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August 15, 2006

Life|ware™, HP and CEDIA Show Integrators the Digital Lifestyle at CEDIA EXPO 2006

The CEDIA Home of Electronic Lifestyles® is produced by NextGen and built on the grounds of CEDIA EXPO 2006 in Denver.

Denver, CO – CEDIA EXPO 2006 – September 13 - 17, 2006 – Booth 540 – Exceptional Innovation, along with its joint sponsor HP, invite CEDIA EXPO attendees to get a first look at how today’s products work together to create a truly comprehensive digital lifestyle in the CEDIA Home of Electronic Lifestyles®. The 2,000 square foot, fully integrated automated home will be in the parking lot directly across from the main entrance to the Colorado Convention Center during the 2006 CEDIA EXPO.

The CEDIA Home of Electronic Lifestyles® is an outreach initiative that will help educate architects, builders and interior designers on the world of integration. The home showcases how integrators can leverage Exceptional Innovation’s Life|ware™ software, HP’s digital entertainment hardware and Microsoft® Windows® XP Media Center Edition (MCE) to completely manage home environments – everything from live television, music, digital photos and videos to lighting, security, HVAC, audio distribution and more. “This home really demonstrates how digital entertainment and digital living combine to make living in the home easier and more enjoyable,” said Mike Seamons, vice president of marketing for Exceptional Innovation, producers of Life|ware home control software. “This is an exciting new and intelligent way to approach automation, and integrators can see for themselves how MCE is a platform they can build their business on.” HP will showcase its Digital Entertainment Centers, Media Center PCs and HDTVs throughout the home to demonstrate the variety of ways a family can live, work and play.

“With this home, HP is able to demonstrate how entertainment can be networked through the home on a variety of devices to meet different consumer needs, “said Jan-Luc Blakborn, director of Digital Entertainment for North America at HP. “This is an excellent opportunity for us to demonstrate to integrators how we can help them add value and increase their profitability.” The CEDIA Home of Electronic Lifestyles® is outfitted with a number of top CEDIA partner companies, including Cooper® Aspire RF lighting, Russound® whole house digital audio, and DSC® security. Thermostats and cameras are also controllable and can be accessed from any HP Digital Entertainment Center or Media Center PC with Windows XP Media Center Edition, an Xbox 360™ as a Media Center Extender, or from Life|point™ high definition touch panels.

“The CEDIA Home of Electronic Lifestyles® will help further CEDIA’s key initiative in branding CEDIA members as the architect, builder and interior designers’ resource for electronic integration needs,” said Andy Willcox, CEDIA president.

“EI and HP brought the concept of building this home to CEDIA because we wanted the opportunity to showcase a simulated home living experience to integrators attending CEDIA EXPO 2006,” said Seale Moorer, a founding partner of Columbus-based Exceptional Innovation. “EI created Life|ware to enhance the idea of convergence by bringing home control into the digital entertainment experience. And we worked with CEDIA to further the concept by highlighting it at this show.” The CEDIA Home of Electronic Lifestyles® is being built in partnership with the NextGen Home Experience, produced by iShow. Located in the parking lot directly across from the main entrance to the Colorado Convention Center, the home will be open to CEDIA EXPO attendees during show hours.

About Exceptional Innovation Based in Columbus, Ohio, Exceptional Innovation produces Life|ware™, home control software for lighting, thermostats, security systems, cameras and media management systems. Exceptional Innovation’s line of elegant, all-digital, high-definition touch panels and robust system controllers round out a complete Life|ware solution. Led by software industry professionals with extensive experience with distributed computing based on open standards and open architecture, Exceptional Innovation combines Microsoft development expertise with years of home control experience to deliver simple, seamless, life-enhancing solutions for the digital home.

Press Contact: Caster Communications, Inc. at 401.792.7080 Kimberly Lancaster klancaster@castercomm.com

Nick Brown nbrown@castercomm.com For digital images log on to www.castercomm.com All product and company names referred to herein may be trademarks of their respective owners.

Life|ware™ by Exceptional Innovation Hosts Kid Rock Concert at CEDIA EXPO 2006

Denver, CO – CEDIA EXPO 2006 – September 13 - 17, 2006 – Booth # 540 – Exceptional Innovation is thrilled to announce it will join HP, CEDIA and SpeakerCraft in hosting the Kid Rock concert at CEDIA EXPO 2006. Kid Rock and the Twisted Brown Trucker Band will play Saturday night, September 16 at 10 p.m. in the Denver Convention Center’s Amphitheater. A pre-show party will kick-off at 9 p.m. following the annual CEDIA Awards Banquet. Known for his high-energy shows, Kid Rock will entertain CEDIA EXPO attendees with songs from his new album, ‘Live’ Trucker, his self-tilted Kid Rock, his triple platinum album The History of Rock, as well as the debut album that defined him as a musician, Devil Without a Cause. With his genre-blurring music, attendees will rock to a mix of rap, hard rock, blues and even a sprinkle of country.

Exceptional Innovation and HP will be distributing tickets to the Kid Rock concert to qualifying CEDIA EXPO attendees in the Life|ware™ theater (Booth 540 – Main Hall / Exhibit Level) as well as in the CEDIA Home of Electronic Lifestyles®, a 2200-square foot home located in the parking lot across from the Colorado Convention Center. Visit either location for details on how to obtain tickets. Logos and images available at www.exceptionalinnovation.com. About Exceptional Innovation Based in Columbus, Ohio, Exceptional Innovation produces Life|ware™, home control software for lighting, thermostats, security systems, cameras and media management systems. Exceptional Innovation’s line of elegant, all-digital, high-definition touch panels and robust system controllers round out a complete Life|ware solution. Led by software industry professionals with extensive experience with distributed computing based on open standards and open architecture, Exceptional Innovation combines Microsoft development expertise with years of home control experience to deliver simple, seamless, life-enhancing solutions for the digital home.

ATTENTION PRESS For VIP press tickets, members of the media who are registered to attend CEDIA EXPO can contact Caster Communications (Contact information below). Caster will make arrangements to hand you tickets on-site at CEDIA EXPO 2006. Press tickets are limited. Please let us know as soon as possible if you would like to attend.

Press Contact: Caster Communications, Inc. at 401.792.7080 Kimberly Lancaster klancaster@castercomm.com

Nick Brown nbrown@castercomm.com Or log on to www.castercomm.com All product and company names referred to herein may be trademarks of their respective owners.

Exceptional Innovation Announces Life|ware™ Training and CEDIA CEU Accreditation

Columbus, OH - August 10, 2006 - Exceptional Innovation (EI) today announced 2006 dates for Life|ware Training and the launch of web-based training components at Life|wareUniversity.com. The Life|ware training calendar includes Introduction to Life|ware trainings all around the United States and Life|ware Certification training at EI's headquarters in Columbus, Ohio.

- Introduction to Life|ware is a one-day course providing an introduction to Life|ware and the associated business model.

- Life|ware Certification is a two-day course providing hands-on experience and four (4) Continuing Education Unit (CEU) credits for certified CEDIA professionals.

- Life|ware University is an online training center at www.lifewareuniversity.com set to launch the beginning of September 2006.

Introduction to Life|ware provides an overview of Life|ware as a home automation solution and provides information on how to become a Life|ware Certified dealer. Discussions and instructor-led demonstrations provide ample opportunities to explore how business can be successful selling and installing Life|ware.

Life|ware Certification provides hands-on experience in setting up and configuring Life|ware. Discussion, demonstrations and real-world exercises provide dealers with the necessary know-how to confidently install and configure Life|ware. This course certifies dealers to sell, install and configure Life|ware solutions.

Life|ware Certification also affords CEDIA dealers the opportunity to earn four (4) CEU credits towards the 30 necessary to stay accredited during each 36-month CEDIA cycle. Once completed, dealers have the necessary tools and knowledge to integrate Life|ware into homes and businesses of any size, significantly increasing their potential for new business.

Launching at the CEDIA Expo on Sept. 14, LifewareUniversity.com is Exceptional Innovation's complete, web-based training solution that allows dealers to work through training modules on their schedules and at their pace. LifewareUniversity.com is also a robust and detailed resource for Life|ware Certified professionals to interact, receive updated, get the latest documentation, and stay in perfect step with the Life|ware solution.

Unlike other home automation solutions that tie the homeowner into a single-branded, proprietary solution, Life|ware by Exceptional Innovation is hardware-neutral giving dealers more choices and flexibility to seamlessly integrate with Windows Media Center. Life|ware can be run on a Media Center PC, digital entertainment center, Media Center extender or EI's own Life|touch™ all-digital high definition touch panel. Exceptional Innovation's innovative training programs and effective support tools ensure dealers have the foundation to successfully implement the Life|ware solution.

For more information or to register for Life|ware Certification, please visit www.exceptionalinnovation.com.

Introduction to Life|ware
(Seating limited to 20 per session.)
August 15, 2006 Kansas City, MO
August 16, 2006 Nashville, TN
August 17, 2006 St. Louis, MO
August 22, 2006 Milwaukee, WI
August 23, 2006 Boseman, MT
September 27, 2006 Orange County, CA
September 27, 2006 Washington, DC
October 4, 2006 Denver, CO
October 5, 2006 Denver, CO
October 11, 2006 Philadelphia, PA
October 11, 2006 Chicago, IL
October 18, 2006 Waltham, MA
October 19, 2006 Waltham, MA
October 25, 2006 Phoenix, AZ
October 25, 2005 Richmond, VA
December 6, 2006 Baltimore, MD
December 13, 2006 Las Vegas, NV

Life|ware Certification - Columbus, OH
(Seating limited to 15 per session.)

August 16-17, 2006
September 27-28, 2006
October 4-5, 2006
October 18-19, 2006
November 1-2, 2006
November 29-30, 2006
December 6-7, 2006
December 13-14, 2006


About Exceptional Innovation
Based in Columbus, Ohio, Exceptional Innovation produces Lifeware, home control software for lighting, thermostats, security systems, cameras and media management systems. Exceptional Innovation's line of elegant, all-digital, high-definition touch panels and robust system controllers round out a complete Lifeware solution. Led by software industry professionals with extensive experience with distributed computing based on open standards and open architecture, Exceptional Innovation combines Microsoft development expertise with years of home control experience to deliver simple, seamless, life-enhancing solutions for the digital home.

Press Contact: Caster Communications, Inc. at 401.792.7080
Kimberly Lancaster klancaster@castercomm.com
Joe Hageman jhageman@castercomm.com
Nick Brown nbrown@castercomm.com
For digital images log on to www.castercomm.com

All product and company names referred to herein may be trademarks of their respective owners.

August 11, 2006

Stalemate seen in high-definition DVD war

Market research analyst Screen Digest also forecast that only $11 billion of the total $39 billion expected to be spent on video discs by 2010 in the United States, Europe and Japan will be generated by the competing high-definition formats, Sony-backed Blu-ray and Toshiba-supported HD DVD.

"The net result of the format war and the publicity it has generated will be to dampen consumer appetite for the whole high-definition disc category," Screen Digest analyst Ben Keen said.

The DVD format exploded into a multibillion-dollar global industry for movie and TV studios in part because the largely universal format delivered a more convenient way to own movies than its predecessor, the VHS videotape.

"This time both formats support similar features," said Graham Sharpless, who wrote the report.

The new formats are being introduced just as DVD sales level off, after consumers built up libraries of their favorite movies and TV shows at deeply discounted prices.

The specter of Betamax
Electronics retailers such as Best Buy and CompUSA are frustrated by the raging format war, fearful of another decade-long tussle similar to the one between VHS and Betamax. They have been predicting a lackluster Christmas selling season, expecting consumers to wait for one format to win out.

Screen Digest predicts that the two formats will co-exist until a combined solution becomes cost-effective, rather than taking the view that one will emerge victorious or that both will flop so badly as to be driven into extinction.

All of the Hollywood studios, except Universal, have said they will release movies on Blu-ray, with the first players and titles having launched earlier this year.

While only three of the major studios have said they will release movies in HD-DVD, Microsoft has thrown its weight behind the format, supporting it in the Windows Vista PC operating system and offering an external drive to connect to its Xbox 360 game console.

Sony is incorporating Blu-ray into its Playstation 3 video game console, due out later this year, to push its format into more homes.

Screen Digest expects that 430,000 standalone Blu-ray and HD-DVD players and recorders will be sold in 2006 and 1.35 million in 2007.

By 2010, it expects about 15 million U.S. households (21 percent of homes with high-definition TV sets), 10 million in Europe (17 percent) and 2.5 million (7.4 percent) in Japan will have bought a standalone unit, while 24 million, 23 million and 15 million high-definition-disc games consoles will have been sold.

As standalone units, a Samsung Blu-ray player sells for about $1,000 and a Toshiba HD-DVD player for about $500.