Cisco Certifies Echelon's i.LON 1000 Internet Server; Breakthrough Product Connects Everyday Devices to the Web.

Business Editors/High Tech Writers

CeBIT 2000

PALO ALTO, Calif.--(BUSINESS WIRE)--Feb. 24, 2000

Echelon Corporation (NASDAQ: ELON) today announced that its i.LON(TM) 1000 Internet Server has successfully completed worldwide field trials and has achieved certification by Cisco Systems under the Cisco NetWorks(TM)Program. The i.LON 1000 Internet Server is a breakthrough new product that enables millions of everyday devices networked with Echelon's LONWORKS(R) technology in homes, buildings, factories, and transportation systems to become part of the Web. In so doing, the i.LON 1000 paves the way for a wide range of new Internet-based markets and applications for industry and consumers alike.

The Cisco NetWorks Program is a technology licensing program that incorporates Cisco Network Foundation technologies and other enabling technologies into network access devices such as IP phones, cable modems, set-top boxes and residential gateways. Cisco will be showing a demo of the newly NetWorks-certified i.LON 1000 in its booth at CeBIT 2000, the world's leading showplace for information technology, telecommunication, and office automation that will take place in Hannover, Germany from February 24 through March 1.

"We are delighted that Echelon has chosen the Cisco NetWorks Certification Program for the i.LON 1000 to offer its customers interoperability between LONWORKS control networks and Cisco's IP-based networks," said Kristine Stewart, director of market development for Cisco's Consumer Line of Business. "Echelon shares our vision of creating intelligent, Internet-based home networks that will help consumers use the power of the Internet in all aspects of their daily life."

The i.LON 1000 Internet Server field trials were conducted at sites in the Americas, Asia, Europe, and Scandinavia. One such site, Integer House in London, is part of a program created to develop affordable, intelligent, and environmentally sound housing in the UK. Innovative construction materials and techniques were combined with intelligent technology to achieve the project's goals. "All of the critical control systems in the Integer House are controlled with Echelon's LONWORKS technology, " says Peter Colebrook, Intelligent Systems architect for the Integer project. "The i.LON 1000 provides a seamless connection between the Internet and the heating, lighting, blind, and security systems in the Integer House. We used only off-the-shelf LONWORKS products and no re-engineering was required; we simply connected the devices to the i.LON 1000 and a BT ISDN connection. The system works flawlessly and has drawn a lot of attention from appliance manufacturers, builders, developers, and utilities." The i.LON 1000 at the Integer House is accessible via the Web at www.integer.echelon.co.uk.

"Obtaining the approval of the world's largest provider of Internet infrastructure is a very significant milestone for Echelon, with broad implications for our customers," notes Ken Oshman, president and CEO of Echelon. "Information technology managers want assurance that any product operating on their network is reliable, compatible, and a good citizen, and with Cisco certification of the i.LON 1000 we can absolutely provide that assurance. Our field trials represent a cross section of the 4000 companies already using Echelon's products for building, industrial, transportation, and home applications. Demand for the i.LON 1000 is very strong across all of these markets, and with Cisco certification now in hand we look forward to shipping the i.LON 1000 within the next few weeks."

The i.LON 1000 is scheduled to ship at the end of the first quarter of 2000. For more details, please contact Echelon at [phone] or e-mail [e-mail].

About Echelon Corporation

Echelon Corporation (NASDAQ: ELON) is the developer of LONWORKS networks, recognized internationally as a standard for open, interoperable control networks. With thousands of application developers and millions of devices installed worldwide, LONWORKS is a leading open, networked control solution for building and home automation, industrial, transportation, and public utility applications. Echelon offers a full range of off-the-shelf hardware and software products to support the development, installation and management of intelligent, open and interoperable control networks.

Echelon is based in Palo Alto, California with international offices in China, France, Germany, Japan, Korea, The Netherlands, and the United Kingdom. News and information are available at www.echelon.com.

Note to Editors: Echelon, the Echelon logo, and LONWORKS are registered trademarks of Echelon Corporation. i.LON is a trademark of Echelon Corporation registered in the U.S. and other countries. All other trademarks mentioned in this document are the property 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 the timing and level of customer orders, demand for products and services, development of markets for Echelon's 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.