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LonWorks Open Systems to Help Keep the 2004 Olympics Running Smoothly

(San Jose, CA– July 14, 2004) - Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks® device networking platform for connecting everyday devices to each other and the Internet, today announced that smart LonWorks open systems including heating, ventilation and air-conditioning (HVAC) as well as energy management will be used in the baseball, softball and hockey venues at the 2004 Summer Olympic Games in Athens, Greece. The system utilizes a flat architecture built on Echelon's LNS® network operating system and includes interoperable devices, automation functions and system management. The simple to manage, reliable, expandable, and highly cost competitive system is based on LonMark® certified interoperable products from Honeywell (Excel 5000 products) and Continental Controls (the WattNode energy sub-meters), managed by Honeywell's LNS based CARE network management tool.

Games organizers called upon Controline S.A., a Honeywell authorized distributor located in Greece, to monitor energy and reduce the risk of power loss during the games. According to George Michalopoulos, Controline's general manager, "When we began this project, we knew we needed a device networking platform that met our need to have an open bidding environment for equipment, easy integration of multiple products from various building sub-systems, and could accommodate expansion plans that had yet to be finalized. Given the criteria, only a LonWorks based open system would do." The LonMark certified WattNode sub-meters are networked together using Echelon's free-topology twisted pair signaling technology (ANSI/EIA709.3) to efficiently monitor and manage energy in the venues. The device network monitors low and middle voltage distribution boards and manages changeover and isolation relays in the event of a power loss requiring back-up power generation.

"We were able to use a single network management tool to install and configure the products from different companies without expensive gateways, customized tools, or any of the usual restrictions of closed architectures. Our LonWorks based system allowed us to leverage an open, international standard to reduce energy costs and give everyone confidence that the lights will stay on throughout the Games," added Mr. Michalopoulos.

Pending the completion of discussions about post-Games use of the facilities, Controline is planning on tying the existing networks together using Echelon's i.LON® 100 Internet Servers over an IP backbone to better manage the set of venues as a group and lower maintenance and support costs. The i.LON servers will enable Controline or other organizations to seamlessly connect the existing device networks, and effectively every single LonWorks based device on each network, to remote applications or enterprise software using industry standard XML and web services.

"It's exciting to have LonWorks open systems and Echelon's technology as a part of the Games," said Bea Yormark, Echelon's president and COO. "The Olympics are all about international cooperation and the spirit of competition – exactly what we have worked for in the automation world. We believe that the LonWorks platform has indeed brought about a new era of open competition and technological cooperativeness amongst companies worldwide. We are happy that Controline and the site contractors made the decision to choose LonWorks open systems and our LNS software for the 2004 Olympics."

Controline S.A operates in the Greek building automation and control market, representing Honeywell Home and Building Control Systems as an authorized distributor. Controline's main areas of expertise and specialization are in open systems networks and IT integration.

About Echelon
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 over 40 million LonWorks based devices have been installed in homes, buildings, factories, trains, and other systems worldwide.

More information is available at http://www.lonmark.org. 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 20-21 in Shanghai, China. More information on the show can be found at http://www.lonworldexpo.com.

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Echelon, LonWorks, LonMark, i.LON, LNS, LonWorld and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Other product or service names mentioned herein are the trademarks of their respective owners.

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, the ability of products to work as designed; 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
+1-408-938-5272
qnguyen@echelon.com

Grant Mahmutovich
TEMA AG
+49 (241) 88 97 043
mahmutovic@tema.de

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

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