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                                                                    Exhibit 99.1

KOSS
NEWS RELEASE
Koss Corporation                            CONTACT: Michael J. Koss
4129 N. Port Washington Ave.                         President and CEO
Milwaukee, Wisconsin  53212                          414-964-5000
                                                     email: mjkoss@koss.com


                    **********FOR IMMEDIATE RELEASE**********

July 25, 2001

             KOSS TO PAY DIVIDEND AND INCREASE STOCK BUYBACK PROGRAM

MILWAUKEE, WISCONSIN: Koss Corporation (NASDAQ SYMBOL:KOSS), the U.S. based
leader in high-fidelity stereophones, has announced that it would begin to pay a
quarterly cash dividend to its shareholders. The news follows an announcement by
the Company last week that it had recorded record sales of its stereophone
product line, record net income and record earnings per share of $2.55 for its
fiscal year ending June 30, 2001. The quarterly dividend will be $0.25 per share
payable on October 15, 2001 to shareholders of record on September 30, 2001.

"This is the first time we have paid a dividend to shareholders since 1983,"
Michael J. Koss, President and CEO, said here today. "We anticipate the ability
to continue paying a quarterly dividend in future years but caution investors
not to expect any annual increase in the current rates in the foreseeable
future."

Koss went on to explain that capital deployment on new products, new product
lines, the repurchase of undervalued shares of its stock, and potential long
term acquisitions, are all factors which will impact the Company's decision as
to whether to continue to pay quarterly dividends and the amount of future
dividend payments. Koss further noted that although the Company has expressed
its intention to continue to pay cash dividends for future quarters, there can
be no assurance that the Company will continue to pay dividends. The future
payment of dividends, and the amount of such dividends if any are paid, is
within the sole and exclusive discretion of the Board of Directors. Future
payment of any dividends by the Company will depend upon numerous factors,
including the profitability of the Company, capital requirements, operational
costs, business opportunities, tax considerations, general economic conditions,
consumer demand for the Company's and its customers' products, competitive and
technological developments, foreign currency fluctuations, restrictions in any
then-existing credit agreements, and other factors that the Board of Directors
may deem relevant.

The Company has also announced that its Board of Directors has approved the use
of an additional three million dollars to repurchase undervalued shares of the
company stock.

Koss Corporation markets a complete line of high-fidelity stereophones,
speaker-phones, computer headsets, telecommunications headsets, active noise
canceling stereophones, wireless stereophones, and compact disc recordings of
American Symphony Orchestras on the Koss Classics label.

This press release contains statements as to the Company's intention to pay
quarterly cash dividends in the future. These statements constitute
"Forward-looking statements" which are subject to many uncertainties in the
Company's operations and business environment. Some of these uncertainties are
identified above in this release. Shareholders, potential investors and other
readers are urged to consider these factors carefully in evaluating the
forward-looking statements and are cautioned not to place undue reliance on such
forward-looking statements. The forward-looking statements made herein are only
made as of the date of this press release and the company undertakes no
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances. In addition, such


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uncertainties and other operational matters are discussed further in the
Company's quarterly and annual filings with the Securities and Exchange
Commission.

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