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Universal Electronics to Acquire Ecolink Intelligent Technology, A Wireless Security, Sensing, and Home Automation Leader

August 6, 2015

 

Santa
Ana, CA
 — Universal
Electronics Inc. (UEI), (NASDAQ:UEIC) is pleased to announce that it has
entered into an agreement to acquire U.S.-based Ecolink Intelligent Technology,
Inc.

“We are very excited to bring the Ecolink team under
the UEI umbrella. The team at Ecolink has some of the industry’s leading
experts in the wireless sensor market and a track record of bringing creative,
innovative and high performing products to market.  Ecolink’s expertise in wireless security and
home automation technology will bring a new level of compatibility to the
industry to enable sensors throughout the home to work together seamlessly,” said
Paul Arling, UEI’s Chairman and CEO.

According to Parks Associates, residential home
security is leading the transition to the smart home. “The majority of sensors
and control panels sold today can be accessed and remotely controlled with a
mobile device. No other residential product can make that claim,” said Tom
Kerber, Director Research, Parks Associates. “Additionally, over the past 4
years, cable and telco providers have successfully added home security and
automation services to their offerings, gaining an estimated 14% share of
professionally-monitored security systems in U.S. broadband households.”

“With over 25 years of experience as a
technology and product supplier to the cable/telco industry, UEI, through this
acquisition, is well positioned to supply these wireless solutions to its
customers,” stated Tricia Parks, Chairman, Founder, and CEO of Parks Associates
.

According to data from ABI Research, the global sensor and device market
for home security and automation is expected to grow from $1.4 billion in 2015
to $4.0 billion in 2019, with growth forecasted across all three channels of
distribution: pro-security; cable/telco and consumer/DIY.  This acquisition allows UEI to extend its
market reach into traditional home security and

consumer/DIY – channels that are actively served by Ecolink
products and solutions today.

The purchase price for the acquisition of Ecolink
assets will be approximately $12.4 million in cash plus incentive-based cash consideration
to be paid over the next five years.
Ecolink’s acquired assets include over 25 issued and pending patents,
and other related intellectual property and assets used in its smart home,
wireless security and home automation business.

UEI intends to operate the acquired business as a
wholly-owned subsidiary and market the home security and automation products
and services under Ecolink brands and trademarks, leveraging Ecolink’s many
years of experience, expertise and innovation in the industry.

“We are excited to be joining the UEI team,” stated
Michael Lamb, Ecolink’s President and CEO, “UEI’s leadership position in cable
and telco, as well as their operational excellence will give our home security
products the boost needed to achieve significant market penetration.”

 

About Ecolink Intelligent Technology

Ecolink is a leading developer of smart home
technology. The company delivers a wide range of intelligent wireless security
and automation components dedicated to redefining the home security experience.  Ecolink has over 20 years of wireless
engineering expertise in the home security and automation market and holds more
than 25 related pending and issued patents. For more information, visit www.discoverecolink.com.

About Universal Electronics Inc.

Founded in 1986, Universal Electronics Inc. (UEI) is
the global leader in wireless control technology for the connected home. UEI
designs, develops, and delivers innovative solutions that enable consumers to
control entertainment devices, digital media, and home systems. The company’s
broad portfolio of patented technologies and database of infrared control
software have been adopted by many Fortune 500 companies in the consumer
electronics, subscription broadcast, and computing industries. UEI sells and
licenses wireless control products through distributors and retailers under the
One For All® brand name. More information is available at http://www.uei.com

###

Safe Harbor Statement

This press release contains forward-looking statements
that are made pursuant to the Safe-Harbor provisions of the Private Securities
Litigation Reform Act of 1995.  Words and
expressions reflecting something other than historical fact are intended to
identify forward-looking statements. These forward-looking statements involve a
number of risks and uncertainties, including the successful closing of the
transaction between UEI and Ecolink and integration of their respective
business lines, the timely development, delivery and market acceptance of
products and technologies such as home security, home automation, wireless
sensors and other technologies identified in this release; the continued
penetration and growth of next generation consumer technologies; and other
factors described in the Company’s filings with the Securities and Exchange
Commission.  The actual results that the
Company achieves may differ materially from any forward-looking statement due
to such risks and uncertainties.  The
Company undertakes no obligations to revise or update any forward-looking
statements in order to reflect events or circumstances that may arise after the
date of this release.

Press:

UEI:  Benny Canady, 714-918-9500

IR Agency: Becky Herrick,
415-433-3777

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