Electrohome Signs Agreement To Sell Its Facility In Kitchener 

Kitchener, Ontario - November 17, 2003 -- Electrohome Limited ("Electrohome") announced today that it has signed an agreement, subject to usual conditions, for the sale of its 292,000 square foot facility in Kitchener, Ontario to its largest tenant.

The transaction which is scheduled to close on December 1, 2003 will result in a gain in the first quarter of fiscal 2004 in the amount of approximately $5,500,000. The transaction will not result in additional current income taxes due to the application of tax losses carried forward.

Proceeds from the sale will be 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 is $3,500,000 owing to Mr. John A. Pollock, Chairman and Chief Executive Officer, and to other members of his family.

Electrohome will lease back its current offices.

Electrohome continues to hold a 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.

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