Broad Industry Support for Echelon's LonWorks Platform at 2001 International CES.

Business Editors/High-Tech Writers

CES 2001

LAS VEGAS--(BUSINESS WIRE)--Jan. 5, 2001

IBM, Invensys, Monster Cable(R), Samsung, Sun Microsystems, and

Others Put LonWorks Technology on the Show Floor

Echelon Corp. (Nasdaq:ELON) announced today that the company's LonWorks(R) platform for networking everyday devices is being displayed by a wide range of industry leaders at the 2001 International Consumer Electronics Show (CES) in Las Vegas, January 6-8.

Companies that are showcasing LonWorks products and technology include infrastructure providers IBM Corp. (booth LVCC Exh Rm/N230, Silver Lot/25120) and Sun Microsystems (booth LVCC Exh Rm/N235); appliance manufacturers Invensys Corp. (booth LVCC 4869) and Samsung Electronics (booth LVCC 941); residential gateway manufacturers Coactive Networks (booth LVCC 5759) and Home Director (booth OutdoorLVCC/OS2&3); and retail audio and home theater leader Monster Cable(R) Products Inc. (booths LVCC 5869 and LVCC 6070). Additionally, LonWorks networks provide the device networking technology and IP connector for the Consumer Electronics Association's Virtual Home Network (VHN(TM)) showcase. Collectively these companies represent a complete, end-to-end solution for bringing intelligent devices and services into consumers' homes.

"What is exciting about this year's CES is that companies have moved beyond smoke and mirror, demo-ware displays and on to real implementations and real products," said Ken Oshman, Echelon's chairman, president and CEO. "Rather than just demonstrating `home of the future' concept products, companies are talking about and showing real LonWorks products, that deliver real benefits to consumers, and have real business cases behind them. This promises to be the year where we will begin to see mass deployments of LonWorks products in the home; I can't think of a better way to start it off."

Sun is showing its Java Embedded Server(TM) (JES) 2.0 product (which implements the OSGi Service Gateway Specification Release 1.0) as part of a display created by Digital Pockets, Inc. that allows end-users to purchase services such as scene lighting or smart card integration between LonWorks based door and lighting control systems. Additionally, visitors to Sun's CES booth may witness firsthand the possibilities presented by the ability to dynamically deploy new value-added services to subscribers with no intervention by the homeowner. Echelon and Sun announced a cross-licensing agreement last year under which Sun will provide LonWorks connectivity for its JES technology product line that will enable JES licensees to easily build gateways that connect to thousands of different LonWorks based products -- and offer a myriad of enhanced services.

In its booth, IBM is distributing preview copies of its latest WebSphere(TM) Everyplace Suite Embedded Edition CD-ROM, a one-stop shopping solution with built-in middleware, content development tools, customization services and server integration for a wide variety of devices. A pre-release of Echelon's LonWorks Device Access API and Network Access Bundle for use with residential gateways based on the OSGi Service Gateway Specification is included as part of the CD.

Samsung Electronics, one of the world's largest manufactures of home appliances, is showing an intelligent washing machine, air conditioner, and microwave oven that use Echelon's LonWorks platform to communicate over the Internet and with one another over existing power lines. Each appliance features Internet command-and-control accessible from any Web browser.

Invensys, the world's leading supplier of controls for appliance manufacturers such as GE, Kenmore, Maytag, Sears and Whirlpool, announced an expanded relationship with Echelon that extends the company's commitment to LonWorks from commercial buildings into homes. Invensys is displaying a networked oven utilizing the LonWorks enabled Trimline(TM) appliance controller. The oven communicates over a home's existing power lines to provide any number of conveniences for the consumer. Invensys' use of LonWorks in its controllers represents the first time that a major U.S. home appliance supplier has utilized advanced device home networking. Additionally, Echelon and Invensys announced that they are working together to develop ControlServer2, the Invensys home gateway. Based on Sun's JES 2.0 OSGi-compliant gateway specification, ControlServer2 will have the ability to communicate with LonWorks based devices, allowing such applications as remote monitoring of energy and home appliances as well as other services.

Home Director, a spin-off of the former IBM Home Networking Solutions unit, is showing its software applications built around the Network Connection Center. One such application features the control of devices in a LonWorks network via a Web-centric control panel. Accessible via PDA, PC desktops, or any Web-enabled device, Home Director's booth shows how LonWorks networks are providing the device infrastructure for value-added services to the home.

Monster Cable Products, Inc. and Echelon have announced an agreement to create home theater and home control solutions based on LonWorks technology and Monster Cable's range of PowerCenter(TM) products. Integrating Echelon's PLT-22 Power Line Transceivers and networking technology into the PowerCenters will allow consumers to switch televisions, audio gear, lights, and other electrical devices on and off, and send infrared channel remote control signals around the house from any room, using the existing power wiring for communications. Monster Cable is showcasing the control capabilities of the new PowerCenters at CES. The showcase includes remotely controlled PowerCenters, an IR remote control interface, a 3COM Audrey interface, and a Web interface utilizing Echelon's Cisco-certified i.LON(TM) 1000 Internet Server.

According to Navin Sabharwal, director of residential & networking technologies of Allied Business Intelligence Inc., "What we are seeing here at CES is, I think, the beginning of the explosive growth predicted for the home networking market as its grows to a $4.4 billion industry by 2005. With its low-cost, highly reliable, worldwide power line solution; its suite of middleware and back-end software tools; and the partners and products shown here at CES, Echelon is clearly going to be a major force in this industry."

About Echelon Corp.

Echelon Corp. is the world leader in networking everyday devices. The company offers a comprehensive line of hardware and software products for automating building, home, industrial, transportation, and utility applications using LonWorks networks, an international, cross-industry, open standard for interoperable device networks. Echelon is Bringing the Internet to Life(TM) by linking the millions of everyday devices connected with LonWorks networks to the Internet.

Echelon is based in Sunnyvale, with international offices in China, France, Germany, Japan, Korea, The Netherlands, and the United Kingdom. Further information can be found at http://www.echelon.com.

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 the timing and level of customer orders, demand for products and services, development of markets for Echelon's products and services (particularly with respect to the emerging home networking products and services), 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.

Note to Editors: Echelon, LonWorks, LonMark, the LonMark logo, and the Echelon logo are trademarks of Echelon Corp. registered in the United States and other countries. i.LON and Bringing the Internet to Life are trademarks of Echelon Corp. Other marks belong to their respective holders.