We study the decay of interface induced structural and electronic relaxation effects in epitaxial LaAlO3/SrTiO3 heterostructures. The results are based on first-principles band structure calculations for a multilayer configuration with an ultrathin LaAlO3 layer sandwiched between bulk-like SrTiO3 layers. We carry out the structure optimization for the heterointerface and investigate the electronic states of the conducting interface layer, which is found to extend over two SrTiO3 unit cells. The decay of atomic displacements is analyzed as a function of the distance to the interface, and the resulting exponential law is evaluated quantitatively. (C) 2008 Elsevier B.V. All rights reserved.