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Universal Electronics to Acquire RCS Technology, Expanding Its Lineup of IoT, Energy Monitoring and Control Products

May 4, 2017

Santa Ana, CA – Universal Electronics Inc. (UEI), (NASDAQ:UEIC), the worldwide leader in universal
control and sensing technologies for the smart home, has entered into an
agreement to acquire certain assets of U.S.-based Residential Control Systems,
Inc. (known as “RCS Technology”) – a leading designer and manufacturer of
energy management and control products for the Residential, Commercial, and
Hospitality markets.

Through this acquisition, UEI further solidifies its
footprint in the rapidly growing IoT space by expanding its portfolio of home
sensing, monitoring and control solutions to include programmable communicating
thermostats (PCTs), advanced HVAC controls, energy monitoring and control
devices, gateways, in-home displays and user interfaces.

“RCS represents another important step toward our
goal to be the leader in control and sensing technologies for the smart home”,
said Paul Arling, UEI’s Chairman and CEO.
“This acquisition builds on our existing business with original
equipment manufacturers in HVAC, giving us an expanded capability in delivering
traditional and wireless thermostats, room air controllers, and wireless remotes
to customers such as Daikin, Fujitsu and Panasonic.  The addition of RCS brings new smart
thermostat, sensing and monitoring products to our international market through
our global sales, manufacturing, and distribution channels.”

The smart thermostat market is projected to have accelerated growth over the
next five years, driven by several factors: advancements in communication
technologies; consumer interest in home automation and monitoring; a push for energy
conservation; and the growth of utility and government-sponsored programs.  According to data from Navigant Research, the
global market for smart and communicating thermostats is expected to double in
size, from $1.1 billion in 2016 to $2.2 billion in 2020, with the largest growth
forecasted in North America.

RCS is one of the leading suppliers of smart communicating thermostats to
original equipment manufacturers (OEM).  RCS delivers innovative
thermostat products to major HVAC manufacturers as well as companies in
security and home automation such as ADT and Nexia Home Automation
Systems.

“Our growth has been driven largely by a focus on quick development for
accelerated time to market, using local, responsive engineering design and
production teams, as well as a broad product portfolio including Z-Wave®,
ZigBee® and Wi-Fi® technologies,” stated Michael
Kuhlmann, RCS President and CEO.  “UEI’s
leadership position in its current markets, as well as its global development
and manufacturing footprint, will give us the leverage we need to build market
share in a growing and exciting segment of the IoT space.”

The purchase price for the acquisition of RCS assets will be approximately
$9 million in cash plus incentive-based cash consideration to be paid over the
next five years.  RCS’ acquired assets
include product lines, inventory, intellectual property, engineering and
development resources, sales and distribution relationships, and other assets
used in its communication and smart thermostat business.

UEI intends to operate the acquired business as a
wholly-owned subsidiary and market the energy monitoring, thermostat, sensor products
and services under RCS brands and its trademarks, building upon RCS’ many years
of experience, expertise and innovation in the industry.

About RCS Technology

RCS Technology is a leading designer and manufacturer of energy
management and control products for the Residential, Small Commercial, and
Hospitality markets.  RCS branded products have been the iconic home
control and automation platforms for several generations of control networks
and media technologies from Powerline to RF to WEB based solutions.

For more information, visit www.rcstechnology.com

About Universal Electronics

Universal Electronics Inc. (NASDAQ:UEIC) is the worldwide
leader in universal control and sensing technologies for the smart home.  For more information, please visit www.uei.com/about.

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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 RCS and
integration of their respective business lines, the timely development,
delivery and market acceptance of products and technologies such as thermostats,
energy monitoring, 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.

Contacts:

Universal Electronics Inc.
Benny Canady
714-918-9500

LHA (Investor Relations Agency)
Becky Herrick
415-433-3777

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