ELECTROHOME LIMITED TO SELL ITS TRADE-MARKS 

Kitchener, Ontario - March 1, 2007 -- Electrohome announced today that it has reached an agreement in principle with Redmond Group of Companies LP (“Redmond Group”) for the sale of Electrohome’s trade-marks and a related licensing agreement for $1.5 million. Electrohome anticipates that a definitive agreement will be signed on or before March 2, 2007. The sale would close on January 1, 2008 (the “Closing Date”) and is subject to approval of Electrohome’s shareholders and non-objection by TSX Venture Exchange. Electrohome anticipates that shareholders will vote on the matter at a special meeting scheduled for May 10, 2007. Electrohome will continue to collect royalties from use of the trade-marks until the Closing Date. Electrohome anticipates that royalties to be received from licensees of the trade-marks, including Redmond Group, during the 2007 fiscal year will be in excess of $400,000.

Proceeds from the sale will be used to fund operations while Electrohome’s remaining assets and liabilities continue to be monetized and/or resolved.

Electrohome’s business is principally that of a holding company with a 31% interest in Mechdyne Corporation (previously referred to as Fakespace Systems) which is the largest international company operating exclusively in the advanced visualization marketplace. Electrohome also receives royalty income under two licensing agreements for the use of the Electrohome trade-marks. As well, Electrohome may benefit from interests in a small piece of real estate and a pension surplus. Electrohome’s obligations primarily consist of post-employment benefit costs and environmental remediation associated with a previously discontinued operation.

Electrohome’s shares are traded on the NEX board of the TSX Venture Exchange under the symbols ELL.H, Class X voting shares and ELL.K, Class Y non-voting shares. Trading data for these shares can be found on www.tsx.com/en/nex/index.html. Electrohome’s regulatory filings including its Annual Report, Audited Financial Statements, Management Discussion and Analysis, Proxy Information Circular, Annual Information Form and all other interim filings can be found on www.sedar.com. Also visit Electrohome’s website at www.electrohome.com.

The TSX Venture Exchange has not reviewed and does not take responsibility for the adequacy or accuracy of this release.

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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.