Echelon and Shenzhen Kaifa Technology Co., Ltd. Team to Network China’s Residential Market(SUNNYVALE, Calif.-September 19, 2001) - Echelon Corporation (NASDAQ: ELON)and Shenzhen Kaifa Technology Co., Ltd. (SSE: KAIFA), a subsidiary of China's Great Wall Technology Company, Ltd. (GWT), announced today that they have entered into a letter of intent to jointly incorporate Echelon's products and technology into Great Wall Broadband Network's (GWBN's) broadband network infrastructure. GWBN, a subsidiary of both GWT and Kaifa, is one of China's largest broadband access providers and Internet service providers, with over 400,000 active subscribers, 1 million connected residential units, and contracts to connect more than 15 million additional residential units to its broadband network. GWBN plans to have more than 30 million customers connected to its broadband network by the year 2005 and, in addition to Internet access, will offer LonWorks® home control, utility metering, and other value-added services to its customers. "Our residential broadband network will soon be one of the largest in the world," said Mr. Wang Zhirong, executive director and executive vice president of GWT and vice chairman and executive vice president of Kaifa. "Our customers are looking for ways to use the Internet to make their lives more productive and fun while giving them control over their homes. By working with Echelon to extend the reach of our network into our customers' homes through the power wiring, we will be able to deliver new and innovative services that use appliances, heating systems, lighting systems, and other everyday devices in their homes. The initial roll-out in 2002 will start with 10,000 homes, and we expect deployment to ramp up tremendously over the next few years." "Kaifa and GWT enjoy a worldwide reputation as progressive, forward-looking technology companies and we are very pleased to be a partner in this exciting project," said Bea Yormark, Echelon’s president and COO. "Over 35 million Chinese homes are projected to be connected to the Internet by the end of this year, and this represents an incredible opportunity for Kaifa and Echelon in the home market. Additionally, tremendous investments are being made in new construction and public infrastructure, offering further opportunities to collaborate in the utility, commercial, and industrial markets." About Echelon Corporation An American National Standards Institute (ANSI) standard, the LonWorks platform provides the infrastructure for some of the world's largest active home networking and energy management projects. Echelon is also a founding member of the LonMark® Interoperability Association, an open industry forum of hundreds of leading manufacturers, integrators, and users dedicated to promoting the use of interoperable LonWorks devices. Further information can be found at http://www.echelon.com. From October 23-24, Echelon and Messe Frankfurt GmbH are holding LonWorld™ 2001, the world's premier conference and tradeshow devoted solely to the LonWorks industry, in Frankfurt, Germany. Further information can be found online at http://www.LonWorldexpo.com. About Shenzhen Kaifa Technology Co., Ltd., Great Wall
Broadband Network and Great Wall Technology Co., Ltd. Launched in April of 2000, Great Wall Broadband Network is a joint venture of Great Wall Technology Co., Ltd., Shenzhen Kaifa Technology Co., Ltd., and China Great Wall Computer Shenzhen Co. Ltd. GWBN is developing a comprehensive broadband network that enables fast Internet access and high bandwidth services. With the three-year plan, GWBN will build a broadband infrastructure across the major cities of China. Headquartered in Beijing, GWBN has established strategic branch locations in Shanghai, Shenzhen, Wuhan, and Chengdu. More information can be found online at http://www.gwbn.net.cn. Great Wall Technology Company Limited (GWT) was established in Shenzhen in March of 1998 with registered capital of RMB 743,870,000 and was listed on Hong Kong Stock Exchange in August of 1999. GWT and its subsidiaries are principally engaged in the development, manufacture and sale, research and development of personal computers, PC peripheral products, hard disk drives and its relative products, broadband network services, network transmission and add-on products. GWT is the holding company of GWBN (70%) and Kaifa (55.96%). ### Echelon, LonWorks, LonMark, the LonMark logo, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. LonWorld and Bringing the Internet to Life™ 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, acceptance of Echelon’s products for use in home networks, 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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