CEA Applauds Governor Ehrlich's Veto of Costly and Redundant Energy Standards Act.

Business Editors/High-Tech Writers

ARLINGTON, Va.--(BUSINESS WIRE)--May 22, 2003

The Consumer Electronics Association (CEA) today applauded Maryland Governor Robert Ehrlich for his veto of legislation that could have paved the way for mandatory limits on the energy used by set-top boxes and other consumer electronics products.

"In vetoing S.B. 394, Governor Ehrlich prevented the development of Maryland-specific energy standards that would have raised costs for technology companies and limited product choices and features for Maryland residents," said Gary Shapiro, CEA's president and CEO.

The legislation, known as the "Maryland Energy Efficiency Standards Act," included provisions for a state study that could have led to new state requirements for the energy consumption of cable set-top boxes and modems, satellite TV receivers, digital video recorders and other consumer electronics products.

CEA argued that Maryland should not pursue an independent study because the more effective solution is a national Energy Star specification that applies to all states and U.S. consumers.

"CEA supports a uniform, market-oriented approach to energy efficiency through the federal Energy Star program," said Shapiro. "Energy Star is already well recognized by consumers and also benefits from strong participation by the consumer electronics industry."

Prior to amendments that were adopted, S.B. 394 would have created mandatory energy efficiency standards for several consumer products, including set-top boxes.

CEA, the Electronic Industries Alliance, the Cable Telecommunications Association of Maryland and other groups and companies testified before the Maryland legislature that the existing federal Energy Star program effectively addresses the energy use of set-top boxes and other consumer electronics through market-oriented incentives.

"While we commend Governor Ehrlich for his veto, we are concerned that harmful legislation similar to that rejected in Maryland remains pending in several states, including Connecticut, Illinois and New Jersey," said Shapiro.

About CEA:

The Consumer Electronics Association (CEA) is the preeminent trade association promoting growth in the consumer technology industry through technology policy, events, research, promotion and the fostering of business and strategic relationships.

CEA represents more than 1,000 corporate members involved in the design, development, manufacturing, distribution and integration of audio, video, mobile electronics, wireless and landline communications, information technology, home networking, multimedia and accessory products, as well as related services that are sold through consumer channels.

Combined, CEA's members account for more than $85 billion in annual sales. CEA's resources are available online at www.CE.org, the definitive source for information about the consumer electronics industry.

CEA also sponsors and manages the International CES - Defining Technology's Future. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

UPCOMING EVENTS

7th Annual Consumer Electronics CEO Summit
        June 18-20, 2003, Vail, CO

CEA 2003 Summer Technology & Standards Forum
        August 4-8, 2003, Quebec, Canada

CEA 2003 Fall Conference and Industry Forum
        October 12-15, 2003, Carlsbad, CA

2003 Fall Electronic House Expo (EHX)
        November 11-13, 2003, Long Beach, Calif.

2004 International CES - Defining Technology's Future
        January 8-11, 2004, Las Vegas, NV