Electrohome Writes Down Its Investment in Immersion Studios 

Kitchener, Ontario - October 25, 2005 -- Electrohome Limited announced today that it will write down its $500,000 investment in Immersion Studios Inc., consisting of a 6% equity interest in that company. Although Immersion Studios has made good progress during the past year, financially it is not performing at a level to justify Electrohome's carrying value. As a result, Electrohome will take a $500,000 (non-cash) charge in the fourth quarter of fiscal 2005.

Immersion Studios continues to carry on its business of providing hardware and in-house developed software for specialty digital interactive cinema and for unique simulations, training venues and education forums.

Electrohome's business is principally that of a holding company with a 31% interest in Mechdyne Corporation (operating as Fakespace Systems) which is the largest international company operating exclusively in the advanced visualization marketplace and a 6% interest in Immersion Studios Inc. Electrohome also receives royalty income under two licensing agreements for the use of the Electrohome brand name and trademarks. As well, Electrohome may benefit from an interest in one small remaining piece of real estate, its pension surpluses and tax losses. Electrohome's obligations primarily consist of retirement benefits and the environmental remediation of a property occupied by one of Electrohome's prior operations.

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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.