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Echelon's Market Leading Network Integration Tool Now Available in German

LonMaker™ 3.1 Integration Tool Available at the LonWorld® 2003 Fair and LonWorks® Conference

(San Jose, CA– October 2, 2003) - Echelon Corporation (NASDAQ: ELON), today announced that the latest generation of its LonMakerT Integration Tool for integrating, configuring, and managing LonWorks® device networks will be available in German editions-and will be shown at the LonWorld 2003 Fair and LonWorks Conference in Munich, October 15-16th, 2003. First customer shipments are scheduled for November 2003. The new LonMaker Integration Tool, German editions, are expected to make it easier for integrators to install LonWorks networking solutions in Germany, Austria, Switzerland, and other German-speaking countries.

"The German editions of the LonMaker tool are perfectly timed to take advantage of the accelerating growth in open building systems in the German market," said Norbert Heger, Managing Director of HGI mbH. "The tools work extremely well in creating open systems that give our customers the most flexibility and lowest costs, and help them to maximize their return on investments. Shifting our integrators to this native language edition will make that process easier, simpler, faster, and therefore more profitable." HGI is a leading integration company in Germany located in Hörstel and a member of Echelon's Open Systems Alliance program. HGI has implemented LonWorks based automation systems in buildings, homes, schools (primary through university), hospitals, and local and national government facilities.

According to Rich Blomseth, Echelon's software tools product marketing manager, "Germany and the German language companies represent a very important part of our European business. The new LonMaker German editions will, we believe, accelerate the already strong adoption rate of LonWorks open systems by reducing the costs associated with training German integrators on an English language tool and the inherent complexities of working in a foreign language."

The LonMaker Integration Tool is the world's leading integration software for open LonWorks networks used by network integrators to install automated building control systems, industrial automation systems, transportation systems, and other LonWorks applications. The LonMaker Integration Tool is built on Echelon's LNS® 3 network operating system and MicrosoftT Visio® 2002, and provides a simple, graphical means of defining, commissioning, and maintaining LonWorks networks.

LonMaker 3 German editions will sell for $875 for the Standard Edition and $1315 for the Professional Edition, FOB California, with a license to install up to 5 devices for the Standard Edition and 64 devices for the Professional Edition. Licenses for additional devices can be purchased for $5 per device. Prices are list prices in US Dollars, and are valid in the European Union. Pricing may vary in other regions. For more information about the LonMaker tool, see www.echelon.com/lonmaker.

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 http://www.echelon.com.

Echelon is a sponsor of the LonWorld® Exhibition, the world's largest event devoted to the networking of everyday devices, to be held October 15-16th 2003 in Munich, Germany. The show is being organized by TEMA AG. Concurrent with the LonWorld Exhibition, Echelon will hold an international conference for developers and business executives with simultaneous English to German translation. More information on the show and conference can be found at http://www.lonworldexpo.com or http://www.tema.de .

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Echelon, LonWorks, LonWorld, LNS, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. LonMaker is a trademark of Echelon Corporation 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 products and services, development of markets for Echelon's products and services; risks associated with the translation and market acceptance of the German editions of the LonMaker 3 integration tool, development and release timing of the German editions of the LonMaker 3 integration tool; risks associated with the growth of the LonWorks industry; 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

Henny van de Bovemkamp
Echelon (Netherlands)
+31-33-4504-070
henny@echelon.com

Grant Mahmutovic
TEMA AG
+49 (241) 8897-043
mahmutovic@tema.de

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