Echelon Puts Open Systems Online at AHR Expo 2002; Over Twenty Exhibitors Support the LonWorks Platform.

Business Editors/Technology Writers

AHR Expo 2002 - booth No. 4533

ATLANTIC CITY, N.J.--(BUSINESS WIRE)--Jan. 15, 2002

At the 2002 International Air-Conditioning, Heating, Refrigerating Exposition (AHR Expo) taking place in Atlantic City, NJ, Echelon Corporation (Nasdaq:ELON) showed the extensive, open, LonWorks(R) based building system that the company is using for its building automation system in its San Jose, CA headquarters.

From the Echelon booth (No. 4533), attendees can directly control the environment of one of the company's headquarters offices over 3,000 miles away. Users are able to adjust temperature set points, change occupancy schedules, modify Energy Star(TM) set-backs, and define lighting scenes. Echelon's booth also features the North American debut of the company's first extension to its i.LON(TM) family of products, the i.LON 100 Server, aimed at use in medium sized commercial buildings and for managing multiple LonWorks(R) networks from central locations.

"We and our partners have created a building that delivers real cost savings to us, as the tenant, today, and that provides substantial life-cycle savings to us and the building owners over time," said Bea Yormark, Echelon's president and COO. "Our projections show that we'll save more than 30% savings in energy costs because of the smart design enabled by using LonWorks technology throughout the building. As we grow, the use of open systems that leverage LonMark products and Echelon's technology should mean that the cost of adds, moves, and changes will be significantly less than had we chosen another technology platform for our building automation system," added Mrs. Yormark.

More than 1,100 LonWorks devices from over 25 vendors power virtually all the key building automation sub-systems -- including heating, ventilating, and air conditioning (HVAC), lighting, boilers, air handlers, security, elevator, fire detection, access control, energy monitoring, window blind, irrigation control. All of the devices on the network were installed using Echelon's LonMaker(TM) Integration Tool and are LonMark certified. The building's IP network not only provides the corporate Intranet but, using the routing feature of Echelon's i.LON 1000 Internet Servers, also serves as the high-speed backbone for the LonWorks device network. The built-in web server in each i.LON 1000 also provide a unique web-accessible user interface for each office and conference room that provide employees with unprecedented levels of control and visibility into control of their space and insight into the cost and operation of the work environment.

Echelon's booth is showing how the company's products provide the necessary infrastructure to create end-to-end value in a commercial building - from the i.LON family of servers that allow remote management and control, to the LNS network operating system, to development tools, to partners in the Open Systems Alliance that get things done. Echelon's booth presentations feature Kenmark Real Estate, Echelon's real estate company and facility manager and Control Contractors Inc., the system integrator for the headquarters project. The companies each present the advantages to their respective industries of the LonWorks platform and how they are using it to expand and improve their businesses.

The i.LON 10 is designed to provide an extremely low-cost entry point for Internet device connectivity. Combined with remote maintenance, monitoring, and control applications built on Echelon's LNS network operating system, the i.LON 10 will enable businesses to remotely manage and interact with devices in factories and commercial buildings and provide a platform for service providers to connect to everyday devices in homes and businesses. The i.LON 100 is targeted at small to mid-size commercial and industrial networks, such as those typically used at schools, convenience stores, banks, water treatment plants, pumping stations, and factories. Its built-in Web server, energy meter inputs, high-capacity relay outputs, and software for scheduling, data logging and alarming make the i.LON 100 an ideal tool for locally controlling and remotely supervising facilities of all kinds.

According to Rich Egelston, Kenmark's vice-president, "Products like the i.LON 100 will enable us to run our business better and more profitably. Being able to easily access network data from our many LonWorks buildings will allow us to drive down maintenance costs, better manage our assets, and better serve our customers."

Elsewhere on the show floor, over twenty exhibitors are supporting the LonWorks platform including LonMark Interoperability Association member companies American Auto Matrix, Automated Logic, CAREL s.r.l., Circon, Danfoss, Data Industrial, Distech, Eaton Williams, Elemco Building Controls, Firecom, Honeywell, Invensys, Kele, Lochinvar, Plexus, Siemens, TAC, and WAGO. Collectively these companies are showing products and solutions for building automation systems including fire detection, integration services, drives, and VAV controllers.

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.

The protocol underlying LonWorks networks and the signaling used by Echelon's power line and free topology transceivers have both been adopted as standards by the American National Standards Institute (ANSI). 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. More information is available at http://www.lonmark.org. Further information regarding Echelon can be found at http://www.echelon.com.

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, i.LON, and LNS 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, 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, effect on earnings, 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.