Invensys, Universal Electronics Sign Agreement Designed to Push Home Networking Functionality; Home Automation, Light Commercial Applications to be Co-developed

Business Wire, May 2, 2000

Business Editors & High-Tech Writers

RICHMOND, Va., and CYPRESS, Calif.--(BUSINESS WIRE)-- May 2, 2000

Invensys Controls, a Division of Invensys plc, and Universal Electronics Inc. (UEI)(Nasdaq:UEIC) have signed a Memorandum of Understanding (MOU) designed to catapult both companies into the burgeoning area of home networking.

Under the agreement announced today, the companies will use UEI's new Mosaic touch-screen wireless control device as the platform in co-developing and co-marketing still more advanced portable user interfaces to do everything from program major appliances to grab web clippings from the Internet, they said.

"Increasingly, automation and control systems are moving toward easy access as the critical element in getting homes networked in a way that motivates consumers to readily adopt the technology," said Rod Powell, chief executive of Invensys Controls Division. "There is great synergism between Invensys and UEI in terms of our mutual desire to craft more intelligent software and other solutions that take home automation and networking to the next level," he said. "UEI's global reputation as a software developer for wireless devices that control home entertainment systems complements perfectly the leadership Invensys has developed in appliance and building automation and control."

"Although Invensys Controls and UEI each already enjoys an established presence in homes around the world, this collaborative agreement boldly paves the way for us to develop a home networking `command and control' center as the next technological threshold in the residential market," said UEI Chairman and CEO Camille Jayne. "Our joint vision is to tap UEI's full complement of patented technology -- including two-way communications involving remote controls -- and our unsurpassed database of infrared codes, house that in a customized Mosaic product, couple it with Invensys' state-of-the-art home systems design, and use this creation to access and run the networked home," Jayne said.

"We could not be more pleased to embark on this journey with Invensys," Jayne added. "Not only does this agreement give UEI and Invensys the edge in permeating the home networking market, but it also sets the stage beautifully for UEI's foray into light commercial applications for our software and wireless control technology, including voice activation of equipment."

Invensys and UEI are members of the Microsoft Corp.-spearheaded Plug and Play Forum (UPnP), established recently to author standards that will interconnect home appliances and other consumer and commercial devices, including televisions and set-top boxes. The Mosaic platform is positioned to take advantage of such emerging standards. Other industry leaders in the Forum include General Electric, IBM, Intel and Sony. Cahners In-Stat Group estimates the home networking market in the United States alone will be worth $1.4 billion by 2003.

Invensys plc is a global leader in the automation and controls industry. With its head office in London, England, it operates in all regions of the world through four focused divisions -- Intelligent Automation, Industrial Drive Systems, Power Systems and Controls. With over 100,000 employees, the company's products and services range from advanced control systems and networks for automating industrial plants and controlling the environments of buildings, to electronic devices and controls found in residential buildings and light commercial applications, plus complete power systems for the telecommunications and information technology industries. The group was formed Feb. 4, 1999, through the merger of BTR plc and Siebe plc.

Invensys Controls Division, based in Richmond, Va., has a broad range of software systems, motors, meters, sensors, controls and services, with an increasing emphasis on microprocessor-based technologies. In 1999, Invensys Controls formed a new unit, Invensys Network Systems, which focuses on the development of network products.

Universal Electronics Inc., based in Southern California, develops software, and builds and markets pre-programmed, easy-to-use wireless control devices and chips principally for home entertainment equipment and the subscription broadcast market. The company's product lines under development include wireless interface technologies, such as combination keyboard/remotes and touch-screen remotes. UEI licenses its patented technologies and database of infrared codes to companies selling into the cable and satellite industries, and to original equipment manufacturers. The company also sells its universal remote control products to distributors and retailers in Europe, Asia, South America and Australia under the One For All(R) brand name.