Echelon Targets Fast Growing Energy Monitoring and Remote Control Markets with Its Enhanced Internet Server.

PARIS -- --New i.LON(R) 100 e3 Internet Server Features Powerful Scheduler Application, Simplest Ever Web Page Editor, Tunneling Router Option, ModBus Interface, and An Astronomical Clock to Meet a Wide Range of Applications

Echelon Corporation (NASDAQ:ELON), the world's leading supplier of LonWorks(R) control networking components, today announced its new i.LON 100 e3 Internet Server, which combines a unique set of features and ease-of-use enhancements specifically targeted at fast growing energy and remote facility management applications in buildings, factories, and municipal street lighting systems. Among the most significant new features are a powerful event scheduler application to manage equipment operation, a tunneling router option to coordinate control systems via the Internet, a ModBus interface to legacy energy and control devices, and an astronomical clock for calculating the position of the sun, moon, and stars for optimized lighting control. These enhancements transform the i.LON 100 e3 Internet Server into an all-in-one energy control and monitoring center. The i.LON 100 e3 Internet Server is featured today at the 2005 LonWorld(R) Exhibition and Conference in Paris, France.

"Echelon has packed the new i.LON 100 e3 server with a set of features that are targeted squarely at the fast growing energy management segment of the control market," said Norbert Heger, General Manager, HGI mbH, a LonWorks system integrator. "By making the i.LON 100 e3 server work with legacy ModBus motor and lighting control, providing a powerful but simple scheduler, and allowing integrators to adjust light levels based on an astronomical clock -- an especially useful feature for optimizing area and street lighting -- Echelon has added significant value to the i.LON platform. If you want to monitor, manage, and control energy -- locally or over the Internet -- the i.LON 100 e3 server is the tool of choice."

The i.LON 100 e3 Internet Server includes features to optimize energy utilization locally, and to send and receive control information remotely. The new scheduler application makes it very simple to set and change schedules for both starting and stopping processes, and sending data logs detailing the status of a system or device. When information needs to be communicated with other i.LON 100 servers or a remote monitoring center, the data can be tunneled over any IP network, including a LAN or the Internet, using the industry standard ANSI/CEA 852 peer-to-peer protocol.

For retrofitting controls to existing facilities, the new ModBus interface enables the i.LON 100 e3 Internet Server to communicate with a wide range of burner, boiler, motor, generator, and lighting devices using the legacy ModBus protocol. ModBus support complements the LonWorks network and legacy M-Bus metering bus support already available, and transforms the i.LON 100 e3 Internet Server into a universal data translator that will preserve investments in existing, but older, control equipment.

Also introduced is the new i.LON Vision Web authoring tool, which works with Macromedia Contribute to provide a quick and easy way to create custom Web pages to update facility owners, tenants, and maintenance engineers without the need for custom HTML, JavaScript, or SOAP calls. i.LON Vision includes a library of custom graphics, navigation trees and menus for Web pages and can be edited using any authoring tool, including Macromedia Dreamweaver.

The new astronomical clock can be used for all types of outdoor lighting application. By predicting natural lighting conditions at any time of year or location on the globe, the new clock allows light levels and energy to be optimized without sacrificing safety.

Earlier versions of the i.LON Internet Server are used worldwide in thousands of locations and a wide variety of applications, from monitoring safety conditions in coal mines in China to monitoring air quality in California schools to optimizing convenience store energy consumption in Japan. "The i.LON 100 e3 Internet Server bridges the divide between data networks and control networks, the so-called connectivity chasm, allowing a free flow of actionable business information between the two," said Michael R. Tennefoss, Echelon's vice president of marketing. "By linking energy-optimization applications at the enterprise with the devices that monitor, control, and consume energy, the supply of and demand for energy can be optimized. The i.LON 100 e3 Internet Server excels at this task."

The i.LON 100 e3 Internet Server is available now and is priced at $595 without IP-852 routing and $995 with IP-852 routing. More information about the i.LON 100 e3 Internet Server can be found at http://www.echelon.com/ilon.

About Echelon Corporation

Echelon Corporation (NASDAQ:ELON) is a pioneer and world leader in control networking -- networks that connect machines and other electronic devices -- for the purpose of sensing, monitoring and controlling the world around us. Echelon's LonWorks platform for control networking was released in 1990 and has become a worldwide standard in the building, industrial, transportation, and home automation markets. Launched in 2003, Echelon's Networked Energy Services system is an open, extensible, advanced metering infrastructure that can bring benefits to every aspect of a utility's operation, from metering and customer services to distribution operations and value-added business. In 2005 Echelon released the world's first embedded control network infrastructure, the Pyxos(TM) platform, extending the benefits of networking inside machines to the sensors and actuators that make them function.

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

Echelon, LonWorks, LonWorld, i.LON, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Pyxos is a trademark of Echelon Corporation in the United States and other countries. Other product or service names mentioned herein are the trademarks 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 market demand for Echelon's i.LON 100 e3 server and timing and level of customer orders; risks associated with the ability of the i.LON 100 e3 server to perform as designed, its pricing relative to alternative offerings, and potential shipment or production delays by Echelon or production partners; 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.