Reducing demand helps offset the pressure to increase generation capacity. Using smart energy infrastructures in the form of both smart metering and smart control networks provides the additional benefit of demand management in real-time in response to grid conditions. The combination creates a long-term solution for nationwide, managed energy and efficiency.

"As energy costs continue to rise, businesses need smarter energy management strategies. Echelon's control technology provides the benefits of energy management and control systems in a single, sustainable, and flexible network infrastructure. With one investment, you can lower your operating costs and leverage your infrastructure, even as your business grows -- all while gaining maximum visibility and transparency to energy use and operations throughout your organization," said Mark Rodman, managing director, Asia Pacific, Echelon Corporation. "We are pleased to assist the Government of India in its search to find better ways to use and conserve energy."

Echelon's LonWorks(R) technology is used worldwide in energy savings and control networking applications from building automation to streetlights to quick-service restaurants and retail and bank chains. For more information regarding Echelon's technology, please visit http://www.echelon.com/solutions/energy/.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.

Echelon's NES System -- the backbone for the smart grid -- is used by utilities to replace existing stand-alone electricity meters with a network infrastructure that is open, inexpensive, reliable, and proven. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use. Echelon's LonWorks(R) Infrastructure products extend the smart grid, powering tens of millions of energy aware, everyday devices made by thousands of companies -- connecting them to each other, to the electricity grid and to the Internet. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.

More information about Echelon can be found at http://www.echelon.com.

Echelon, LonWorks and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

This press release may contain statements relating to future plans, events or performance. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to market acceptance of Echelon products and the timing and level of customer orders; risks that Echelon offerings do not perform as designed and that liability may accrue as a result; and other risks identified in Echelon's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Echelon undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6101976&lang=en

SOURCE: Echelon Corporation

Echelon Corporation 
Julia O'Shaughnessy, +1-408-938-5357 
julia@echelon.com 
or 
Atomic Public Relations 
Allyson Stinchfield, +1-415-402-0230 
allyson@atomicpr.com

The SmartServer can be the first step in deploying a long-term EEM strategy across distributed facilities, connecting with legacy equipment or seamlessly integrating with a smart, LonWorks based control network.

Energy management solutions based on Echelon's LonWorks technology are used by companies worldwide in a broad range of markets and applications, including:

Data centers

"We apply LonWorks technology to data centers that we build, operate and maintain. LonWorks technology, and specifically the i.LON SmartServer, is at the foundation of our 'green IT' and energy conservation strategy," said Kenzo Takeda, deputy president and representative director, Osaki Computer Engineering. "With LonWorks technology, we see energy savings of up to 50 percent in data centers, and the cost of the system is recouped within 2-3 years, on average. Moreover, the equipment life is extended by approximately 40 percent thanks to the effective and efficient control of the cooling system."

Demand response

"The enhancements in the new SmartServer enable us to cost-effectively connect with customer equipment reliably and securely and allows us to develop and deploy localized smart grid software applications," said Terry Sick, vice president, product development and engineering, EnerNOC. "EnerNOC has more than 3,250 megawatts of demand response capacity under management, and the SmartServer is a key part of our solution that allows us to continue to scale our network quickly and dispatch load in real time to respond to changing conditions on the grid."

Remotely monitored streetlights

"Philips highlights the very significant energy savings and CO2 reductions to be gained from a new generation of innovative lighting technology. These technologies address some of the fundamental issues we face today--such as energy consumption, global climate change, and the need to improve European competitiveness. Today, energy efficient lighting is required in all sectors, including city streetlights, and our Starsense system meets this need," said Gil Soto Tolosa, global product marketing manager for road lighting at Philips Lighting. "We built our Starsense system on Echelon's platform because Echelon has a proven history of providing innovative, reliable products that let us build market-leading functionality into our systems. Working with Echelon, we believe we have created a future-proof solution that offers a significant improvement in functionality that also costs less to install and maintain."

"Echelon's i.LON SmartServer enables faster, simpler deployment of monitored streetlight systems that can reduce installation costs by almost fifty percent when compared to other solutions while offering more features," said Christophe Orceau, Streetlight.Vision's chief executive officer. "The SmartServer can act as a complete network management solution for installing, configuring, and managing streetlight networks over the power line quickly, easily and reliably. When paired with our Streetlight.Vision Design software, cities and streetlight maintenance companies can deploy networks of thousands of multi-brand streetlight devices in record time through a powerful and user-friendly web interface that eliminates the need for an installer to have network integration skills. This makes the system easy to install by technicians; engineers are not needed. The ease of installation and the system reliability can significantly reduce costs, especially when considered over the lifetime of the system, which can be up to 25 years."

High bay lighting

"We are very delighted with the results of our new energy efficient high bay lighting solution," said Gordon Peters, president of Kelly Western Services. "Only after the light levels were confirmed by an independent consultant did we believe that the results were correct. With the LonWorks enabled solution from ROMlight and in conjunction with our utility's rebates, we were able to yield a return on investment of just nine months. We're extremely pleased with the performance of the system."

Commerical Buildings/Facility Management:

"Our hardware partners provide products that are closely integrated with Wonderware software for improved performance and lower maintenance costs. These products are selected because they are best-of-breed in their related industries," said John Bishop, industry manager, facility management solutions, Invensys. "Echelon's i.LON SmartServer is a proven, reliable product that is used in energy management applications worldwide. Combined with the company's championing of open markets and systems, choosing to partner with Echelon was a clear choice."

Schools

"With the smart grid on the horizon, and remotely hosted energy services like automatic demand response and real-time pricing in the near future, the SmartServer serves as an important link to 'the cloud'," says Terry Reynolds, PE for Control Technologies, the Facilities Management Systems Integrator for the New York City School district.

Solar/Renewable Energy

"Echelon's technology provides a high level of reliability and flexibility, which we considered necessary in order to offer a more efficient and diverse solution to our customers," said Jeffrey Philpott, director of marketing for SMA America. "Because the LonWorks platform is an open technology, it interfaces well with most existing subsystems that our clients use, making data more accessible and helping to reduce overall systems costs."

For more information regarding Echelon's i.LON SmartServer, please visit http://www.echelon.com/ilon.

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.

Echelon's NES System -- the backbone for the smart grid -- is used by utilities to replace existing stand-alone electricity meters with a network infrastructure that is open, inexpensive, reliable, and proven. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use. Echelon's LonWorks(R) Infrastructure products extend the smart grid, powering tens of millions of energy aware, everyday devices made by thousands of companies -- connecting them to each other, to the electricity grid and to the Internet. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.

More information about Echelon can be found at http://www.echelon.com.

Echelon, i.LON, LonWorks and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

This press release may contain statements relating to future plans, events or performance. Such statements may involve risks and uncertainties, including risks associated with uncertainties pertaining to market acceptance of the SmartServer 2.0 and other new and existing Echelon products and the timing and level of customer orders; risks relating to the timing of availability of SmartServer products; risks that Echelon offerings do not perform as designed and that liability may accrue as a result; the growth of the LonWorks industry; and other risks identified in Echelon's SEC filings. Actual results, events and performance may differ materially. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Echelon undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6096141&lang=en

SOURCE: Echelon Corporation

Echelon Corporation 
Julia O'Shaughnessy, +1 408-938-5357 
julia@echelon.com 
or 
Atomic Public Relations 
Allyson Stinchfield, +1 415-402-0230 
allyson@atomicpr.com

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.

More information about Echelon can be found at http://www.echelon.com.

Echelon and the Echelon logo are registered trademarks of Echelon Corporation in the United States and other countries.

SOURCE: Echelon Corporation

Echelon Corporation 
Annie Leschin/Vanessa Lehr, 415-775-1788 
Investor Relations