Vattenfall AB Selects Echelon's NES Smart Electricity Metering System for up to 700,000 CustomersSwedish Utility to Award Tender to NES Partner Telvent(San Jose, CA - December 19, 2005) - Echelon Corporation (NASDAQ: ELON), announced today that the Swedish utility, Vattenfall AB, has selected Echelon's NES System for deployment of what is believed to be the largest installation of a modern, intelligent metering infrastructure since its groundbreaking project with Enel in Italy. Vattenfall has selected NES Value-Added Reseller partner Telvent (NASDAQ: TLVT) as the prime contractor to supply the NES (Networked Energy Services) metering system to up to 700,000 customers beginning in the first quarter of 2006. The completed project would represent approximately 13% of the entire Swedish residential market which is in the early stages of transitioning to fully automated metering in response to legislation designed to promote a more open and efficient energy market. Vattenfall, already a leading customer driven utility and one of Sweden's largest, will be installing a system that combines the advantages of AMM (Automated Meter Management), AMI (Advanced Metering Infrastructure), and automated meter reading systems in a single, multi-function, smart metering infrastructure. The framework contract award is for the installation of a smart metering infrastructure to service approximately 300,000 residential customers in Sweden to be supplied in six phases of 50,000 customers each beginning in the first quarter of 2006 with options for four more phases, each for an additional 100,000 customers. The initial six phases are expected to complete in 2008 with expected revenue to Echelon of between $20 million and $30 million. With options, the project could extend into 2008 or 2009 and lead to over $50 million in revenue, depending upon how many options Vattenfall exercises, if any. “We are delighted that Vattenfall has chosen the NES system for their project and our partner Telvent as the prime contractor to meet their aggressive deployment schedule," said Ken Oshman, Echelon's CEO and chairman. “Sweden is one of the most active utility markets today and we believe the selection of the NES system for a project of such large scale clearly signals the market acceptance of next generation metering systems in favor over the limited functions of the AMR systems of the past. The Vattenfall decision marks the emergence of our NES business and the validation of our strategy as we begin to realize the results of our investments for the last several years in products, technologies, and partners." Echelon's NES system provides an open, bidirectional, and extensible infrastructure that enables a comprehensive range of utility applications that can bring benefits to every aspect of a utility's operation, from metering, to customer services, to distribution operations, to value-added services. By choosing the NES system, Vattenfall can expect to have better control over energy usage and save substantial cost in monthly meter reading and other areas of their operations while providing improved customer service. According to Mr. Manuel Sánchez Ortega, Telvent’s chairman and chief executive officer, “This project is a world-class opportunity in the area of system integration of electrical measurement applications, as it involves the management of real-time information and its integration with other existing systems. We are pleased to have been chosen by Vattenfall to undertake this project that will become the showcase reference for automated meter management systems at an international level." Telvent was the first company to join Echelon's NES Value-Added Reseller (VAR) program – joining in December 2003. The NES VAR program is designed to establish Echelon's NES system as a global standard for intelligent metering systems by enabling companies that provide products and services to the utility industry to adopt and adapt the NES infrastructure as the basis for their end-to-end metering solutions sold under the NES Powered by Echelon™ branding program. More information about Echelon’s NES System and the NES VAR program may be found at http://www.echelon.com/nes. Swedish energy markets were deregulated in 1996. In June 2003 the Swedish parliament passed regulations requiring all electricity meters in Sweden to be read on a monthly basis by July 1, 2009. Sweden is among the most intense electricity users in the world, with an average consumption of over 16,000 kWh per capita. Counting both households and companies, there are over 5 million electricity users in Sweden. Electricity is distributed by approximately 170 power utilities, of which Vattenfall, Fortum, and Sydkraft are the largest – with approximately 1 million customers each. About Vattenfall About Telvent About Echelon Corporation 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. ### Echelon, LonWorks, and the Echelon logo are registered trademarks of Echelon Corporation registered in the United States and other countries. Networked Energy Services Powered by Echelon, NES Powered by Echelon, and Pyxos are trademarks of Echelon Corporation in the US 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, including statements regarding the number of Vattenfall customers that will be served by the NES metering system, the relative size of the project when compared with other installations, and the emergence of Echelon’s NES business and VAR channel. Such statements may involve risks and uncertainties, including risks associated with market acceptance of the NES system and the NES system's ability to perform as designed; the risk that the Vattenfall project is subsequently cancelled or reduced in size; risks associated with potential production or shipment delays of NES components to Telvent by Echelon or its production partners; risks that the Vattenfall deployment and system integration activities with Echelon, Telvent and other partners in the project are not successful, do not meet their target dates, do not expand or gain momentum, cause Echelon to be liable for penalties or cause Vattenfall to terminate the project; risks that payments in respect of the Vattenfall project are not received when due; the risk that the contemplated transactions are challenged by third parties; 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
|
||||||||
 |