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Echelon and Japan's ITOCHU Partner to Provide Energy Management and Smart Street Lighting Solutions

Echelon's highly reliable power line communications technology and SmartServer control solution of particular appeal to ITOCHU customers

(San Jose, CA –February 9, 2011) – Echelon Corporation (NASDAQ: ELON) announced it has entered an agreement with ITOCHU Corporation of Japan to be an authorized distributor and partner. ITOCHU, one of the leading trading companies in the world with approximately 150 locations in 74 countries, engages in trading for products ranging from energy and solar, to aerospace, electronics and chemicals. Echelon and ITOCHU plan to jointly develop and sell solutions for the emerging global smart grid market, with a focus on enterprise energy management, street lighting, and renewable energy.

"Conservation of energy and development of renewable energy sources are ITOCHU's focal business areas. There is a huge, global market opportunity to provide open, distributed energy control solutions that support enterprise energy management, smart street lighting and management of renewable energy. We believe Echelon's products are a perfect match for these solutions," said Tomohito Arai, General Manager, Information Technology Business Department of ITOCHU.

Multiple strategic business units are involved in the new Echelon relationship within ITOCHU's ICT, Aerospace & Electronics Company. The start-up team consists of resources from two departments, Industrial Machinery & Electronic Systems Department (IM&ES) and Information Technology Business Department (ITB). ITOCHU will initially focus on expanding the Japanese market for Echelon's Neuron® 5000, FT 5000, and power line smart transceiver LonWorks® 2.0 microprocessor products. ITOCHU also expects to create new applications for Echelon's i.LON® SmartServer energy manager and control network integration software products.

Echelon's smart power line products have particularly strong potential in the Japanese market. "Power line communication is enabling tremendous cost savings for customers, allowing them to use existing power lines to transmit data and eliminating the need to lay new communications lines." says Kiyoshi Fujii, Deputy General Manager, Industrial Machinery & Electronic Systems Department (IM&ES) of ITOCHU.

"We are excited about ITOCHU as our new channel partner because they provide expertise and opportunity to Echelon on many different levels. Our energy control network technology combined with ITOCHU's vast reach, expertise in the marketing of electronic components, including semiconductor devices, and network integration capabilities should provide world-class system solutions that support the emerging, global, smart grid market," said Anders Axelsson, Senior Vice President, Commercial Market for Echelon.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is leading the worldwide transformation of the electricity grid into a smart, communicating energy network, connecting utilities to their customers, enabling networking of everyday devices, and providing customers with energy aware homes and businesses that react to conditions on the grid.

Echelon's NES System – the control networking infrastructure for the smart grid – enables intelligent distributed control applications and devices that deliver maximum reliability, survivability and responsiveness. Through the Echelon Control System (ECoS) platform, the NES system enables any device, speaking any protocol, connected over any network to be integrated into local decision making and connected securely to enterprise IT systems through virtually any IP network. The NES System helps utilities compete more effectively, reduce operating costs, provide expanded services and help energy users manage and reduce overall energy use.

Echelon's LonWorks® Infrastructure products extend the smart grid in to smart buildings, factories, homes and other systems, powering tens of millions of energy aware, everyday devices made by thousands of companies – connecting them to each other, to the electricity grid and to the Internet. LonWorks based products work together to monitor and save energy; lower costs; improve productivity; and enhance service, quality, safety, and convenience in utility, municipal, building, industrial, transportation, and home area networks.

More information about Echelon can be found at http://www.echelon.com.


Echelon, LonWorks, i.LON, Neuron, and the Echelon logo are registered trademarks of Echelon Corporation registered 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 market acceptance of Echelon's products and the timing and level of customer orders in Japan and elsewhere; risks relating to the timing of availability of Echelon's Neuron 5000, FT 5000, and power line smart transceiver LonWorks 2.0 microprocessor products and i.LON SmartServer; risks that Echelon offerings do not perform as designed and that liability may accrue as a result; risks relating to market acceptance of ITOCHU's solutions that incorporate Echelon's products; 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.



Christine Simeone
Lois Paul & Partners
+1 (781) 782-5773


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