New Ultra-Low-Cost Echelon Development Kit Makes Designing Control Networks a Breeze

Control Network Pioneer Moves Aggressively to Support Rapid Network Development and Deployment in Price-sensitive and Mass Markets

(San Francisco, CA - March 7, 2005) Embedded Systems Conference, Booth #2506 - Echelon Corporation (NASDAQ: ELON), a pioneer in control networking, and the world's leading supplier of technology for the widely-used LonWorks® control networking platform, announced today a new development kit that could dramatically simplify the process of evaluating and deploying control networks. This development kit is designed for everyone, particularly in the rapidly growing, price-sensitive "mass" markets of "smart" light switches, thermostats, and other simple devices and sensors. The new tool, called the Mini EVK, is priced at only $345 – less than one-tenth the price of previously-available development kits – making it affordable for virtually any engineer to assess the viability of the LonWorks platform for his or her control network product or product line. Moreover, the richly featured Mini EVK may be the only development platform many engineers require.

This announcement signals Echelon's latest move to support cost-effective development and rapid deployment of value-driven and cost sensitive control network applications.

"The Mini EVK is a breakthrough for designers. It is intended to excite their curiosity, demonstrate new capabilities, and significantly speed product development," said Michael Tennefoss, vice president of marketing for Echelon. "With the Mini EVK, designers can rapidly and inexpensively explore the benefits of adding control networking technology to devices as simple as a light switch – or as complex as industrial machines and system controllers for commercial buildings." Tennefoss said that the Mini EVK features a rich evaluation and programming environment that is ideal for designers, but is so easy to use that it will find a home among product managers and systems architects, as well as educators and students. "This kit will attract and introduce an entire new generation to the world of control networking," predicted Tennefoss.

Signals New Strategy
Echelon, which virtually invented the control network category when it introduced its LonWorks platform over a decade ago, has seen its technologies and products designed into thousands of products whose worldwide deployment has exceeded 40 million to date. The total available market; however, for very-low-cost control network nodes is orders of magnitude larger than this installed base, and is mainly represented by products that are not part of any network today, such as individual lights; switches and ballasts; and consumer and home products such as appliances, alarms, and thermostats. This presents a tremendous opportunity for Echelon and the manufacturers of such devices as the market growth long predicted by analysts begins to materialize.

According to M. Kenneth Oshman, CEO and chairman of Echelon, "Echelon's vision is one of a world where every electronic device, no matter the size or cost, is part of a control network. Our strategy is to develop the products, technologies and applications that make us the leader in the control networks market. Today, we are putting special emphasis on showing the value of such networks to engineers, product planners, and system architects - offering them the possibility of world-class results for a very small investment in time and money. Over the coming months and years we intend to drive the control networks market even further through a systematic roll-out of new products and technologies that deliver unprecedented value - helping designers around the world make our vision a reality."

About the Mini EVK
The Mini EVK is an out-of-the box development tool that is available in twisted pair and power line versions, both of which leverage Echelon's unique Smart Transceiver technology. A USB PC interface, flash memory based evaluation boards, and compiler are all included.

The twisted pair version uses Echelon's free topology transceivers that eliminate restrictions with regard to the layout of the wiring topology. The power line version utilizes Echelon's PL 3120® and PL 3150® Power Line Smart Transceivers and includes plug-in wall adapters to communicate over AC power lines. The power line version of the Mini EVK makes creating a control network as simple as plugging the evaluation boards into two different electrical outlets. Flexible I/O boards are also provided to enable the user to initiate and display control actions through the evaluation boards. Additional detailed information about the Mini EVK can be found at http://www.echelon.com/mini.

The Mini EVK will be available in the second quarter of 2005 through Echelon or an Echelon distributor. The price noted above is in US Dollars and valid in North America. Pricing may vary in other regions.

About Echelon Corporation
Echelon Corporation (NASDAQ: ELON) is a pioneer and world leader in control networking – networks that connect machines and other electronic devices – for the purpose of sensing, monitoring and controlling the world around us. Echelon's component and system-level hardware and software products are used by OEMs, VARs, system integrators, utilities – and virtually every class of institution – to design, build, deploy and/or operate robust, scaleable, standards-based control networks and devices. Echelon technology can be found in thermostats, light switches and controllers, electricity meters, appliances, heating and air-conditioning systems, traffic signals, trains, aircraft, factories, and buildings – in more than 40 million "smart" devices made by thousands of manufacturers.

Echelon is also the creator of the LonWorks platform, an extremely robust, flexible, and expandable standards-based control networking platform upon which manufacturers can build products and applications with unparalleled reliability, security, operational integrity, flexibility, and bottom-line value. The worldwide adoption of the platform prompted the formation of LONMARK® International, an independent trade organization that certifies LonWorks based products against an interoperability specification that allows devices from differing manufacturers to work together; educates the market about the value of device interoperability and open control networks; and creates awareness programs for potential end-users, OEM manufacturers, and integrators of LONMARK certified products and LONMARK systems. For planners, system architects, or OEM designers of control network products and families there is no better choice than Echelon.

Echelon is based in San Jose, California, with international offices in China, France, Germany, Italy, Hong Kong, Japan, Korea, The Netherlands, and the United Kingdom. Further information regarding Echelon can be found at http://www.echelon.com.

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Echelon, LonWorks, LonMark, 3120, 3150, and the Echelon logo are registered trademarks of Echelon Corporation registered 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 and demand for Echelon products and services, and the growth of the LonWorks industry; risks associated with adoption of the Mini EVK by developers in markets other than those that have already adopted the LonWorks platform, and market acceptance of products developed, if any, using the Mini EVK; 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	Abigail Johnson/Paul Michelson Roeder-Johnson Corporation (650) 802-1850 http://email.roeder-johnson.com

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