(UEIC) Logitech and Universal Electronics Team Up To Win Next Game; 2-Year Technology Alliance Will Explore Interactive Space for Gaming Peripherals.

Business Editors

FREMONT, Calif., and CYPRESS, Calif.--(BUSINESS WIRE)--March 14, 2000

Logitech (Switzerland: LOGN, LOGZ; NASDAQ:LOGIY) and Universal Electronics Inc. (UEI; NASDAQ: UEIC) today announced they have entered an exclusive two-year relationship to evaluate worldwide market opportunities for gaming peripherals - ranging from gamepads and joysticks to racing systems and other gaming devices with cursor or view control - to serve the promising digital interactive cable and satellite television markets. The two companies will work together with industry partners to explore business opportunities and define product features, pricing, timing and distribution. Logitech and UEI plan to engage in co-development and co-marketing efforts.

"This exciting initiative is in keeping with Logitech's strategic intent to provide the best interface to the digital world and extend its leadership into additional areas beyond the traditional PC platform," said Wolfgang Hausen, senior vice president and general manager of Logitech's Control Devices Division. "As the interactive TV market takes off, it's clear that users will demand a first-class gaming experience in this environment. UEI's innovative spirit and connection with the cable and satellite industry make them our ideal partner to address this opportunity."

Industry analysts foresee a bright future for interactive TV in the home, predicting that more than 46 million U.S. households (43 percent of the estimated total U.S. TV households) will have interactive TV capabilities by 2005.

"We're leveraging UEI's technology expertise and extensive relationships in the cable and satellite industries with Logitech's excellent reputation, unmatched know-how in the gaming industry, and worldwide distribution to take advantage of the booming market space for our technologies - gaming devices for digital interactive television," said Camille Jayne, UEI chairman and CEO. "UEI and Logitech bring to this exploratory alliance a shared vision, which we believe can best be achieved through our companies' combined efforts," Jayne added.

Founded in 1981, Logitech designs, manufactures and markets human interface devices and supporting software that link people to the Internet and enable them to work, play, learn and communicate more effectively in the digital world. Logitech's interface products include Internet video cameras; input and pointing devices such as corded and cordless mice, optical trackballs and keyboards; multimedia speakers; and entertainment products such as joysticks, gamepads and racing systems. With operational headquarters through its U.S. subsidiary in Fremont, California, and regional headquarters through local subsidiaries in Romanel, Switzerland, and Hsinchu, Taiwan, R.O.C., Logitech International is a Swiss public company traded in Switzerland under the symbols LOGN and LOGZ, and in the U.S. on the Nasdaq National Market System (LOGIY). The company has manufacturing facilities in Asia and offices in major cities in North America, Europe and Asia Pacific.

Universal Electronics Inc., based in Southern California, builds and markets pre-programmed, easy-to-use wireless control devices and chips, principally for home entertainment equipment and the subscription broadcast market. The company's product lines under development include wireless interface technologies such as combination keyboard/remotes and touch-screen remotes. UEI licenses its patented technologies and database of codes to companies selling into the cable and satellite industries, and to original equipment manufacturers. The company also sells its universal remote control products to distributors and retailers in Europe, Asia, South America and Australia under the One For All(R) brand name.