		$	172,225		$	222,512		$	206,748		$	750,394		$	195,069
Cost of revenues		61,703			60,719			75,150			73,965			271,537			75,760			98,223			128,486			121,671			424,140			118,306
Gross profit		69,667			69,501			75,433			73,857			288,458			73,149			74,002			94,026			85,077			326,254			76,763
Gross profit %		53.0	%		53.4	%		50.1	%		50.0	%		51.5	%		49.1	%		43.0	%		42.3	%		41.2	%		43.5	%		39.4	%

Research, development and engineering		10,044			10,838			11,989			12,345			45,216			13,766			16,122			15,980			16,930			62,798			17,573
Selling, general and administrative		28,920			25,305			31,642			30,754			116,621			29,892			37,823			43,130			42,249			153,094			42,267
Operating expenses		38,964			36,143			43,631			43,099			161,837			43,658			53,945			59,110			59,179			215,892			59,840

Operating income		30,703			33,358			31,802			30,758			126,621			29,491			20,057			34,916			25,898			110,362			16,923
Operating income %		23.4	%		25.6	%		21.1	%		20.8	%		22.6	%		19.8	%		11.6	%		15.7	%		12.5	%		14.7	%		8.7	%

Income before income taxes		31,038			34,271			33,947			31,104			130,360			29,723			21,088			34,320			27,423			112,554			17,908
Income tax expense		8,691			9,596			9,505			5,048			32,840			8,025			7,381			9,279			6,719			31,404			4,261
Income tax expense as a percent
of income before taxes		28.0	%		28.0	%		28.0	%		16.2	%		25.2	%		27.0	%		35.0	%		27.0	%		24.5	%		27.9	%		23.8	%

Net income		22,347			24,675			24,442			26,056			97,520			21,698			13,707			25,041			20,704			81,150			13,647
Diluted shares outstanding		50,428			50,638			51,365			50,967			50,821			49,335			49,007			48,165			48,637			48,788			48,268
Diluted EPS	$	0.44		$	0.49		$	0.48		$	0.51		$	1.92		$	0.44		$	0.28		$	0.52		$	0.43		$	1.66		$	0.28

Net revenues from unaffiliated customers:
Audio Communication Group
Office and Contact center		82,815			86,204			92,470			104,846			366,335			105,425			107,475			114,290			119,334			446,524			114,267
Mobile		34,458			28,815			35,469			26,520			125,262			26,868			26,682			29,973			35,810			119,333			35,806
Gaming and Computer		6,992			8,515			15,259			9,038			39,804			9,344			8,906			9,419			7,987			35,656			7,289
Other specialty products		7,105			6,686			7,385			7,418			28,594			7,272			7,237			7,837			5,866			28,212			6,375
Audio Entertainment Group		-			-			-			-			-			-			21,925			60,993			37,751			120,669			31,332


Net revenues by geographical area
from unaffiliated customers:
Domestic		89,088			89,375			100,587			96,480			375,530			96,685			113,431			139,033			136,253			485,402			132,607
International		42,282			40,845			49,996			51,342			184,465			52,224			58,794			83,479			70,495			264,992			62,462

Balance Sheet accounts and metrics:
Accounts receivable, net ⁽³⁾		68,039			73,345			89,178			87,558			87,558			88,576			115,078			126,169			118,008			118,008			121,702
Days sales outstanding		47			51			53			53						54			60			51			51						56
Inventory, net		47,418			65,940			75,074			60,201			60,201			56,441			99,167			106,573			105,882			105,882			135,979
Inventory turns		5.2			3.7			4.0			4.9						5.4			4.0			4.8			4.6						3.5

(1)	Includes Altec Lansing since the acquisition as at August 18, 2005

(2)

Non-GAAP

(3)	Certain balances related to other receivables have been reclassified from accounts receivable, net to other current assets, to represent March 2005 classifications