Echelon and Sun Microsystems Form Alliance to Connect LonWorks® Networks with Java™ Technology ServicesCompanies Collaborate on Joint Marketing Efforts(San Diego, CA - May 4, 2000) - Echelon Corporation (NASDAQ: ELON) and Sun Microsystems, Inc. (NASDAQ: SUNW) announced today at the CONNECTIONS™ 2000 conference that they have entered into a memorandum of understanding to integrate LonWorks® networks with Java™ technology-based services for set-top boxes, residential gateways, and other gateway devices. The cooperation will be based on the recently released specification from the Open Services Gateway initiative (OSGi), a non-profit industry group created to define a unified broadband connection specification for Internet-based services. The residential gateway market is predicted by Cahners In-Stat to reach $2.9 billion in worldwide revenues by 2003. "Residential gateways are going to be a key force in bringing the next generation of Internet services to the home," said Mike Wolf, analyst with Cahners In-Stat. "Sun's and Echelon's efforts are important milestones in enabling the delivery of these connectivity-based services to everyday devices in the home." Under the proposed agreement, Sun will integrate LonWorks networking services from Echelon with Sun's Java Embedded Server™ (JES) software. JES software is a small footprint application server targeted for residential gateways, information appliances, set-top boxes, game consoles and other network-connected devices that enables deployment of Java technology-based applications and services over the Internet, dynamically and securely, on a just-in-time basis. By integrating Echelon's LonWorks networking services with the JES software, licensees of Sun's JES software will be able to build gateways that connect to thousands of different LonWorks based products and offer a myriad of enhanced services. For example, a residential gateway based on JES software with a LonWorks connection could provide value-added services such as energy management and security monitoring by communicating over a home's existing power lines to LonWorks energy and security devices. Or, the residential gateway could recognize when a LonWorks based home appliance is plugged into a wall outlet and download a Java based appliance monitoring and repair service on demand. "Echelon's LonWorks system has established itself as a leading standard for networking everyday devices in home, building, and industrial applications," said Curtis Sasaki, Sun's director of product marketing, Consumer Technologies. "Building LonWorks connectivity into our Java Embedded Server product gives our customers a key enabler in the end-to-end solution for the networked device market by instantly enabling connectivity to millions of installed LonWorks devices. It will help drive the market for connected devices and Java based services." As part of the proposed agreement, Echelon will also include Sun's LonWorks enabled JES software in a future version of Echelon's i.LON™ 1000 Internet Server product family. A Cisco NetWorks™ certified product, the i.LON enables everyday devices networked with LonWorks technology to be monitored, controlled, diagnosed, and updated over the Internet. Integrating JES technology into future i.LONs will accelerate the market for value-added Java technology services in the building, industrial, and residential markets. When used in commercial buildings, for example, services such as facility management, tenant management, and energy optimization could be accomplished over the Internet via the i.LON. Moreover, these services could be dynamically updated, replaced, or removed as the needs of building occupants and owners change over time. "Sun has built a strong customer base for its JES software in the residential services gateway market," said Jeff Lund, Echelon's vice president of business development and corporate marketing. "This partnership helps accelerate the development and deployment of residential gateway products by incorporating an industry standard interface for networking everyday devices. Building the LonWorks enabled JES platform into future i.LONs will also further the use of a services-based business model in the commercial building and industrial control markets, making possible a world of new applications and opportunities." Sun and Echelon further announced a series of joint seminars targeted toward developers of content services, residential gateways, information appliances, set-top boxes, game consoles, and broadband infrastructure. The first seminar took place April 18 in Seattle, Washington. The next seminars are scheduled for May 11 in Santa Clara, CA; May 16 in Salt Lake City, UT; and May 17 in Columbus, OH. About Echelon Corp. Products that have been verified to conform to Echelon's LonMark® interoperability guidelines are eligible to carry the LonMark logo, an indicator that a product has been designed to interoperate over a LonWorks network. Echelon is based in Palo Alto, California, with international offices in China, France, Germany, Japan, Korea, The Netherlands, and the United Kingdom. Further information can be found at http://www.echelon.com. Further information about the LonMark Interoperability Association can be found at http://www.lonmark.org. About Sun Microsystems, Inc. ### Echelon, LonWorks, LonMark, Digital Home, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. LNS and i.LON 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, including risks associated with uncertainties pertaining to 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, 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 Information
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