Echelon and Görlitz Establish Partnership for European Utility SolutionsGÖRLITZ to integrate Echelon's NES advanced metering system into their European metering market solutions(BERLIN, GERMANY – September 28, 2004) - Today, at the Metering Europe 2004 utility event, Echelon Corporation (NASDAQ: ELON) and GÖRLITZ AG announced that the companies have signed an agreement under which GÖRLITZ will base its system offering for the residential metering market on Echelon's networked energy services (NES) system. GÖRLITZ is a leading supplier of automatic remote reading, data transmission, and data gathering and preparation systems for utilities serving the European commercial and industrial sector. More than 350 European utilities in 14 countries have installed control systems and devices from GÖRLITZ. This new agreement marks GÖRLITZ's entrance into the residential metering market. "As energy markets across Europe liberalize in response to EU directives, the demand for smart energy management systems is growing rapidly," said GÖRLITZ's CEO Martin Görlitz. "It is becoming critical for utilities to have systems in place that provide them with the information and control they need to make smart decisions. Our EMETRION meter portfolio extends the existing EDW3000 and Skalar metering system platforms with next generation integrated meter solutions. Echelon's NES system, with its advanced suite of metering services, allows us to expand into the high volume metering market and will become a cornerstone of the GÖRLITZ system portfolio. This combined solution gives our customers access to an extensive set of new smart metering applications and seamlessly integrates with their current business processes and existing IT infrastructure for metering. Market conditions have created an exciting opportunity for companies with the right set of solutions, and with the NES system we will maintain a leading market position for procuring, processing and documenting energy data." Under the terms of the agreement being announced today, GÖRLITZ is joining Echelon's NES Value-Added Reseller (VAR) program. This program is designed to establish Echelon's NES system as a global standard for intelligent utility management systems. In addition to positioning member companies to provide advanced metering and related services to utilities, the program creates an opportunity for companies to offer high-value project management and installation services, software applications, new services such as outsourced meter reading, and meters customized for local market needs. These services are built on the highly reliable NES platform, which is comprised of middleware software based on Echelon's Panoramix® enterprise software platform, powerful IP connected data concentrators, and a family of intelligent, communicating electricity meters and meter boards that can be built into customized meters by the VAR. "We believe that GÖRLITZ, with their relationships with hundreds of utilities across Europe and particular strength in Germany, could rapidly expand the adoption of smart metering systems across Europe," said Echelon's Chairman and CEO Ken Oshman. "GÖRLITZ's focus on metering systems as communications networks and sources of data to be managed for competitive advantage represent the kind of forward-thinking viewpoint that we believe utilities are increasingly seeking. Their adoption of the NES platform should enable them to build on their strengths and continue to provide solutions that not only lead the market in technology but more importantly, lead the market in solving customer problems and delivering business value." About GÖRLITZ AG EDW3000 is a state of the art metering system with integrated data collection and energy data management capabilities. The intelligent Skalar Modem family expands any kind of energy meter into a TCP/IP web based communication site automatically. Further information can be found at http://www.goerlitz.com. The EMETRION meter portfolio is GÖRLITZ's latest product segment. Five different meters serve applications from simple residential up to high potential industrial meters. Integrated communication and optimised system integration is common to all of the new EMETRION meters. Further information can be found at http://www.emetrion.com. About the NES System About Echelon Corporation ### EMETRION is a trademark of the GÖRLITZ AG. Echelon, LonWorks, Panoramix and the Echelon logo are trademarks of Echelon Corporation registered in the United States and other countries. NES Powered by Echelon is a trademark of Echelon Corporation in the US and other countries. Other marks belong to their respective companies. 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, including Echelon's Networked Energy Services (NES) system; risks associated with GÖRLITZ meeting production and delivery targets for NES based solutions, integration of existing GÖRLITZ applications with the NES system, demand for GÖRLITZ's EDW3000 system and the EMETRION meter portfolio, and demand for GÖRLITZ NES based solutions; risks associated with the NES system's ability to perform as designed and its pricing relative to alternative offerings, potential production or shipment delays of NES components to GÖRLITZ by Echelon or its production partners, the growth of the LonWorks industry worldwide, sales targets not being met, 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 and GÖRLITZ undertake 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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