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Echelon Technology Adopted as European Building Control Standard

Echelon fortifies leadership: new standard underlines success in Europe, acclaimed buildings save energy, and new products offer innovative features and lower costs

(ORLANDO, FL – February 7, 2005) - Echelon Corporation (NASDAQ: ELON), the creator of the LonWorks® device networking platform for networking everyday devices to each other and the Internet, today announced at the 2005 International Air-Conditioning, Heating, Refrigerating Exposition (AHR Expo), that the communications protocol underlying its market-leading technology has been incorporated into the European prEN 14908 building control standard. This important decision, combined with recent distinguished installations and a new suite of products, continues to demonstrate Echelon's leadership in the building control industry.

The European prEN 14908 building control standard formally acknowledges the role of LonWorks networks in the European building market, providing a harmonized standard across the region. prEN 14908 is the latest adoption of the LonWorks platform into standards worldwide, including industrial, building, home, and transportation regulations. Final ratification of prEN 14908 is in process.

"We are very encouraged that standards bodies are adopting Echelon's platform into their specifications," said Michael Tennefoss, Echelon's vice president of marketing. "The incorporation of the LonWorks protocol into the prEN 14908 standard underscores the market momentum and benefits of LonWorks networks, and recognizes the substantial and growing position these networks have achieved in the European market."

High Profile Successes: NYC Schools, LBL, and Genzyme
A growing trend in the commercial building industry is to combine award-winning architectural design with advanced building automation control systems to provide significant life-cycle cost savings and cutting-edge energy efficiency, air quality, and safety systems. Recently completed examples of LonWorks based building applications include the New York City Public Schools adoption of a LonWorks based building specification, Lawrence Berkeley Laboratory (LBL) and the California Energy Commission's use of LonWorks networks to solve energy management issues with California's 85,000 portable classrooms, and the Genzyme World Headquarters in Cambridge. New York City Public Schools has specified open LonWorks based products and Echelon's software for their 1,200 buildings. LBL's project is designed to reduce energy costs of portable classrooms by 30% while improving air quality and is intended to produce a specification for all of California's portable classrooms. Genzyme has combined LonWorks technology with architectural features to better utilize solar energy and natural daylight to increase overall energy efficiency.

"Building owners are demanding more effective automation systems, and the ability to easily control and expand these systems," said Alan Slabodkin, Western Allied Corporation, LonWorks integrator. "Echelon's technology extends the freedom to choose from among a wide range of LonWorks device manufacturers, and to install and maintain the resulting system using one common integration tool. Owners and facility managers gain confidence about holding down life-cycle costs and supporting future upgrades knowing that their building automation system is based on a standardized infrastructure."

New Echelon Products Optimal for Building Automation
Echelon recently introduced a new suite of Internet connectivity, integration, and maintenance tools. The i.LON® 100 e2 Internet Server is a low-cost, high-performance network interface that connects LonWorks devices to the Internet and provides a SOAP/XML Web services interface for use by custom Web pages and for integration with enterprise applications. The new LonScanner™ Analyzer allows installation and service personnel to quickly assess the status of a LonWorks network, monitor system and device communication levels, and track network packets over time. The new U10 and U20 USB Network Interfaces provide a very low-cost plug-and-play means of connecting a LonWorks twisted pair or power line network to a PC or controller. These powerful new tools lower the cost of entry into the building automation market, and make it easier to design, install and maintain LonWorks networks.

AHR Expo is taking place February 7-9 at the Orange County Convention Center in Orlando, Florida. More information can be found online at www.ahrexpo.com.

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

Further information regarding Echelon can be found at http://www.echelon.com.

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Echelon, LonWorks, i.LON, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. LonScanner is trademark of Echelon Corporation. 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 and demand for Echelon products and services, the growth of the LonWorks industry; risks associated with the successful ratification of prEN 14908 and market acceptance and adoption of a ratified prEN 14908; risks associated with the successful completion of Lawrence Berkeley National Laboratory's clean air project, extent to which LonWorks based products are used in actual projects, and the adoption by the State of California of the final specifications; risks associated with adoption and use of the LonWorks specification in projects that the New York City Public district implements and risks associated with the inclusion of Echelon's products or technology in actual projects; 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 Contacts:

Steve Nguyen
Echelon Corporation
+1-408-938-5243
qnguyen@echelon.com

Abigail Johnson/Paul Michelson
Roeder-Johnson Corporation
(650) 802-1850
http://email.roeder-johnson.com

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