Electrohome Closes Sale of Its Facility In Kitchener 

Kitchener, Ontario - December 1, 2003 -- Electrohome Limited ("Electrohome") announced today that it closed the sale of its 292,000 square foot facility in Kitchener, Ontario to Christie Digital Systems Inc., previously its largest tenant.

The transaction will result in a gain before taxes of approximately $5,500,000 which will be recognized in the first quarter of fiscal 2004. As a result of the transaction, Electrohome determined that at September 30, 2003, it was more likely than not that it will be able to utilize some of its tax loss carry forwards. Accordingly, a future income tax recovery of approximately $600,000 will be recognized in fiscal 2003 as a reduction of the future income tax valuation allowance.

Proceeds from the sale were used to pay associated costs and to repay in their entirety all mortgages on the property totaling $6,400,000 resulting in net cash proceeds to the Company of approximately $3,000,000. Included in the mortgage repayment was $3,500,000 owing to Mr. John A. Pollock, Chairman and Chief Executive Officer, and to other members of his family.

Electrohome will now lease back its current offices.

Electrohome continues to hold its 30.6% interest in Fakespace Systems which is the largest international company exclusively in the advanced visualization marketplace, and a 5.7% interest in Immersion Studios Inc., which produces specialty digital interactive cinema. Going forward, Electrohome anticipates that its earnings will be derived principally from its share of results from Fakespace and from royalties for the use of Electrohome's trademarks. Electrohome also has other potential one-time income opportunities that may have a positive impact on future results.

Electrohome's shares are traded on the TSX under the symbols ELL.X and ELL.Y.

###

For further information, contact John A. Pollock, Chairman and Chief Executive Officer or Gary Dumoulin, Vice-President and Secretary at (519) 749-3319.