UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K

[X]  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934 FOR FISCAL YEAR ENDED DECEMBER 31, 2007.

[ ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
     EXCHANGE ACT OF 1934.

     For the transition period from _______________ to _______________.

Commission File No.: 0-10235

                               GENTEX CORPORATION
             (Exact name of registrant as specified in its charter)


                                              
           MICHIGAN                                       38-2030505
(State or other jurisdiction of                        (I.R.S. Employer
incorporation or organization)                        Identification No.)



                                                         
600 N. CENTENNIAL STREET, ZEELAND, MICHIGAN                    49464
 (Address of principal executive offices)                   (Zip Code)


                                 (616) 772-1800
              (Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



                                                         Name of each
          Title of each Class                   exchange on which registered
          -------------------                   ----------------------------
                                             
COMMON STOCK, PAR VALUE $.06 PER SHARE          Nasdaq Global Select Market


Securities registered pursuant to Section 12(g) of the Act:

                                      NONE
                                (Title of Class)

Indicate by check mark if the registrant is a well-known seasoned issuer, as
defined in Rule 405 of the Securities Act.

     Yes:   X    No:
          -----      -----

Indicate by check mark if the registrant is not required to file reports
pursuant to Section 13 or Section 15(d) of the Act.

     Yes:        No:   X
          -----      -----

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

     Yes:   X    No:
          -----      -----

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (229.405 of this chapter) is not contained herein, and will
not be contained, to the best of registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-K
or any amendment to this Form 10-K. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check One):

         Large Accelerated Filer [X]            Accelerated Filer         [ ]

         Non-Accelerated Filer   [ ]            Smaller Reporting Company [ ]
(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company as (defined in
Rule 12b-2).

     Yes:        No:   X
          -----      -----

As of June 30, 2007 (the last business day of the registrant's most recently
completed second fiscal quarter), 137,616,177 shares of the registrant's common
stock, par value $.06 per share, were outstanding. The aggregate market value of
the common stock held by non-affiliates of the registrant (i.e., excluding
shares held by executive officers, directors, and control persons as defined in
Rule 405 (17 CFR 203.405) on that date was $2,709,662,525 computed at the
closing price on that date.

As of February 12, 2008, 144,033,281 shares of the registrant's common stock,
par value $.06 per share, were outstanding.

Portions of the Company's Proxy Statement for its 2008 Annual Meeting of
Shareholders are incorporated by reference into Part III.

                        Exhibit Index located at Page 48


                                      -1-


                                     PART I

ITEM 1. BUSINESS

(A) GENERAL DEVELOPMENT OF BUSINESS

     Gentex Corporation (the "Company") designs, develops, manufactures and
markets proprietary products employing electro-optic technology:
automatic-dimming rearview automotive mirrors and fire protection products. The
Company also developed and manufactures variable dimmable windows for the
aircraft industry and non-automatic-dimming rearview automotive mirrors with
electronic features.

     The Company was organized as a Michigan company in 1974 to manufacture
residential smoke detectors, a product line that has since evolved into a more
sophisticated group of fire protection products for commercial applications. In
1982, the Company introduced an automatic interior rearview mirror that was the
first commercially successful glare-control product offered as an alternative to
the conventional, manual day/night mirror. In 1987, the Company introduced its
interior electrochromic (auto-dimming) mirror, providing the first successful
commercial application of electrochromic (EC) technology in the automotive
industry and world. Through the use of electrochromic technology, this mirror is
continually variable and automatically darkens to the degree required to
eliminate rearview mirror headlight glare. In 1991, the Company introduced its
exterior electrochromic sub-assembly, which works as a complete glare-control
system with the interior auto-dimming mirror. In 1997, the Company began making
volume shipments of three new exterior mirror sub-assembly products: thin glass
flat, convex and aspheric.

     During 2001, the Company announced a revolutionary new proprietary
technology, called SmartBeam(R), that uses a custom, active-pixel, CMOS
(complementary metal oxide semiconductor) sensor, and maximizes a driver's
forward vision by significantly improving utilization of the vehicle's highbeam
headlamps during nighttime driving. During 2004, the Company began shipping
auto-dimming mirrors with SmartBeam(R). During 2007, the Company began shipping
auto-dimming mirrors with SmartBeam(R) for the BMW 5 and 6 Series in North
America and the BMW X5 model in Europe and other select markets.

     During 2006, the Company announced development programs with several
automakers for its Rear Camera Display (RCD) Mirror that shows a panoramic video
view of objects directly behind the vehicle in real time. During 2007, the
Company announced a number of OEM programs with Ford Motor Company as well as
the Kia Mohave for the Korean market to supply its RCD Mirror. The Company also
announced that the RCD Mirror is available as a dealer or port-installed option
on the Toyota Camry through Gulf States Toyota. In addition, the Company
announced a dealer or port-installed program with Mazda to supply its RCD
Mirror.

     During 2005, the Company reached an agreement with PPG Aerospace to work
together to provide the variably dimmable windows for the passenger compartment
on the new Boeing 787 Dreamliner series of aircraft. The Company shipped the
first set of variably dimmable aircraft windows for test planes in mid 2007.

     During 2006, the Company has developed its own compass technology called
Z-Nav(R), which can be sold as a system with the compass heading displayed in
the interior auto-dimming mirror or it can be mounted on any fixed or pivotal
location in the vehicle.

     During 2007, the Company began shipping non automatic-dimming exterior
mirrors with electronic features in low volume.

     The Company's annual report on Form 10-K, quarterly reports on Form 10-Q,
current reports on Form 8-K, and all amendments to those reports, will be made
available free of charge through the Investor Information section of the
Company's Internet website (http://www.gentex.com) as soon as practicable after
such material is electronically filed with or furnished to the Securities and
Exchange Commission.

(B) FINANCIAL INFORMATION ABOUT INDUSTRY SEGMENTS

     See Note 9 to the Consolidated Financial Statements filed with this report.

(C) NARRATIVE DESCRIPTION OF BUSINESS

     The Company currently manufactures electro-optic products, including
automatic-dimming rearview mirrors for the automotive industry and fire
protection products primarily for the commercial building industry. The Company
also manufactures


                                       -2-



variable dimmable windows for the aircraft industry and non automatic-dimming
rearview automotive mirrors with electronic features for the automotive
industry.

AUTOMOTIVE MIRRORS

     AUTOMATIC-DIMMING REARVIEW MIRRORS

     Interior Auto-Dimming Mirrors. In 1987, the Company achieved a significant
technological breakthrough by applying electrochromic technology to the
glare-sensing capabilities of its Motorized Mirror. Through the use of this
technology, the mirror gradually darkens to the degree necessary to eliminate
rearview glare from following vehicle headlights. The auto-dimming mirror offers
all of the continuous reflectance levels between its approximate 85%
full-reflectance state and its 7% least-reflectance state, taking just a few
seconds to span the entire range. Special electro-optic sensors in the mirror
detect glare and electronic circuitry supplies electricity to darken the mirror
to only the precise level required to eliminate glare, allowing the driver to
maintain maximum vision. This is accomplished by the utilization of two layers
of precision glass with special conductive coatings that are separated by the
Company's proprietary electrochromic materials. When the appropriate light
differential is detected, an electric current causes the electrochromic material
to darken, decreasing the mirror's reflectance, thereby eliminating glare.

     During 1991, the Company began shipping the first advanced-feature interior
auto-dimming mirror, the auto-dimming headlamp control mirror, an
automatic-dimming mirror that automatically turns car head- and taillamps "on"
and "off" at dusk and dawn in response to the level of light observed. During
1993, the Company began shipping an auto-dimming compass mirror, with an
electronic compass that automatically compensates for changes in the earth's
magnetic field. During 1997, the Company began shipping a new interior
auto-dimming mirror that digitally displays either a compass or outside
temperature reading. During 1998, the Company began shipping new compass mirrors
with light-emitting diode (LED) map lamps, a major improvement over mirrors with
standard incandescent map lamps, including extremely long life, low heat
generation, lower current draw, more resistance to shock, and lower total cost
of ownership. In 2000, the Company began shipping to General Motors interior
auto-dimming mirrors that serve as the driver interface for the OnStar(R)
System, an in-vehicle safety, security and information service using Global
Positioning System (GPS) satellite technology. OnStar is a registered trademark
of OnStar Corporation.

     During 2001 and 2002, the Company began making shipments of its
auto-dimming mirrors for a number of mid-sized, medium-priced vehicles,
including the Toyota Camry, Matrix and Corolla; Ford Taurus and Mercury Sable;
Volkswagen Passat, Jetta, Golf GTI and Beetle; Nissan Altima; Opel cross car
line; Chrysler Sebring Coupe; Hyundai Santa Fe and Sonata; and Kia Optima and
Sorento. The Company continues to expand its shipments of auto-dimming mirrors
for mid-sized, medium-priced vehicles, including the new 2008 Honda Accord.

     During 2003, the Company began making shipments of its auto-dimming mirrors
to two new automotive OEM customers, Honda and Volvo, and began volume shipments
of its microphone as part of DaimlerChrysler's "U-Connect(R)" telematics system.
During 2007, the Company began making shipments of its microphone mirrors as
part of Ford's "Sync(R)" telematics system.

     During 2004 and 2005, the Company began shipping auto-dimming mirrors with
SmartBeam(R), its proprietary intelligent high-beam headlamp control feature,
for the Cadillac STS, Jeep Grand Cherokee, Cadillac DTS, the Jeep Commander, and
BMW 5, 6 and 7 Series models in Europe and other select markets. During 2006,
the Company began shipping auto-dimming mirrors with SmartBeam(R) for the BMW 3
Series, Cadillac Escalade and the Chrysler 300C. During 2007, the Company began
shipping auto-dimming mirrors with SmartBeam(R) for the BMW 5 and 6 Series in
North America and the BMW X5 model in Europe and other select markets.

     During 2006, the Company announced development programs with several
automakers for its Rear Camera Display (RCD) Mirror that shows a panoramic video
view of objects directly behind the vehicle in real time. During 2007, the
Company began shipping auto-dimming mirrors with RCD for the Ford Expedition,
Ford F150, Lincoln Navigator and the Lincoln Mark LT. The Company also began
shipping auto-dimming mirrors with RCD for the Mazda CX-9 as a dealer or
port-installed program. In addition, the Company began shipping auto-dimming
mirrors with RCD for the Toyota Camry as a dealer or port-installed option
through Gulf


                                       -3-



States Toyota, one of two remaining independent Toyota distributorships that
covers dealers in the states of Arkansas, Louisiana, Mississippi, Oklahoma and
Texas. The Company also announced that its RCD Mirror is available in the Korean
market on the Kia Mohave.

     In December 2007, the United States House of Representatives passed the
"Kids Transportation Safety Act of 2007" which was introduced into the Senate on
December 19, 2007, and in January 2008 it was referred to the Committee on
Commerce, Science and Transportation. The bill orders the Secretary of
Transportation at the National Highway Traffic Safety Administration (NHTSA) to
initiate rulemaking to revise the federal standard to expand the field of view
so that drivers can detect objects directly behind vehicles. While the bill does
not state how visibility can be enhanced, the Company's RCD Mirror is a cost
competitive product that is relatively easy to implement. The Senate unanimously
passed the bill on February 14, 2008 and is awaiting the President's approval
signing it into law.

     The Company shipped approximately 8,924,000 interior auto-dimming mirrors
in 2005, approximately 9,426,000 in 2006, and 11,001,000 in 2007.


                                       -4-



     During 2007, the growth in interior total mirror unit shipments increased
primarily due to increased shipments to certain traditional Big Three automakers
as well as European and Asian customers. The Company's interior auto-dimming
mirrors are standard equipment or factory-installed options on certain trim
levels of the following 2008 vehicle models:

TABLE 1. INTERIOR AUTO-DIMMING MIRROR AVAILABILITY BY VEHICLE LINE (NORTH
AMERICAN MANUFACTURERS)



                                                   
GM/Cadillac        DTS              Chrysler                300
                   STS                                      Aspen
                   CTS                                      Sebring
                   Escalade                                 Town & Country
                   SRX              Chrysler/Dodge          Avenger
GM/Buick           Enclave                                  Caliber
                   LaCrosse                                 Caravan
                   Lucerne                                  Charger
                   Rainier                                  Dakota
GM/Hummer          H2                                       Durango
                   H3                                       Nitro
GM/Pontiac         G6                                       Ram Pickup
                   Torrent          Chrysler/Jeep           Commander
GM/Chevrolet       Avalanche                                Compass
                   Colorado                                 Grand Cherokee
                   Express                                  Liberty
                   Equinox                                  Patriot
                   HHR              Daimler/Mercedes-Benz   GL Class
                   Impala                                   M Class
                   Malibu                                   R Class
                   Silverado        BMW                     X5
                   Suburban         Honda                   Accord
                   Tahoe            Honda/Acura             MDX
                   Trailblazer                              RDX
GM/GMC             Acadia           Hyundai                 Sante Fe
                   Canyon                                   Sonata
                   Envoy            Mazda                   6
                   Savana           Mitsubishi              Galant
                   Sierra                                   Raider
                   Yukon            Nissan                  Altima
GM/Saturn          Aura                                     Armada
                   ION                                      Frontier
                   Outlook                                  Maxima
                   Vue                                      Pathfinder
Ford               Crown Victoria                           Quest
                   Edge                                     Titan
                   Expedition       Nissan/Infiniti         QX56
                   Taurus           Toyota                  Avalon
                   Fairlane                                 Camry
                   Freestyle                                Camry Solara
                   Fusion                                   Corolla
                   F Series                                 Matrix
                   Mustang                                  Sequoia
Ford/Lincoln       MKX                                      Sienna
                   MKZ                                      Tacoma
                   Mark LT                                  Tundra
                   Navigator        Toyota/Lexus            RX330/350
                   Town Car         Volkswagen              Beetle
Ford/Mercury       Grand Marquis                            Jetta
                   Milan
                   Sable



                                       -5-



TABLE 1. INTERIOR AUTO-DIMMING MIRROR AVAILABILITY BY VEHICLE LINE - CONTINUED
(MANUFACTURERS OUTSIDE OF NORTH AMERICA)


                                                                               
Bentley            Arnage           Hyundai (cont'd)        Veracruz       Toyota (cont'd)    4-Runner
                   Azure            Hyundai/Kia             Amanti                            Zi0
                   Continental                              Carnival       Volkswagen         EOS
                   GTC                                      Carens                            Caddy Van
BMW                7 Series                                 C'eed                             Golf
                   6 Series                                 Cerato                            Jetta
                   5 Series                                 Lotze                             Passat
                   3 Series                                 Mohave                            Phaeton
                   1 Series                                 Borrego                           Polo
                   X3                                       S&P 210Z                          Sharan
Daewoo             Antara                                   Opirus                            Touareg
                   Winstorm                                 Optima                            Touran
Daewoo/Ssangyong   Actyon                                   Sedona                            Transporter
                   Chairman                                 Sorento        Volkswagen/Audi    A3
                   Kyron                                    Spectra                           A4
                   Rexton                                   Sportage                          A6
                   Rodius           Maserati                Quattroporte                      A8
Chrysler           300                                      GT Coupe                          Cabrio
                   Voyager          Mazda                   RX-8                              Allroad
Chrysler/Jeep      Commander        Daimler                 C Class                           Q7
                   Grand Cherokee   /Mercedes Benz          CL Class                          R8
Fiat               Idea                                     CLK                               TT
                   500                                      CLS            Volkswagen/SEAT    Altea
Fiat/Alfa Romero   147                                      E Class                           Cordoba
Fiat/Lancia        Thesis                                   G Wagen                           Ibiza
Ford               Falcon                                   S Class                           Leon
                   Focus                                    SL Class                          Toledo
                   Galaxy                                   SLK            Volkswagen/Skoda   Octavia
                   Mondeo           Mitsubishi              380                               Superb
                   Territory                                Magna
                   S-Max                                    Pajero
Ford/Jaguar        S-Type           Nissan                  350Z
                   XK                                       Cedric
                   XJ                                       Frontier
Ford/Land Rover    LR3                                      Murano
                   Range Rover                              Navara
Ford/Volvo         C70                                      Pathfinder
                   C30                                      Rogue
                   S40                                      Skyline
                   V50              Nissan/Infiniti         FX35/FX45
GM/Buick           Regal                                    G35/G37
GM/Opel            Astra                                    M35/M45
                   Captiva                                  Q45
                   Corsa            PSA/Citroen             C6
                   Meriva           PSA/Peugeot             207
                   Signum                                   407
                   Tigra            Porsche                 Cayenne
                   Vectra           SAIC                    Roewe 750
                   Zafira           Skoda                   Octavia
GM/Saab            9-7X             Suzuki                  XL-7
Honda/Acura        TSX              Toyota/Lexus            ES330
Honda              Accord                                   GX470
Hongqi             Benteng                                  LX
Hyundai            Avante                                   RX330
                   Azera            Toyota                  Auris
                   Elantra                                  Avensis
                   Equus                                    Blade
                   Grandeur                                 Camry
                   I30                                      Corolla
                   Sonata                                   Highlander
                   Santa Fe                                 Land Cruiser
                   Starex                                   Mark X
                   Tuscani                                  Prius
                   Trajet                                   RAV4
                   Tucson                                   Verso



                                       -6-



     Exterior Auto-Dimming Mirror Sub-Assemblies. The Company has devoted
substantial research and development efforts to the development of its
electrochromic technology to permit its use in exterior rearview mirrors.
Exterior auto-dimming mirrors are controlled by the sensors and electronic
circuitry in the interior auto-dimming mirror, and both the interior and
exterior mirrors dim simultaneously. During 1991, the Company's efforts
culminated in a design that is intended to provide acceptable long-term
performance in all automotive environments likely to be encountered. In 1994,
the Company began shipments of its complete three-mirror system, including the
convex (curved glass) wide-angle auto-dimming mirror to BMW. During 1997, the
Company began making volume shipments of additional new exterior mirror
products: thin glass flat and aspheric mirrors. During 2001 and 2002, the
Company began making shipments of the world's first exterior automatic-dimming
mirrors with built-in turn-signal indicators to Southeast Toyota and General
Motors. The Company currently offers its exterior auto-dimming mirrors with
turn-signal indicators and side blind zone features. The Company currently sells
its exterior auto-dimming mirror sub-assemblies to exterior mirror suppliers of
the automakers who assemble the exterior auto-dimming mirror sub-assemblies into
full mirror units for subsequent resale to the automakers.

     The Company shipped approximately 3,646,000 exterior auto-dimming mirror
sub-assemblies during 2005, approximately 4,001,000 in 2006, and approximately
4,220,000 in 2007. During 2007, unit shipment growth primarily resulted from the
increased penetration of light vehicles at certain Asian and European
automakers.

     The exterior auto-dimming mirror is standard equipment or a
factory-installed option on certain trim levels of the following 2008 vehicle
models:

TABLE 2. EXTERIOR AUTO-DIMMING MIRROR AVAILABILITY BY VEHICLE LINE


                                                                               
GM/Cadillac        DTS              Bentley                 Arnage         Hyundai/Kia        Amanti
                   Escalade                                 Azure                             Opirus
                   XLR                                      Continental    Nissan/Infiniti    Q45
                   Enclave                                  GTC                               QX56
GM/Buick           Lucerne          Daimler                 C Class        Toyota/Lexus       GS
GM/Chevrolet       Avalanche        /Mercedes Benz          CL Class                          LS
                   Silverado                                CLK                               LX
                   Suburban                                 CLS                               RX330/350
                   Tahoe                                    E Class        Toyota             Avalon
GM/GMC             Acadia                                   G Wagen                           Camry Solara
                   Sierra                                   GL Class                          Land Cruiser
                   Yukon                                    M Class                           Sequoia
GM/Hummer          H2                                       R Class                           Sienna
GM/Saturn          Outlook                                  S Class                           Tundra
Ford/Lincoln       MKZ                                      SL Class       Nissan             Armada
                   Town Car                                 SLK                               Cima
Chrysler           300              Ford/Jaguar             S-Type                            Maxima
                   Aspen                                    XJ                                Titan
                   Town & Country                           XK             Rolls Royce        Phantom
Chrysler/Dodge     Caravan          Ford/Land Rover         Range Rover    Daewoo             Antara
                   Durango          GM/Opel                 Vectra         Daewoo             Chairman
Chrysler/Jeep      Commander        Maserati                Quattroporte   /Ssangyong
                   Grand Cherokee                           GT Coupe
Volkswagen/Audi    A3               Mitsubishi              Magna
                   A4               PSA/Citroen             C6
                   A6               VW/Skoda                Octavia
                   A8               Volkswagen              EOS
                   Cabrio                                   Golf
                   Q7                                       Passat
                   R8                                       Sharan
                   TT                                       Touran
BMW                7 Series                                 Touareg
                   6 Series         Honda/Acura             Accord
                   5 Series                                 RL
                   3 Series         Hyundai                 Equus
                   1 Series                                 Grandeur
                   X3                                       Veracruz



                                       -7-


     Non-Automatic-Dimming Rearview Mirrors. In 2007, the Company began shipping
non-auto-dimming exterior mirrors with electronic features (i.e. side blind zone
indicators) in low volume.

     Product Development. The Company plans to continue introducing additional
advanced-feature auto-dimming mirrors. Advanced-feature auto-dimming mirrors
currently being offered by the Company include the auto-dimming headlamp control
mirror, the auto-dimming lighted mirror with LED map lamps, the auto-dimming
compass mirror, the auto-dimming mirror with remote keyless entry, the
auto-dimming compass/temperature mirror, the auto-dimming dual display
compass/temperature mirror, auto-dimming telematics mirrors and the auto-dimming
HomeLink(R) mirror. During 2001, the Company announced a revolutionary new
proprietary technology, called SmartBeam(R), that uses a custom, active-pixel,
CMOS (complementary metal oxide semiconductor) sensor, and maximizes a driver's
forward vision by significantly improving utilization of the vehicle's highbeam
headlamps during nighttime driving. During 2004, the Company began shipping
auto-dimming mirrors with SmartBeam, its proprietary intelligent high-beam
headlamp control feature, on the Cadillac STS and Jeep Grand Cherokee. During
2005, the Company began shipping auto-dimming mirrors with SmartBeam for the
Cadillac DTS, the Jeep Commander, and BMW 5, 6 and 7 Series models in Europe and
select markets. During 2006, the Company began shipping auto-dimming mirrors
with SmartBeam for the BMW 3 Series, Cadillac Escalade and the Chrysler 300C.
During 2007, the Company began shipping auto-dimming mirrors with SmartBeam(R)
for the BMW 5 and 6 Series in North America and the BMW X5 model in Europe and
other select markets.

     During 2006, the Company announced development programs with several
automakers for its RCD Mirror that consists of a proprietary liquid crystal
display (LCD) device that shows a panoramic video view of objects behind the
vehicle in real time. When the vehicle is put in "reverse," the display
illuminates and automatically appears through the rearview mirror's reflective
surface to give a high resolution, bright colored image. The image is generated
by a camera or cameras placed in a protected area at the rear of the vehicle.
When the vehicle is put in "drive," the display in the mirror automatically
disappears. The ability to automatically have the display appear through the
auto-dimming mirror's surface is made possible by utilizing proprietary
"transflective" coatings developed the Company.

     In addition, the Company has developed its own compass technology, which
can be sold as a system with the compass heading displayed in the interior
auto-dimming mirror. The Gentex compass technology is called Z-Nav(R), as it
features a proprietary, digital, tri-axis sensor (transducer) and software. The
tri-axis design is similar to compasses used in highly scientific apparatus such
as aerospace applications, and can be mounted on any fixed or pivotal location
in the vehicle, including inside the mirror housing.

     The Company also developed an ALS (Active Light Sensor) technology as a
cost-effective, improved-performance, intelligent CMOS light sensor to control
the dimming of its rearview mirrors, and the Company began making volume
shipments of mirrors incorporating ALS in 2002.

     During 2001, the Company developed a new microphone designed specifically
for use in the automotive environment for telematics applications. The first
volume Gentex microphone application was part of DaimlerChrysler's
"U-Connect(R)" telematics system, beginning in 2003. During 2006, the Company's
proprietary integrated hands-free microphone was available as part of an
optional navigation package at Ford. Also, the Company is separately shipping
its proprietary microphone units that are being incorporated into prismatic
interior mirrors at a customer's request.

     Of particular importance to the Company has been the development of its
electrochromic technology for use in complete three-mirror systems. In these
systems, both the driver- and passenger-side exterior auto-dimming mirrors are
controlled by the sensors and electronic circuitry in the interior rearview
mirror, and the interior and both exterior mirrors dim simultaneously. The
Company's engineering, research, and development expenses are set forth as a
separate line item in the Consolidated Statement of Income of the Company's
Consolidated Financial Statements filed in this report.

     Markets and Marketing. In North America, the Company markets its products
primarily through a direct sales force. The Company generally supplies
auto-dimming mirrors to its customers worldwide under annual blanket purchase
orders. The Company currently supplies auto-dimming mirrors to General Motors
Corporation, Daimler AG (formerly DaimlerChrysler AG), Chrysler LLC


                                      -8-



and Ford Motor Company under long-term agreements. During 2005, the Company
negotiated an extension to its long-term agreement for inside mirrors with
General Motors in the ordinary course of the Company's business. Under the
extension, Gentex was sourced virtually all of the interior auto-dimming
rearview mirror programs for GM and its worldwide affiliates through August
2009, except for two low-volume models that had previously been awarded to a
Gentex competitor under a lifetime contract. The new business includes the
GMT360 program (which is the mid-size truck/SUV platform that previously did not
offer auto-dimming mirrors). The Company also negotiated a price reduction for
the GM OnStar(R) feature in its auto-dimming mirrors, effective January 1, 2005,
in connection with GM's stated plan to make their OnStar system standard across
their vehicle models over the next several years.

     The Company has a long-term agreement with Daimler AG (formerly
DaimlerChrysler AG) entered into in the ordinary course of the Company's
business. Under the agreement, the Company will be sourced virtually all
interior and exterior auto-dimming mirror business at Mercedes and Chrysler
through December 2009. The Company's exterior auto-dimming mirror sub-assemblies
are supplied by means of sales to exterior mirror suppliers. During 2007, the
Company negotiated an extension to its global supply agreement with Chrysler LLC
in the ordinary course of the Company's business. Under the extension, the
Company will be sourced virtually all Chrysler interior auto-dimming rearview
mirrors through 2015. From publicly available information, the Company does not
believe that the Daimler sale of the Chrysler unit will significantly impact the
Company's current business with Chrysler or Mercedes in the near term, but there
may be other information of which the Company is not aware.

     The Company previously negotiated a multi-sourcing agreement with Ford
Motor Company in the ordinary course of the Company's business. Under the
agreement, the Company was sourced all existing interior auto-dimming rearview
mirror programs as well as a number of new interior auto-dimming rearview mirror
programs during the agreement term which ends December 31, 2008.

     During 1993, the Company established a sales and engineering office in
Germany and the following year, the Company formed a German limited liability
company, Gentex GmbH, to expand its sales and engineering support activities in
Europe. During 1999, the Company established Gentex Mirrors, Ltd., as a sales
and engineering office in the United Kingdom. During 2000, the Company
established Gentex France, SAS, as a sales and engineering office in France.
During 2003, the Company established a satellite office in Munich, Germany, and
during 2005, the Company established a satellite office in Sweden. The Company's
marketing efforts in Europe are conducted through Gentex GmbH, Gentex Mirrors,
Ltd., and Gentex France SAS. The Company is currently supplying mirrors for
Audi, Bavarian Motor Works, A.G. (BMW), Bentley, Citroen, Fiat, Jaguar, Land
Rover, Mercedes-Benz, Opel, Peugeot, Porsche, Rolls Royce, SEAT, Skoda,
Volkswagen and Volvo in Europe.

     In 1991, the Company began shipping electrochromic mirror assemblies for
Nissan Motor Co., Ltd. under a reciprocal distribution agreement with Ichikoh
Industries, Ltd. (Ichikoh), a major Japanese supplier of automotive products.
Under this agreement, Ichikoh marketed the Company's automatic mirrors to
certain Japanese automakers and their subsidiaries with manufacturing facilities
in Asia. The arrangement involved very limited technology transfer by the
Company and did not include the Company's proprietary electrochromic gel
formulation. The agreement was terminated by mutual agreement in 2001.

     During 1993, the Company hired a sales agent to market auto-dimming mirrors
to other Japanese automakers beyond Nissan. Subsequently in 1998, the Company
established Gentex Japan, Inc., as a sales and engineering office in Nagoya,
Japan to expand its sales and engineering support in Japan. In 2000, the Company
signed an agreement with Murakami Corporation, a major Japanese mirror
manufacturer, to cooperate in expanding sales of automatic-dimming mirrors using
the Gentex electrochromic technology. During 2006, the agreement with Murakami
Corporation was terminated and replaced with a Memorandum of Understanding.
During 2007, the Company signed a new supplier agreement with Murakami
Corporation in the ordinary course of the Company's business. During 2002, the
Company established Gentex Technologies Korea Co., Ltd. as a sales and
engineering office in Seoul, Korea. During 2004, the Company established a
satellite office in Yokohama, Japan. During 2005, the Company opened a sales and
engineering office near Shanghai, China. The Company is currently supplying
mirrors for Daewoo/Ssangyong, Chrysler, Ford, GM, Honda, Hyundai, Infiniti, Kia
Motors, Lexus, Mazda, Mitsubishi, Nissan, Toyota and Volkswagen/Audi in Asia.


                                      -9-



     The Company's auto-dimming mirror unit shipment mix by region has
significantly changed over the past eight years. The following is a breakdown of
unit shipment mix by region in 2007 vs. 1999 calendar years:



                2007   1999
                ----   ----
                 
DOMESTIC         31%    69%
TRANSPLANTS      13%     1%
                ---    ---
NORTH AMERICA    44%    70%
EUROPE           40%    23%
ASIA-PACIFIC     16%     7%
                ---    ---
                100%   100%
                ===    ===


     Revenues by geographic area are disclosed in footnote 9 of the Consolidated
Financial Statements.

     Historically, new safety and comfort options have entered the original
equipment automotive market at relatively low rates on "top of the line" or
luxury model automobiles. As the selection rates for the options on the luxury
models increase, they generally become available on more models throughout the
product line and may become standard equipment. The recent trend of domestic and
foreign automakers is to offer several options as a package. As consumer demand
increases for a particular option, the mirror tends to be offered on more
vehicles and in higher option rate packages. The Company anticipates that its
auto-dimming mirrors will be offered as standard equipment, in higher option
rate packages, and on more models as consumer awareness of the safety and
comfort feature becomes more well-known and acceptance grows.

     Since 1998, Gentex Corporation has contracted with MITO Corporation to sell
several of its most popular automatic-dimming mirrors directly to consumers in
the automotive aftermarket; in addition, the Company currently sells some
auto-dimming mirrors to automotive distributors. It is management's belief that
these sales have limited potential until the Company achieves a significantly
higher penetration of the original equipment manufacturing market.

     Competition. Gentex is the leading producer of auto-dimming rearview
mirrors in the world and currently is the dominant supplier to the automotive
industry with an approximate 83% market share worldwide in 2007, as compared to
an approximately 81% in 2006. While the Company believes it will retain a
dominant position, one other U.S. manufacturer (Magna Donnelly) is competing for
sales to domestic and foreign vehicle manufacturers and is supplying a number of
domestic and foreign vehicle models with its hybrid or solid polymer matrix
versions of electrochromic mirrors. In addition, two Japanese manufacturers are
currently supplying a few vehicle models in Japan with solid-state
electrochromic mirrors.

     On October 1, 2002, Magna International acquired Donnelly Corporation,
which was the Company's major competitor for sales of automatic-dimming rearview
mirrors to domestic and foreign vehicle manufacturers and their mirror
suppliers. The Company also sells certain automatic-dimming rearview mirror
sub-assemblies to Magna Donnelly.

     The Company believes its electrochromic automatic mirrors offer significant
performance advantages over competing products. However, Gentex recognizes that
Magna Donnelly, a competitor and wholly-owned subsidiary of Magna International,
is considerably larger than the Company and may present a more formidable
competitive threat in the future. To date, the Company is not aware of any
significant impact of Magna's acquisition of Donnelly upon the Company; however,
any ultimate significant impact has not yet been determined.

     There are numerous other companies in the world conducting research on
various technologies, including electrochromics, for controlling light
transmission and reflection. Gentex believes that the electrochromic materials
and manufacturing process it uses for automotive mirrors remains the most
efficient and cost-effective way to produce such products. While
automatic-dimming mirrors using other technologies may eliminate glare, each of
these technologies have inherent cost or performance limitations.


                                      -10-



FIRE PROTECTION PRODUCTS

     The Company manufactures approximately 60 different models of smoke alarms
and smoke detectors, combined with over 160 different models of signaling
appliances. All of the smoke detectors/alarms operate on a photoelectric
principle to detect smoke. While the use of photoelectric technology entails
greater manufacturing costs, the Company believes that these detectors/alarms
are superior in performance to competitive devices that operate through an
ionization process, and are preferred in most commercial residential
occupancies. Photoelectric detectors/alarms feature low light-level detection,
while ionization detectors utilize an ionized atmosphere, the electrical
conductivity of which varies with changes in the composition of the atmosphere.
Photoelectric detectors/alarms are widely recognized to respond more quickly to
slow, smoldering fires, a common form of dwelling unit fire and a frequent cause
of fire-related deaths. In addition, photoelectric detectors are less prone to
nuisance alarms and do not require the use of radioactive materials necessary
for ionization detectors. Photoelectric smoke detectors/alarms are now being
required by over a dozen major cities, over a dozen states, as well as regional
and national building and fire alarm codes.

     The Company's fire protection products provide the flexibility to be wired
as part of multiple-function systems and consequently are generally used in fire
detection systems common to large office buildings, hotels, motels, military
bases, college dormitories and other commercial establishments. However, the
Company also offers single-station alarms for both commercial and residential
applications. While the Company does not emphasize the residential market, some
of its fire protection products are used in single-family residences that
utilize fire protection and security systems. The Company's detectors emit
audible and/or visual signals in the immediate location of the device, and
certain models are able to communicate with monitored remote stations.

     In 2005, the Company received Underwriters Laboratory (UL) listing on a new
series of commercial residential smoke alarms. The Company feels this new
product will fit well into new markets and customers. The new series of smoke
alarms consists of four models and will be electrically powered or electrically
powered with battery back-up.

     Also in 2005, the Company received UL listing for a new line of speaker
strobes for commercial occupancies. The new speaker series will meet the
requirements found on the national codes.

     Markets and Marketing. The Company's fire protection products are sold
directly to fire protection and security product distributors under the
Company's brand name, to electrical wholesale houses, and to original equipment
manufacturers of fire protection systems under both the Company's brand name and
private labels. The fire protection and security industries have experienced a
significant number of mergers and consolidations during the past few years. The
Company markets its fire protection products throughout the United States
through regional sales managers and manufacturer representative organizations.

     Competition. The fire protection products industry is highly competitive in
terms of both the smoke detectors and signaling appliance markets. The Company
estimates that it competes principally with eleven manufacturers of smoke
detection products for commercial use and approximately four manufacturers
within the residential market, three of which produce photoelectric smoke
detectors. In the signaling appliance markets, the Company estimates it competes
with approximately eight manufacturers. While the Company faces significant
competition in the sale of smoke detectors and signaling appliances, it believes
that the recent introduction of new products, improvements to its existing
products, its diversified product line, and the availability of special features
will permit the Company to maintain its competitive position.

DIMMABLE AIRCRAFT WINDOWS

     During 2005, the Company reached an agreement with PPG Aerospace to work
together to provide the variably dimmable windows for the passenger compartment
on the new Boeing 787 Dreamliner series of aircraft. Gentex will ship about 100
windows for the passenger compartment of each 787. The Company believes that the
commercially viable market is currently limited to aerospace. Based on Boeing's
production schedule at the time of the announcement, the value of this initial
contract was worth approximately $50 million over the first five years once
volume production begins, with the majority of that revenue attributable to
Gentex under the Company's agreement with PPG Aerospace. The Company shipped the
first prototype set of variably dimmable aircraft windows for


                                      -11-



test planes in mid 2007. The Company expects production shipments to begin in
early 2008, despite Boeing's announced six month delay.

     The Company's success with electrochromic technology provides potential
opportunities for other commercial applications, which the Company expects to
explore in the future when and as the Company feels it is in its best interests
to do so. Examples of possible applications of electrochromic technology include
windows for both the automotive, architectural and aerospace markets, sunroofs
and sunglasses. Progress in adapting electrochromic technology to the
specialized requirements of the window market continued in 2007. However, we
believe that a commercial architectural window product will still require
several years of additional engineering and intellectual property development
work.

     Markets and Marketing. The Company jointly markets and sells its variable
dimmable windows to aircraft manufacturers with PPG Aerospace.

     Competition. The Company's variable dimmable aircraft windows are the first
commercialized product for original equipment installation in the aircraft
industry. Other manufacturers are attempting to develop competing products
utilizing other technology in the aircraft industry for aftermarket or original
equipment installation.

TRADEMARKS AND PATENTS

     The Company owns 16 U.S. trademarks and 278 U.S. patents, 276 of which
relate to electrochromic technology, automotive rearview mirrors, microphones,
displays and/or sensor technology. These patents expire between 2009 and 2026.
The Company believes that these patents provide the Company a significant
competitive advantage in the automotive rearview mirror market; however, none of
these patents individually is required for the success of the Company's
products.

     The Company also owns 36 foreign trademarks and 129 foreign patents, 128 of
which relate to electrochromic technology, automotive rearview mirrors,
microphones, displays and /or sensor technology. These patents expire at various
times between 2008 and 2026. The Company believes that the competitive advantage
derived in the relevant foreign markets for these patents is comparable to that
experienced in the U.S. market.

     The Company owns 10 U.S. patents and 2 foreign patents that relate to the
Company's fire protection products, and the Company believes that the
competitive advantage provided by these patents is relatively small.

     Company's remaining 12 U.S. patents relate to the Company's variable
dimmable windows product, and the Company believes that the competitive
advantage provided by these patents is relatively small.

     The Company also has in process 143 U.S. patent applications, 310 foreign
patent applications, and 20 trademark applications. The Company continuously
seeks to improve its core technologies and apply those technologies to new and
existing products. As those efforts produce patentable inventions, the Company
expects to file appropriate patent applications.

MISCELLANEOUS

     The Company considers itself to be engaged in the manufacture and sale of
automatic-dimming rearview mirrors and non automatic-dimming rearview mirrors
for the automotive industry, fire protection products for the commercial
building industry and variable dimmable windows for the aircraft industry. The
Company has several important customers within the automotive industry, four of
which each account for 10% or more of the Company's annual sales (including
sales to their Tier 1 suppliers): General Motors Corporation, Daimler AG, Toyota
Motor Corporation, and BMW. The loss of any of these customers could have a
material adverse effect on the Company. The Company's backlog of unshipped
orders was $174,523,802 and $151,167,000 at February 1, 2008, and 2007,
respectively.

     At February 1, 2008, the Company had 2,718 full-time employees. None of the
Company's employees are represented by a labor union or other collective
bargaining representative. The Company believes that its relations with its
employees are good.


                                      -12-



ITEM 1A. RISK FACTORS

     Safe Harbor for Forward-Looking Statements. This Annual Report on Form 10-K
contains forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act, as amended, that are based on management's belief, assumptions, current
expectations, estimates and projections about the global automotive industry,
the economy, the impact of stock option expense, the ability to leverage fixed
manufacturing overhead costs, unit shipment and revenue growth rates, gross
margins and the Company itself. Words like "anticipates," "believes,"
"confident," "estimates," "expects," "forecast," "likely," "plans," "projects,"
and "should," and variations of such words and similar expressions identify
forward-looking statements. These statements do not guarantee future performance
and involve certain risks, uncertainties, and assumptions that are difficult to
predict with regard to timing, expense, likelihood and degree of occurrence.
These risks include, without limitation, employment and general economic
conditions, the pace of automotive production worldwide, the maintenance of the
Company's market share, competitive pricing pressures, currency fluctuations,
the financial strength of the Company's customers, supply chain disruptions,
potential sale of OEM business segments or suppliers, the mix of products
purchased by customers, the ability to continue to make product innovations, the
success of certain newer products (e.g. SmartBeam(R), Z-NAV(R) and Rear Camera
Display Mirror), and other risks identified in the Company's other filings with
the Securities and Exchange Commission. Therefore actual results and outcomes
may materially differ from what is expressed or forecasted. Furthermore, the
Company undertakes no obligation to update, amend, or clarify forward-looking
statements, whether as a result of new information, future events, or otherwise.

     The following risk factors, together with all other information provided in
this Annual Report on Form 10-K, should be carefully considered.

     Automotive Industry. 96% of our net sales are to customers within the
automotive industry. Supplying products to the automotive industry involves
increasing financial and production stresses due to continuing pricing
pressures, lower domestic production levels, overcapacity, customer and supplier
bankruptcies, and commodity material cost increases. If the Company's automotive
customers (including their Tier 1 suppliers) experience work stoppages, strikes,
etc., it could disrupt our shipments to these customers, which could adversely
affect the Company's sales, margins, profitability and, as a result, its share
price. Automakers have been experiencing increased volatility and uncertainty in
executing planned new programs which have, in some cases, resulted in
cancellation or delays of new vehicle platforms, package reconfigurations and
inaccurate volume forecasts. This increased volatility and uncertainty has made
it more difficult for us to forecast future sales and effectively utilize
capital, engineering, research and development, and human resource investments.

     Key Customers. We have a few large customers, including four customers
which each account for 10% or more of our annual net sales (including sales to
their Tier 1 suppliers): General Motors Corporation, Daimler AG, Toyota Motor
Corporation and BMW. The loss of all or a substantial portion of the sales to
any of these customers would have a material adverse effect on our sales,
margins, profitability and, as a result, our share price. Effective October 1,
2003, General Motors Corporation, our largest customer, began including a 30-day
escape clause into its contracts in the event its suppliers are not competitive
on pricing. Effective January 1, 2004, Ford Motor Company began imposing new
contract terms, including the right to terminate a supplier contract for any or
no reason, etc.

     Pricing Pressures. In addition to price reductions over the life of our
long-term agreements, we continue to experience pricing pressures from our
automotive customers and competitors, which have affected, and which will
continue to affect our margins to the extent that we are unable to offset the
price reductions with productivity and manufacturing yield improvements,
engineering and purchasing cost reductions, and increases in unit sales volume,
which has been a challenge. In addition, profit pressures at certain automakers
are resulting in increased cost reduction efforts by them, including requests
for additional price reductions, decontenting certain features from vehicles,
and warranty cost-sharing programs, any of which could adversely impact our
sales growth, margins, profitability and, as a result, our share price.

     Credit Risk. In light of the financial stresses within the worldwide
automotive industry, certain automakers and tier one mirror customers are
considering the sale of business segments or may be considering bankruptcy.
Should one or more of our larger


                                      -13-



customers (including their Tier 1 suppliers) sell their business or declare
bankruptcy, it could adversely affect our sales, margins, profitability and, as
a result, the Company's share price.

     Supply Chain Disruptions. Due to the just-in-time supply chains within the
automotive industry, a disruption in a supply chain caused by an unrelated
supplier due to bankruptcy, work stoppages, strikes, etc. could disrupt our
shipments to one or more automaker customers, which could adversely affect our
sales, margins, profitability and, as a result, our share price.

     Competition. We recognize that Magna Donnelly, our main competitor and a
wholly-owned subsidiary of Magna International, is considerably larger than our
Company and may present a more formidable competitive threat in the future. Our
future growth and success will depend on the ability to compete in our highly
competitive markets.

     New Technology and Product Development. We continue to invest a significant
portion of our annual sales in engineering, research and development projects as
set forth in our Consolidated Statement of Income of our Consolidated Financial
Statements filed with this report. Should these efforts ultimately prove
unsuccessful, our sales, net income and, as a result, our share price will be
adversely affected.

     Intellectual Property. We believe that our patents and trade secrets
provide us with a significant competitive advantage in automotive rearview
mirrors. The loss of any significant combination of patents and trade secrets
could adversely affect our sales, margins, profitability and, as a result, share
price.

     Intellectual Property Litigation and Infringement Claims. A successful
claim of patent or other intellectual property infringement against us could
affect our profitability and growth. If someone claims that our products
infringed their intellectual property rights, any resulting litigation could be
costly and time consuming and would divert the attention of management and key
personnel from other business issues. The complexity of the technology involved
in our business and the uncertainty of intellectual property litigation
increases these risks. Any of these adverse consequences could potentially have
an effect on our business, financial condition and results of operations.

     Business Disruptions. Manufacturing of our proprietary products employing
electro-optic technology are performed at our five manufacturing facilities in
Zeeland, Michigan. Should a catastrophic event occur, our ability to manufacture
product, complete existing orders and provide other services would be severely
impacted for an undetermined period of time. We have purchased business
interruption insurance to address some of these potential costs. Our inability
to conduct normal business operations for a period of time may have an adverse
impact on long-term operating results.

     Other. Other issues and uncertainties which could adversely impact our
sales, margins, profitability and, as a result, our share price include:

     -    Changes in worldwide economic conditions, currency exchange rates, war
          or significant terrorist acts, which could affect worldwide automotive
          sales and production levels.

     -    Changes in the commodity prices of the materials used in our products.
          We continue to experience some pressure for select raw material cost
          increases.

     -    Manufacturing yield issues may negatively impact our margins and
          profitability.

     -    Our ability to attract or retain key employees to operate our
          manufacturing facilities and to staff our corporate office. We are
          dependent on the services of our management team. Losing key members
          of our management team could adversely affect our operations. We do
          not maintain key man life insurance on any of our officers or
          directors.

     -    Our ability to successfully design and execute strategic and operating
          plans, including continuing to obtain new business.

     Antitakeover Provisions. Our articles of incorporation and bylaws, the laws
of Michigan, and our Shareholder Protection Rights Plan include provisions which
are designed to provide our board of directors with time to consider whether a
hostile takeover offer is in our best interest and the best interests of our
shareholders. These provisions, however, could discourage potential acquisition
proposals and could delay or prevent a change in control. The provisions also
could diminish the opportunities for a holder of our common stock to participate
in tender offers, including tender offers at a price above the then current
price for our common


                                      -14-



stock. These provisions could also prevent transactions in which our
shareholders might otherwise receive a premium for their shares over then
current market prices, and may limit the ability of our shareholders to approve
transactions that they may deem to be in their best interests.

     All of these provisions may have the effect of delaying or preventing a
change in control at the company level without action by our shareholders, and
therefore, could adversely affect the price of our common stock.

     Fluctuations in Market Price. The market price for our common stock has
fluctuated, ranging between $22.60 and $14.86 for 2007. The overall market and
the price of our common stock may continue to fluctuate. There may be a
significant impact on the market price for our common stock due to, among other
things:

     -    variations in our anticipated or actual operating results or the
          results of our competitors;

     -    changes in investors' or analysts' perceptions of the risks and
          conditions of our business;

     -    the size of the public float of our common stock;

     -    market conditions, including the industry in which we operate, and

     -    general economic conditions.

ITEM 1B. UNRESOLVED STAFF COMMENTS.

     None

ITEM 2. PROPERTIES.

     The Company operates out of five office/manufacturing facilities in
Zeeland, Michigan, approximately 25 miles southwest of Grand Rapids, in addition
to overseas offices discussed elsewhere herein (see Part 1, Item 1). The office
and production facility for the Fire Protection Products Group is a
25,000-square-foot, one-story building leased by the Company since 1978 from
related parties (see Part III, Item 13, of this report).

     The corporate office and production facility for the Company's Automotive
Products Group is a modern, two-story, 150,000-square-foot building of steel and
masonry construction situated on a 40-acre site in a well-kept industrial park.
A second 128,000-square-foot office/manufacturing facility on this site was
opened during 1996. The Company expanded its automotive production facilities by
constructing a third 170,000 square-foot facility on its current site which
opened in the second quarter of 2000.

     In November 2002, the Company announced plans to expand its manufacturing
operations in Zeeland, Michigan, with the construction of a fourth
150,000-square foot automotive mirror manufacturing facility. During 2003, the
Company also announced plans for a new 200,000-square foot technical office
facility linking the fourth manufacturing facility with its existing corporate
office and production facility. The Company completed the construction of its
fourth automotive manufacturing facility and the new technical center in 2006 at
a total cost of approximately $38 million, which was funded from its cash and
cash equivalents on hand during 2004-2006.

     The Company also constructed a 40,000 square-foot office, distribution and
light manufacturing facility in Erlenbach, Germany, at a cost of approximately
$5 million, which was completed at the end of 2003.

     During 2006, the Company purchased a 25,000 square foot office,
distribution and light manufacturing facility near Shanghai, China, at a cost of
approximately $750,000.

     In January 2007, the Company announced plans to expand its automotive
exterior mirror manufacturing facility in Zeeland, Michigan, with the
construction of a 60,000 square-foot building addition. The Company completed
the building addition to its automotive exterior mirror manufacturing facility
in January 2008 at a cost of approximately $6 million, which was funded from
cash and cash equivalents on hand.

     The Company's three automotive interior mirror manufacturing facilities
currently have an estimated building capacity to manufacture approximately 20
million mirror units annually, based on the current product mix. The Company
evaluates equipment


                                      -15-



capacity on an annual basis and adds equipment as needed. In 2007, the Company
shipped approximately 11,001,000 interior auto-dimming mirrors.

     The Company's expanded automotive exterior mirror manufacturing facility
has an estimated building capacity to manufacture approximately 9 million units
annually, based on the current product mix. The Company evaluates equipment
capacity on an annual basis and adds equipment as needed. In 2007, the Company
shipped approximately 4,220,000 exterior auto-dimming mirrors.

ITEM 3. LEGAL PROCEEDINGS

     The Company is periodically involved in legal proceedings, legal actions
and claims arising in the normal course of business, including proceedings
relating to product liability, intellectual property, safety and health,
employment and other matters. Such matters are subject to many uncertainties,
and outcomes are not predictable. The Company does not believe however, that at
the current time any of these matters constitute material pending legal
proceedings that will have a material adverse effect on the financial position
or future results of operations of the Company.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

     None.

EXECUTIVE OFFICERS OF THE REGISTRANT.

     The following table lists the names, ages, and positions of all of the
Company's executive officers. Officers are generally elected at the first
meeting of the Board of Directors following the annual meeting of shareholders.



      NAME        AGE                         POSITION                        POSITION HELD SINCE
      ----        ---                         --------                        -------------------
                                                                     
Fred Bauer         65   Chief Executive Officer                               May 1986
Enoch Jen          56   Senior Vice President                                 January 2007
Dennis Alexejun    56   Vice President, North American Automotive Marketing   September 1998
Mark Newton        48   Vice President, Purchasing and Advanced Technology    July 2007
Steve Dykman       42   Vice President, Finance and Treasurer                 January 2007


     There are no family relationships among the officers listed in the
preceding table.

     Except for the executive officers discussed below, all other executive
officers have held their current position with the Company for more than five
years.

     Enoch Jen had previously served as Senior Vice President and Chief
Financial Officer since April 2006 and as Vice President, Finance of the Company
since February 1991.

     Steve Dykman had previously served as Treasurer and Director of Accounting
and Finance of the Company since November 2002, as Controller of the Company
since April 1995 and joined the Company as Finance and Tax Manager in November
1993.

     Mark Newton had previously served as Vice President, Purchasing and
Photonics since July 2006, as Photonics Engineering Manager since July 2005 and
joined the Company as Advanced Lighting Developer in August 2004. Prior to that
time, Mr. Newton served as Vice President of Unity Microelectronics, Inc. since
2000. Mr. Newton became an executive officer of the Company on January 1, 2008.


                                      -16-



                                     PART II

ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES.

(a) The Company's common stock trades on The Nasdaq Global Select Market(R). As
of February 12, 2008, there were 2,530 record-holders of the Company's common
stock. Ranges of high and low sale prices of the Company's common stock reported
through The Nasdaq Global Select Market for the past two fiscal years appear in
the following table.



YEAR   QUARTER    HIGH      LOW
----   -------   ------   ------
                 
2006   First     $21.00   $15.71
       Second     17.47    13.65
       Third      15.34    12.74
       Fourth     17.46    13.89

2007   First     $17.92   $14.86
       Second     21.12    16.23
       Third      22.37    18.78
       Fourth     22.60    16.99



     See item 13 of Part III with respect to "Equity Compensation Plan Summary."

     Stock Performance Graph: The following graph depicts the cumulative total
return on the Company's common stock compared to the cumulative total return on
the Nasdaq Composite Index (all U.S. companies) and the Dow Jones U.S. Auto
Parts Index (excluding tire and rubber makers). The graph assumes an investment
of $100 on the last trading day of 2002, and reinvestment of dividends in all
cases.

                               (PERFORMANCE GRAPH)



PERIOD   GENTEX CORPORATION   NASDAQ COMPOSITE   DOW JONES US AUTO PARTS
------   ------------------   ----------------   -----------------------
                                        
 12/02         100.00              100.00                 100.00
  1/03          93.08               98.57                 101.12
  2/03          84.96               99.46                  94.81
  3/03          80.44               99.35                  89.35
  4/03          95.29              108.29                 102.91
  5/03          98.42              118.05                 104.94
  6/03          96.87              120.21                 109.08
  7/03         112.33              129.26                 116.81
  8/03         118.52              135.40                 122.41
  9/03         110.08              133.69                 118.69
 10/03         123.91              144.35                 127.06
 11/03         133.40              146.36                 130.52
 12/03         140.16              149.75                 142.21
  1/04         139.01              154.67                 145.46
  2/04         129.87              152.69                 143.37
  3/04         138.12              150.16                 140.79
  4/04         125.81              144.93                 139.84
  5/04         121.59              149.54                 138.17
  6/04         126.80              154.24                 142.54
  7/04         114.86              142.81                 138.97
  8/04         110.17              139.41                 136.39
  9/04         112.71              144.26                 135.66
 10/04         106.42              149.70                 133.23
 11/04         104.20              159.23                 143.23
 12/04         119.35              164.64                 150.00
  1/05         109.60              156.16                 137.26
  2/05         109.86              155.75                 134.63
  3/05         103.34              151.53                 123.25
  4/05         105.72              145.69                 113.31
  5/05         116.46              156.27                 124.20
  6/05         118.55              155.46                 125.57
  7/05         116.59              165.21                 135.55
  8/05         112.01              163.11                 135.00
  9/05         113.84              164.16                 125.91
 10/05         123.67              161.34                 124.41
 11/05         124.00              169.68                 123.67
 12/05         128.27              168.60                 126.40
  1/06         110.36              176.76                 118.20
  2/06         110.09              174.64                 117.44
  3/06         115.38              179.97                 120.34
  4/06          97.41              179.25                 125.19
  5/06          96.28              167.95                 128.39
  6/06          93.02              167.47                 125.03
  7/06          89.23              161.67                 119.61
  8/06          96.86              169.19                 115.65
  9/06          95.05              174.65                 116.89
 10/06         107.14              183.14                 128.88
 11/06         111.51              188.43                 131.35
 12/06         104.78              187.83                 135.37
  1/07         118.49              191.26                 144.85
  2/07         113.21              187.54                 148.54
  3/07         110.09              188.40                 150.06
  4/07         121.29              195.54                 158.56
  5/07         120.95              201.99                 165.90
  6/07         134.17              201.89                 171.10
  7/07         135.16              197.51                 164.93
  8/07         137.21              200.81                 163.27
  9/07         146.80              210.35                 170.39
 10/07         142.97              222.16                 182.09
 11/07         136.37              206.38                 162.84
 12/07         122.26              205.22                 155.51



                                      -17-



     In August 2003, the Company announced a change in the Company's cash
dividend policy and declared an initial quarterly cash dividend of $0.075 per
share payable in October 2003. In August 2004, the Company's Board of Directors
approved an increase on the quarterly dividend rate of $0.085 per share. In
August 2005, the Company's Board of Directors approved a continuing resolution
to pay a quarterly dividend of $0.09 per share until the Board takes other
action with respect to the payment of dividends. In August 2006, the Company's
Board of Directors approved a continuing resolution to pay a quarterly dividend
at an increased rate of $0.095 per share until the Board takes other action with
respect to the payment of dividends. In August 2007, the Company's Board of
Directors approved a continuing resolution to pay a quarterly dividend at an
increased rate of $0.105 per share until the Board takes other action with
respect to the payment of dividends. Based on current U.S. income tax laws, the
Company intends to continue to pay a quarterly cash dividend at its current
level and will consider future dividend increases based on the Company's
profitability, cash flow and other business factors.

     On April 1, 2005, the Company's Board of Directors declared a two-for-one
stock split effected in the form of a 100% common stock dividend to shareholders
of record on May 6, 2005. The stock split increased the number of shares of
common stock then outstanding from 78,020,342 to 156,040,684. Earnings per share
and all share data have been restated in all prior periods to reflect these
stock splits.

(b) Not applicable.

(c) On October 8, 2002, the Company announced a share repurchase plan, under
which it may purchase up to 8,000,000 shares (post-split) based on a number of
factors, including market conditions, the market price of the Company's common
stock, anti-dilutive effect on earnings, available cash and other factors that
the Company deems appropriate. This share repurchase plan does not have an
expiration date. During the quarter ended March 31, 2003, the Company
repurchased 830,000 shares (post-split) at a cost of approximately $10,247,000.
On July 20, 2005, the Company announced that it had raised the price at which
the Company may repurchase shares under the existing plan. During the quarter
ended September 30, 2005, the Company repurchased approximately 1,496,000 shares
at a cost of approximately $25,215,000. On May 16, 2006, the Company announced
that the Company's Board of Directors had authorized the repurchase of an
additional 8,000,000 shares under the plan. On August 14, 2006, the Company
announced that the Company's Board of Directors had authorized the repurchase of
an additional 8,000,000 shares under the plan. During 2006, the Company
repurchased approximately 15,206,000 shares at a cost of approximately
$226,851,000. During 2007, the Company repurchased approximately 448,000 shares
at a cost of approximately $7,328,000. Approximately 6,021,000 shares remain
authorized to be repurchased under the plan.

     The following is a summary of quarterly share repurchase activity under the
plan to date:



                      Total Number of
                     Shares Purchased       Cost of
   Quarter Ended       (Post-Split)     Shares Purchased
   -------------     ----------------   ----------------
                                  
March 31, 2003             830,000        $ 10,246,810
September 30, 2005       1,496,059          25,214,573
March 31, 2006           2,803,548          47,145,310
June 30, 2006            7,201,081         104,604,414
September 30, 2006       3,968,171          55,614,102
December 31, 2006        1,232,884          19,487,427
March 31, 2007             447,710           7,328,015
                        ----------        ------------
   Total                17,979,453        $269,640,651
                        ==========        ============




                                      -18-



ITEM 6. SELECTED FINANCIAL DATA

                      (in thousands, except per share data)



                            2007       2006       2005       2004       2003
                          --------   --------   --------   --------   --------
                                                       
Net Sales                 $653,933   $572,267   $536,484   $505,666   $469,019
Net Income                 122,130    108,761    109,528    112,657    106,761
                          --------   --------   --------   --------   --------
Earnings Per Share*       $   0.85   $   0.73   $   0.70   $   0.72   $   0.69
                          --------   --------   --------   --------   --------
Cash Dividends Declared
   per Common Share*      $   0.40   $   0.37   $   0.35   $   0.32   $   0.15
                          --------   --------   --------   --------   --------
   Total Assets           $898,023   $785,028   $922,646   $856,859   $762,530
                          --------   --------   --------   --------   --------
Long-Term Debt
   Outstanding at
   Year End               $     --   $     --   $     --   $     --   $     --
                          --------   --------   --------   --------   --------


*    Adjusted for 2-for-1 stock split in May 2005.

     Effective January 1, 2006, the Company adopted Statement of Financial
Accounting Standards No. 123 (revised), "Share-Based Payment" [SFAS 123(R)]
utilizing the modified prospective approach. Prior to the adoption of SFAS
123(R), we accounted for stock option grants under the recognition and
measurement principles of APB Opinion No. 25 (Accounting for Stock Issued to
Employees) and related interpretations, and accordingly, recognized no
compensation expense for stock option grants in net income. Therefore, net
income and earnings per share amounts reflect the impact of stock option
compensation expense beginning in 2006.

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS.

RESULTS OF OPERATIONS.

     The following table sets forth for the periods indicated certain items from
the Company's Consolidated Statements of Income expressed as a percentage of net
sales and the percentage change in the dollar amount of each such item from that
in the indicated previous year.



                                                  Percentage of
                                                    Net Sales          Percentage
                                              ---------------------      Change
                                                    Year Ended        ------------
                                                   December 31,        2007   2006
                                              ---------------------     to     to
                                               2007    2006    2005    2006   2005
                                              -----   -----   -----   -----   ----
                                                               
Net Sales                                     100.0%  100.0%  100.0%   14.3%   6.7%
Cost of Goods Sold                             65.2    65.2    63.0    14.2   10.5
                                              -----   -----   -----   -----   ----
   Gross Profit                                34.8    34.8    37.0    14.4    0.2
Operating Expenses:
   Engineering, Research and Development        7.8     7.3     6.5    21.4   19.2
   Selling, General and Administrative          5.4     5.4     5.1    14.2   13.2
   Litigation Judgment                          0.4      --      --   100.0     --
                                              -----   -----   -----   -----   ----
      Total Operating Expenses                 13.6    12.7    11.6    22.3   16.5
                                              -----   -----   -----   -----   ----
   Operating Income                            21.2    22.1    25.4     9.8   (7.2)
Other Income                                    6.3     5.7     4.4    25.8   37.8
                                              -----   -----   -----   -----   ----
   Income Before Provision for Income Taxes    27.5    27.8    29.8    13.1   (0.6)
Provision for Income Taxes                      8.8     8.8     9.4    14.7   (0.3)
                                              -----   -----   -----   -----   ----
   Net Income                                  18.7%   19.0%   20.4%   12.3%  (0.7)%
                                              =====   =====   =====   =====   ====


RESULTS OF OPERATIONS: 2007 TO 2006

     Net Sales. Company net sales increased by $81,666,000, or 14% compared to
the prior year. Automotive net sales increased by 15% on a 13% increase in
auto-dimming mirror shipments, from 13,427,000 to 15,221,000 units, primarily
reflecting increased penetration of interior auto-dimming mirrors with
additional electronic content. North American mirror unit shipments increased by
10%, despite a 2% decline in North American automotive industry production
levels, primarily due to increased penetration of interior auto-dimming mirrors
for certain Big Three automakers as well as Asian transplant automakers.
Overseas mirror unit shipments


                                      -19-



increased by 16% during 2007 due to increased penetration of interior and
exterior auto-dimming mirrors at certain European and Asian automakers. Net
sales of the Company's fire protection products were flat.

     Cost of Goods Sold. As a percentage of net sales, cost of goods sold
remained at 65.2% primarily reflecting purchasing cost reductions, the higher
sales level leveraged over the fixed overhead costs and improved manufacturing
yields, offset by annual and other automotive customer price reductions. Each
factor is estimated to have impacted cost of goods sold by approximately 1-2%.

     Operating Expenses. Engineering, research and development expenses
increased approximately $8,941,000, and increased from 7% to 8% of net sales.
Excluding Muth litigation expense of $4,788,000 and $1,008,000 in 2007 and 2006
respectively, E, R & D expenses increased 13% year over year, primarily due to
additional staffing for new electronic product development, including SmartBeam,
Rear Camera Display and telematics, and new vehicle programs.

     Selling, general and administrative expenses increased approximately
$4,398,000, but remained at 5% of net sales. S, G & A expenses increased by 14%,
primarily reflecting the continued expansion of the Company's overseas sales
offices to support the Company's current and future overseas sales growth,
partially offset by a reduction in non-income based state taxes.

     Litigation judgment expense of $2,885,000 during 2007 related to the
Company's litigation with K.W. Muth and Muth Mirror Systems LLC ("Muth")
relating to exterior mirrors with turn signal indicators. The turn signal
feature in exterior mirrors currently represents approximately one percent of
our revenues, and the litigation does not involve core Gentex technology. The
trial in Wisconsin related to this case occurred during July 2007 and the Court
issued its written ruling in December 2007. The Court found that Muth's U.S.
patent No. 6,005,724 is invalid and unenforceable, and that Gentex's Razor Turn
Signal Mirror does not infringe that patent. The Court also denied all but one
of Muth's other motions with prejudice, including its motion for an injunction,
and its claims for tortuous interference with its business relationships. The
sole point of liability for Gentex was that the Court found that Gentex breached
one provision of the alliance agreement it has with Muth, and entered a judgment
against Gentex, on January 24, 2008, granting Muth damages in the amount of
$2,885,000.

     On February 15, 2008, the Company entered into a Settlement And Release And
Covenants Not To Sue ("Agreement") with Muth whereby the parties agreed to
settle the Court's judgment against Gentex for damages at a reduced amount of
$2,550,000. In addition, under the Agreement the parties each agreed to: grant
the other party a ten-year covenant not to sue for each Company's core business,
to release each other from all claims that occurred in the past, and not appeal
the Court's rulings. This Agreement is subject to Bankruptcy Court approval. The
adjustment to the original judgment for damages (the amount of which is set
forth in the preceding paragraph) will be reflected in our financial results
after the Court approves the Agreement. Due to the immaterial nature of the
reduced judgment for damages, the financial statement footnotes do not address
this change.

     Other Income - Net. Investment income increased $1,773,000 in 2007,
primarily due to increased year-end mutual fund distribution income. Other
income increased $6,624,000 in 2007, primarily due to realized gains on the sale
of equity investments.

     Taxes. The provision for federal income taxes varied from the statutory
rate in 2007 primarily due to the domestic manufacturing deduction and stock
option expense tax benefit.

     Net Income. Net income increased by $13,369,000, or 12% year over year,
primarily due to increased sales and an increase in other income.

RESULTS OF OPERATIONS: 2006 TO 2005

     Net Sales. Company net sales increased by $35,783,000, or 7% compared to
the prior year. Automotive net sales increased by 7% on a 7% increase in mirror
shipments, from 12,570,000 to 13,427,000 units, primarily reflecting increased
penetration of interior and exterior auto-dimming mirrors on European and Asian
vehicles. North American mirror unit shipments increased by 1%, primarily due to
takeover business from Magna Donnelly at General Motors partially offset by
lower customer production volumes on light trucks and sport utility vehicles in
North America. Overseas unit shipments increased by 12% during 2006 due to
increased penetration at certain European and Asian automakers. Net sales of the
Company's fire protection products increased 1%, primarily due to stronger sales
of certain signal products.


                                      -20-


     Cost of Goods Sold. As a percentage of net sales, cost of goods sold
increased from 63% to 65% primarily reflecting the impact of automotive customer
price reductions. For the year ended December 31, 2006, stock option expense
impacted cost of goods sold by $2,266,000. Effective January 1, 2006, the
Company adopted SFAS 123(R).

     Operating Expenses. Engineering, research and development expenses
increased approximately $6,714,000, but remained at 7% of net sales. Excluding
stock option expense of $2,503,000, E,R & D expenses increased by 12%, primarily
due to additional staffing for new electronic product development, including
SmartBeam and telematics and new vehicle programs. Selling, general and
administrative expenses increased approximately $3,596,000, but remained at 5%
of net sales. Excluding stock option expense of $2,290,000, S, G & A expenses
increased by 5%, primarily reflecting the continued expansion of the Company's
overseas sales offices to support the Company's current and future overseas
sales growth, partially offset by a reduction in non-income based state taxes.

     Other Income - Net. Investment income increased $3,715,000 in 2006,
primarily due to increased interest income due to higher interest rates,
partially offset by lower investable funds. Other income increased $5,212,000 in
2006, primarily due to realized gains on the sale of equity investments.

     Taxes. The provision for federal income taxes varied from the statutory
rate in 2006 primarily due to Extra Territorial Income (ETI) Exclusion Act
exempted taxable income from increased foreign sales and the domestic
manufacturing deduction.

     Net Income. Net income decreased by $767,000, or 1%. Excluding stock option
expense of $4,555,000, the Company's net income increased by 3% primarily
reflecting the increase in other income, partially offset by decreased gross
margin primarily due to the impact of automotive customer price reductions.

LIQUIDITY AND CAPITAL RESOURCES

          The Company's financial condition throughout the periods presented has
remained very strong.

          The Company's current ratio decreased from 7.8 as of December 31,
2006, to 7.7 as of December 31, 2007, primarily as a result of the increase in
accounts payable and accrued liabilities mostly offset by an increase in cash
and cash equivalents primarily from operations.

          Cash flow from operating activities for the year ended December 31,
2007, increased $17,280,000 to $148,721,000, compared to $131,440,000 for the
same period last year, primarily due to increased net income. Capital
expenditures for the year ended December 31, 2007, increased to $54,524,000,
compared to $48,193,000 for the same period last year, primarily due to the
building expansion to its automotive exterior mirror manufacturing facility. The
Company currently anticipates capital expenditures of approximately $45-50
million for equipment during 2008, to be financed from existing cash and/or cash
equivalents on hand.

          Cash and cash equivalents as of December 31, 2007, increased
approximately $72,217,000 compared to December 31, 2006, primarily due to cash
flow from operations, partially offset by cash dividends paid.

          Accounts payable as of December 31, 2007, increased approximately
$6,650,000 compared to December 31, 2006, primarily due to increased production
levels and capital spending.

          Accrued liabilities as of December 31, 2007, increased approximately
$4,350,000, primarily due to an accrued liability for litigation judgement (see
discussion under "Results of Operations - 2007 to 2006").

          The increase in plant and equipment as of December 31, 2007, compared
to December 31, 2006, is primarily due to new manufacturing equipment and the
building expansion construction to its automotive exterior mirror manufacturing
facility.

          Management considers the Company's working capital of approximately
$460,131,000 and long-term investments of approximately $155,384,000 at December
31, 2007, together with internally generated cash flow and an unsecured
$5,000,000 line of credit from a bank, to be sufficient to cover anticipated
cash needs for the next year and for the foreseeable future.

          On October 8, 2002, the Company announced a share repurchase plan,
under which it may purchase up to 8,000,000 shares (post-split) based on a
number of factors, including market conditions, the market price of the
Company's common stock, anti-dilutive effect on earnings, available cash and
other factors that the Company deems appropriate. On July 20, 2005, the Company
announced


                                      -21-



that it had raised the price at which the Company may repurchase shares under
the existing plan. On May 16, 2006, the Company announced that the Company's
Board of Directors had authorized the repurchase of an additional 8,000,000
shares under the plan. On August 14, 2006, the Company announced that the
Company's Board of Directors had authorized the repurchase of an additional
8,000,000 shares under the plan.

          The following is a summary of quarterly share repurchase activity
under the plan to date:



                      Total Number of
                     Shares Purchased        Cost of
Quarter Ended          (Post-Split)     Shares Purchased
-------------        ----------------   ----------------
                                  
March 31, 2003             830,000        $ 10,246,810
September 30, 2005       1,496,059          25,214,573
March 31, 2006           2,803,548          47,145,310
June 30, 2006            7,201,081         104,604,414
September 30, 2006       3,968,171          55,614,102
December 31, 2006        1,232,884          19,487,427
March 31, 2007             447,710           7,328,015
                        ----------        ------------
Total                   17,979,453        $269,640,651
                        ==========        ============


          6,020,547 shares remain authorized to be repurchased under the plan.

INFLATION, CHANGING PRICES AND OTHER

          The Company generally supplies auto-dimming mirrors to its customers
worldwide under annual blanket purchase orders. During 2005, the Company
negotiated an extension to its long-term agreement with General Motors (GM) in
the ordinary course of the Company's business. Under the extension, the Company
was sourced virtually all the interior auto-dimming rearview mirrors programs
for GM and its worldwide affiliates through August 2009, except for two
low-volume models that had previously been awarded to a competitor under a
lifetime contract. The new business also included the GMT360 program, which is
the mid-size truck/SUV platform that previously did not offer auto-dimming
mirrors. The GM programs were transferred to the Company by the 2007 model year.
The Company also negotiated a price reduction for the GM OnStar(R) feature in
its auto-dimming mirrors, effective January 1, 2005, in connection with GM's
stated plan to make their OnStar system standard across their vehicle models
over the next several years.

          The Company has a long-term agreement with Daimler AG (formerly
DaimlerChrysler AG) in the ordinary course of the Company's business. Under the
agreement, the Company will be sourced virtually all interior and exterior
auto-dimming mirror business at Mercedes and Chrysler through December 2009. The
Company's exterior auto-dimming mirror sub-assemblies are supplied by means of
sales to exterior mirror suppliers. During 2007, the Company negotiated an
extension to its global supply agreement with Chrysler LLC in the ordinary
course of the Company's business. Under the extension, the Company will be
sourced virtually all Chrysler interior auto-dimming rearview mirrors through
2015. From publicly available information, the Company does not believe that the
Daimler sale of the Chrysler unit will significantly impact the Company's
current business with Chrysler or Mercedes in the near term, but there may be
other information of which the Company is not aware.

          The Company negotiated a multi-sourcing agreement with Ford Motor
Company in the ordinary course of the Company's business. Under the agreement,
the Company was sourced all existing interior auto-dimming rearview mirror
programs as well as a number of new interior auto-dimming rearview mirror
programs during the agreement term which ends December 31, 2008.

          The Company currently estimates that top line revenue growth will be
approximately 10% higher in calendar 2008 compared with calendar 2007 based on
our current forecast of product mix. These estimates are based on light vehicle
production forecasts in the regions to which the Company ships product, as well
as the estimated option rates for its mirrors on prospective vehicle models and


                                      -22-



anticipated product mix. Uncertainties, including vehicle production and sales
rates at the traditional Big Three automakers in North America, make it
difficult to forecast in the short-term. The Company also estimates that
engineering, research and development expenses, excluding Muth litigation costs,
are currently expected to increase approximately 15% in calendar year 2008
compared to calendar year 2007.

          The Company utilizes the light vehicle production forecasting services
of CSM Worldwide, and CSM's current forecasts for light vehicle production for
calendar 2008 are approximately 14.4 million units for North America, 21.9
million for Europe and 14.9 million for Japan and Korea.

          The Company does not have any significant off-balance sheet
arrangements or commitments that have not been recorded in its consolidated
financial statements.

MARKET RISK DISCLOSURE

          The Company is subject to market risk exposures of varying
correlations and volatilities, including foreign exchange rate risk, interest
rate risk and equity price risk.

          The Company has some assets, liabilities and operations outside the
United States, including a Euro denominated account, which currently are not
significant. Because the Company sells its automotive mirrors throughout the
world, it could be significantly affected by weak economic conditions in foreign
markets that could reduce demand for its products.

          Most of the Company's non-U.S. sales are invoiced and paid in U.S.
dollars; during 2007, approximately 15% of the Company's net sales were invoiced
and paid in European euros. The Company currently expects that approximately 16%
of the Company's net sales in 2008 will be invoiced and paid in European euros.
The Company does not currently engage in hedging activities.

          The Company manages interest rate risk and default risk in its
fixed-income investment portfolio by investing in shorter-term maturities and
investment grade issues. The Company's fixed-income investments' maturities at
fair value (000,000), and average interest rates are as follows:



                                                        Total Balance
                                                            as of
                                                         December 31,
                                                        -------------
                            2008   2009   2010   2011    2007    2006
                           -----   ----   ----   ----   -----   -----
                                              
U.S. Government
  Amount                      --     --     --     --      --      --
  Average Interest Rate       --     --                    --      --
Government Agency
  Amount                   $29.0     --     --     --   $29.0   $ 9.0
  Average Interest Rate        5%    --                     5%      5%
Municipal
  Amount                      --     --     --     --      --      --
  Average Interest Rate*      --     --                    --      --
Certificates of Deposit
  Amount                   $49.0     --     --     --   $49.0   $71.2
  Average Interest Rate        5%    --     --     --       5%      5%
Corporate
  Amount                   $ 0.3     --     --     --   $ 0.3   $ 0.3
  Average Interest Rate        7%    --            --       7%      7%
Other
  Amount                   $ 2.0     --     --     --   $ 2.0   $ 2.5
  Average Interest Rate        5%    --     --     --       5%      5%


*    After-tax

          Most of the Company's equity investments are managed by a number of
outside equity fund managers who invest primarily in large capitalization
companies trading on the U.S. stock markets.


                                      -23-



CONTRACTUAL OBLIGATIONS AND OTHER COMMITMENTS

          The Company has the following contractual obligations and other
commitments (000,000) as of December 31, 2007:



                        Total   Less than 1 Year   1-3 Years   After 3 Years
                        -----   ----------------   ---------   -------------
                                                   
Long-term debt          $  --         $  --           $ --          $ --
Operating leases          1.0            .6             .3            .1
Purchase obligations*    50.8          50.8             --            --
Dividends payable        15.2          15.2             --            --
                        -----         -----           ----          ----
                        $67.0         $66.6           $0.3          $0.1
                        =====         =====           ====          ====


*    Primarily for inventory parts and capital equipment.

CRITICAL ACCOUNTING POLICIES.

          The Company's significant accounting policies are described in Note 1
to the consolidated financial statements. The policies described below represent
those that are broadly applicable to its operations and involve additional
management judgment due to the sensitivity of the methods, assumptions and
estimates necessary in determining the related amounts.

          Revenue Recognition. The Company recognizes revenue in accordance with
SEC Staff Accounting Bulletin No. 104, Revenue Recognition in Financial
Statements, as amended. Accordingly, revenue is recognized based on the terms of
the customer purchase order that indicates title to the product and risk of
ownership passes to the customer upon shipment. Sales are shown net of returns,
which have not historically been significant. The Company does not generate
sales from sale arrangements with multiple deliverables.

          Inventories. Estimated inventory allowances for slow-moving and
obsolete inventories are based on current assessments of future demands, market
conditions and related management initiatives. If market conditions or customer
requirements change and are less favorable than those projected by management,
inventory allowances are adjusted accordingly.

          Investments. The Company's investment committee regularly reviews its
fixed income and equity investment portfolio for any unrealized losses that
would be deemed other-than-temporary and require the recognition of an
impairment loss in income. Management uses criteria such as the period of time
that securities have been in an unrealized loss position, types of securities
and their related industries, as well as published investment ratings and
analyst reports to evaluate their portfolio. Management considers the unrealized
losses at December 31, 2007, to be temporary in nature.

          Self Insurance. The Company is self-insured for health and workers'
compensation benefits up to certain stop-loss limits. Such costs are accrued
based on known claims and an estimate of incurred, but not reported (IBNR)
claims. IBNR claims are estimated using historical lag information and other
data provided by claims administrators. This estimation process is subjective,
and to the extent that future actual results differ from original estimates,
adjustments to recorded accruals may be necessary.

          Stock-Based Compensation. Effective January 1, 2006, the Company
accounts for stock-based compensation in accordance with the fair value
recognition provisions of SFAS No. 123(R). The Company utilizes the
Black-Scholes model, which requires the input of subjective assumptions. These
assumptions include estimating (a) the length of time employees will retain
their vested stock options before exercising them ("expected term"), (b) the
volatility of the Company's common stock price over the expected term, (c) the
number of options that will ultimately not complete their vesting requirements
("forfeitures") and (d) expected dividends. Changes in the subjective
assumptions can materially affect the estimate of fair value of stock-based
compensation and consequently, the related amounts recognized on the
consolidated condensed statements of operations.

ITEM 7. A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

          See "Market Risk Disclosure" in Management's Discussion and Analysis
(Item 7).


                                      -24-



ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

          The following financial statements and reports of independent
registered public accounting firm are filed with this report as pages 30 through
47 following the signature page:

          Report of Independent Registered Public Accounting Firm

          Report of Independent Registered Public Accounting Firm on Internal
Control Over Financial Reporting

          Consolidated Balance Sheets as of December 31, 2007 and 2006

          Consolidated Statements of Income for the years ended December 31,
2007, 2006 and 2005

          Consolidated Statements of Shareholders' Investment for the years
ended December 31, 2007, 2006 and 2005

          Consolidated Statements of Cash Flows for the years ended December 31,
2007, 2006 and 2005

          Notes to Consolidated Financial Statements

Selected quarterly financial data for the past two years appears in the
following table:



                                                 Quarterly Results of Operations
                                              (in thousands, except per share data)
                      -------------------------------------------------------------------------------------
                             First                 Second                Third                 Fourth
                      -------------------   -------------------   -------------------   -------------------
                        2007       2006       2007       2006       2007       2006       2007       2006
                      --------   --------   --------   --------   --------   --------   --------   --------
                                                                           
Net Sales             $157,206   $139,021   $163,480   $142,391   $162,525   $141,266   $170,723   $149,590
Gross Profit            54,579     48,233     57,697     50,896     57,002     47,879     58,420     52,096
Operating Income        33,937     30,282     36,518     33,421     34,637     29,605     33,724     33,139
Net Income              29,498     26,371     30,956     27,236     29,826     24,338     31,850     30,816
Earnings Per Share*   $    .21   $    .17   $    .22   $    .18   $    .21   $    .17   $    .22   $    .22


*    Diluted

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE.

Not applicable.

ITEM 9A. CONTROLS AND PROCEDURES.

DISCLOSURE CONTROLS AND PROCEDURES.

          As of December 31, 2007, an evaluation was performed under the
supervision and with the participation of the Company's management, including
the CEO and CFO, of the effectiveness of the design and operation of the
Company's disclosure controls and procedures [(as defined in Exchange Act Rules
13a - 15(e) and 15d - 15(e)]. Based on that evaluation, the Company's
management, including the CEO and CFO, concluded that the Company's disclosure
controls and procedures were adequate and effective as of December 31, 2007, to
ensure that material information relating to the Company would be made known to
them by others within the Company, particularly during the period in which this
Form 10-K was being prepared. During the period covered by this annual report,
there have been no changes in the Company's internal controls over financial
reporting that have materially affected or are likely to materially affect the
Company's internal controls over financial reporting. There have been no
significant changes in the Company's internal controls or in other factors that
could significantly affect internal controls subsequent to December 31, 2007.

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING.

          Our management is responsible for establishing and maintaining
adequate internal control over financial reporting, as such term is defined in
Exchange Act Rules 13a-15(f) and 15d-15(f). Under the supervision and with the
participation of our management, including our principal executive officer and
principal financial officer, we conducted an evaluation of the effectiveness of
our internal


                                      -25-



control over financial reporting based on the framework in Internal Control -
Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission. Based on our evaluation under the framework in Internal
Control - Integrated Framework our management concluded that our internal
control over financial reporting was effective as of December 31, 2007. The
effectiveness of the Company's internal control over financial reporting as of
December 31, 2007, has been audited by Ernst & Young LLP, an independent
registered public accounting firm, as stated in their report, which is included
on page 31 hereof.

ITEM 9B. OTHER INFORMATION.

          Not applicable.


                                      -26-



                                    PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

          Information relating to executive officers is included in this report
in the last section of Part I under the caption "Executive Officers of the
Registrant". Information relating to directors appearing under the caption
"Election of Directors" in the definitive Proxy Statement for the 2008 Annual
Meeting of Shareholders and filed with the Commission within 120 days after the
Company's fiscal year end, December 31, 2007 (the "Proxy Statement"), is hereby
incorporated herein by reference. No changes were made to the procedures by
which shareholders may recommend nominees for the Board of Directors.
Information concerning compliance with Section 16(a) of the Securities and
Exchange Act of 1934 appearing under the caption "Section 16(A) Beneficial
Ownership Reporting Compliance" in the definitive Proxy Statement is hereby
incorporated herein by reference. Information relating to the Company's Audit
Committee concerning whether at least one member of the Audit Committee is an
"audit committee financial expert" as that term is defined under Item 407 (d)(5)
of Regulation S-K appearing under the caption "Corporate Governance - Audit
Committee" in the definitive Proxy Statement is hereby incorporated by
reference.

          The Company has adopted a Code of Ethics that applies to its principal
executive officer, principal financial officer, and principal accounting
officer. A copy of the Code of Ethics for Certain Senior Officers is available
without charge, upon written request, from the Corporate Secretary of the
Company, 600 N. Centennial Street, Zeeland, Michigan 49464. The Company intends
to satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding an
amendment to, or waiver from, a provision of this Code of Ethics by posting such
information on its website. Information contained in the Company's website,
whether currently posted or posted in the future, is not part of this document
or the documents incorporated by reference in this document.

ITEM 11. EXECUTIVE COMPENSATION.

          The information contained under the caption "Compensation Committee
Report", "Compensation Discussion and Analysis," "Executive Compensation" and
"Compensation Committee Interlocks and Insider Participation" contained in the
definitive Proxy Statement is hereby incorporated herein by reference. The
"Compensation Committee Report" shall not be deemed to be soliciting material or
to be filed with the commission.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND EQUITY COMPENSATION
PLAN INFORMATION.

          The information contained under the captions "Securities Ownership of
Management", "Common Stock Ownership of Certain Beneficial Owners", and "Equity
Compensation Plan Summary" contained in the definitive Proxy Statement is hereby
incorporated herein by reference. There are no arrangements known to the
registrant, the operation of which may at a subsequent date result in a change
in control.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE.

          The information contained under the caption "Certain Transactions"
contained in the definitive Proxy Statement is hereby incorporated herein by
reference. The information contained under the caption "Election of Directors"
contained in the definitive proxy statement is hereby incorporated by reference.

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.

          Information regarding principal accounting fees and services set forth
under the caption "Ratification of Appointment of Independent Auditors -
Principal Accounting Fees and Services" in the definitive Proxy Statement is
hereby incorporated herein by reference. Information concerning the policy
adopted by the Audit Committee regarding the pre-approval of audit and non-audit
services provided by the Company's independent auditors set forth under the
caption "Corporate Governance - Audit Committee" in the definitive Proxy
Statement is hereby incorporated by reference.


                                      -27-



ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K.

     (a)  1.   Financial Statements. See Item 8.

          2.   Financial Statements Schedules. None required or not applicable.

          3.   Exhibits. See Exhibit Index located on page 48.

     (b)  See (a) above.

     (c)  See (a) above.


                                      -28-



                                   SIGNATURES

          Pursuant to the requirements of Section 13 of 15(d) of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned, thereunto duly authorized.

Dated: February 21, 2008                GENTEX CORPORATION


                                        By: /s/ Fred Bauer
                                            ------------------------------------
                                            Fred Bauer, Chairman and Principal
                                            Executive Officer

                                        and


                                        /s/ Steven Dykman
                                        ----------------------------------------
                                        Steven Dykman, Vice President-Finance
                                        and Principal Financial and Accounting
                                        Officer

          Pursuant to the requirements of the Securities Exchange Act of 1934,
this report has been signed below on this 21st day of February, 2008, by the
following persons on behalf of the registrant and in the capacities indicated.

          Each Director of the registrant whose signature appears below hereby
appoints Enoch Jen and Steve Dykman, each of them individually, as his
attorney-in-fact to sign in his name and on his behalf, and to file with the
Commission any and all amendments to this report on Form 10-K to the same extent
and with the same effect as if done personally.


/s/ Fred Bauer                          Director
-------------------------------------
Fred Bauer


/s/ Gary Goode                          Director
-------------------------------------
Gary Goode


/s/ Kenneth La Grand                    Director
-------------------------------------
Kenneth La Grand


/s/ Arlyn Lanting                       Director
-------------------------------------
Arlyn Lanting


/s/ John Mulder                         Director
-------------------------------------
John Mulder


/s/ Rande Somma                         Director
-------------------------------------
Rande Somma


/s/ Fred Sotok                          Director
-------------------------------------
Fred Sotok


/s/ Wallace Tsuha                       Director
-------------------------------------
Wallace Tsuha


/s/ James Wallace                       Director
-------------------------------------
James Wallace


                                      -29-



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Board of Directors and Shareholders of Gentex Corporation:

We have audited the accompanying consolidated balance sheets of Gentex
Corporation and subsidiaries as of December 31, 2007 and 2006, and the related
consolidated statements of income, shareholders' investment and cash flows for
each of the three years in the period ended December 31, 2007. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.

We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in
all material respects, the consolidated financial position of Gentex Corporation
and subsidiaries at December 31, 2007 and 2006, and the consolidated results of
their operations and their cash flows for each of the three years in the period
ended December 31, 2007, in conformity with U.S. generally accepted accounting
principles.

As discussed in Note 1 to the consolidated financial statements, in 2006 the
Company changed its method of accounting for share-based payments in connection
with the required adoption of Statement of Financial Accounting Standards No.
123(R).

We also have audited, in accordance with the standards of the Public Company
Accounting Oversight Board (United States), Gentex Corporation's internal
control over financial reporting as of December 31, 2007, based on criteria
established in Internal Control--Integrated Framework issued by the Committee of
Sponsoring Organizations of the Treadway Commission and our report dated
February 8, 2008 expressed an unqualified opinion thereon.


                                        /s/ Ernst & Young  LLP

Grand Rapids, Michigan
February 8, 2008


                                      -30-



             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
                  ON INTERNAL CONTROL OVER FINANCIAL REPORTING

The Board of Directors and Shareholders of Gentex Corporation:

We have audited Gentex Corporation's internal control over financial reporting
as of December 31, 2007, based on criteria established in Internal Control -
Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (the COSO criteria). Gentex Corporation's management is
responsible for maintaining effective internal control over financial reporting,
and for its assessment of the effectiveness of internal control over financial
reporting included in the accompanying Management's Report on Internal Control
over Financial Reporting. Our responsibility is to express an opinion on the
Company's internal control over financial reporting based on our audit.

We conducted our audit in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether effective
internal control over financial reporting was maintained in all material
respects. Our audit included obtaining an understanding of internal control over
financial reporting, assessing the risk that a material weakness exists, testing
and evaluating the design and operating effectiveness of internal control based
on the assessed risk, and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable
basis for our opinion.

A company's internal control over financial reporting is a process designed to
provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance
with generally accepted accounting principles. A company's internal control over
financial reporting includes those policies and procedures that (1) pertain to
the maintenance of records that, in reasonable detail, accurately and fairly
reflect the transactions and dispositions of the assets of the company; (2)
provide reasonable assurance that transactions are recorded as necessary to
permit preparation of financial statements in accordance with generally accepted
accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of
the company; and (3) provide reasonable assurance regarding prevention or timely
detection of unauthorized acquisition, use, or disposition of the company's
assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting
may not prevent or detect misstatements. Also, projections of any evaluation of
effectiveness to future periods are subject to the risk that controls may become
inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.

In our opinion, Gentex Corporation maintained, in all material respects,
effective internal control over financial reporting as of December 31, 2007,
based on the COSO criteria.

We also have audited, in accordance with standards of the Public Company
Accounting Oversight Board (United States), the consolidated balance sheets of
Gentex Corporation as of December 31, 2007 and 2006, and the related
consolidated statements of income, shareholders' investment, and cash flows for
each of the three years in the period ended December 31, 2007 of Gentex
Corporation and our report dated February 8, 2008 expressed an unqualified
opinion thereon.


                                        /s/ Ernst & Young LLP

Grand Rapids, Michigan
February 8, 2008


                                      -31-



                       GENTEX CORPORATION AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS
                        AS OF DECEMBER 31, 2007 AND 2006



                                                     2007            2006
                                                -------------   -------------
                                                          
ASSETS
CURRENT ASSETS:
   Cash and cash equivalents                    $ 317,717,093   $ 245,499,783
   Short-term investments                          80,271,688      82,727,927
   Accounts receivable                             64,181,511      58,337,396
   Inventories                                     48,049,560      48,805,398
   Prepaid expenses and other                      18,274,096      11,507,590
                                                -------------   -------------
      Total current assets                        528,493,948     446,878,094

PLANT AND EQUIPMENT:
   Land, buildings and improvements               101,215,484      95,998,488
   Machinery and equipment                        260,619,845     231,526,281
   Construction-in-process                         26,331,641      12,393,019
                                                -------------   -------------
                                                  388,166,970     339,917,788
   Less-Accumulated depreciation
      and amortization                           (182,557,299)   (155,783,415)
                                                -------------   -------------
                                                  205,609,671     184,134,373

OTHER ASSETS:
   Long-term investments                          155,384,009     146,215,929
   Patents and other assets, net                    8,535,052       7,800,004
                                                -------------   -------------
                                                  163,919,061     154,015,933
                                                -------------   -------------
                                                $ 898,022,680   $ 785,028,400
                                                =============   =============




                                                      2007           2006
                                                  ------------   ------------
                                                           
LIABILITIES AND SHAREHOLDERS' INVESTMENT
CURRENT LIABILITIES:
   Accounts payable                               $ 30,531,649   $ 23,881,973
   Accrued liabilities:
      Salaries, wages and vacation                   5,149,599      4,288,825
      Income taxes                                   3,671,258      4,744,765
      Royalties                                      5,685,468      5,091,886
      Dividends declared                            15,199,200     13,535,237
      Other                                          8,125,531      5,820,292
                                                  ------------   ------------
         Total current liabilities                  68,362,705     57,362,978

DEFERRED INCOME TAXES                               22,847,779     24,971,133
SHAREHOLDERS' INVESTMENT:
   Preferred stock, no par value,
      5,000,000 shares authorized; none
      issued or outstanding                                 --             --
   Common stock, par value $.06 per share;
      200,000,000 shares authorized;
      144,754,288 shares issued and outstanding
      in 2007 and 142,476,181 shares issued and
      outstanding in 2006                            8,685,257      8,548,571
   Additional paid-in capital                      245,502,960    196,901,488
   Retained earnings                               530,290,281    472,192,400
   Accumulated other comprehensive income:
      Unrealized gain on investments                19,527,380     23,246,788
      Cumulative translation adjustment              2,806,318      1,805,042
                                                  ------------   ------------
         Total shareholders' investment            806,812,196    702,694,289
                                                  ------------   ------------
                                                  $898,022,680   $785,028,400
                                                  ============   ============


The accompanying notes are an integral part of these consolidated financial
statements.


                                      -32-



                       GENTEX CORPORATION AND SUBSIDIARIES

                        CONSOLIDATED STATEMENTS OF INCOME

              FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005



                                                  2007           2006           2005
                                              ------------   ------------   ------------
                                                                   
NET SALES                                     $653,933,236   $572,267,073   $536,483,974

COST OF GOODS SOLD                             426,236,241    373,163,484    337,843,632
                                              ------------   ------------   ------------
   Gross profit                                227,696,995    199,103,589    198,640,342
OPERATING EXPENSES:
   Engineering, research and development        50,715,057     41,773,792     35,059,401
   Selling, general and administrative          35,280,846     30,882,821     27,286,404
   Litigation judgment                           2,885,329              0              0
                                              ------------   ------------   ------------
      Total operating expenses                  88,881,232     72,656,613     62,345,805
                                              ------------   ------------   ------------
   Income from operations                      138,815,763    126,446,976    136,294,537
OTHER INCOME:
   Interest and dividend income                 25,777,667     24,004,833     20,289,908
   Other, net                                   15,145,338      8,521,789      3,310,066
                                              ------------   ------------   ------------
      Total other income                        40,923,005     32,526,622     23,599,974
                                              ------------   ------------   ------------
   Income before provision for income taxes    179,738,768    158,973,598    159,894,511
PROVISION FOR INCOME TAXES                      57,608,747     50,212,596     50,367,000
                                              ------------   ------------   ------------
NET INCOME                                    $122,130,021   $108,761,002   $109,527,511
                                              ============   ============   ============
EARNINGS PER SHARE:
   Basic                                      $       0.85   $       0.74   $       0.70
                                              ============   ============   ============
   Diluted                                    $       0.85   $       0.73   $       0.70
                                              ============   ============   ============
Cash Dividends Declared per Share             $       0.40   $       0.37   $       0.35


  The accompanying notes are an integral part of these consolidated financial
                                  statements.


                                      -33-


                       GENTEX CORPORATION AND SUBSIDIARIES
               CONSOLIDATED STATEMENT OF SHAREHOLDERS' INVESTMENT
              FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 and 2005



                                                  Common      Common     Additional   Comprehensive
                                                  Stock        Stock       Paid-In        Income
                                                  Shares      Amount       Capital        (Loss)
                                               -----------  ----------  ------------  -------------
                                                                          
BALANCE AS OF DECEMBER 31, 2004                 77,866,751  $4,672,005  $175,266,114
Issuance of common stock and the tax
   benefit of stock plan transactions            1,652,948      99,177    25,641,802
2 for 1 Common Stock Split                      78,020,342   4,681,221    (4,681,221)
Repurchases of common stock                     (1,496,059)    (89,764)   (1,750,389)
Dividends declared ($.35 per share)                     --          --            --
Amortization of deferred compensation                   --          --            --
Comprehensive income:
   Net income                                           --          --            --   $109,527,511
   Other comprehensive income (loss):
      Foreign currency translation adjustment           --          --            --     (1,138,244)
      Unrealized gain on investments, net
         of tax of $1,743,097                           --          --            --      3,237,180
                                                                                       ------------
         Other comprehensive income                     --          --            --      2,098,936
                                                                                       ------------
            Comprehensive income                        --          --            --   $111,626,447
                                               -----------  ----------  ------------   ============
BALANCE AS OF DECEMBER 31, 2005                156,043,982   9,362,639   194,476,306
Reclassification of Deferred Compensation
   upon adopting [SFAS123(R)]                           --          --    (4,847,659)
Issuance of common stock and the tax benefit
   of stock plan transactions                    1,637,883      98,273    18,854,905
Stock-based compensation expense related to
   stock options, employee stock purchases
   and restricted stock                                 --          --     8,481,871
Repurchases of common stock                    (15,205,684)   (912,341)  (20,063,935)
Dividends declared ($.37 per share)                     --          --            --
Comprehensive income:
   Net income                                           --          --            --   $108,761,002
   Other comprehensive income (loss):
     Foreign currency translation adjustment            --          --            --      1,298,088
     Unrealized gain on investments, net
        of tax of $2,396,923                            --          --            --      4,451,428
                                                                                       ------------
        Other comprehensive income                      --          --            --      5,749,516
                                                                                       ------------
           Comprehensive income                         --          --            --   $114,510,518
                                               -----------  ----------  ------------   ============
BALANCE AS OF DECEMBER 31, 2006                142,476,181   8,548,571   196,901,488
Issuance of common stock and the tax benefit
   of stock plan transactions                    2,725,817     163,549    39,925,919
Stock-based compensation expense related to
   stock options, employee stock purchases
   and restricted stock                                 --          --     9,293,394
Repurchases of common stock                       (447,710)    (26,863)     (617,841)
Dividends declared ($.40 per share)                     --          --            --
Comprehensive income:
   Net income                                           --          --            --   $122,130,021
   Other comprehensive income (loss):
      Foreign currency translation adjustment           --          --            --      1,001,276
      Unrealized gain (loss) on investments,
         net of tax of ($2,002,756)                     --          --            --     (3,719,408)
                                                                                       ------------
         Other comprehensive income (loss)              --          --            --     (2,718,132)
                                                                                       ------------
            Comprehensive income                        --          --            --   $119,411,889
                                               -----------  ----------  ------------   ============
BALANCE AS OF DECEMBER 31, 2007                144,754,288  $8,685,257  $245,502,960
                                               ===========  ==========  ============


                                                                           Accumulated
                                                                              Other          Total
                                                Retained      Deferred     Comprehensive  Shareholders'
                                                Earnings     Compensation  Income (Loss)    Investment
                                               ------------  ------------  -------------  -------------
                                                                              
BALANCE AS OF DECEMBER 31, 2004                $591,546,326  ($5,407,851)   $17,203,378   $ 783,279,972
Issuance of common stock and the tax
   benefit of stock plan transactions                    --   (1,069,507)            --      24,671,472
2 for 1 Common Stock Split                               --           --             --              --
Repurchases of common stock                     (23,374,420)          --             --     (25,214,573)
Dividends declared ($.35 per share)             (54,397,642)          --             --     (54,397,642)
Amortization of deferred compensation                    --    1,629,699             --       1,629,699
Comprehensive income:
   Net income                                   109,527,511           --             --     109,527,511
   Other comprehensive income (loss):
      Foreign currency translation adjustment            --           --             --              --
      Unrealized gain on investments, net
         of tax of $1,743,097                            --           --             --              --
         Other comprehensive income                      --           --      2,098,936       2,098,936
            Comprehensive income                         --           --             --              --
                                               ------------  -----------    -----------   -------------
BALANCE AS OF DECEMBER 31, 2005                 623,301,775   (4,847,659)    19,302,314     841,595,375
Reclassification of Deferred Compensation
   upon adopting [SFAS123(R)]                            --    4,847,659             --              --
Issuance of common stock and the tax benefit
   of stock plan transactions                            --           --             --      18,953,178
Stock-based compensation expense related to
   stock options, employee stock purchases
   and restricted stock                                  --           --             --       8,481,871
Repurchases of common stock                    (205,874,977)          --             --    (226,851,253)
Dividends declared ($.37 per share)             (53,995,400)          --             --     (53,995,400)
Comprehensive income:
   Net income                                   108,761,002           --             --     108,761,002
   Other comprehensive income (loss):
     Foreign currency translation adjustment             --           --             --              --
     Unrealized gain on investments, net
        of tax of $2,396,923                             --           --             --              --
        Other comprehensive income                       --           --      5,749,516       5,749,516
           Comprehensive income                          --           --             --              --
                                               ------------  -----------    -----------   -------------
BALANCE AS OF DECEMBER 31, 2006                 472,192,400           --     25,051,830     702,694,289
Issuance of common stock and the tax benefit
   of stock plan transactions                            --           --             --      40,089,468
Stock-based compensation expense related to
   stock options, employee stock purchases
   and restricted stock                                  --           --             --       9,293,394
Repurchases of common stock                      (6,683,311)          --             --      (7,328,015)
Dividends declared ($.40 per share)             (57,348,829)          --             --     (57,348,829)
Comprehensive income:
   Net income                                   122,130,021           --             --     122,130,021
   Other comprehensive income (loss):
      Foreign currency translation adjustment            --           --             --              --
      Unrealized gain (loss) on investments,
         net of tax of ($2,002,756)                      --           --             --              --
         Other comprehensive income (loss)               --           --     (2,718,132)     (2,718,132)
            Comprehensive income                         --           --             --              --
                                               ------------  -----------    -----------   -------------
BALANCE AS OF DECEMBER 31, 2007                $530,290,281           --    $22,333,698   $ 806,812,196
                                               ============  ===========    ===========   =============


The accompanying notes are an integral part of these consolidated financial
statements.


                                      -34-



                       GENTEX CORPORATION AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF CASH FLOWS

              FOR THE YEARS ENDED DECEMBER 31, 2007, 2006 AND 2005



                                                                  2007             2006             2005
                                                             -------------    -------------    -------------
                                                                                      
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                                                $ 122,130,021    $ 108,761,002    $ 109,527,511
   Adjustments to reconcile net income to net
      cash provided by operating activities:
         Depreciation and amortization                          32,435,258       27,762,710       23,823,327
         Loss on disposal of assets                                598,902          117,872          420,522
         Gain on sale of investments                           (17,126,885)     (11,041,851)      (5,710,679)
         Loss on sale of investments                             4,130,927        4,674,676        2,511,060
         Deferred income taxes                                  (2,926,921)      (1,754,219)      (2,172,589)
         Stock based compensation expense related
            to employee stock options,employee stock
            purchases and restricted stock                       9,293,394        8,481,871        1,629,699
         Tax benefit of stock plan transactions                          0                0        3,180,230
         Excess tax benefits from stock based compensation        (338,648)        (235,410)               0
         Change in operating assets and liabilities:
            Accounts receivable                                 (5,844,115)       2,587,041       (4,832,107)
            Inventories                                            755,838       (8,968,576)      (9,236,033)
            Prepaid expenses and other                          (3,960,185)       1,071,317          491,532
            Accounts payable                                     6,649,676          274,046        3,758,358
            Accrued liabilities                                  2,923,367         (290,328)       2,853,627
                                                             -------------    -------------    -------------
               Net cash provided by
                  operating activities                         148,720,629      131,440,151      126,244,458
                                                             -------------    -------------    -------------
CASH FLOWS FROM INVESTING ACTIVITIES:
   Activity in available-for-sale securities:
      Sales proceeds                                            67,900,543       60,550,849       30,057,962
      Maturities and calls                                      88,200,000       64,240,000      101,159,061
      Purchases                                               (155,538,587)    (140,662,282)    (101,378,452)
   Plant and equipment additions                               (54,524,322)     (48,193,083)     (53,533,235)
   Proceeds from sale of plant and equipment                       368,005          500,665        1,141,013
   Decrease (increase) in other assets                             (86,912)         308,855       (2,046,876)
                                                             -------------    -------------    -------------
               Net cash provided by (used for)
                  investing activities                         (53,681,273)     (63,254,996)     (24,600,527)
                                                             -------------    -------------    -------------
CASH FLOWS FROM FINANCING ACTIVITIES:
   Issuance of common stock from
      stock plan transactions                                   40,089,468       18,953,178       21,491,243
   Cash dividends paid                                         (55,922,147)     (54,704,400)     (53,777,627)
   Repurchases of common stock                                  (7,328,015)    (226,851,253)     (25,214,573)
   Excess tax benefits from stock based compensation               338,648          235,410                0
                                                             -------------    -------------    -------------
               Net cash provided by (used for)
                  financing activities                         (22,822,046)    (262,367,065)     (57,500,957)
                                                             -------------    -------------    -------------
NET INCREASE(DECREASE) IN CASH AND
     CASH EQUIVALENTS                                           72,217,310     (194,181,910)      44,142,974
CASH AND CASH EQUIVALENTS,
      Beginning of year                                        245,499,783      439,681,693      395,538,719
                                                             -------------    -------------    -------------
CASH AND CASH EQUIVALENTS,
      End of year                                            $ 317,717,093    $ 245,499,783    $ 439,681,693
                                                             =============    =============    =============


   The accompanying notes are an integral part of these consolidated financial
                                   statements.


                                      -35-



                       GENTEX CORPORATION AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES

     The Company

     Gentex Corporation designs, develops, manufactures and markets proprietary
     electro-optical products: automatic-dimming rearview mirrors for the
     automotive industry and fire protection products for the commercial
     building industry. A substantial portion of the Company's net sales and
     accounts receivable result from transactions with domestic and foreign
     automotive manufacturers and tier one suppliers. The Company's fire
     protection products are primarily sold to domestic distributors and
     original equipment manufacturers of fire and security systems. The Company
     does not require collateral or other security for trade accounts
     receivable.

     Significant accounting policies of the Company not described elsewhere are
     as follows:

     Consolidation

     The consolidated financial statements include the accounts of Gentex
     Corporation and all of its wholly-owned subsidiaries (together the
     "Company"). All significant intercompany accounts and transactions have
     been eliminated.

     Cash Equivalents

     Cash equivalents consist of funds invested in bank accounts and money
     market funds that have daily liquidity.

     Investments

     At December 31, 2007, investment securities are available for sale and are
     stated at fair value based on quoted market prices. Adjustments to the fair
     value of investments are recorded as increases or decreases, net of income
     taxes, within accumulated other comprehensive income (loss) in
     shareholders' investment.

     The amortized cost, unrealized gains and losses, and market value of
     investment securities are shown as of December 31, 2007 and 2006:



                                                 Unrealized
                                         -------------------------
2007                          Cost          Gains         Losses     Market Value
----                      ------------   -----------   -----------   ------------
                                                         
Government Agency         $ 28,973,865   $    20,401   $        --   $ 28,994,266
Certificates of Deposit     49,000,000            --            --     49,000,000
Corporate Bonds                298,890            --        (3,483)       295,407
Other Fixed Income           1,982,015            --            --      1,982,015
Equity                     125,358,799    32,983,925    (2,958,715)   155,384,009
                          ------------   -----------   -----------   ------------
                          $205,613,569   $33,004,326   $(2,962,198)  $235,655,697
                          ============   ===========   ===========   ============




2006                          Cost          Gains        Losses    Market Value
----                      ------------   -----------   ---------   ------------
                                                       
Government Agency         $  8,992,336   $        --   $  (3,796)  $  8,988,540
Certificates of Deposit     71,200,000            --          --     71,200,000
Corporate Bonds                297,579            --      (4,926)       292,653
Other Fixed Income           2,539,387            --          --      2,539,387
Equity                     110,150,262    36,173,199    (400,185)   145,923,276
                          ------------   -----------   ---------   ------------
                          $193,179,564   $36,173,199   $(408,907)  $228,943,856
                          ============   ===========   =========   ============


     Unrealized losses on investments as of December 31, 2007, are as follows:



                        Aggregate Unrealized Losses   Aggregate Fair Value
                        ---------------------------   --------------------
                                                
Less than one year               $2,962,198                $22,976,043
Greater than one year                    --                         --



                                      -36-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

     Management has reviewed the unrealized losses in the Company's fixed-income
     and equity securities as of December 31, 2007, and has determined that they
     are temporary in nature; accordingly, no losses have been recognized in
     income as of December 31, 2007.

     Fixed income securities as of December 31, 2007, have contractual
     maturities as follows:


                              
Due within one year              $80,254,770
Due between one and five years            --
Due over five years                       --
                                 -----------
                                 $80,254,770
                                 ===========


     Fair Value of Financial Instruments

     The Company's financial instruments consist of cash and cash equivalents,
     investments, accounts receivable and accounts payable. The Company's
     estimate of the fair values of these financial instruments approximates
     their carrying amounts at December 31, 2007 and 2006.

     Inventories

     Inventories include material, direct labor and manufacturing overhead and
     are valued at the lower of first-in, first-out (FIFO) cost or market.
     Inventories consisted of the following as of December 31, 2007 and 2006:



                      2007          2006
                  -----------   -----------
                          
Raw materials     $31,098,379   $31,727,666
Work-in-process     4,555,058     4,681,714
Finished goods     12,396,123    12,396,018
                  -----------   -----------
                  $48,049,560   $48,805,398
                  ===========   ===========


     Allowances for slow-moving and obsolete inventories were not significant as
     of December 31, 2007 and 2006.

     Plant and Equipment

     Plant and equipment are stated at cost. Depreciation and amortization are
     computed for financial reporting purposes using the straight-line method,
     with estimated useful lives of 7 to 40 years for buildings and
     improvements, and 3 to 10 years for machinery and equipment.

     Impairment or Disposal of Long-Lived Assets

     The Company reviews long-lived assets for impairment whenever events or
     changes in circumstances indicate that the carrying amount of an asset may
     not be recoverable. If such assets are determined to be impaired, the
     impairment to be recognized is measured by the amount by which the carrying
     amount of the assets exceeds the fair value of the assets.

     Patents

     The Company's policy is to capitalize costs incurred to obtain patents. The
     cost of patents is amortized over their useful lives. The cost of patents
     in process is not amortized until issuance. Accumulated amortization was
     approximately $3,714,000 and $3,510,000 at December 31, 2007 and 2006,
     respectively. At December 31, 2007, patents had a weighted average
     amortization life of 12 years. Patent amortization expense was
     approximately $353,000, $292,000, and $233,000 in 2007, 2006 and 2005,
     respectively. For each of the next five years, patent amortization expense
     will approximate $405,000 annually.

     Revenue Recognition

     The Company's revenue is generated from sales of its products. Sales are
     recognized when the product is shipped and legal title has passed to the
     customer. The Company does not generate sales from arrangements with
     multiple deliverables.


                                      -37-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

     Advertising and Promotional Materials

     All advertising and promotional costs are expensed as incurred and amounted
     to approximately $1,407,000, $1,250,000 and $1,458,000, in 2007, 2006 and
     2005, respectively.

     Repairs and Maintenance

     Major renewals and improvements of property and equipment are capitalized,
     and repairs and maintenance are expensed as incurred. The Company incurred
     expenses relating to the repair and maintenance of plant and equipment of
     approximately $7,701,000, $6,727,000 and $5,770,000, in 2007, 2006 and
     2005, respectively.

     Self-Insurance

     The Company is self-insured for a portion of its risk on workers'
     compensation and employee medical costs. The arrangements provide for stop
     loss insurance to manage the Company's risk. Operations are charged with
     the cost of claims reported and an estimate of claims incurred but not
     reported based upon historical claims lag information and other data.

     Product Warranty

     The Company periodically incurs product warranty costs. Any liabilities
     associated with product warranty are estimated based on known facts and
     circumstances and are not significant at December 31, 2007 and 2006. The
     Company does not offer extended warranties on its products.

     Earnings Per Share

     The following table reconciles the numerators and denominators used in the
     calculations of basic and diluted earnings per share (EPS) for each of the
     last three years:



                                                                       2007           2006           2005
                                                                   ------------   ------------   ------------
                                                                                        
Numerators:
   Numerator for both basic and diluted EPS, net income            $122,130,021   $108,761,002   $109,527,511
Denominators:
   Denominator for basic EPS,
      weighted-average common shares outstanding                    143,056,704    147,950,666    155,438,834
   Potentially dilutive shares resulting from stock option plans      1,013,593        543,697      1,591,790
                                                                   ------------   ------------   ------------
   Denominator for diluted EPS                                      144,070,297    148,494,363    157,030,624
                                                                   ============   ============   ============


     For the years ended December 31, 2007, 2006 and 2005, 2,369,271, 6,564,622
     and 3,517,373 shares, respectively, related to stock option plans were not
     included in diluted average common shares outstanding because their effect
     would be antidilutive.

     Other Comprehensive Income (Loss)

     Comprehensive income reflects the change in equity of a business enterprise
     during a period from transactions and other events and circumstances from
     non-owner sources. For the Company, comprehensive income represents net
     income adjusted for unrealized gains and losses on certain investments and
     foreign currency translation adjustments.

     Foreign Currency Translation

     The financial position and results of operations of the Company's foreign
     subsidiaries are measured using the local currency as the functional
     currency. Assets and liabilities are translated at the exchange rate in
     effect at year-end. Income statement accounts are translated at the average
     rate of exchange in effect during the year. The resulting translation
     adjustment is recorded as a separate component of shareholders' investment.
     Gains and losses arising from re-measuring foreign currency transactions
     into the appropriate currency are included in the determination of net
     income.


                                      -38-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

     Stock-Based Compensation Plans

     At December 31, 2007, the Company had two stock option plans, a restricted
     plan and an employee stock purchase plan, which are described more fully in
     Note 6. Effective January 1, 2006, the Company adopted Statement of
     Financial Accounting Standards No. 123 (revised), "Share-Based Payment"
     [SFAS 123(R)] utilizing the modified prospective approach. Prior to the
     adoption of SFAS 123(R), the Company accounted for stock option grants
     under the recognition and measurement principles of APB Opinion No. 25
     (Accounting for Stock Issued to Employees) and related interpretations, and
     accordingly, recognized no compensation expense for stock option grants in
     net income.

     Under the modified prospective approach, SFAS 123(R) applies to new awards
     and to awards that were outstanding on December 31, 2005. Under the
     modified prospective approach, compensation cost recognized in 2007 and
     2006 includes compensation cost for all share-based payments granted prior
     to, but not yet vested as of December 31, 2005, based on the grant-date
     fair value estimated in accordance with the original provisions of SFAS
     123, and compensation cost for all share-based payments granted subsequent
     to December 31, 2005, based on the grant-date fair value estimated in
     accordance with the provisions of SFAS 123 (R). Prior periods were not
     restated to reflect the impact of adopting the new standard.

     The Company's income before taxes, net income and basic and diluted
     earnings per share for the year ended December 31, 2007, were $7,501,492,
     $3,306,239 and $0.02 lower, respectively, than if we had continued to
     account for stock-based compensation under APB Opinion No. 25 for our stock
     option grants. For the year ended December 31, 2006, the Company's income
     before taxes, net income and basic and diluted earnings per share was
     $7,058,135, $4,554,731 and $.03 lower, respectively, than if we had
     continued to account for stock-based compensation under APB Opinion No. 25
     for our stock option grants. Compensation cost capitalized as part of
     inventory was $95,712 and $95,111 in 2007 and 2006, respectively. The
     cumulative effect of the change in accounting for forfeitures was not
     material.

     The Company receives a tax deduction for certain stock option exercises
     during the period the options are exercised, generally for the excess of
     the price at which the options are sold over the exercise price of the
     options. Prior to the adoption of SFAS 123(R), we reported all tax benefits
     resulting from the exercise of stock options as operating cash flows in our
     consolidated statement of cash flows. Upon adoption of SFAS 123(R) any
     excess benefits are required to be shown in our consolidated statement of
     cash flows as financing cash flows. Excess tax benefits from the exercise
     of stock options and vested restricted stock were $338,648 and $235,410,
     respectively, for 2007 and 2006 and were reported as financing cash flows
     rather than operating cash flows.

     Net cash proceeds from the exercise of stock options and employee stock
     purchases were $40,089,468 and $18,953,178, respectively for 2007 and 2006.
     The actual income tax benefit realized from stock option exercises and
     vested restricted stock were $3,838,597 and $1,608,341, respectively for
     2007 and 2006.

     The following table illustrates the effect on net income and earnings per
     share if the Company had applied the fair value recognition provisions of
     Statement of Financial Accounting Standards (SFAS) No. 123, "Accounting for
     Stock-Based Compensation," to stock-based employee compensation:



                                                           2005
                                                       ------------
                                                    
Net Income, as reported                                $109,527,511
Deduct: Total stock-based employee compensation
   expense determined  under fair value-based method
   of all awards, net of tax effects                    (19,982,017)
                                                       ------------
Pro forma net income                                   $ 89,545,494
                                                       ============
Earnings per share:
   Basic - as reported                                 $        .70
   Basic - pro forma                                   $        .58
   Diluted - as reported                               $        .70
   Diluted - pro forma                                 $        .57


     On March 30, 2005, in response to the required implementation of SFAS No.
     123(R), the Company accelerated the vesting of current "under water" stock
     options. As a result of the vesting acceleration, approximately 2.3 million
     shares became immediately exercisable and an additional approximate $13.6
     million of proforma stock-based employee compensation expense was
     recognized in the first quarter 2005, that otherwise would have been
     recognized as follows: $6.1 million in 2005;


                                      -39-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(1)  SUMMARY OF SIGNIFICANT ACCOUNTING AND REPORTING POLICIES, continued

     Stock-Based Compensation Plans, continued

     $4.5 million in 2006; $2.2 million in 2007 and $0.8 million in 2008-2009.
     The objective of this Company action was primarily to avoid recognizing
     compensation expense associated with these options in future financial
     statements, upon the Company's adoption of SFAS 123(R), effective January
     1, 2006. In addition, the Company also received shareholder approval of an
     amendment to its Employee Stock Option Plan to allow the grant of
     non-qualified stock options.

     Estimates

     The preparation of financial statements in conformity with accounting
     principles generally accepted in the United States requires management to
     make estimates and assumptions that affect the reported amounts of assets
     and liabilities and disclosure of contingent assets and liabilities at the
     date of the financial statements and the reported amounts of revenues and
     expenses during the reporting period. Actual results could differ from
     those estimates.

     New Accounting Standards

     In September 2006, the Financial Accounting Standards Board (FASB) issued
     SFAS No. 157, "Fair Value Measurements" ("SFAS No. 157"). This statement
     establishes a framework for measuring the fair value of assets and
     liabilities. This framework is intended to provide increased consistency in
     how fair value determinations are made under various existing accounting
     standards that permit, or in some cases require, estimates of fair market
     value. SFAS No. 157 also expands financial statement disclosure
     requirements about a company's use of fair value measurements, including
     the effect of such measure on earnings. SFAS No. 157 is effective for
     fiscal years beginning after November 15, 2007. The adoption is not
     expected to have any significant effect on the Company's consolidated
     financial position or results of operations.

     In February 2007, the FASB issued SFAS No. 159, "The Fair Value Option for
     Financial Assets and Financial Liabilities" ("SFAS No. 159"). This
     statement provides a fair value option election that allows companies to
     irrevocably elect fair value as the initial and subsequent measurement
     attribute for certain financial assets and liabilities, with changes in
     fair value recognized in earnings as they occur. SFAS No. 159 permits the
     fair value option election on an instrument by instrument basis at initial
     recognition of an asset or liability or upon an event that gives rise to a
     new basis of accounting for that instrument. SFAS No. 159 is effective as
     of the beginning of an entity's first fiscal year that begins on or after
     November 15, 2007. Early adoption is permitted as of the beginning of a
     fiscal year that begins on or after November 15, 2007, provided that the
     entity makes that choice in the first 120 days of that fiscal year; has not
     yet issued financial statements for any interim period of the fiscal year
     of adoption; and also elects to apply the provisions of SFAS No. 157. The
     Company is not planning to adopt the provisions of SFAS No. 159.

     In June 2007, the FASB ratified the consensus on Emerging Issues Task Force
     (EITF) Issue No. 06-11, "Accounting for Income Tax Benefits of Dividends on
     Share-Based Payment Awards" ("EITF 06-11"). EITF 06-11 requires companies
     to recognize the income tax benefit realized from dividends or dividend
     equivalents that are charged to retained earnings and paid to employees for
     non-vested equity-classified employee share-based payment awards as an
     increase to additional paid-in capital. EITF 06-11 is effective for fiscal
     years beginning after September 15, 2007. The adoption is not expected to
     have any significant effect on the Company's consolidated financial
     position or results of operations.

(2)  LINE OF CREDIT

     The Company has available an unsecured $5,000,000 line of credit from a
     bank at an interest rate equal to the lower of the bank's prime rate or
     1.5% above the LIBOR rate. No borrowings were outstanding under this line
     in 2007 or 2006. No compensating balances are required under this line.

(3)  INCOME TAXES

     Effective January 1, 2007, the Company adopted the provisions of the
     Financial Accounting Standards Board (FASB) Interpretation No. 48 ("FIN
     48"), "Accounting for Uncertainty in Income Taxes". The implementation of
     FIN 48 did not have a significant impact on the Company's financial
     position or results of operations. A reconciliation of the beginning and
     ending amount of unrecognized tax benefits is as follows:


                                      -40-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(3)  INCOME TAXES, continued


                                                                          
Balance at January 1, 2007                                                   $2,113,000
Additions based on tax positions related to the current year                    350,000
Additions for tax positions in prior years                                       96,000
Reductions for tax positions in prior years                                     (57,000)
Reductions as a result of a lapse of the applicable statute of limitations     (518,000)
                                                                             ----------
Balance at December 31, 2007                                                 $1,984,000
                                                                             ==========


     If recognized, unrecognized tax benefits would affect the effective tax
     rate.

     The Company recognizes interest and penalties related to unrecognized tax
     benefits through the provision for income taxes. The Company has accrued
     approximately $226,000 for interest as of December 31, 2007. Interest
     recorded during 2007 was not considered significant.

     The Company is subject to periodic and routine audits in both domestic and
     foreign tax jurisdictions. It is reasonably possible that the amounts of
     unrecognized tax benefits could change as a result of an audit. Based on
     the current audits in process, the payment of taxes as a result of audit
     settlements are not expected to have a significant impact on the Company's
     financial position or results of operations.

     For the majority of tax jurisdictions, the Company is no longer subject to
     U.S. Federal, state and local, or non-U.S. income tax examinations by tax
     authorities for years before 2004.

     The provision for income taxes is based on the earnings reported in the
     accompanying consolidated financial statements. The Company recognizes
     deferred income tax liabilities and assets for the expected future tax
     consequences of events that have been included in the consolidated
     financial statements or tax returns. Under this method, deferred income tax
     liabilities and assets are determined based on the cumulative temporary
     differences between the financial statement and tax bases of assets and
     liabilities using enacted tax rates. Deferred income tax expense is
     measured by the net change in deferred income tax assets and liabilities
     during the year.

     The components of the provision for income taxes are as follows:



                                 2007          2006          2005
                             -----------   -----------   -----------
                                                
Currently payable:
   Federal                   $59,555,747   $51,411,596   $52,375,000
   State                         309,000       144,000      (246,000)
   Foreign                       671,000       411,000       411,000
                             -----------   -----------   -----------
   Total                      60,535,747    51,966,596    52,540,000
                             -----------   -----------   -----------
Net deferred:
   Primarily federal          (2,927,000)   (1,754,000)   (2,173,000)
                             -----------   -----------   -----------
Provision for income taxes   $57,608,747   $50,212,596   $50,367,000
                             ===========   ===========   ===========


     The currently payable provision is further reduced by the tax benefits
     associated with the exercise, vesting or disposition of stock under the
     stock plans described in Note 6. These reductions totaled approximately
     $3,839,000, $1,608,000 and $3,180,000 in 2007, 2006 and 2005, respectively,
     and were recognized as an adjustment of additional paid-in capital.

     The effective income tax rates are different from the statutory federal
     income tax rates for the following reasons:



                                                        2007   2006   2005
                                                        ----   ----   ----
                                                             
Statutory federal income tax rate                       35.0%  35.0%  35.0%
State income taxes, net of federal income tax benefit    0.1    0.1   (0.1)
Foreign source exempted income                            --   (2.0)  (2.4)
Domestic production exclusion                           (1.9)  (1.0)  (0.9)
Tax-exempt investment income                            (0.4)  (0.5)  (0.6)
Other                                                   (0.7)    --    0.5
                                                        ----   ----   ----
Effective income tax rate                               32.1%  31.6%  31.5%
                                                        ====   ====   ====


     The tax effect of temporary differences which give rise to deferred income
     tax assets and liabilities at December 31, 2007 and 2006, are as follows:


                                      -41-


                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(3) INCOME TAXES (continued)



                                                  2007                        2006
                                       -------------------------   -------------------------
                                         Current     Non-Current     Current     Non-Current
                                       ----------   ------------   ----------   ------------
                                                                    
Assets:
   Accruals not currently deductible   $3,834,105   $    164,603   $2,676,168   $    164,603
   Stock based compensation             3,503,165      1,669,586    1,530,018      1,405,334
   Other                                1,889,468          6,760    2,038,409         14,147
                                       ----------   ------------   ----------   ------------
Total deferred income tax assets        9,226,738      1,840,949    6,244,595      1,584,084
Liabilities:
   Excess tax over book depreciation           --    (12,702,369)          --    (12,759,431)
   Patent costs                                --     (1,471,614)          --     (1,278,283)
   Unrealized gain on investments              --    (10,514,745)          --    (12,517,503)
   Other                                 (955,820)            --     (779,998)            --
                                       ----------   ------------   ----------   ------------
Net deferred incomes taxes             $8,270,918   $(22,847,779)  $5,464,597   $(24,971,133)
                                       ==========   ============   ==========   ============


     Income taxes paid in cash were approximately $59,162,000, $49,061,000 and
$47,582,000, in 2007, 2006 and 2005, respectively.

     In July 2007, the State of Michigan enacted a new business tax that will be
effective January 1, 2008. The Company completed its evaluation of the new
business tax provisions and it is not expected to have a significant impact on
the Company's consolidated financial position or results of operations.

(4)  EMPLOYEE BENEFIT PLAN

     The Company has a 401(k) retirement savings plan in which substantially all
     of its employees may participate. The plan includes a provision for the
     Company to match a percentage of the employee's contributions at a rate
     determined by the Company's Board of Directors. In 2007, 2006 and 2005, the
     Company's contributions were approximately $1,849,000, $1,715,000 and
     $1,601,000, respectively.

     The Company does not provide health care benefits to retired employees.

(5)  SHAREHOLDER PROTECTION RIGHTS PLAN

     The Company has a Shareholder Protection Rights Plan (the Plan). The Plan
     is designed to protect shareholders against unsolicited attempts to acquire
     control of the Company in a manner that does not offer a fair price to all
     shareholders.

     Under the Plan, one purchase Right automatically trades with each share of
     the Company's common stock. Each Right entitles a shareholder to purchase
     1/100 of a share of junior participating preferred stock at a price of $55,
     if any person or group attempts certain hostile takeover tactics toward the
     Company. Under certain hostile takeover circumstances, each Right may
     entitle the holder to purchase the Company's common stock at one-half its
     market value or to purchase the securities of any acquiring entity at
     one-half their market value. Rights are subject to redemption by the
     Company at $.0025 per Right and, unless earlier redeemed, will expire on
     March 29, 2011. Rights beneficially owned by holders of 15 percent or more
     of the Company's common stock, or their transferees, automatically become
     void.

(6)  STOCK-BASED COMPENSATION PLANS

     Employee Stock Option Plan

     In 2004, a new Employee Stock Option Plan was shareholder approved,
     replacing the prior plan. The Company may grant options for up to
     18,000,000 shares under its new Employee Stock Option Plan. The Company has
     granted options on 6,934,380 shares (net of shares from canceled options)
     under the new plan through December 31, 2007. Under the plans, the option
     exercise price equals the stock's market price on date of grant. The
     options vest after one to five years, and expire after five to seven years.

     The fair value of each option grant in the Employee Stock Option Plan was
     estimated on the date of grant using the Black-Scholes option pricing model
     with the following weighted-average assumptions for the indicated periods:


                                      -42-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(6)  STOCK-BASED COMPENSATION PLANS, continued



                                          2007    2006    2005
                                         -----   -----   -----
                                                
Dividend yield                             2.0%    2.0%    2.0%
Expected volatility                       29.5%   30.0%   36.3%
Risk-free interest rate                    4.4%    4.8%    4.1%
Expected term of options (in years)        4.5     4.5     4.4
Weighted-average grant-date fair value   $   5   $   4   $   4


     The Company determined that all employee groups exhibit similar exercise
and post-vesting termination behavior to determine the expected term.

     As of December 31, 2007, there was $11,210,575 of unrecognized compensation
cost related to share-based payments which is expected to be recognized over the
remaining vesting periods, with a weighted-average period of 4.2 years.

     A summary of the status of the Company's employee stock option plan at
December 31, 2007, 2006 and 2005, and changes during the same periods are
presented in the tables and narrative below:



                                                           2007
                                   ----------------------------------------------------
                                                          Wtd. Avg.        Aggregate
                                   Shares   Wtd. Avg.     Remaining     Intrinsic Value
                                     000    Ex. Price   Contract Life         $000
                                   ------   ---------   -------------   ---------------
                                                            
Outstanding at Beginning of Year   10,400      $17
Granted                             1,838       19
Exercised                          (2,574)      15                          $11,217
Forfeited                            (364)      18
                                   ------
Outstanding at End of Year          9,300       18         2.9 Yrs          $ 9,777
Exercisable at End of Year          5,269      $18         1.9 Yrs          $ 4,926




                                                           2006
                                   ----------------------------------------------------
                                                          Wtd. Avg.        Aggregate
                                   Shares   Wtd. Avg.     Remaining     Intrinsic Value
                                     000    Ex. Price   Contract Life         $000
                                   ------   ---------   -------------   ---------------
                                                            
Outstanding at Beginning of Year   10,510      $17
Granted                             1,691       15
Exercised                          (1,320)      13                          $4,205
Forfeited                            (481)      18
                                   ------
Outstanding at End of Year         10,400       17         2.9 Yrs          $5,614
Exercisable at End of Year          6,904      $17         2.2 Yrs          $3,690




                                                           2005
                                   ----------------------------------------------------
                                                          Wtd. Avg.        Aggregate
                                   Shares   Wtd. Avg.     Remaining     Intrinsic Value
                                     000    Ex. Price   Contract Life         $000
                                   ------   ---------   -------------   ---------------
                                                            
Outstanding at Beginning of Year   10,586      $16
Granted                             1,931       17
Exercised                          (1,580)      12                         $ 9,152
Forfeited                            (427)      18
                                   ------
Outstanding at End of Year         10,510       17         3.2 Yrs         $33,881
Exercisable at End of Year          7,440      $17         2.8 Yrs         $23,525



                                      -43-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(6)  STOCK-BASED COMPENSATION PLANS, continued

     A summary of the status of the Company's non-vested employee stock option
     activity for the years ended December 31, 2007, 2006, and 2005, are
     presented in the table and narrative below:



                                                       2007                  2006                  2005
                                               -------------------   -------------------   -------------------
                                                         Wtd. Avg              Wtd. Avg              Wtd. Avg
                                               Shares   Grant Date   Shares   Grant Date   Shares   Grant Date
                                                 000    Fair Value    000     Fair Value     000    Fair Value
                                               ------   ----------   ------   ----------   ------   ----------
                                                                                  
Nonvested stock options at Beginning of Year    3,496       $5        3,069       $6        6,598       $7
Granted                                         1,838        5        1,691        4        1,931        4
Vested                                         (1,200)       5       (1,124)       6       (5,345)       7
Forfeited                                        (103)       5         (140)       5         (115)       6
                                               ------      ---       ------      ---       ------      ---
Nonvested stock options at End of Year          4,031       $5        3,496       $5        3,069       $6


     Non-employee Director Stock Option Plan.

     The Company has a Non-employee Director Stock Option Plan covering
     1,000,000 shares that was shareholder approved, replacing a prior plan. The
     Company has granted options on 363,240 shares (net of shares from canceled
     options) under the current plan through December 31, 2007. Under the plan,
     the option exercise price equals the stock's market price on date of grant.
     The options vest after six months, and expire after ten years.

     The fair value of each option grant in the Nonemployee Director Stock
     Option Plans was estimated on the date of grant using the Black-Scholes
     option pricing model with the following weighted-average assumptions for
     the indicated periods:



                                          2007    2006    2005
                                         -----   -----   -----
                                                
Dividend yield                             2.0%    1.8%    1.9%
Expected volatility                       29.4%   30.7%   42.3%
Risk-free interest rate                    4.6%    5.0%    4.1%
Expected term of options (in years)        8.3     8.9     8.6
Weighted-average grant-date fair value   $   6   $   6   $   8


     As of December 31, 2007, there was no unrecognized compensation cost
     related to share-based payments under this plan

     A summary of the status of the Company's Non-employee Director Stock Option
     Plan at December 31, 2007, 2006, and 2005, and changes during the same
     periods are presented in the tables and narrative below:



                                                          2007
                                   ----------------------------------------------------------
                                                                                 Aggregate
                                   Shares   Wtd. Avg.   Wtd. Avg. Remaining   Intrinsic Value
                                    000     Ex. Price      Contract Life            $000
                                   ------   ---------   -------------------   ---------------
                                                                  
Outstanding at Beginning of Year     341       $15
Granted                               48        18
Exercised                            (26)        7                                  $304
Forfeited                            (--)      (--)
                                     ---
Outstanding at End of Year           363        16             6.0 Yrs              $631
Exercisable at End of Year           363       $16             6.0 Yrs              $631



                                      -44-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                  (Continued)

(6)  STOCK-BASED COMPENSATION PLANS, continued



                                                              2006
                                   ----------------------------------------------------------
                                                                                 Aggregate
                                   Shares   Wtd. Avg.   Wtd. Avg. Remaining   Intrinsic Value
                                    000     Ex. Price      Contract Life            $000
                                   ------   ---------   -------------------   ---------------
                                                                  
Outstanding at Beginning of Year     445       $14
Granted                               48        15
Exercised                            (80)        6                                  $662
Forfeited                            (72)       16
                                     ---
Outstanding at End of Year           341        15            6.1 Yrs               $450
Exercisable at End of Year           341       $15            6.1 Yrs               $450




                                                             2005
                                   ----------------------------------------------------------
                                                                                 Aggregate
                                   Shares   Wtd. Avg.   Wtd. Avg. Remaining   Intrinsic Value
                                    000     Ex. Price      Contract Life            $000
                                   ------   ---------   -------------------   ---------------
                                                                  
Outstanding at Beginning of Year     510       $13
Granted                               48        18
Exercised                           (101)       10                                $  756
Forfeited                            (12)       18
                                    ----
Outstanding at End of Year           445        14              5.6 Yrs           $2,617
Exercisable at End of Year           445       $14              5.6 Yrs           $2,617


     A summary of the status of the Company's non-vested non-employee director
     stock option plan activity for the years ended December 31, 2007, 2006, and
     2005, are presented in the table and narrative below:



                                                       2007                  2006                  2005
                                               -------------------   -------------------   -------------------
                                                         Wtd. Avg              Wtd. Avg              Wtd. Avg
                                               Shares   Grant Date   Shares   Grant Date   Shares   Grant Date
                                                 000    Fair Value     000    Fair Value    000     Fair Value
                                               ------   ----------   ------   ----------   ------   ----------
                                                                                  
Nonvested stock options at Beginning of Year      0         $0          0          $0         0         $0
Granted                                          48          6         48           6        48          8
Vested                                          (48)         6        (48)          6       (48)         8
Forfeited                                         0          0          0           0         0          0
                                                ---        ---        ---         ---       ---        ---
Nonvested stock options at End of Year            0         $0          0          $0         0         $0


     Employee Stock Purchase Plan

     In 2003, a new Employee Stock Purchase Plan covering 1,200,000 shares was
     approved by the shareholders, replacing a prior plan. The Company has sold
     to employees 111,558 shares, 130,876 shares and 135,409 shares under the
     new plan in 2007, 2006, and 2005, respectively, and has sold a total of
     552,685 shares under the new plan through December 31, 2007. The Company
     sells shares at 85% of the stock's market price at date of purchase. The
     weighted average fair value of shares sold in 2007 was approximately
     $15.79.


                                       -45-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(6)  STOCK-BASED COMPENSATION PLANS

     Restricted Stock Plan

     The Company has a Restricted Stock Plan covering 1,000,000 shares of common
     stock that was shareholder approved, the purpose of which is to permit
     grants of shares, subject to restrictions, to key employees of the Company
     as a means of retaining and rewarding them for long-term performance and to
     increase their ownership in the Company. Shares awarded under the plan
     entitle the shareholder to all rights of common stock ownership except that
     the shares may not be sold, transferred, pledged, exchanged or otherwise
     disposed of during the restriction period. The restriction period is
     determined by a committee, appointed by the Board of Directors, but may not
     exceed ten years. The Company has 590,710 shares outstanding as of December
     31, 2007. During 2007, 2006, and 2005, 107,200, 182,530 and 80,700 shares,
     respectively, were granted with a restriction period of five years at
     market prices ranging from $16.25 to $19.69 in 2007, $14.00 to $17.09 in
     2006, and $15.93 to $19.50 in 2005 and has unearned stock-based
     compensation of $5,316,486 associated with these restricted stock grants.
     The unearned stock-based compensation related to these grants is being
     amortized to compensation expense over the applicable restriction periods.
     Amortization of restricted stock for 2007 was $1,791,902.

(7)  STOCK SPLIT

     On April 1, 2005, the Company's Board of Directors declared a two-for-one
     stock split effected in the form of a 100% common stock dividend to
     shareholders of record on May 6, 2005. The stock split increased the number
     of shares of common stock then outstanding from 78,020,342 to 156,040,684.

     Earnings per share and all share data have been restated in all prior
     periods to reflect this stock split.

(8)  CONTINGENCIES

     The Company is involved in litigation with K.W. Muth and Muth Mirror
     Systems LLC ("Muth") relating to exterior mirrors with turn signal
     indicators. The turn signal feature in exterior mirrors currently
     represents approximately one percent of our revenues, and the litigation
     does not involve core Gentex electrochromic technology. The trial in
     Wisconsin related to this case occurred during July 2007 and the court
     issued its written ruling in December 2007. The Court found that Muth's
     U.S. Patent No. 6,005,724 is invalid and unenforceable, and that Gentex's
     Razor(TM) Turn Signal Mirror does not infringe that patent. The Court also
     denied all but one of Muth's other motions with prejudice, including its
     motion for an injunction, and its claims for tortuous interference with its
     business relationships. The sole point of liability for Gentex was that the
     Court found that Gentex breached one provision of the alliance agreement it
     has with Muth, and entered a judgment against Gentex, on January 24, 2008,
     granting Muth damages in the amount of $2,885,329. This amount is accrued
     as an other accrued liability as of December 31, 2007.

     In addition, the Company is periodically involved in legal proceedings,
     legal actions and claims arising in the normal course of business,
     including proceedings relating to product liability, intellectual property,
     safety and health, employment and other matters. Such matters are subject
     to many uncertainties and outcomes are not predictable. The Company does
     not believe however, that at the current time any of these matters
     constitute material pending legal proceedings that will have a material
     adverse effect on the financial position or future results of operations of
     the Company.


                                      -46-



                       GENTEX CORPORATION AND SUBSIDIARIES

                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
                                   (Continued)

(9)  SEGMENT REPORTING

     SFAS No. 131, "Disclosures About Segments of an Enterprise and Related
     Information," requires that a public enterprise report financial and
     descriptive information about its reportable operating segments subject to
     certain aggregation criteria and quantitative thresholds. Operating
     segments are defined by SFAS No. 131 as components of an enterprise about
     which separate financial information is available that is evaluated
     regularly by the chief operating decision-makers in deciding how to
     allocate resources and in assessing performance.



                                   2007           2006           2005
                               ------------   ------------   ------------
                                                    
Revenue:
   Automotive Products
      United States            $254,455,151   $230,152,102   $236,708,606
      Germany                   162,465,135    127,531,636     99,339,847
      Japan                      59,747,941     56,547,995     52,215,691
      Other                     153,430,864    134,172,464    124,532,388
   Other                         23,834,145     23,862,876     23,687,442
                               ------------   ------------   ------------
      Total                    $653,933,236   $572,267,073   $536,483,974
                               ============   ============   ============
Income from Operations:
   Automotive Products         $136,741,562   $121,766,143   $131,165,600
   Other                          2,074,201      4,680,833      5,128,937
                               ------------   ------------   ------------
   Total                       $138,815,763   $126,446,976   $136,294,537
                               ============   ============   ============
Assets:
   Automotive Products         $305,519,359   $275,022,400   $248,568,391
   Other                          4,182,161      5,090,934      4,334,747
   Corporate                    588,321,160    504,915,066    669,742,664
                               ------------   ------------   ------------
   Total                       $898,022,680   $785,028,400   $922,645,802
                               ============   ============   ============
Depreciation & Amortization:
   Automotive Products         $ 29,796,901   $ 25,218,267   $ 21,407,276
   Other                            235,582        253,879        207,336
   Corporate                      2,402,775      2,290,564      2,208,715
                               ------------   ------------   ------------
   Total                       $ 32,435,258   $ 27,762,710   $ 23,823,327
                               ============   ============   ============
Capital Expenditures:
   Automotive Products         $ 52,378,659   $ 45,846,127   $ 52,966,667
   Other                            192,339        868,296        131,821
   Corporate                      1,953,324      1,478,660        434,747
                               ------------   ------------   ------------
   Total                       $ 54,524,322   $ 48,193,083   $ 53,533,235
                               ============   ============   ============


     Other includes Fire Protection Products and Dimmable Aircraft Windows. The
     Dimmable Aircraft Windows segment began during 2007 with no sales, which
     resulted in lower income from operations for the "Other" category.

     Corporate assets are principally cash and cash equivalents, investments,
     deferred income taxes and corporate fixed assets. Substantially all
     long-lived assets are located in the U.S.

     Automotive Products revenues in the "Other" category are sales to
     automotive manufacturing plants in Canada, Mexico and Korea, as well as
     other foreign automotive customers. Most of the Company's non-U.S. sales
     are invoiced and paid in U.S. dollars. During 2007, approximately 15% of
     the Company's net sales were invoiced and paid in European euros.

     During the years presented, the Company had four automotive customers,
     which individually accounted for 10% or more of net sales as follows:



                       Customer
       -----------------------------------------
       General                Toyota Motor
        Motors   Daimler AG    Corporation   BMW
       -------   ----------   ------------   ---
                                 
2007     19%        *15%           13%        12%
2006     22%         15%           13%        12%
2005     24%         12%           14%        11%


*    Includes Chrysler through the date of sale.


                                      -47-



                            EXHIBIT INDEX



EXHIBIT NO.                          DESCRIPTION                          PAGE
-----------   -------------------------------------------------------   --------
                                                                  
3(a)(1)       Registrant's Restated Articles of Incorporation,
              adopted on August 20, 2004, were filed as Exhibit 3(a)
              to Registrant's Report on Form 10-Q dated November 2,
              2004, and the same is hereby incorporated herein by
              reference.

3(b)(1)       Registrant's Bylaws as amended and restated February
              27, 2003, was filed as Exhibit 3(b)(1) to Registrant's
              report on Form 10-Q dated May 5, 2003, and the same is
              hereby incorporated herein by reference.

4(a)          A specimen form of certificate for the Registrant's
              common stock, par value $.06 per share, was filed as
              part of a Registration Statement (Registration Number
              2-74226C) as Exhibit 3(a), as amended by Amendment No.
              3 to such Registration Statement, and the same is
              hereby incorporated herein by reference.

4(b)          Amended and Restated Shareholder Protection Rights
              Agreement, dated as of March 29, 2001, including as
              Exhibit A the form of Certificate of Adoption of
              Resolution Establishing Series of Shares of Junior
              Participating Preferred Stock of the Company, and as
              Exhibit B the form of Rights Certificate and of
              Election to Exercise, was filed as Exhibit 4(b) to
              Registrant's Report on Form 10-Q on April 27, 2001, and
              the same is hereby incorporated herein by reference.

10(a)(1)      A Lease, dated August 15, 1981, was filed as part of a
              Registration Statement (Registration Number 2-74226C)
              as Exhibit 9(a)(1), and the same is hereby incorporated
              herein by reference.

10(a)(2)      A First Amendment to Lease, dated June 28, 1985, was
              filed as Exhibit 10(m) to Registrant's Report on Form
              10-K dated March 18, 1986, and the same is hereby
              incorporated herein by reference.

*10(b)(1)     Gentex Corporation Qualified Stock Option Plan (as
              amended and restated, effective February 26, 2004) was
              included in Registrant's Proxy Statement dated April 6,
              2004, filed with the Commission on April 6, 2004, and
              the same is hereby incorporated herein by reference,
              and the same became the Gentex Corporation Employee
              Stock Option Plan and was amended as of March 4, 2005
              by the First Amendment to the Gentex Corporation
              Qualified Stock Option Plan, which amendment was
              included in the Registrant's Proxy Statement dated
              April 1, 2005, filed with the Commission on April 1,
              2005, and the same is incorporated herein by reference.

*10(b)(2)     Specimen form of Grant Agreement for the Gentex
              Corporation Qualified Stock Option Plan (as amended and
              restated, effective February 26, 2004 and as amended
              March 4, 2005), was filed as Exhibit 10(b)(3) to
              Registrant's Report on Form 10-Q dated November 1,
              2005, and the same is hereby incorporated herein by
              reference.

*10(b)(3)     Gentex Corporation Second Restricted Stock Plan was
              filed as Exhibit 10(b)(2) to Registrant's Report on
              Form 10-Q dated April 27, 2001, and the same is hereby
              incorporated herein by reference.

*10(b)(4)     Specimen form of Grant Agreement for the Gentex
              Corporation Restricted Stock Plan (as amended and
              restated, effective February 26, 2004), was filed as
              Exhibit 10(b)(4) to Registrant's Report on Form 10-Q
              dated November 2, 2004, and the same is hereby
              incorporated herein by reference.

*10(b)(5)     Gentex Corporation 2002 Nonemployee Director Stock
              Option Plan (adopted March 6, 2002) was filed as
              Exhibit 10(b)(4) to Registrant's Report on Form 10-Q
              dated April 30, 2002, and the same is hereby
              incorporated herein by reference.

*10(b)(6)     Specimen form of Grant Agreement for the Gentex
              Corporation 2002 Non-Employee Director Stock Option
              Plan (as amended and restated, effective February 26,
              2004), was filed as Exhibit 10(b)(6) to Registrant's
              Report on Form 10-Q dated November 2, 2004, and the
              same is hereby incorporated herein by reference.

10(e)         The form of Indemnity Agreement between Registrant and
              each of the Registrant's directors and certain officers
              was filed as Exhibit 10(e) to Registrant's Report on
              Form 10-Q dated October 31, 2002, and the same is
              hereby incorporated herein by reference.

21            List of Company Subsidiaries                                 50

23(a)         Consent of Independent Registered Public Accounting
              Firm                                                         51

31.1          Certificate of the Chief Executive Officer of Gentex
              Corporation pursuant to Section 302 of the Sarbanes-
              Oxley Act of 2002 (18 U.S.C. 1350).                          52



                                 -48-




                                                                  
31.2          Certificate of the Chief Financial Officer of Gentex
              Corporation pursuant to Section 302 of the Sarbanes-
              Oxley Act of 2002 (18 U.S.C. 1350).                          53

32            Certificate of the Chief Executive Officer and Chief
              Financial Officer of Gentex Corporation pursuant to
              Section 906 of the Sarbanes-Oxley Act of 2002
              (18 U.S.C. Section 1350).                                    54


*    Indicates a compensatory plan or arrangement.


                                 -49-