Internet Home Alliance Research Identifies Target Market for Connected Home Solutions; Survey Reveals 42 Percent of U.S. Single-Family Homeowners are Inclined to Adopt Connected Home Technology

Business Wire, March 12, 2001

Business/Technology Editors

SAN RAMON, Calif.--(BUSINESS WIRE)--March 12, 2001

Internet Home Alliance, a non-profit association of leading high-tech and consumer companies formed to enhance consumers' understanding, appreciation and adoption of the Internet lifestyle, today announced the results of a custom survey that assessed consumers' attitudes toward connected home solutions. Results of the survey reveal 42 percent of U.S. single-family homeowners, or 26.1 million households, are inclined to adopt technology that results in a connected home. Seventeen percent of respondents identify themselves as likely adopters of connected home solutions and 25 percent indicate that they would consider the concept of a connected home.

The study unveils the following key characteristics of primary adopters:

-- College educated families with children between the ages of 14 and 18 years old

-- Families with an annual household income between $75,000 and $100,000

-- Homeowners between the ages of 35 and 54 years old

-- Fifty-eight percent feel the Internet has had a very positive

impact on their lives

-- Majority tend to be outgoing and involved in a variety of social or civic activities

A connected home is a home where home computers, peripheral devices, televisions, lighting and heating controls, the home security system and other home appliances are linked into one centrally-controlled system. This system can enable simultaneous access to the Internet from multiple computers in the home, download and delivery of a variety of entertainment services to multiple connected devices in the home, sharing of a single printer and computer files by multiple family members, and central and/or remote control and management of home appliances and security systems.

The survey indicated that the most appealing aspect of the connected home is the convenience associated with the ability to control a variety of home devices from a central system. The least appealing aspect is the presumption that the technology will be too "technical" or "complicated." The most prevalent concern interested consumers have about the connected home is security. These concerns fall into two distinct categories: the outright theft of personal information and the confidentiality of information transmitted via the Internet.

"This survey confirms that the connected home represents a huge opportunity for content providers, managed service providers, infrastructure providers, in-home networked product suppliers, and solutions integrators," commented Bill Kenney, president of Internet Home Alliance, and vice president, emerging home solutions at Sears, Roebuck and Co. "We note the concerns on security and will emphasize this aspect as we continue to further educate consumers about the connected home and enable the delivery of meaningful solutions that address their identified interests and concerns."

Based on the results of the survey, Internet Home Alliance anticipates that initial adoption of connected home solutions will focus on expanded communications options, digital entertainment services, Web-based home security systems and distance learning packages.

The survey was conducted by Zanthus, a Beaverton, Oregon-based high technology research consulting firm. For additional highlights of the survey visit www.internethomealliance.com. The complete survey is available to members of the Internet Home Alliance.

About Internet Home Alliance, Inc.

Internet Home Alliance, Inc. is an association of leading companies working together to advance the home technology industry by developing the ecosystem needed to support the delivery of Internet lifestyle solutions and educating consumers on the value of an Internet lifestyle. The Internet Home Alliance is an open alliance that encourages cross- industry participation. Current members include 3Com, Best Buy Co., Inc., Cisco Systems, Inc., CompUSA, General Motors, Honeywell, Invensys, Motorola, The New Power Company, Panasonic (Matsushita Electric Corporation of America), Reliant Energy, Sears, Roebuck and Co., and Sun Microsystems . For more information on Internet Home Alliance, visit www.internethomealliance.com.

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