SMARTHOME ANNOUNCES 10TH ANNIVERSARY OF ONLINE HOME AUTOMATION STORE

Smarthome.com Has Received More than One-Million Orders for Products Including Security, Lighting, Climate Control and Entertainment

IRVINE, Calif., Feb. 25, 2005 - -Smarthome Inc., the world's leading provider of electronic products to improve the home, today announced the 10th anniversary of its online home automation store at www.smarthome.com.


Founded in 1992 as a catalog offering convenient and affordable products to customize and automate the home, Smarthome became an Internet pioneer in February 1995 by launching one of the first e -commerce sites on the Web, and the first to focus solely on home automation.

Six months later, Smarthome had a fully functioning e -basket and search engine, which it continues to build upon today. The company credits its early success to the fact that many early Internet enthusiasts were also early adopters of home automation technology.

"This is quite an achievement considering the failure rate of 'dot coms' over the past few years," said Joe Dada, president and CEO of Smarthome. "There are a very few e -commerce sites that can claim to have survived for this many years."

"I attribute our success to a staff that remained vigilant in making our site compelling and easy to use for our customers, the fact that we maintained our print catalogs along with the e -commerce site, and the ever -increasing interest in home control products," Dada said.

Starting with just a handful of products, now Smarthome prints and distributes more than four -million catalogs per year and serves customers in more than 160 countries. The company offers more than 5,000 items for electronic home improvement projects. It has sold home automation products to more than one -million customers.

Smarthome expects those sales numbers to increase rapidly soon. In May 2005, Smarthome will ship its first Insteon™ products -the first dual band wireless home -control network technology combining radio frequency (RF) communications with the home's existing wiring, or powerline, to deliver a secure, reliable and fast connection for automatic or remote control of lighting, security, entertainment systems, appliances and climate.

To celebrate its 10th anniversary, Smarthome is offering 10 percent off any of its products for 10 days starting Friday, Feb. 25, 2005 and ending Sunday, March 6, 2005 at midnight EST.

For more information, please visit Smarthome's Web site, www.smarthome.com or www.Insteon.net or call 1 -800 -SMARTHOME.

About Smarthome, Inc.

Founded in 1992, Smarthome, Inc. is the world's largest integrated retailer/distributor of electronic home improvement solutions to enhance a home's value, comfort, convenience and/or safety. 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 Smarthome Engineering division is responsible for the OEM and distribution sales channels. Smarthome, developers of a new home networking technology called Insteon™, (www.Insteon.net), 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." On Dec. 1, 2004, Smarthome shipped products to its one -millionth electronic home improvement customer.

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