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Echelon, ITOCHU to Deploy First Intelligent Streetlight System in Japan to Reduce Power Consumption, Increase Safety and Security

Delivering An Energy Control Networking Solution for City of Tsukuba; Nationwide Rollout Anticipated

(SAN JOSE, Calif., Oct. 19, 2011) – Echelon Corporation (NASDAQ: ELON) today announced that the Japanese Government has selected ITOCHU Corporation, a leading Echelon distributor and one of the largest Japanese corporations engaged in Smart Grid and Smart City projects, to deliver an intelligent streetlight system to the city of Tsukuba, located in the Ibaraki Prefecture. ITOCHU will deploy the Echelon and Streetlight.Vision energy control networking solution, the first system of its kind in Japan, to help reduce power consumption, increase safety and security, and to enable the City to achieve operational savings.

This deployment will be part of the Japan Ministry of the Environment's "2011 Challenge 25 Regional Development Project" to reduce global warming and contribute to environmental conservation. In this initial deployment, streetlights will incorporate Echelon's proven Power Line Communications (PLC) technology, and communicate with segment controllers running over the established power line infrastructure. The segment controllers running Echelon's Control Operating System (COS) and the Streetlight.Vision Control, Command & Monitoring software will execute local streetlight control decisions at the edge of the grid. Management software running in the data center will provide the policy setting and visualization environment. Overall, the system will monitor energy consumption, save energy by dimming individual light points, improve public safety by adjusting lighting schedules and intensity as required, and simplify maintenance and replacements by identifying failures and anomalies on the streetlight network. As a result, Japan will have its first foundation for building out the street lighting network as part of its smart city infrastructure.

"Smart street lighting using PLC continues to attract our customers because it enables a tremendous cost savings by allowing them to use existing power lines to transmit data, eliminating the need to lay new communications lines," said Tomohito Arai, general manager, Information Technology Business Department, ITOCHU. "With our partners Echelon and Streetlight.Vision, we will not only help reduce power consumption in the City, we will also maintain proper safety and security, which is an issue in Japan due to reduced availability of street lighting after this past year's natural disasters."

"We commend the Japanese Government for leading by example in smart street lighting to improve energy efficiency and lower the carbon footprint on their street lighting networks, while improving safety and security in the streets," said Anders Axelsson, senior vice president, Commercial Markets, Echelon. "Our collaborative efforts with ITOCHU and Streetlight.Vision will provide Japan with a proven, open standard, and multi-application energy control networking infrastructure for smart street lighting and other smart city applications in the future that further aid the Ministry of the Environment's campaigns."

The Future: From City to Nationwide Deployment
Tsukuba, also known as Tsukuba Science City, represents one of the world's largest cities committed to accelerating the rate of and improving the quality of scientific discovery. It has become one of the world's key sites for government-industry collaborations in research and scientific breakthroughs. While achieving significant energy and operational savings with the initial smart street lighting deployment, the various data collected during the early stages could lead to Japan's nationwide smart street lighting rollout for approximately 10 million streetlights.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is the world's leading open standard energy control networking company. Echelon technologies connect more than 35 million homes, 300,000 buildings and 100 million devices to the smart grid, and help customers save 20% or more on their energy usage. With more than 20 years of experience in energy control, Echelon delivers a wide range of innovative solutions to commercial and electric utility customers. More information about Echelon can be found at http://www.echelon.com.

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Echelon 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 market acceptance of the Echelon products used in street lighting solutions by themselves or combined with the Streetlight.Vision application do not perform as designed or do not offer the expected benefits and savings; 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.

Contact:

 

Amy Lee
Echelon
+1 (408) 790-3019
alee@echelon.com

Emilie Salvagio
Lois Paul & Partners
+1 (512) 638-5321
echelon@lpp.com

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