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Echelon Announces Enhanced Internet Connectivity for Device Networks

(MUNICH, GERMANY – October 15, 2003) - Today at the LonWorld® 2003 Exhibition and LonWorks® Conference, Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks platform for connecting everyday devices, announced enhanced capabilities for its i.LON® family of Internet Servers. The newly updated i.LON 10 Ethernet Adapter v2.0 adds point-to-point protocol (PPP) dial-up support to its existing ability to connect automation networks to service providers, corporate terminals or RAS servers over high-speed Ethernet connections. With a list price of only $199 US, FOB California, the i.LON 10 Ethernet Adapter v2.0 is a cost-effective solution for service providers, integrators, and utilities to remotely monitor and control small networks of everyday devices in homes, apartments, and small buildings with or without a fixed Internet connection. Volume shipments are currently planned to begin in late November, 2003.

"We believe that the i.LON 10 Ethernet Adapter is the ideal customer premise equipment (CPE) for very low-cost remote connections to smaller LonWorks device networks such as telecom switching stations, homes, or utility distribution stations," said Alex Chervet, Echelon's product marketing manager for Internet products. "The i.LON 10 adapter simplifies installations and reduces costs by allowing users to standardize on, and support, a single solution for connecting any number of small networks to service centers. In addition, the i.LON 10 adapter functions as an extension of the network management tool, and any function that can be monitored, adjusted, or controlled locally can be done remotely via the i.LON 10 adapter. Eliminating just one truck roll by remotely diagnosing and fixing a problem could pay for the cost of the adapter and enhance customer satisfaction. We believe that the combination of a very low price and connection flexibility make the i.LON 10 adapter is the best solution for adding remote connectivity to even the smallest network."

The i.LON 10 Ethernet Adapter v2.0 is available with power line or free topology twisted pair channel support. Operating on 10BaseT Ethernet networks using TCP/IP, the i.LON 10 adapter can also be used with an optional external modem when telephone dial-up is required. Designed for use in local, wide area or dial-up networks, the i.LON 10 adapter is compatible with common IP networking protocols including TCP, NAT, DHCP, DNS, MD5 and HTTP.

More information about the i.LON 10 Adapter and the complete i.LON product family can be found at http://www.echelon.com/ilon.

The LonWorld Exhibition, being held October 15-16th 2003 in Munich, Germany, is the world's leading forum for the LonWorks industry, bringing together suppliers, buyers and users of the world's leading device networking standard. The exhibition is focused on conducting business for suppliers and buyers of LonWorks products, services, and solutions. Held concurrently with the Fair is the LonWorks Conference - 2 days of in-depth presentations and impartial perspectives on business trends in the LonWorks industry and the technology. The LonWorld Exhibition is a production of TEMA AG.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is the creator of the LonWorks platform, the world's most widely used standard for connecting everyday devices such as appliances, thermostats, air conditioners, electric meters, and lighting systems to each other and to the Internet. Echelon's hardware and software products enable manufacturers and integrators to create smart devices and systems that lower cost, increase convenience, improve service, and enhance productivity, quality, and safety. Thousands of companies have developed and installed LonWorks products and more than 30 million LonWorks enabled processors have been shipped for use in homes, buildings, factories, trains, and other systems worldwide. Further information regarding Echelon can be found at www.echelon.com.

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Echelon, LonWorks, LonMark , i.LON, LNS, and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. 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 the i.LON 10 Ethernet Adapter and other Echelon products and services, development of markets for Echelon's products and services; risks associated with market acceptance of Echelon's i.LON 10 Ethernet Adapter, and its ability to perform as designed and its pricing relative to alternative offerings, the acceptance of Echelon's products in the home, building, industrial or other markets, the growth of the LonWorks industry worldwide, sales targets not being met, development of markets for Echelon's products and services, demand 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

Press Contact:

Steve Nguyen
Echelon Corporation
+1-408-938-5272
qnguyen@echelon.com

Tina Wilmott
McQUERTER
+1-858-450-0300 x140
twilmott@mcquerter.com

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