Smarthome Inc. New Parent Company SmartLabs Inc. Formed With Group of Three Companies

New Parent Entity Reflects Commitment to R&D and Sub Companies Smarthome Direct, SmartLabs Technology and SmartLabs Design Shows Continuing Leadership Role

FOR IMMEDIATE RELEASE


Contact:
Michelle Laird / Jennifer McLean
O'Leary and Partners
503 -705 -4577 / 949 -224 -4027
mlaird@olearypr.com / jmclean@olearypr.com


Smarthome Inc. New Parent Company SmartLabs Inc. Formed With Group of Three Companies

New Parent Entity Reflects Commitment to R&D and Sub Companies Smarthome Direct, SmartLabs Technology and SmartLabs Design Shows Continuing Leadership Role


CES, Las Vegas NV., - Jan. 4, 2006 - SmarthomeTM Inc., the world's leading authority in electronic home improvement and automation, today announced the formation of a parent company SmartLabsTM and three sub companies Smarthome Direct, SmartLabs Technologies and SmartLabs Design. The creation of SmartLabs Inc. more accurately reflects its roles as a visionary think tank and its sub companies continue to exemplify industry leadership as well as delivering best -in -class home control products and technologies.
"The creation of the new SmartLabs parent company and three sub companies demonstrates our unwavering commitment to industry innovation and leadership in electronic home improvement and automation -from thought leadership and technological advancement right through to cutting -edge product designs and next -generation marketing and distribution," said Joe Dada, SmartLabs CEO.
The creation of the parent company SmartLabs is a recommitment and focus into three key areas of core competency mirrored in its three companies, Smarthome Direct (retail web site and catalog), SmartLabs Technology (INSTEONTM technology) and SmartLabs Design (manufacturing). These three companies, individually and in combination, will deliver the distribution channels, technology solutions and manufacturing capabilities necessary to support and grow the electronic home improvement and automation market.
The Smarthome Direct Company will continue to capitalize on the strong Smarthome brand equity through its renowned website and catalog. SmartLabs R&D as well as its INSTEON sales and marketing are within the SmartLabs Technology Company, which provides advanced home control technology solutions such as INSTEONTM, the first electronic home improvement and automation technology optimized for home control. INSTEON uses both the home's electrical wiring and radio frequency (RF) communication to deliver a secure, reliable and fast connection for the remote control, integration and management of lighting, security systems, entertainment systems, appliances, climate control and more. INSTEON is licensed to OEM partners for integration into home automation products. SmartLabs manufacturing and product company -SmartLabs Design -will oversee the design, development, product sales and marketing of innovative new home control products (for example, the ICON line of affordable INSTEON -based lighting products).
"The creation of the SmartLabs company gives us a stronger corporate identity allowing us to more effectively leverage the leadership and focus of our three companies and further act as a catalyst to move the dynamic home control networking market forward," said Rajeev Kapur, SmartLabs vice president sales and marketing. "These changes continue to confirm our focus: encouraging customers to live more innovative, more convenient and safer lives through affordable electronic home improvement and automation."
SmartLabs executives will be available for press and analyst briefings during CES (Jan. 5 -8). Contact Michelle Laird at 503 -705 -4577 or mlaird@olearypr.com to make an appointment, or stop by booth 26424.

About SmartLabs
Founded in 1992, SmartLabs Inc. is the world's leading authority on electronic home improvement and automation. SmartLabs is organized into three companies: Smarthome Direct, which includes Smarthome.com, "the Amazon of electronic home improvement" (Newsweek, 2004); SmartLabs Design, creators of best -in -class home control products; and SmartLabs Technology, the pioneering architects of INSTEON. SmartLabs' INSTEON Alliance offers a focused community for developers to incorporate the INSTEON standard into their products. SmartLabs products are sold to an international customer base via the Web, phone and retail outlets, as well as to professional dealers and installers through SmarthomePro. The company's online catalog can be found at www.smarthome.com; information regarding INSTEON can be found at www.insteon.net. SmartLabs is headquartered in Irvine, Calif.

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