Mandatory Security Implementation for All Z-Wave C

FREMONT, CA --(Marketwired - April 02, 2017) - The Z-Wave Alliance, an open consortium of leading global companies deploying the Z-Wave smart home standard, as of today will require strict and uniform adoption of a new security protocol for all Z-Wave devices receiving certification. The Alliance Board of Directors voted unanimously in November 2016 to require mandatory implementation of the new Security 2 (S2) framework, the most advanced security for smart home devices and controllers, gateways and hubs in the market today.

According to a 2016 AT&T study, 58% of companies reported they were not confident in the security of connected devices. Other consumer studies have shown that security and privacy is a major concern among those looking to adopt smart home. The industry focus on IoT security continues to amplify and today's milestone demonstrates Z-Wave's early leadership role in the space. The Z-Wave Alliance has been working for several years with chipmaker Sigma Designs to develop world-class security standards for all Z-Wave devices as IoT expands into homes around the globe.

"We are absolutely committed to making Z-Wave the safest, most secure ecosystem of smart devices on the global market," commented Mitchell Klein, executive director of the Z-Wave Alliance. "Our work, in conjunction with the entire Alliance membership, will ensure that developers, service providers, manufacturers and consumers alike will look to Z-Wave as the most trusted solution with the highest levels of protection."

As of today, April 2, 2017, Z-Wave's technical certification program, which is administered through 3 ^rd party test facilities in Europe, US and Asia, will check that all S2 security solutions, which contain rules for command classes, timers and device types are correctly implemented in every new certified device. S2 devices will also be backwards compatible with existing devices on the market.

The Z-Wave S2 framework was developed in conjunction with the cybersecurity expert community to give the already secure Z-Wave devices new levels of impenetrability. By securing communication both locally for home-based devices and in the hub or gateway for cloud functions, S2 also virtually removes the risk of devices being hacked while they are included in the network. By using a QR or pin-code on the device itself the devices are uniquely authenticated to the network as well. Common hacks such as man in the middle and brute force are virtually powerless against the S2 framework through the implementation of the industry-wide accepted secure key exchange using Elliptic Curve Diffie-Hellman (ECDH). Finally, Z-Wave also strengthened its cloud communication, enabling the tunnelling of all Z-Wave over IP (Z/IP) traffic through a secure TLS 1.1 tunnel, removing vulnerability.

For more information on the Z-Wave Alliance, please visit http://z-wavealliance.org . Follow the Z-Wave Alliance on Facebook , Twitter and on LinkedIn for the latest updates.

For more information on Z-Wave, please visit http://z-wave.sigmadesigns.com/ .

About Z-Wave Z-Wave ^® technology is an open internationally recognized ITU standard (G.9959). It is the leading wireless home control technology in the market today, with over 1700 certified interoperable products worldwide. Represented by the Z-Wave Alliance, and supported by more than 450 companies around the world, the standard is a key enabler of smart living solutions for home safety and security, energy, hospitality, office and light commercial applications.

Z-Wave ^® is a registered trademark of Sigma Designs ( NASDAQ : SIGM ) and its subsidiaries in the United States and other countries.

About the Z-Wave Alliance Formed in January 2005, the Z-Wave Alliance is a consortium of leading companies in the home technology space dedicated to solidifying Z-Wave as the standard for wireless home control products. The principal members include: ADT, FAKRO, FIBARO, Ingersoll Rand Nexia Intelligence, Jasco Products, Leedarson, LG Uplus, Nortek Security & Control, SmartThings and Sigma Designs. Alliance members lead the home controls market, providing leading edge products and systems that deliver increased comfort, convenience, energy conservation, safety and security.

Forward-Looking Statements This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including statements about the benefits of Z-Wave products, specifically the addition of Z-Wave S2 framework security feature for its devices. Actual results may vary materially due to a number of factors including, but not limited to, consumer and customer acceptance of the Z-Wave S2 framework and Z-Wave product line in the relevant regions, the ability of Z-Wave and the addition of new and improved security features to compete with other technologies or products in the market, if any, as well as other risks that are detailed from time to time in our reports to the Securities and Exchange Commission, including reports made on Form 10-Q. Readers are cautioned not to place undue reliance on these forward- looking statements, which speak only as of the date hereof. We undertake no obligation to publically release or otherwise disclose the result of any revision to these forward-looking statements that may be made as a result of events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.