Harvey Electronics Announces Cancellation of Annual Meeting; New Annual Meeting Date to Be Determined Shortly

Business Wire, July 20, 2006

LYNDHURST, N.J. -- Harvey Electronics, Inc. ("Harvey Electronics", "Harvey" or the "Company"; NASDAQ Capital Market symbol: "HRVE") announced today that it has cancelled its annual meeting of shareholders scheduled for July 21, 2006. A new annual meeting date will be announced shortly.

The Company decided to cancel its annual meeting as a result of an insufficient number of shareholder responses in favor of certain of the proposals which were to be voted on at the annual meeting. While the proposals were supported by an overwhelming majority of those stockholders who voted their shares, less than half of the outstanding common shares were voted directly by our shareholders. Michael Recca, Chairman, stated, "Harvey Electronics has a large number of shareholders for a small cap company, many of whom have been difficult to contact in spite of the best efforts of the Company and our proxy solicitor. Because a number of the important matters contained in our proxy statement, relating to the proposed capital investment required a majority of all shareholders to vote in the affirmative, we required a higher vote tabulation in order to receive approval for these initiatives. Approximately 46.5% of the outstanding common shares represented broker non-votes, which occurs when a broker's customer fails to provide voting instructions on non-discretionary matters. The overwhelming support we have received from shareholders who voted, and the unanimous conviction of our Board of Directors and Management of the benefit to shareholders of the proposed capital investment, compel us to re-file a new proxy statement with the Securities and Exchange Commission as soon as possible."

The Company intends to promptly file a new proxy statement with the Securities and Exchange Commission to place the proposals, including the proposed $4.0 capital investment, before the shareholders again.

Harvey Electronics is a leading retailer and custom installer of high quality, exclusive home theater, audio and video products in the metropolitan New York area. The Company currently operates a total of nine locations; eight Harvey showrooms and one separate Bang & Olufsen branded store. There are two Harvey locations in Manhattan and six suburban locations in Paramus, New Jersey; Mt. Kisco, in Westchester; Greenwich, Connecticut; Greenvale/Roslyn, on the north shore of Long Island, in Eatontown, New Jersey and our newest store in Bridgewater, New Jersey. The Bang & Olufsen branded store is located in Union Square on 927 Broadway at 21st Street, in Manhattan. The Company also has a Bang & Olufsen showroom within our Harvey retail store in Greenwich, Connecticut.

Audio Video International, a well-respected trade publication, has named Harvey Electronics a national "Top Ten Retailer of the Year", seven years in a row.

Please visit a Harvey store or one of our Bang & Olufsen showrooms. Also, please inquire about Harvey's custom installation services.

From time to time, information provided by the Company, statements made by its employees or information, included in its filings with the Securities and Exchange Commission may contain statements, which are so-called "forward-looking statements" and not historical facts. Forward-looking statements can be identified by the use of words such as "believe", "expect", "intend", "anticipate", "in my opinion", and similar words or variations. These forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Company's actual future results may differ significantly from those stated in any forward-looking statements. Forward-looking statements involve a number of risks and uncertainties, including, but not limited to, product demand, pricing, market acceptance, litigation, risks in product and technology development and other risk factors detailed in the Company's Prospectus dated March 31, 1998 and from time to time in the Company's Securities and Exchange Commission reports including its Form 10-K and Forms 10-Q.

For more information and showroom locations, visit our website at www.harveyonline.com.