CEA Urges Governor Schwarzenegger to Rescind New Energy Regulation of Consumer Electronics; Successful Efforts to Address Energy Concerns Require Industry Input, Reevaluation of Facts.

ARLINGTON, Va. -- Current CEC Regulation Threatens Technology, Innovation and Consumer Choice

Consumer Electronics Association (CEA) President and CEO Gary Shapiro issued the following statement today in response to new California Energy Commission (CEC) regulations ("Appliance Efficiency Regulations" - April 2005), which include provisions governing the energy efficiency of consumer electronics products:

"CEA recognizes and applauds California's efforts to address energy concerns, but urges Governor Schwarzenegger to reconsider the newly published CEC regulations. These regulations clearly miss the mark. The government energy efficiency mandates artificially limit the power usage of consumer audio and video equipment, paint a dismal picture for the future of technology advancement in California, and are anti-digital and anti-consumer.

"Our industry is ready and willing to work with the Governor and all legitimate parties to develop a balanced approach to address energy consumption issues, but we are deeply concerned about California's new regulatory action. We strongly believe that a realistic solution can only be reached through a public/private partnership that thoroughly analyzes the facts to determine what is best for energy conservation, consumers and high tech manufacturers.

"The consumer electronics industry places major emphasis on power efficiency, which is one reason why our industry plays a large role in the federal ENERGY STAR program. The CEC's regulations go far beyond ENERGY STAR guidelines, however, requiring the use of some products that have not yet been shown to be technologically possible. In the case of our nation's transition to digital television, as mandated by the Federal Communications Commission (FCC), CEC's regulations threaten to keep digital-to-analog converters off store shelves, forcing consumers to either obtain a much more expensive device, or forgo digital television altogether. That is both unfair to consumers and unnecessarily damaging to technology manufacturers who are willing to collaborate on a balanced and sensible solution.

"The regulations, expedited through the CEC late last year, also do little to address true energy efficiency issues. Consumer electronics in the home account for less than 3 percent of total energy consumption and newly designed digital television equipment, in particular, often uses less energy than its analog predecessors. In short, the CEC regulations are a proposed solution that matches neither the size nor scope of the energy consumption issue.

"Representing more than 2,000 technology companies nationwide, the Consumer Electronics Association encourages Governor Schwarzenegger and the CEC to examine all the facts and rescind this proposal immediately until additional research is conducted. In place of these regulations, we look forward to helping develop a national approach that truly enhances energy efficiency and brings certainty to manufacturers and consumers."

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 2,000 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 $121 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 Tomorrow's Technology. All profits from CES are reinvested into industry services, including technical training and education, industry promotion, engineering standards development, market research and legislative advocacy.

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