Echelon's LonWorks Technology Used by Samsung Electronics for First Installation of Smart Appliances Into Korean Homes.

Business Editors/High-Tech Writers

SUNNYVALE, Calif.--(BUSINESS WIRE)--Aug. 22, 2001

Today Echelon Corporation (Nasdaq:ELON) announced that Samsung Electronics has begun commercial installations of smart home appliances based on Echelon's LonWorks(R) technology. The installation, the first of its kind to take place in the Korean market, has begun with 100 apartments in a residential complex in Suji, Kyonggi Province, South Korea and networks air conditioners, refrigerators, washing machines, microwave ovens and gateways to each other and to the Internet. The networks use Echelon's ANSI/EIA 709.2 compliant power line transceivers and the company's LNS(TM) network operating system. Samsung's smart appliances provide a range of easy-to-use features designed to help consumers get more out of their appliances while increasing comfort, convenience and peace of mind. Through a wireless Web pad, PC, or mobile phone, residents of each apartment will be able to control and monitor each device over the Internet, set up schedules, get an on-line user's guide, and perform remote diagnostics.

"Samsung is committed to providing a home networking solution where all of a home's appliances will be linked together via the power lines," said Mr. Yongoe Han, president of the Living Appliance business unit at Samsung Electronics. "In this project, Samsung installed Echelon's power line transceiver into air conditioners, refrigerators, washing machines, microwave ovens and gateways. We see the intelligent appliances business as both an emerging market that will rapidly grow in the coming years and as the future of our industry. This first installation is an important milestone for us as we move from prototypes to production."

"We have been working closely with Samsung for some time now and are very excited to see them move out of the lab and into the market," said Beatrice Yormark, Echelon's vice president of sales and marketing. "Samsung is taking a leadership role in the appliance industry as it moves to smart, networked appliances that work together to lower cost, conserve energy, improve function and communicate with service providers over the Internet to offer a new set of services that will both enrich and simplify our lives."

About Echelon Corporation

Echelon Corporation is the creator of the LonWorks platform, the world's most widely used standard for connecting everyday devices such as appliances, thermostats, air conditioners, electric meters, and lighting systems to each other and to the Internet. Echelon's hardware and software products enable manufacturers and integrators to create smart devices and systems that lower cost, increase convenience, improve service, and enhance productivity, quality, and safety. Thousands of companies have developed and installed more than 16 million LonWorks based devices into homes, buildings, factories, trains, and other systems worldwide.

An American National Standards Institute (ANSI) standard, the LonWorks platform provides the infrastructure for some of the world's largest active Coach networking and energy management projects. Echelon is also a founding member of the LonMark(R) Interoperability Association, an open industry forum of hundreds of leading manufacturers, integrators, and users dedicated to promoting the use of interoperable LonWorks devices. Further information can be found at http://www.echelon.com.

From Oct. 23-24, Echelon and Messe Frankfurt GmbH are holding LonWorld(TM) 2001, the world's premier conference and trade show devoted solely to the LonWorks industry, in Frankfurt, Germany. Further information is available at http://www.lonworldexpo.com.

About Samsung Electronics

Samsung Electronics Co. Ltd. is a global leader in semiconductors, the consumer electronics industry, and digital convergence technology. With year 2000 sales of US $27 billion, Samsung employs approximately 66,000 people in 50 countries. The company is the world's fourth-largest manufacturer of microchips and mobile phones, the world's largest producer of DRAMs, and the first developer and mass producer of digital TVs. Samsung Electronics consists of four main business units: Digital Media, Semiconductor, Information & Communications, and Home Appliance Businesses. For more information, please visit http://samsungelectronics.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, acceptance of Echelon's products for use in home networks, 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.

Note to Editors: Echelon, LonWorks, LonMark, 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, LNS and LonWorld are trademarks of Echelon Corporation. Other marks belong to their respective holders.