NPD INTELECT REPORTS SIGNIFICANT GROWTH
FOR ENERGY-EFFICIENT APPLIANCES

PORT WASHINGTON, NEW YORK, October 18, 2000 - According to leading marketing information provider NPD INTELECT Market Tracking, retail sales of Energy Star* energy-efficient appliances increased 31% year-to-date (January-September) 2000 over the same period last year. Increases were posted in three out of four categories of appliances: dishwashers, air conditioners, and washing machines. The fourth category, refrigerators, declined slightly.

According to NPD INTELECT, Energy Star dishwashers and air conditioners posted the biggest increases in 2000. These major appliances were both up 66% in unit sales compared to 1999. The increase in air conditioner sales came in spite of an overall decline in the category due to the unusually cool damp weather witnessed on the East Coast this past summer.

Washing machines with Energy Star designation also grew, with an increase of 11% in 2000, while non-Energy Star washer sales remained the same as one-year earlier.

Energy Star refrigerators, the only category that did not experience growth, displayed a 5% decrease in unit sales this year compared to 1999.

Energy Star appliances command a premium price in an industry that is otherwise under increasing pricing pressure. According to NPD INTELECT, Energy Star dishwashers are 7% more expensive than the average dishwasher, while Energy Star air conditioners are 9% more expensive than non-Energy Star air conditioners. In spite of higher price points, it appears that energy efficiency is driving the increased retail sales in both categories.

Additional features in combination with Energy Star rating can drive price points even higher. Washing machines with Energy Star designation, such as Maytag’s popular Neptune, are 129% more expensive than regular washers. The same holds true for Energy Star refrigerators, which are 72% more expensive than non-Energy Star refrigerators. Premium prices could explain the 5% decline in Energy Star refrigerators this year.

NPD Online Research recently completed a series of focus groups to study consumer purchasing and awareness of washing machines. The study conducted on August 31, 2000 indicated that consumers cited energy savings and water savings as the most important features when purchasing a washing machine.

"The focus group results confirmed what we have been seeing for some time now. Consumers are becoming more concerned about their home energy costs and purchasing energy-efficient appliances is one way to deal with skyrocketing home energy bills, but the price premium has to be what consumers see as reasonable. In the meantime, Energy Star appliances should continue to grow, especially if home energy costs rapidly increase as predicted this winter and new, tougher energy standards for appliances come into play," commented Monica McKane, NPD INTELECT account manager for major appliances.

*Energy StarÒ is a voluntary partnership consisting of the U.S. Department of Energy, the U.S. Environmental Protection Agency, product manufacturers, local utilities, and retailers who promote energy-efficient products and educate consumers about the benefits of energy-efficiency.

NPD INTELECT Market Tracking is a leading provider of sales tracking services for consumer electronics, home appliances, information technology and imaging industries. Data are collected from comprehensive panels representing each industry's key retail and business-to-business distribution channels. The company's clients include all of the major manufacturers, retailers and business-to-business sellers in each industry NPD INTELECT tracks. NPD INTELECT, is a joint venture of two leading marketing information providers, The NPD Group, Inc. and GfK AG.

For more information on this press release, contact Leslie Singer at (516) 625-2302, e-mail leslie_singer@npd.com
or
Dora Radwick at 516-625-6190, e-mail dora_radwick@npd.com