Echelon's LonWorks Platform Receives Broad Support at World's Largest Industrial Show; German LON Nutzer Organization Forms Industrial Automation Task Group.

Business/Technology Editors

HANOVER, Germany--(BUSINESS WIRE)--April 23, 2001

Today at Hanover Messe, the world's largest technical fair with an industrial automation focus, over 30 companies joined together to showcase off-the-shelf industrial control and automation solutions built on Echelon Corporation's (NASDAQ: ELON) LonWorks(R) platform. The displays include examples of off-the-shelf products and systems commercially available today for a wide variety of industrial applications including clean room ventilation and exhaust systems, machine control, process monitoring and quality control systems, and wastewater treatment systems. The 2,700 square foot (250 square meter) community booth sponsored by the German LON(R) Nutzer Organisation e.V. (LNO), an independent association of more than 140 leading automation companies, is located in Hall 9, Stand A68. Additionally, the LNO announced the formation of an industrial automation task group to further promote the use of open LonWorks systems for industrial solutions.

"As evidenced by our strong showing at this year's Hanover Messe, LonWorks networks are an important and growing force in the European industrial automation market," said Jurgen Hertel, Echelon's director of sales and marketing for industrial networking solutions in Europe. "With the introduction of the i.LON(TM) 1000 Internet Server, we have seen a number of exciting applications emerge that underscore a key difference with LonWorks networks when compared with traditional PLC systems of industrial field networks. Internet or Intranet connectivity in a LonWorks network does not introduce the barriers to management, monitoring, and control found in these other systems. As a result, our customers are able to efficiently integrate their systems into corporate ERP and IT systems to improve quality, lower costs, and enhance system operation."

Demonstrating the power of Internet access to everyday devices enabled by Echelon's i.LON, many exhibits include live Internet connections to deployed LonWorks applications including:

-- Remote monitoring and control of a purification process, in which contaminated water is taken from the Rhine River and used to provide cooling for a large, LonWorks controlled building (Stadttor Dusseldorf). As part of an environmental effort of a number of cities alongside German rivers, the clean water is then pumped back into the river.

-- Remote monitoring and control of a LonWorks based clean room ventilation and exhaust system used in laboratories in the chemical and pharmaceutical industry. Through a Web browser, remote operators can tune critical control parameters such as airflow and monitor the impact on air pressure and quality.

-- Remote monitoring and diagnostics of a yarn-dyeing machine controlled by an internal LonWorks network.

-- Remote supervision of a manufacturing line for quality assurance. Energy data as well as production data and monitoring alarms will be transmitted back to the control center in the LNO booth.

"Traditional systems lack many features and benefits that are embedded in LonWorks technology," says Helmut Fleischmann, co-chairman of the LNO - Industrial Task Group and president of Systems House UNITRO-Fleischmann. "With its master-master concept of connecting intelligent, distributed field devices, the LonWorks system is one technological generation ahead of other industrial automation systems. In fact, the LNO is convinced that in most arenas, the LonWorks platform is an ideal solution. Our vision is that the industrial Ethernet networking scheme is best implemented using the LonWorks platform and is key to the German industrial automation market." UNITRO-Fleischmann specializes in alarm and fault annunciator systems throughout the European market.

Exhibitors showing off-the-shelf LonWorks products and solutions include APICE, ARC Informatique, BTR, Echelon, ELKA Elektronik, ELSO, Enervision, Gesytec, GFR, HERMOS, Horburger Gruppe, Infranet Partners, INGA, LNO, The LonMark(R) Interoperability Association, Moeller ElectroniX, MSR Technik, Newron System, Nodus, Philips, Regulex, REKO, SAIA-Burgess Electronics, SCHNEIDER, SecuTec, Siganet, Somfy, SysMik Dresden, Thermokon, TLON, Toshiba, Unitro Fleischmann, and Wago.

About Echelon Corporation

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

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

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.