Electrohome Limited to sell its trade-marks

    KITCHENER, ON, March 1 /CNW/ - 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
    Proceeds from the sale will be used to fund operations while
Electrohome's remaining assets and liabilities continue to be monetized and/or
    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.

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

For further information:

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

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