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Echelon Announces Availability of New Power Line Smart Transceiver for Low-Cost/High-Performance Devices and Appliances

Updated Development Tool Speeds Creation of Embedded Power Line Devices

(MUNICH, GERMANY – October 15, 2003) - Today, at the LonWorld® 2003 Exhibit and LonWorks® Developers Conference, Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks device networking platform and the worldwide leader in networking everyday devices to each other and the Internet, announced the availability of the new PL 3150® Power Line Smart Transceiver, a groundbreaking product that makes it cost-effective to add machine-to-machine (M2M) communications, intelligence, and power line networking to any everyday device. Echelon's initial shipments have been to Samsung Electronics, a worldwide leader in consumer electronics and leading member of the Home Vita Alliance of companies focused on home networking applications and services. Coincident with the availability of the PL 3150 smart transceiver, Echelon has released an updated version of the NodeBuilderT 3.1 Development Tool to significantly reduce development time for devices using the PL 3150 and Echelon's other transceiver and smart transceiver products.

"We've worked very closely with potential large volume customers like Samsung to ensure that our power line smart transceivers meet market demands for low cost, high reliability applications," said Mathew Chacko, Echelon's product marketing manager for transceiver products. "We believe that our power line smart transceiver product family is ideally suited for M2M interactions and device applications such as intelligent, networked, kitchen appliances, smoke detectors, ballasts, thermostats, electricity meters, and related consumer products." Manufacturers can begin development with the PL 3150 Smart Transceiver quickly using the Power Line Development Support Kit that includes several reference designs and sample parts.

Like its sister product, the PL 3120® Power Line Smart Transceiver, the PL 3150 smart transceiver is an open ANSI standards based "device on a chip" that delivers the most advanced power line technology with an intelligent networking processor core in a very small package-the chip measures only 1.3cm2. Single unit costs are below $10 US per smart transceiver. Volume pricing is available. Developers embedding the PL 3150 into devices can use the NodeBuilder development tool to develop their applications and to install and test their devices. The tool automatically generates source code, compiles and builds applications, and incorporates an integrated editor and source-level debugger for rapid code development and reduced costs.

The PL 3150 Smart Transceiver combines an enhanced ANSI/EIA 709.2 compliant power line transceiver with a Neuron® core, 0.5K bytes of non-volatile memory for configuration information, 2K bytes of RAM, and an external memory bus that addresses up to 64K bytes of external memory. Ideal for use in devices with larger application programs or more input/output (I/O), the PL 3150 Smart Transceiver operates at up to 10MHz and is offered in a 64-lead LQFP package. More information about Echelon's Smart Transceivers, Power Line Development and Support Kit and other offerings for OEM manufacturers may be found at www.echelon.com/products/oem/.

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, Neuron, 3120, 3150, LonWorks , LonMark , the LonMark logo and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries.

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 market acceptance of Echelon's PL 3150 Smart Transceiver, and its ability to perform as designed and its pricing relative to alternative offerings, potential shipment or production delays by Echelon's suppliers, the acceptance of Echelon's products in the home networking market, 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; risks associated with the acceptance of Samsung's home networking products, and delays in design and manufacturing of Samsung's home networking products; 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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