Market Overview

HARMAN and Baidu DuerOS Collaborate on AI Solutions for China Automotive Market

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HARMAN
International
, a wholly-owned subsidiary of Samsung focused on
connected technologies for the automotive, consumer and enterprise
markets, is pleased to announce it has expanded its relationship with
Baidu, the leading Chinese Internet and web services company, to jointly
develop new cloud-based artificial intelligence (AI) solutions aimed at
Chinese automakers.

The two companies will collaborate to integrate Baidu's DuerOS-based
personal digital assistant and voice recognition engine technologies
with HARMAN's connected car and cloud platforms. DuerOS is an open
operating system that already supports access to a voice-activated
digital assistant for mobile phones, TVs, speakers, and other devices,
while supporting the ability of third-party developer access. Together,
the companies will now collaborate to create smart automotive features
including automatic speech recognition (ASR) in English and Mandarin,
natural language processing and speech synthesis.

The agreement builds on HARMAN's existing relationship with Baidu. In
January 2015, HARMAN and Baidu entered into a strategic collaboration to
launch CarLife, a vehicle networking solution that offers advanced
Internet capabilities, entertainment features and location-based
services on HARMAN's in-vehicle infotainment head units designed for the
Chinese market.

"HARMAN's vision is to revolutionize the in-car experience, and we
continue to take bold steps to lead the industry with innovations that
enhance and better integrate across their digital footprint – from home,
to office, to the car – for people everywhere," said Dinesh Paliwal,
President, and CEO of HARMAN. "As we look forward to a future with
increased autonomy, HARMAN and Baidu will continue to collaborate to
deliver enhanced in-vehicles experiences to drivers that are intuitive
and easy to use, and seamlessly integrated with their digital lifestyle."

"The partnership between Baidu and HARMAN will let consumers use natural
voice control to more safely and conveniently interact with their cars
and access off-board information and services," said Qi Lu, Group
President and Chief Operating Officer at Baidu. "Extending our
successful partnership with HARMAN further demonstrates our joint
commitment to creating the most flexible, innovative solutions that are
tailored to meet the unique demand of Chinese auto industry and
customers."

Beyond the automotive market, HARMAN and Baidu DuerOS have also
announced plans to deliver high-quality audio solutions for innovative
speech-enabled smart speakers, also integrated with Baidu's advanced AI
technology.

ABOUT BAIDU

Baidu, Inc. is the leading Chinese language Internet search provider. As
a technology-based media company, Baidu aims to provide the best and
most equitable way for people to find what they're looking for. In
addition to serving individual Internet search users, Baidu provides an
effective platform for businesses to reach potential customers. Baidu's
ADSs trade on the NASDAQ Global Select Market under the symbol "BIDU".
Currently, ten ADSs represent one Class A ordinary share.

ABOUT HARMAN

HARMAN (harman.com) designs and engineers connected products and
solutions for automakers, consumers, and enterprises worldwide,
including connected car systems, audio and visual products, enterprise
automation solutions, and services supporting the Internet of Things.
With leading brands including AKG®, Harman Kardon®, Infinity®, JBL®,
Lexicon®, Mark Levinson® and Revel®, HARMAN is admired by audiophiles,
musicians and the entertainment venues where they perform around the
world. More than 25 million automobiles on the road today are equipped
with HARMAN audio and connected car systems. Our software services power
billions of mobile devices and systems that are connected, integrated
and secure across all platforms, from work and home to car and mobile.
HARMAN has a workforce of approximately 30,000 people across the
Americas, Europe, and Asia. In March 2017, HARMAN became a wholly-owned
subsidiary of Samsung Electronics.

HAR-C

© 2017 HARMAN International Industries, Incorporated. All rights
reserved. Harman Kardon, Infinity, JBL, Lexicon and Mark Levinson are
trademarks of HARMAN International Industries, Incorporated, registered
in the United States and/or other countries. AKG is a trademark of AKG
Acoustics GmbH, registered in the United States and/or other countries.
Features, specifications and appearance are subject to change without
notice.

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