SMARTHOME'S INSTEON™ TECHNOLOGY RECEIVES TWO INTERNATIONAL CES INNOVATIONS DESIGN AND ENG AWARDS

Insteon Combines RF and Powerline Communications for First Time to Create Seamless Home Control Network

IRVINE, Calif., Nov. 10, 2004 - Smarthome, Inc., the world's leading provider of automated products to improve the home, today announced its Insteon™ home automation network technology and Insteon SignaLinc RF 2442 have received Consumer Electronic Show (CES) Innovations 2005 Design and Engineering Awards in the Software/Embedded Technologies category and Integrated Home Systems category, respectively.


Smarthome's founder and CEO Joe Dada will accept the recognition today during the New York International CES Press Preview in New York City.

Announced June 7, 2004, Insteon is the first home automation network technology to combine the home's existing wiring, or powerline, with radio frequency (RF) communications to deliver a secure, reliable and fast connection for automatic or remote control of lighting, security, entertainment systems, appliances, and climate. Products will be available to consumers early next year through Smarthome's Web site, www.smarthome.com.

Since 1989, the prestigious Innovations Design and Engineering Awards Showcase has given consumer technology manufacturers and developers an opportunity to have their newest products judged by a preeminent panel of independent industry designers, engineers and journalists. Other categories include accessories, audio, computer hardware and wireless communications.

"This prestigious award for Insteon validates all the hard work and dedication the Smarthome engineering team showed during the past four years while developing this new home automation technology," said Joe Dada, president and CEO of Smarthome, Inc. based in Irvine, Calif. "We look forward to meeting our customer's needs for secure, reliable and affordable home networks through our new Insteon products."

Insteon SignaLinc RF 2442 is an affordable, simple, fast and dependable way to create a complete "mesh -network" system. A plug -in device that blends into any home décor, it is a network interface that enables Insteon powerline signals to be converted to RF signals and vice versa to create a truly synchronized home network in which users can control all home systems, including lighting, appliances, heating and air conditioning, automated drapes and home theater equipment. To install, users simply need to plug in two SignaLinc devices, tap the program buttons, and they can communicate with any Insteon -enabled wired or wireless device in the home.

Smarthome executives are in discussions with original equipment manufacturers (OEMs) of appliances, audio/video equipment, HVAC, security/sensors and more about embedding Insteon technology into their products.

Insteon products will be available through Smarthome's catalog, its Web site, www.smarthome.com, and by phone at 1 -800 -SMARTHOME beginning first quarter 2005.

About Smarthome, Inc.

Founded in 1992, Smarthome, Inc. is the world's largest home automation and home control supplier and a leader in enhancing lifestyles through electronic home improvement projects. Headquartered in Irvine, Calif., Smarthome products are sold to an international customer base via the Web, phone and retail outlets as well as to professional dealers and installers through its SmarthomePro division. Its SmarthomeDesign division is responsible for OEM and distribution sales channels. Smarthome, developers of a new home networking technology called Insteon™, (www.insteon.com), is dedicated to making life more convenient, safe and fun. The company's on -line catalog can be found at www.smarthome.com. Newsweek magazine called Smarthome's online store "the Amazon.com of electronic home improvement." Smarthome and its electronic home improvement partners are featured on the new unscripted Fox series, "Renovate My Family." Check local listings for date and time.

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