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Invensys and Echelon Collaborate to Develop "Connected Home" Products

LonWorks® Appliances Featured at 2001 International CES

(SUNNYVALE, Calif. and RICHMOND, Va. - January 5, 2001) - Echelon Corporation (NASDAQ: ELON) and Invensys Control Systems, a division of Invensys plc, today announced that they will collaborate to develop and market "connected home" products, including smart modules for home appliances and residential gateways that can communicate over the existing power wiring in homes. The first results of this collaboration will be displayed by Invensys at the 2001 International Consumer Electronics Show (CES) being held January 6-9 in Las Vegas, Nevada in booth LVCC 4869.

In its booth, Invensys is showing an intelligent household oven containing a LonWorks® enabled version of the popular Trimline™ appliance controller from Invensys Appliance Controls. Echelon's LonWorks technology is the world's leading intelligent device networking technology and is slated for use in 27 million Italian home electric meters as well as in European white goods sold in Italy, France and the UK. The oven in the Invensys booth can communicate over a home's existing power wiring to offer a number of practical conveniences to consumers. Invensys Appliance Controls is the world's leading manufacturer of control systems and components for the global appliance market and counts among its customers such household names as GE, Kenmore, Maytag, Sears and Whirlpool.

"Invensys' control technology is incorporated today in more than 100 million home controls," said Rod Powell, president, Invensys Controls Division. "Our partnership with Echelon gives us the advantages of a globally accepted, highly reliable power line technology; very low device cost; plug-and-play reliability; and a solution that is simple both for us to implement and for our customers to deploy. By enabling existing appliances with electronic controls to communicate and become part of a LonWorks network we are at the industry's leading edge, providing the benefits of new home services that enhance lifestyle, comfort, and safety for consumers."

Echelon and Invensys also announced that they are working together to add LonWorks connectivity to Invensys' recently announced ControlServer2 home gateway device. The device is part of the Invensys HomeManager™ family of products and services and is powered by Sun Microsystems' Java Embedded Server™ (JES) 2.0. Homeowners can use the ControlServer2 to access and control all home systems including appliances, entertainment systems, lighting, HVAC, and security from user interfaces throughout the home - or from a distance using the Internet. This capability provides for a range of conveniences inside the home including the ability to check the dryer, turn off the oven and arm the security system, all from a hand-held device, PC, television, mobile phone or other communication apparatus. Explosive growth is predicted for the residential gateway market; industry analysts at Parks Associates forecast that nearly 25 million US households will have such devices by the end of 2005 in a market worth $5 billion.

"We are pleased to expand our long-standing relationship with Invensys beyond the commercial buildings market and into the home," said Ken Oshman, chairman, president and CEO of Echelon. "As a world leader in appliance controls, metering systems, climate controls, home thermostats, and smoke detectors, Invensys is uniquely positioned to offer an all-inclusive home control system. Combining these strengths with the Invensys ControlServer2 home gateway and the field-proven, end-to-end solution of Echelon not only promises to increase consumer convenience, comfort, and peace of mind but also enables services providers to attract new customers, build customer loyalty, and generate new revenue streams."

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is the world leader in networking everyday devices. The company offers a comprehensive line of hardware and software products for automating building, home, industrial, transportation, and utility applications using LonWorks® networks, an international, cross-industry, open standard for interoperable device networks. Echelon is Bringing the Internet to Life™ by linking the millions of everyday devices connected with LonWorks networks to the Internet.

Echelon is based in Sunnyvale, 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.

About Invensys Control Systems
Invensys Control Systems is building a range of new home networking solutions to extend its established presence in the U.S. and worldwide appliance controls market. Invensys electronic control technology is incorporated today in millions of home controls every year, including HVAC systems, washing machines, dryers, dishwashers and refrigerators. An Invensys control can be found in almost every home in North America and Western Europe.

About Invensys plc
Invensys plc is a global leader in the Automation and Controls industry. With its head office in London, England it operates in all regions of the world through four focused divisions - Software Systems, Automation Systems, Power Systems and Control Systems. With over 90,000 employees, the company's products and services range from advanced control systems and networks for automating industrial plants and controlling the environments of buildings, to electronic devices and controls found in residential buildings and light commercial applications, plus complete power systems for the telecommunications and information technology industries.

For more information on Invensys plc, please visit http://www.invensys.com.

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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 is a trademark 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 (particularly with respect to the emerging home networking 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

Press Contacts:

 

Lyn Balistreri
Echelon Corporation
(408) 938-5202
lbalistreri@echelon.com

Brad Hartnett
Invensys Controls
202-256-7338
bhartnett@invensyscontrols.com

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